This document includes Senate Committee Amendments incorporated into the bill on Tue, Feb 6, 2018 at 10:16 AM by lpoole.
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TRANSPORTATION GOVERNANCE AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Wayne A. Harper

5     
House Sponsor: Mike Schultz

6     

7     LONG TITLE
8     Committee Note:
9          The Transportation Governance and Funding Task Force recommended this bill.
10               Membership:     4 legislators     12 non-legislators
11               Legislative Vote:     4 voting for     0 voting against     0 absent
12     General Description:
13          This bill modifies governance of certain public transit districts, amends provisions
14     related to registration fees, modifies taxes related to transportation, modifies the
15     governance of the Department of Transportation, and makes other changes.
16     Highlighted Provisions:
17          This bill:
18          ▸     amends and enacts provisions to allow local jurisdictions to share property tax
19     revenue for transportation capital development projects;
20          ▸     defines "large public transit district" and "small public transit district";
21          ▸     modifies the makeup of the board of trustees of a large public transit district by:
22               •     reducing membership from 16 to three;
23               •     vesting nomination responsibilities in executives of local governments and
24     appointment responsibilities in the governor; and
25               •     defining responsibilities of the members of the board of trustees;
26           ▸     creates a local advisory board for a large public transit district and defines the
27     membership and duties of a local advisory board;

28          ▸     requires a large public transit district to transition retirement benefits to fall under
29     the provisions and oversight provided in the Utah State Retirement and Insurance
30     Benefit Act;
31          ▸     exempts certain meetings of members of the board of trustees of a large public
32     transit district from the Open and Public Meetings Act;
33          ▸     defines "diesel fuel," "electric vehicle," "hybrid electric vehicle," "motor fuel," and
34     "natural gas";
35          ▸     modifies provisions imposing registration fees on motor vehicles based on the type
36     of motor vehicle and fuel used to propel the vehicle;
37          ▸     creates the "Public Transportation Capital Investment Fund" within the
38     Transportation Investment Fund of 2005;
39          ▸     increases the tax on hotel room stays and other accommodations and allocates the
40     increased revenue to the Public Transportation Capital Investment Fund;
41          ▸     imposes a deadline for a local government to impose certain local option sales and
42     use taxes, after which the state imposes the portion of authorized local option sales
43     and use taxes still unimposed by the local government;
44          ▸     allows a county, city, or town to impose certain local option sales and use taxes
45     without submitting the question to the county's, city's, or town's registered voters;
45a     Ŝ→      ▸ amends provisions related to the expenditure of certain local option sales and use
45b     taxes; ←Ŝ
46          ▸     modifies certain responsibilities of the Department of Transportation and the
47     executive director of the Department of Transportation related to supervision and
48     oversight of certain projects and cooperation with other entities involved in a
49     project;
50          ▸     modifies governance of the Department of Transportation, including:
51               •     requiring a second deputy director;
52               •     describing the qualifications for each deputy; and
53               •     describing the responsibilities of each deputy director;
54          ▸     creates the Planning and Investment Division within the Department of
55     Transportation;
56          ▸     modifies requirements for the Department of Transportation to develop statewide
57     strategic initiatives for coordinating and planning multimodal transportation;
58          ▸     requires the Department of Transportation to study a road user charge and

59     implement a demonstration program;
60          ▸     requires the Transportation Commission to include public transit projects in the
61     prioritization process to allocate funds;
62          ▸     modifies criteria for the Transportation Commission to consider while prioritizing
63     transportation and public transit projects;
64          ▸     allows corridor preservation funds to be used for public transit district corridors;
65     and
66          ▸     requires the Department of Transportation to assume responsibilities for review and
67     approval of projects under the requirements of the National Environmental Policy
68     Act of 1969.
69     Money Appropriated in this Bill:
70          None
71     Other Special Clauses:
72          This bill provides a special effective date.
73     Utah Code Sections Affected:
74     AMENDS:
75          11-13-103, as last amended by Laws of Utah 2016, Chapter 382
76          11-13-202, as last amended by Laws of Utah 2009, Chapter 218
77          11-13-206, as last amended by Laws of Utah 2015, Chapter 265
78          11-13-207, as last amended by Laws of Utah 2015, Chapter 265
79          17B-1-301, as last amended by Laws of Utah 2014, Chapter 362
80          17B-1-702, as renumbered and amended by Laws of Utah 2007, Chapter 329
81          17B-1-703, as renumbered and amended by Laws of Utah 2007, Chapter 329
82          17B-2a-802, as last amended by Laws of Utah 2016, Chapter 387
83          17B-2a-804, as last amended by Laws of Utah 2017, Chapters 181 and 427
84          17B-2a-807, as last amended by Laws of Utah 2017, Chapter 70
85          17B-2a-808, as last amended by Laws of Utah 2010, Chapter 281
86          17B-2a-810, as last amended by Laws of Utah 2016, Chapter 56
87          17B-2a-811, as last amended by Laws of Utah 2010, Chapter 281
88          17B-2a-826, as enacted by Laws of Utah 2017, Chapter 427
89          41-1a-102, as last amended by Laws of Utah 2016, Chapter 40

90          41-1a-1201, as last amended by Laws of Utah 2017, Chapters 261 and 406
91          41-1a-1206, as last amended by Laws of Utah 2017, Chapters 261, 406 and last
92     amended by Coordination Clause, Laws of Utah 2017, Chapter 261
93          52-4-103, as last amended by Laws of Utah 2017, Chapters 196, 277, and 441
94          59-12-1201, as last amended by Laws of Utah 2016, Chapters 184, 291, and 291
95          59-12-2002, as enacted by Laws of Utah 2008, Chapter 286
96          59-12-2003, as last amended by Laws of Utah 2017, Chapter 422
97          59-12-2213, as last amended by Laws of Utah 2011, Chapter 223
98          59-12-2214, as last amended by Laws of Utah 2015, Chapter 421
99          59-12-2215, as enacted by Laws of Utah 2010, Chapter 263
100          59-12-2216, as enacted by Laws of Utah 2010, Chapter 263
101          59-12-2217, as last amended by Laws of Utah 2017, Chapter 240
102          59-12-2218, as last amended by Laws of Utah 2017, Chapter 240
103          59-12-2219, as last amended by Laws of Utah 2016, Chapter 373
104          59-28-103, as enacted by Laws of Utah 2017, Chapter 166
105          63G-6a-1402, as last amended by Laws of Utah 2017, Chapter 348
106          72-1-102, as last amended by Laws of Utah 2001, Chapter 372
107          72-1-202, as last amended by Laws of Utah 2013, Chapter 78
108          72-1-203, as last amended by Laws of Utah 2006, Chapter 139
109          72-1-204, as last amended by Laws of Utah 2017, Chapter 97
110          72-1-208, as last amended by Laws of Utah 2016, Chapter 350
111          72-1-211, as last amended by Laws of Utah 2008, Chapter 382
112          72-1-213, as enacted by Laws of Utah 2015, Chapter 275
113          72-1-303, as last amended by Laws of Utah 2011, Chapter 256
114          72-1-304, as last amended by Laws of Utah 2008, Chapter 382
115          72-1-305, as last amended by Laws of Utah 2009, Chapter 364
116          72-2-117.5, as last amended by Laws of Utah 2017, Chapter 240
117          72-2-121, as last amended by Laws of Utah 2017, Chapter 436
118          72-2-121.3, as last amended by Laws of Utah 2015, Chapter 421
119          72-2-124, as last amended by Laws of Utah 2017, Chapter 436
120          72-5-401, as last amended by Laws of Utah 2005, Chapter 254

121          72-6-120, as last amended by Laws of Utah 2015, Chapter 144
122     ENACTS:
123          11-13-227, Utah Code Annotated 1953
124          17B-2a-807.1, Utah Code Annotated 1953
125          17B-2a-808.1, Utah Code Annotated 1953
126          17B-2a-808.2, Utah Code Annotated 1953
127          17B-2a-811.1, Utah Code Annotated 1953
128          59-12-2003.1, Utah Code Annotated 1953
129     REPEALS:
130          17B-2a-807.5, as enacted by Laws of Utah 2009, Chapter 364
131     

132     Be it enacted by the Legislature of the state of Utah:
133          Section 1. Section 11-13-103 is amended to read:
134          11-13-103. Definitions.
135          As used in this chapter:
136          (1) (a) "Additional project capacity" means electric generating capacity provided by a
137     generating unit that first produces electricity on or after May 6, 2002, and that is constructed or
138     installed at or adjacent to the site of a project that first produced electricity before May 6, 2002,
139     regardless of whether:
140          (i) the owners of the new generating unit are the same as or different from the owner of
141     the project; and
142          (ii) the purchasers of electricity from the new generating unit are the same as or
143     different from the purchasers of electricity from the project.
144          (b) "Additional project capacity" does not mean or include replacement project
145     capacity.
146          (2) "Board" means the Permanent Community Impact Fund Board created by Section
147     35A-8-304, and its successors.
148          (3) "Candidate" means one or more of:
149          (a) the state;
150          (b) a county, municipality, school district, local district, special service district, or other
151     political subdivision of the state; and

152          (c) a prosecution district.
153          (4) "Commercial project entity" means a project entity, defined in Subsection (18),
154     that:
155          (a) has no taxing authority; and
156          (b) is not supported in whole or in part by and does not expend or disburse tax
157     revenues.
158          (5) "Direct impacts" means an increase in the need for public facilities or services that
159     is attributable to the project or facilities providing additional project capacity, except impacts
160     resulting from the construction or operation of a facility that is:
161          (a) owned by an owner other than the owner of the project or of the facilities providing
162     additional project capacity; and
163          (b) used to furnish fuel, construction, or operation materials for use in the project.
164          (6) "Electric interlocal entity" means an interlocal entity described in Subsection
165     11-13-203(3).
166          (7) "Energy services interlocal entity" means an interlocal entity that is described in
167     Subsection 11-13-203(4).
168          (8) (a) "Estimated electric requirements," when used with respect to a qualified energy
169     services interlocal entity, includes any of the following that meets the requirements of
170     Subsection (8)(b):
171          (i) generation capacity;
172          (ii) generation output; or
173          (iii) an electric energy production facility.
174          (b) An item listed in Subsection (8)(a) is included in "estimated electric requirements"
175     if it is needed by the qualified energy services interlocal entity to perform the qualified energy
176     services interlocal entity's contractual or legal obligations to any of its members.
177          (9) (a) "Facilities providing replacement project capacity" means facilities that have
178     been, are being, or are proposed to be constructed, reconstructed, converted, repowered,
179     acquired, leased, used, or installed to provide replacement project capacity.
180          (b) "Facilities providing replacement project capacity" includes facilities that have
181     been, are being, or are proposed to be constructed, reconstructed, converted, repowered,
182     acquired, leased, used, or installed:

183          (i) to support and facilitate the construction, reconstruction, conversion, repowering,
184     installation, financing, operation, management, or use of replacement project capacity; or
185          (ii) for the distribution of power generated from existing capacity or replacement
186     project capacity to facilities located on real property in which the project entity that owns the
187     project has an ownership, leasehold, right-of-way, or permitted interest.
188          (10) "Governing authority" means a governing board or joint administrator.
189          (11) (a) "Governing board" means the body established in reliance on the authority
190     provided under Subsection 11-13-206(1)(b) to govern an interlocal entity.
191          (b) "Governing board" includes a board of directors described in an agreement, as
192     amended, that creates a project entity.
193          (c) "Governing board" does not include a board as defined in Subsection (2).
194          (12) "Interlocal entity" means:
195          (a) a Utah interlocal entity, an electric interlocal entity, or an energy services interlocal
196     entity; or
197          (b) a separate legal or administrative entity created under Section 11-13-205.
198          (13) "Joint administrator" means an administrator or joint board described in Section
199     11-13-207 to administer a joint or cooperative undertaking.
200          (14) "Joint or cooperative undertaking" means an undertaking described in Section
201     11-13-207 that is not conducted by an interlocal entity.
202          (15) "Member" means a public agency that, with another public agency, creates an
203     interlocal entity under Section 11-13-203.
204          (16) "Out-of-state public agency" means a public agency as defined in Subsection
205     (19)(c), (d), or (e).
206          (17) (a) "Project":
207          (i) means an electric generation and transmission facility owned by a Utah interlocal
208     entity or an electric interlocal entity; and
209          (ii) includes fuel or fuel transportation facilities and water facilities owned by that Utah
210     interlocal entity or electric interlocal entity and required for the generation and transmission
211     facility.
212          (b) "Project" includes a project entity's ownership interest in:
213          (i) facilities that provide additional project capacity;

214          (ii) facilities providing replacement project capacity; and
215          (iii) additional generating, transmission, fuel, fuel transportation, water, or other
216     facilities added to a project.
217          (18) "Project entity" means a Utah interlocal entity or an electric interlocal entity that
218     owns a project as defined in this section.
219          (19) "Public agency" means:
220          (a) a city, town, county, school district, local district, special service district, an
221     interlocal entity, or other political subdivision of the state;
222          (b) the state or any department, division, or agency of the state;
223          (c) any agency of the United States;
224          (d) any political subdivision or agency of another state or the District of Columbia
225     including any interlocal cooperation or joint powers agency formed under the authority of the
226     law of the other state or the District of Columbia; or
227          (e) any Indian tribe, band, nation, or other organized group or community which is
228     recognized as eligible for the special programs and services provided by the United States to
229     Indians because of their status as Indians.
230          (20) "Qualified energy services interlocal entity" means an energy services interlocal
231     entity that at the time that the energy services interlocal entity acquires its interest in facilities
232     providing additional project capacity has at least five members that are Utah public agencies.
233          (21) "Replacement project capacity" means electric generating capacity or transmission
234     capacity that:
235          (a) replaces all or a portion of the existing electric generating or transmission capacity
236     of a project; and
237          (b) is provided by a facility that is on, adjacent to, in proximity to, or interconnected
238     with the site of a project, regardless of whether:
239          (i) the capacity replacing existing capacity is less than or exceeds the generating or
240     transmission capacity of the project existing before installation of the capacity replacing
241     existing capacity;
242          (ii) the capacity replacing existing capacity is owned by the project entity that is the
243     owner of the project, a segment established by the project entity, or a person with whom the
244     project entity or a segment established by the project entity has contracted; or

245          (iii) the facility that provides the capacity replacing existing capacity is constructed,
246     reconstructed, converted, repowered, acquired, leased, used, or installed before or after any
247     actual or anticipated reduction or modification to existing capacity of the project.
248          (22) "Transportation reinvestment zone" means an area created by two or more public
249     agencies by interlocal agreement to capture increased property tax revenue generated by a
250     transportation infrastructure project as described in Section 11-13-227.
251          [(22)] (23) "Utah interlocal entity":
252          (a) means an interlocal entity described in Subsection 11-13-203(2); and
253          (b) includes a separate legal or administrative entity created under Laws of Utah 1977,
254     Chapter 47, Section 3, as amended.
255          [(23)] (24) "Utah public agency" means a public agency under Subsection (19)(a) or
256     (b).
257          Section 2. Section 11-13-202 is amended to read:
258          11-13-202. Agreements for joint or cooperative undertaking, for providing or
259     exchanging services, or for law enforcement services -- Effective date of agreement --
260     Public agencies may restrict their authority or exempt each other regarding permits and
261     fees.
262          (1) Any two or more public agencies may enter into an agreement with one another
263     under this chapter:
264          (a) for joint or cooperative action;
265          (b) to provide services that they are each authorized by statute to provide;
266          (c) to exchange services that they are each authorized by statute to provide;
267          (d) for a public agency to provide law enforcement services to one or more other public
268     agencies, if the public agency providing law enforcement services under the interlocal
269     agreement is authorized by law to provide those services, or to provide joint or cooperative law
270     enforcement services between or among public agencies that are each authorized by law to
271     provide those services; [or]
272          (e) to create a transportation reinvestment zone as defined in Section 11-13-103; or
273          [(e)] (f) to do anything else that they are each authorized by statute to do.
274          (2) An agreement under Subsection (1) does not take effect until it has been approved,
275     as provided in Section 11-13-202.5, by each public agency that is a party to it.

276          (3) (a) In an agreement under Subsection (1), a public agency that is a party to the
277     agreement may agree:
278          (i) to restrict its authority to issue permits to or assess fees from another public agency
279     that is a party to the agreement; and
280          (ii) to exempt another public agency that is a party to the agreement from permit or fee
281     requirements.
282          (b) A provision in an agreement under Subsection (1) whereby the parties agree as
283     provided in Subsection (3)(a) is subject to all remedies provided by law and in the agreement,
284     including injunction, mandamus, abatement, or other remedy to prevent, enjoin, abate, or
285     enforce the provision.
286          (4) An interlocal agreement between a county and one or more municipalities for law
287     enforcement service within an area that includes some or all of the unincorporated area of the
288     county shall require the law enforcement service provided under the agreement to be provided
289     by or under the direction of the county sheriff.
290          Section 3. Section 11-13-206 is amended to read:
291          11-13-206. Requirements for agreements for joint or cooperative action.
292          (1) Each agreement under Section 11-13-202, 11-13-203, [or] 11-13-205, or 11-13-227
293     shall specify:
294          (a) its duration;
295          (b) if the agreement creates an interlocal entity:
296          (i) the precise organization, composition, and nature of the interlocal entity;
297          (ii) the powers delegated to the interlocal entity;
298          (iii) the manner in which the interlocal entity is to be governed; and
299          (iv) subject to Subsection (2), the manner in which the members of its governing board
300     are to be appointed or selected;
301          (c) its purpose or purposes;
302          (d) the manner of financing the joint or cooperative action and of establishing and
303     maintaining a budget for it;
304          (e) the permissible method or methods to be employed in accomplishing the partial or
305     complete termination of the agreement and for disposing of property upon such partial or
306     complete termination;

307          (f) the process, conditions, and terms for withdrawal of a participating public agency
308     from the interlocal entity or the joint or cooperative undertaking;
309          (g) (i) whether voting is based upon one vote per member or weighted; and
310          (ii) if weighted voting is allowed, the basis upon which the vote weight will be
311     determined; and
312          (h) any other necessary and proper matters.
313          (2) Each agreement under Section 11-13-203 or 11-13-205 that creates an interlocal
314     entity shall require that Utah public agencies that are parties to the agreement have the right to
315     appoint or select members of the interlocal entity's governing board with a majority of the
316     voting power.
317          Section 4. Section 11-13-207 is amended to read:
318          11-13-207. Additional requirements for agreement not establishing interlocal
319     entity.
320          (1) If an agreement under Section 11-13-202 or 11-13-227 does not establish an
321     interlocal entity to conduct the joint or cooperative undertaking, the agreement shall, in
322     addition to the items specified in Section 11-13-206, provide for:
323          (a) the joint or cooperative undertaking to be administered by:
324          (i) an administrator; or
325          (ii) a joint board with representation from the public agencies that are parties to the
326     agreement;
327          (b) the manner of acquiring, holding, and disposing of real and personal property used
328     in the joint or cooperative undertaking;
329          (c) the functions to be performed by the joint or cooperative undertaking; and
330          (d) the powers of the joint administrator.
331          (2) The creation, operation, governance, and fiscal procedures of a joint or cooperative
332     undertaking are governed by this chapter.
333          Section 5. Section 11-13-227 is enacted to read:
334          11-13-227. Transportation reinvestment zones.
335          (1) Subject to the provisions of this part, any two or more public agencies may enter
336     into an agreement with one another to create a transportation reinvestment zone as described in
337     this section.

338          (2) To create a transportation reinvestment zone, two or more public agencies shall:
339          (a) define the transportation infrastructure need and proposed improvement;
340          (b) define the boundaries of the zone;
341          (c) establish a base year to calculate the increase of property tax revenue within the
342     zone;
343          (d) establish terms for sharing any increase in property tax revenue within the zone;
344     and
345          (e) before an agreement is approved as required in Section 11-13-202.5, hold a public
346     hearing regarding the details of the proposed transportation reinvestment zone.
347          (3) Any agreement to establish a transportation reinvestment zone is subject to the
348     requirements of Sections 11-13-202, 11-13-202.5, 11-13-206, and 11-13-207.
349          (4) Each public agency that is party to an agreement under this section shall annually
350     publish a report including a statement of the increased tax revenue and the expenditures made
351     in accordance with the agreement.
352          (5) If any surplus revenue remains in a tax revenue account created as part of a
353     transportation reinvestment zone agreement, the parties may use the surplus for other purposes
354     as determined by agreement of the parties.
355          Section 6. Section 17B-1-301 is amended to read:
356          17B-1-301. Board of trustees duties and powers.
357          (1) (a) Each local district shall be governed by a board of trustees which shall manage
358     and conduct the business and affairs of the district and shall determine all questions of district
359     policy.
360          (b) All powers of a local district are exercised through the board of trustees.
361          (2) The board of trustees may:
362          (a) fix the location of the local district's principal place of business and the location of
363     all offices and departments, if any;
364          (b) fix the times of meetings of the board of trustees;
365          (c) select and use an official district seal;
366          (d) subject to Subsections (3) and (4), employ employees and agents, or delegate to
367     district officers power to employ employees and agents, for the operation of the local district
368     and its properties and prescribe or delegate to district officers the power to prescribe the duties,

369     compensation, and terms and conditions of employment of those employees and agents;
370          (e) require district officers and employees charged with the handling of district funds to
371     provide surety bonds in an amount set by the board or provide a blanket surety bond to cover
372     officers and employees;
373          (f) contract for or employ professionals to perform work or services for the local
374     district that cannot satisfactorily be performed by the officers or employees of the district;
375          (g) through counsel, prosecute on behalf of or defend the local district in all court
376     actions or other proceedings in which the district is a party or is otherwise involved;
377          (h) adopt bylaws for the orderly functioning of the board;
378          (i) adopt and enforce rules and regulations for the orderly operation of the local district
379     or for carrying out the district's purposes;
380          (j) prescribe a system of civil service for district employees;
381          (k) on behalf of the local district, enter into contracts that the board considers to be for
382     the benefit of the district;
383          (l) acquire, construct or cause to be constructed, operate, occupy, control, and use
384     buildings, works, or other facilities for carrying out the purposes of the local district;
385          (m) on behalf of the local district, acquire, use, hold, manage, occupy, and possess
386     property necessary to carry out the purposes of the district, dispose of property when the board
387     considers it appropriate, and institute and maintain in the name of the district any action or
388     proceeding to enforce, maintain, protect, or preserve rights or privileges associated with district
389     property;
390          (n) delegate to a district officer the exercise of a district duty; and
391          (o) exercise all powers and perform all functions in the operation of the local district
392     and its properties as are ordinarily exercised by the governing body of a political subdivision of
393     the state and as are necessary to accomplish the purposes of the district.
394          (3) (a) As used in this Subsection (3), "interim vacancy period" means:
395          (i) if any member of the local district board is elected, the period of time that:
396          (A) begins on the day on which an election is held to elect a local district board
397     member; and
398          (B) ends on the day on which the local district board member-elect begins the
399     member's term; or

400          (ii) if any member of the local district board is appointed, the period of time that:
401          (A) begins on the day on which an appointing authority posts a notice of vacancy in
402     accordance with Section 17B-1-304; and
403          (B) ends on the day on which the person who is appointed by the local district board to
404     fill the vacancy begins the person's term.
405          (b) (i) The local district may not hire during an interim vacancy period a manager, a
406     chief executive officer, a chief administrative officer, an executive director, or a similar
407     position to perform executive and administrative duties or functions.
408          (ii) Notwithstanding Subsection (3)(b)(i):
409          (A) the local district may hire an interim manager, a chief executive officer, a chief
410     administrative officer, an executive director, or a similar position during an interim vacancy
411     period; and
412          (B) the interim manager's, chief executive officer's, chief administrative officer's, or
413     similar position's employment shall terminate once a new manager, chief executive officer,
414     chief administrative officer, or similar position is hired by the new local district board after the
415     interim vacancy period has ended.
416          (c) Subsection (3)(b) does not apply if:
417          (i) all the elected local district board members who held office on the day of the
418     election for the local district board members, whose term of office was vacant for the election
419     are re-elected to the local district board; and
420          (ii) all the appointed local district board members who were appointed whose term of
421     appointment was expiring are re-appointed to the local district board.
422          (4) A local district board that hires an interim manager, a chief executive officer, a
423     chief administrative officer, an executive director, or a similar position in accordance with this
424     section may not, on or after May 10, 2011, enter into an employment contract that contains an
425     automatic renewal provision with the interim manager, chief executive officer, chief
426     administrative officer, executive director, or similar position.
427          Section 7. Section 17B-1-702 is amended to read:
428          17B-1-702. Local districts to submit budgets.
429          (1) (a) Except as provided in Subsection (1)(b), within 30 days after it is approved by
430     the board, and at least 30 days before the board adopts a final budget, the board of each local

431     district with an annual budget of $50,000 or more shall send a copy of its tentative budget and
432     notice of the time and place for its budget hearing to:
433          (i) each of its constituent entities that has in writing requested a copy; and
434          (ii) to each of its customer agencies that has in writing requested a copy.
435          (b) Within 30 days after it is approved by the board, and at least 30 days before the
436     board adopts a final budget, the board of trustees of a large public transit district [serving a
437     population of more than 200,000 people] as defined in Section 17B-2a-802 shall send a copy of
438     its tentative budget and notice of the time and place for its budget hearing to:
439          (i) each of its constituent entities;
440          (ii) each of its customer agencies that has in writing requested a copy;
441          (iii) the governor; and
442          (iv) the Legislature.
443          (c) The local district shall include with the tentative budget a signature sheet that
444     includes:
445          (i) language that the constituent entity or customer agency received the tentative budget
446     and has no objection to it; and
447          (ii) a place for the chairperson or other designee of the constituent entity or customer
448     agency to sign.
449          (2) Each constituent entity and each customer agency that receives the tentative budget
450     shall review the tentative budget submitted by the district and either:
451          (a) sign the signature sheet and return it to the district; or
452          (b) attend the budget hearing or other meeting scheduled by the district to discuss the
453     objections to the proposed budget.
454          (3) (a) If any constituent entity or customer agency that received the tentative budget
455     has not returned the signature sheet to the local district within 15 calendar days after the
456     tentative budget was mailed, the local district shall send a written notice of the budget hearing
457     to each constituent entity or customer agency that did not return a signature sheet and invite
458     them to attend that hearing.
459          (b) If requested to do so by any constituent entity or customer agency, the local district
460     shall schedule a meeting to discuss the budget with the constituent entities and customer
461     agencies.

462          (c) At the budget hearing, the local district board shall:
463          (i) explain its budget and answer any questions about it;
464          (ii) specifically address any questions or objections raised by the constituent entity,
465     customer agency, or those attending the meeting; and
466          (iii) seek to resolve the objections.
467          (4) Nothing in this part prevents a local district board from approving or implementing
468     a budget over any or all constituent entity's or customer agency's protests, objections, or failure
469     to respond.
470          Section 8. Section 17B-1-703 is amended to read:
471          17B-1-703. Local districts to submit audit reports.
472          (1) (a) Except as provided in Subsection (1)(b), within 30 days after it is presented to
473     the board, the board of each local district with an annual budget of $50,000 or more shall send
474     a copy of any audit report to:
475          (i) each of its constituent entities that has in writing requested a copy; and
476          (ii) each of its customer agencies that has in writing requested a copy.
477          (b) Within 30 days after it is presented to the board, the board of a large public transit
478     district [serving a population of more than 200,000 people] as defined in Section 17B-2a-802
479     shall send a copy of its annual audit report to:
480          (i) each of its constituent entities; and
481          (ii) each of its customer agencies that has in writing requested a copy.
482          (2) Each constituent entity and each customer agency that received the audit report
483     shall review the audit report submitted by the district and, if necessary, request a meeting with
484     the district board to discuss the audit report.
485          (3) At the meeting, the local district board shall:
486          (a) answer any questions about the audit report; and
487          (b) discuss their plans to implement suggestions made by the auditor.
488          Section 9. Section 17B-2a-802 is amended to read:
489          17B-2a-802. Definitions.
490          As used in this part:
491          (1) "Affordable housing" means housing occupied or reserved for occupancy by
492     households that meet certain gross household income requirements based on the area median

493     income for households of the same size.
494          (a) "Affordable housing" may include housing occupied or reserved for occupancy by
495     households that meet specific area median income targets or ranges of area median income
496     targets.
497          (b) "Affordable housing" does not include housing occupied or reserved for occupancy
498     by households with gross household incomes that are more than 60% of the area median
499     income for households of the same size.
500          (2) "Appointing entity" means the person, county, unincorporated area of a county, or
501     municipality appointing a member to a public transit district board of trustees.
502          (3) (a) "Chief executive officer" means a person appointed by the board of trustees of a
503     small public transit district to serve as chief executive officer.
504          (b) "Chief executive officer" shall enjoy all the rights, duties, and responsibilities
505     defined in Sections 17B-2a-810 and 17B-2a-811 and includes all rights, duties, and
506     responsibilities assigned to the general manager but prescribed by the board of trustees to be
507     fulfilled by the chief executive officer.
508          (4) "Council of governments" means a decision-making body in each county composed
509     of membership including the county governing body and the mayors of each municipality in the
510     county.
511          [(4)] (5) "Department" means the Department of Transportation created in Section
512     72-1-201.
513          (6) "Executive director" means a person appointed by the board of trustees of a large
514     public transit district to serve as executive director.
515          [(5)] (7) (a) "General manager" means a person appointed by the board of trustees of a
516     small public transit district to serve as general manager.
517          (b) "General manager" shall enjoy all the rights, duties, and responsibilities defined in
518     Sections 17B-2a-810 and 17B-2a-811 prescribed by the board of trustees of a small public
519     transit district.
520          (8) "Large public transit district" means a public transit district that provides public
521     transit to an area that includes:
522          (a) more than 65% of the population of the state based on the most recent official
523     census or census estimate of the United States Census Bureau; and

524          (b) two or more counties.
525          [(6)] (9) (a) "Locally elected public official" means a person who holds an elected
526     position with a county or municipality.
527          (b) "Locally elected public official" does not include a person who holds an elected
528     position if the elected position is not with a county or municipality.
529          [(7)] (10) "Metropolitan planning organization" means the same as that term is defined
530     in Section 72-1-208.5.
531          [(8)] (11) "Multicounty district" means a public transit district located in more than one
532     county.
533          [(9)] (12) "Operator" means a public entity or other person engaged in the
534     transportation of passengers for hire.
535          [(10)] (13) "Public transit" means the transportation of passengers only and their
536     incidental baggage by means other than:
537          (a) chartered bus;
538          (b) sightseeing bus; or
539          (c) taxi.
540          (14) "Public transit district" means a local district that provides public transit services.
541          (15) "Small public transit district" means any public transit district that is not a large
542     public transit district.
543          [(11)] (16) "Transit facility" means a transit vehicle, transit station, depot, passenger
544     loading or unloading zone, parking lot, or other facility:
545          (a) leased by or operated by or on behalf of a public transit district; and
546          (b) related to the public transit services provided by the district, including:
547          (i) railway or other right-of-way;
548          (ii) railway line; and
549          (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by
550     a transit vehicle.
551          [(14)] (17) "Transit vehicle" means a passenger bus, coach, railcar, van, or other
552     vehicle operated as public transportation by a public transit district.
553          [(12)] (18) "Transit-oriented development" means a mixed use residential or
554     commercial area that is designed to maximize access to public transit and includes the

555     development of land owned by a public transit district that serves a county of the first class.
556          [(13)] (19) "Transit-supportive development" means a mixed use residential or
557     commercial area that is designed to maximize access to public transit and does not include the
558     development of land owned by a public transit district.
559          Section 10. Section 17B-2a-804 is amended to read:
560          17B-2a-804. Additional public transit district powers.
561          (1) In addition to the powers conferred on a public transit district under Section
562     17B-1-103, a public transit district may:
563          (a) provide a public transit system for the transportation of passengers and their
564     incidental baggage;
565          (b) notwithstanding Subsection 17B-1-103(2)(g) and subject to Section 17B-2a-817,
566     levy and collect property taxes only for the purpose of paying:
567          (i) principal and interest of bonded indebtedness of the public transit district; or
568          (ii) a final judgment against the public transit district if:
569          (A) the amount of the judgment exceeds the amount of any collectable insurance or
570     indemnity policy; and
571          (B) the district is required by a final court order to levy a tax to pay the judgment;
572          (c) insure against:
573          (i) loss of revenues from damage to or destruction of some or all of a public transit
574     system from any cause;
575          (ii) public liability;
576          (iii) property damage; or
577          (iv) any other type of event, act, or omission;
578          (d) acquire, contract for, lease, construct, own, operate, control, or use:
579          (i) a right-of-way, rail line, monorail, bus line, station, platform, switchyard, terminal,
580     parking lot, or any other facility necessary or convenient for public transit service; or
581          (ii) any structure necessary for access by persons and vehicles;
582          (e) (i) hire, lease, or contract for the supplying or management of a facility, operation,
583     equipment, service, employee, or management staff of an operator; and
584          (ii) provide for a sublease or subcontract by the operator upon terms that are in the
585     public interest;

586          (f) operate feeder bus lines and other feeder or ridesharing services as necessary;
587          (g) accept a grant, contribution, or loan, directly through the sale of securities or
588     equipment trust certificates or otherwise, from the United States, or from a department,
589     instrumentality, or agency of the United States;
590          (h) study and plan transit facilities in accordance with any legislation passed by
591     Congress;
592          (i) cooperate with and enter into an agreement with the state or an agency of the state
593     or otherwise contract to finance to establish transit facilities and equipment or to study or plan
594     transit facilities;
595          (j) subject to Subsection 17B-2a-808.1(4), issue bonds as provided in and subject to
596     Chapter 1, Part 11, Local District Bonds, to carry out the purposes of the district;
597          (k) from bond proceeds or any other available funds, reimburse the state or an agency
598     of the state for an advance or contribution from the state or state agency;
599          (l) do anything necessary to avail itself of any aid, assistance, or cooperation available
600     under federal law, including complying with labor standards and making arrangements for
601     employees required by the United States or a department, instrumentality, or agency of the
602     United States;
603          (m) sell or lease property;
604          (n) except as provided in Subsection (2)(b), assist in or operate transit-oriented or
605     transit-supportive developments;
606          (o) establish, finance, participate as a limited partner or member in a development with
607     limited liabilities in accordance with Subsection (1)(p), construct, improve, maintain, or
608     operate transit facilities, equipment, and , in accordance with Subsection (3), transit-oriented
609     developments or transit-supportive developments; and
610          (p) subject to the restrictions and requirements in Subsections (2) and (3), assist in a
611     transit-oriented development or a transit-supportive development in connection with project
612     area development as defined in Section 17C-1-102 by:
613          (i) investing in a project as a limited partner or a member, with limited liabilities; or
614          (ii) subordinating an ownership interest in real property owned by the public transit
615     district.
616          (2) (a) A public transit district may only assist in the development of areas under

617     Subsection (1)(p):
618          (i) in the manner described in Subsection (1)(p)(i) or (ii); and
619          (ii) on no more than eight transit-oriented developments or transit-supportive
620     developments selected by the board of trustees.
621          (b) A public transit district may not invest in a transit-oriented development or
622     transit-supportive development as a limited partner or other limited liability entity under the
623     provisions of Subsection (1)(p)(i), unless the partners, developer, or other investor in the entity,
624     makes an equity contribution equal to no less than 25% of the appraised value of the property
625     to be contributed by the public transit district.
626          (c) (i) For transit-oriented development projects, a public transit district shall adopt
627     transit-oriented development policies and guidelines that include provisions on affordable
628     housing.
629          (ii) For transit-supportive development projects, a public transit district shall work with
630     the metropolitan planning organization and city and county governments where the project is
631     located to collaboratively seek to create joint plans for the areas within one-half mile of transit
632     stations, including plans for affordable housing.
633          (d) A current board member of a public transit district to which the board member is
634     appointed may not have any interest in the transactions engaged in by the public transit district
635     pursuant to Subsection (1)(p)(i) or (ii), except as may be required by the board member's
636     fiduciary duty as a board member.
637          (3) For any transit-oriented development or transit-supportive development authorized
638     in this section, the public transit district shall:
639          (a) perform a cost-benefit analysis of the monetary investment and expenditures of the
640     development, including effect on:
641          (i) service and ridership;
642          (ii) regional plans made by the metropolitan planning agency;
643          (iii) the local economy;
644          (iv) the environment and air quality;
645          (v) affordable housing; and
646          (vi) integration with other modes of transportation; and
647          (b) provide evidence to the public of a quantifiable positive return on investment,

648     including improvements to public transit service.
649          (4) A public transit district may be funded from any combination of federal, state,
650     local, or private funds.
651          (5) A public transit district may not acquire property by eminent domain.
652          Section 11. Section 17B-2a-807 is amended to read:
653          17B-2a-807. Small public transit district board of trustees -- Appointment --
654     Apportionment -- Qualifications -- Quorum -- Compensation -- Terms.
655          (1) (a) [If 200,000 people or fewer reside within the boundaries of a] For a small public
656     transit district, the board of trustees shall consist of members appointed by the legislative
657     bodies of each municipality, county, or unincorporated area within any county on the basis of
658     one member for each full unit of regularly scheduled passenger routes proposed to be served by
659     the district in each municipality or unincorporated area within any county in the following
660     calendar year.
661          (b) For purposes of determining membership under Subsection (1)(a), the number of
662     service miles comprising a unit shall be determined jointly by the legislative bodies of the
663     municipalities or counties comprising the district.
664          (c) The board of trustees of a public transit district under this [Subsection (1)] section
665     may include a member that is a commissioner on the Transportation Commission created in
666     Section 72-1-301 and appointed as provided in Subsection [(11)] (8), who shall serve as a
667     nonvoting, ex officio member.
668          (d) Members appointed under this [Subsection (1)] section shall be appointed and
669     added to the board or omitted from the board at the time scheduled routes are changed, or as
670     municipalities, counties, or unincorporated areas of counties annex to or withdraw from the
671     district using the same appointment procedures.
672          (e) For purposes of appointing members under this [Subsection (1)] section,
673     municipalities, counties, and unincorporated areas of counties in which regularly scheduled
674     passenger routes proposed to be served by the district in the following calendar year is less than
675     a full unit, as defined in Subsection (1)(b), may combine with any other similarly situated
676     municipality or unincorporated area to form a whole unit and may appoint one member for
677     each whole unit formed.
678          [(2) (a) Subject to Section 17B-2a-807.5, if more than 200,000 people reside within the

679     boundaries of a public transit district, the board of trustees shall consist of:]
680          [(i) 11 members:]
681          [(A) appointed as described under this Subsection (2); or]
682          [(B) retained in accordance with Section 17B-2a-807.5;]
683          [(ii) three members appointed as described in Subsection (4);]
684          [(iii) one voting member appointed as provided in Subsection (11); and]
685          [(iv) one nonvoting member appointed as provided in Subsection (12).]
686          [(b) Except as provided in Subsections (2)(c) and (d), the board shall apportion voting
687     members to each county within the district using an average of:]
688          [(i) the proportion of population included in the district and residing within each
689     county, rounded to the nearest 1/11 of the total transit district population; and]
690          [(ii) the cumulative proportion of transit sales and use tax collected from areas
691     included in the district and within each county, rounded to the nearest 1/11 of the total
692     cumulative transit sales and use tax collected for the transit district.]
693          [(c) The board shall join an entire or partial county not apportioned a voting member
694     under this Subsection (2) with an adjacent county for representation. The combined
695     apportionment basis included in the district of both counties shall be used for the
696     apportionment.]
697          [(d) (i) If rounding to the nearest 1/11 of the total public transit district apportionment
698     basis under Subsection (2)(b) results in an apportionment of more than 11 members, the county
699     or combination of counties with the smallest additional fraction of a whole member proportion
700     shall have one less member apportioned to it.]
701          [(ii) If rounding to the nearest 1/11 of the total public transit district apportionment
702     basis under Subsection (2)(b) results in an apportionment of less than 11 members, the county
703     or combination of counties with the largest additional fraction of a whole member proportion
704     shall have one more member apportioned to it.]
705          [(e) If the population of a county is at least 750,000, the county executive, with the
706     advice and consent of the county legislative body, shall appoint one voting member to
707     represent the population of the county.]
708          [(f) If a municipality's population is at least 160,000, the chief municipal executive,
709     with the advice and consent of the municipal legislative body, shall appoint one voting member

710     to represent the population within a municipality.]
711          [(g) (i) The number of voting members appointed from a county and municipalities
712     within a county under Subsections (2)(e) and (f) shall be subtracted from the county's total
713     voting member apportionment under this Subsection (2).]
714          [(ii) Notwithstanding Subsections (2)(l) and (10), no more than one voting member
715     appointed by an appointing entity may be a locally elected public official.]
716          [(h) If the entire county is within the district, the remaining voting members for the
717     county shall represent the county or combination of counties, if Subsection (2)(c) applies, or
718     the municipalities within the county.]
719          [(i) If the entire county is not within the district, and the county is not joined with
720     another county under Subsection (2)(c), the remaining voting members for the county shall
721     represent a municipality or combination of municipalities.]
722          [(j) (i) Except as provided under Subsections (2)(e) and (f), voting members
723     representing counties, combinations of counties if Subsection (2)(c) applies, or municipalities
724     within the county shall be designated and appointed by a simple majority of the chief
725     executives of the municipalities within the county or combinations of counties if Subsection
726     (2)(c) applies.]
727          [(ii) The appointments shall be made by joint written agreement of the appointing
728     municipalities, with the consent and approval of the county legislative body of the county that
729     has at least 1/11 of the district's apportionment basis.]
730          [(k) Voting members representing a municipality or combination of municipalities
731     shall be designated and appointed by the chief executive officer of the municipality or simple
732     majority of chief executive officers of municipalities with the consent of the legislative body of
733     the municipality or municipalities.]
734          [(l) The appointment of members shall be made without regard to partisan political
735     affiliation from among citizens in the community.]
736          [(m) Each member shall be a bona fide resident of the municipality, county, or
737     unincorporated area or areas which the member is to represent for at least six months before the
738     date of appointment, and shall continue in that residency to remain qualified to serve as a
739     member.]
740          [(n) (i) All population figures used under this section shall be derived from the most

741     recent official census or census estimate of the United States Bureau of the Census.]
742          [(ii) If population estimates are not available from the United States Bureau of Census,
743     population figures shall be derived from the estimate from the Utah Population Estimates
744     Committee.]
745          [(iii) All transit sales and use tax totals shall be obtained from the State Tax
746     Commission.]
747          [(o) (i) The board shall be apportioned as provided under this section in conjunction
748     with the decennial United States Census Bureau report every 10 years.]
749          [(ii) Within 120 days following the receipt of the population estimates under this
750     Subsection (2)(o), the district shall reapportion representation on the board of trustees in
751     accordance with this section.]
752          [(iii) The board shall adopt by resolution a schedule reflecting the current and proposed
753     apportionment.]
754          [(iv) Upon adoption of the resolution, the board shall forward a copy of the resolution
755     to each of its constituent entities as defined under Section 17B-1-701.]
756          [(v) The appointing entities gaining a new board member shall appoint a new member
757     within 30 days following receipt of the resolution.]
758          [(vi) The appointing entities losing a board member shall inform the board of which
759     member currently serving on the board will step down:]
760          [(A) upon appointment of a new member under Subsection (2)(o)(v); or]
761          [(B) in accordance with Section 17B-2a-807.5.]
762          [(3)] (2) Upon the completion of an annexation to a public transit district under
763     Chapter 1, Part 4, Annexation, the annexed area shall have a representative on the board of
764     trustees on the same basis as if the area had been included in the district as originally
765     organized.
766          [(4) In addition to the voting members appointed in accordance with Subsection (2),
767     the board shall consist of three voting members appointed as follows:]
768          [(a) one member appointed by the speaker of the House of Representatives;]
769          [(b) one member appointed by the president of the Senate; and]
770          [(c) one member appointed by the governor.]
771          [(5) Except as provided in Section 17B-2a-807.5, the terms of office of the members of

772     the board shall be four years or until a successor is appointed, qualified, seated, and has taken
773     the oath of office.]
774          [(6)] (3) (a) Vacancies for members shall be filled by the official appointing the
775     member creating the vacancy for the unexpired term, unless the official fails to fill the vacancy
776     within 90 days.
777          (b) If the appointing official under Subsection (1) does not fill the vacancy within 90
778     days, the board of trustees of the authority shall fill the vacancy.
779          [(c) If the appointing official under Subsection (2) does not fill the vacancy within 90
780     days, the governor, with the advice and consent of the Senate, shall fill the vacancy.]
781          [(7)] (4) (a) Each voting member may cast one vote on all questions, orders,
782     resolutions, and ordinances coming before the board of trustees.
783          (b) A majority of all voting members of the board of trustees are a quorum for the
784     transaction of business.
785          (c) The affirmative vote of a majority of all voting members present at any meeting at
786     which a quorum was initially present shall be necessary and, except as otherwise provided, is
787     sufficient to carry any order, resolution, ordinance, or proposition before the board of trustees.
788          [(8)] (5) Each public transit district shall pay to each member per diem and travel
789     expenses for meetings actually attended, in accordance with Section 11-55-103.
790          [(9)] (6) (a) Members of the initial board of trustees shall convene at the time and place
791     fixed by the chief executive officer of the entity initiating the proceedings.
792          (b) The board of trustees shall elect from its voting membership a chair, vice chair, and
793     secretary.
794          (c) The members elected under Subsection [(9)] (6)(b) shall serve for a period of two
795     years or until their successors shall be elected and qualified.
796          (d) On or after January 1, 2011, a locally elected public official is not eligible to serve
797     as the chair, vice chair, or secretary of the board of trustees.
798          [(10)] (7) (a) Except as otherwise authorized under [Subsections (2)(g) and (10)(b) and
799     Section 17B-2a-807.5] Subsection (7)(b), at the time of a member's appointment or during a
800     member's tenure in office, a member may not hold any employment, except as an independent
801     contractor or locally elected public official, with a county or municipality within the district.
802          (b) A member appointed by a county or municipality may hold employment with the

803     county or municipality if the employment is disclosed in writing and the public transit district
804     board of trustees ratifies the appointment.
805          [(11)] (8) The Transportation Commission created in Section 72-1-301[: (a) for a
806     public transit district serving a population of 200,000 people or fewer,] may appoint a
807     commissioner of the Transportation Commission to serve on the board of trustees of a small
808     public transit district as a nonvoting, ex officio member[; and].
809          [(b) for a public transit district serving a population of more than 200,000 people, shall
810     appoint a commissioner of the Transportation Commission to serve on the board of trustees as
811     a voting member.]
812          [(12) (a) The board of trustees of a public transit district serving a population of more
813     than 200,000 people shall include a nonvoting member who represents all municipalities and
814     unincorporated areas within the district that are located within a county that is not annexed into
815     the public transit district.]
816          [(b) The nonvoting member representing the combination of municipalities and
817     unincorporated areas described in Subsection (12)(a) shall be designated and appointed by a
818     weighted vote of the majority of the chief executive officers of the municipalities described in
819     Subsection (12)(a).]
820          [(c) Each municipality's vote under Subsection (12)(b) shall be weighted using the
821     proportion of the public transit district population that resides within that municipality and the
822     adjacent unincorporated areas within the same county.]
823          [(13)] (9) (a) (i) Each member of the board of trustees of a public transit district is
824     subject to recall at any time by the legislative body of the county or municipality from which
825     the member is appointed.
826          (ii) Each recall of a board of trustees member shall be made in the same manner as the
827     original appointment.
828          (iii) The legislative body recalling a board of trustees member shall provide written
829     notice to the member being recalled.
830          (b) Upon providing written notice to the board of trustees, a member of the board may
831     resign from the board of trustees.
832          (c) [Except as provided in Section 17B-2a-807.5, if] If a board member is recalled or
833     resigns under this Subsection [(13)] (9), the vacancy shall be filled as provided in Subsection

834     [(6)] (3).
835          Section 12. Section 17B-2a-807.1 is enacted to read:
836          17B-2a-807.1. Large public transit district board of trustees -- Appointment -- --
837     Quorum -- Compensation -- Terms.
838          (1) (a) For a large public transit district, the board of trustees shall consist of three
839     members appointed as described in Subsection (1)(b).
840          (b) (i) The governor, with advice and consent of the Senate, shall appoint the members
841     of the board of trustees, making:
842          (A) one appointment from the nominees described in Subsection (1)(b)(ii);
843          (B) one appointment from the nominees described in Subsection (1)(b)(iii); and
844          (C) one appointment from the nominees described in Subsection (1)(b)(iv).
845          (ii) The chief executive officer of a county of the first class within a large public transit
846     district, with approval of the legislative body of the county, shall nominate one or more
847     individuals to the governor for appointment to the board of trustees.
848          (iii) (A) Subject to Subsection (1)(b)(iii)(B), the executive governing individuals or
849     bodies of a county or counties of the second class, with a population over 500,000, within a
850     large public transit district, shall nominate one or more individuals to the governor for
851     appointment to the board of trustees.
852          (B) To select individuals for nomination, the executive governing individuals or bodies
853     described in Subsection (1)(b)(iii)(A) shall consult with the executive governing individual or
854     body of a county of the third or smaller class within the large public transit district.
855          (iv) (A) Subject to Subsection (1)(b)(iv)(B), the executive governing individuals or
856     bodies of any county or counties of the second class, with a population of 500,000 or less,
857     within a large public transit district, shall jointly nominate one or more individuals to the
858     governor for appointment to the board of trustees.
859          (B) To select individuals for nomination, the executive governing individuals or bodies
860     described in Subsection (1)(b)(iv)(A) shall consult with the executive governing individual or
861     body of a county of the third or smaller class within the large public transit district different
862     from a third or smaller class county consulting with the county or counties described in
863     Subsection (1)(b)(iii).
864          (c) Each nominee shall be a qualified executive with technical and administrative

865     experience and training appropriate for the position.
866          (d) The board of trustees of a large public transit district shall be full-time employees
867     of the public transit district.
868          (e) The compensation package for the board of trustees shall be determined by the local
869     advisory board as described in Section 17B-2a-808.2.
870          (2) (a) Subject to Subsections (3) and (4), each member of the board of trustees of a
871     large public transit district shall serve for a term of three years.
872          (b) A member of the board of trustees may serve an unlimited number of terms.
873          (3) Each member of the board of trustees of a large public transit district shall serve at
874     the pleasure of the governor.
875          (4) The first time the board of trustees is appointed under this section, the governor
876     shall stagger the initial term of each of the members of the board of trustees as follows:
877          (a) one member of the board of trustees shall serve an initial term of two years;
878          (b) one member of the board of trustees shall serve an initial term of three years; and
879          (c) one member of the board of trustees shall serve an initial term of four years.
880          (5) The governor shall designate one member of the board of trustees as chair of the
881     board of trustees.
882          (6) (a) If a vacancy occurs, the nomination to replace the individual shall occur in the
883     same manner described in Subsection (1) for the member creating the vacancy.
884          (b) A replacement board member shall serve for the remainder of the unexpired term,
885     but may serve an unlimited number of terms as provided in Subsection (2)(b).
886          (c) If the nominating officials under Subsection (1) do not nominate to fill the vacancy
887     within 60 days, the governor shall appoint an individual to fill the vacancy.
888          (7) For any large public transit district in existence as of May 8, 2018:
889          (a) the individuals or bodies providing nominations as described in this section shall
890     provide the nominations to the governor as described in this section before July 31, 2018;
891          (b) the governor shall appoint the members of the board of trustees before August 31,
892     2018; and
893          (c) the new board shall assume control of the large public transit district on or before
894     November 1, 2018.
895          Section 13. Section 17B-2a-808 is amended to read:

896          17B-2a-808. Small public transit district board of trustees powers and duties --
897     Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
898          (1) The powers and duties of a board of trustees of a small public transit district stated
899     in this section are in addition to the powers and duties stated in Section 17B-1-301.
900          (2) The board of trustees of each small public transit district shall:
901          (a) appoint and fix the salary of a general manager, a chief executive officer, or both, as
902     provided in Section 17B-2a-811;
903          (b) determine the transit facilities that the district should acquire or construct;
904          (c) supervise and regulate each transit facility that the district owns and operates,
905     including:
906          (i) fixing rates, fares, rentals, and charges and any classifications of rates, fares, rentals,
907     and charges; and
908          (ii) making and enforcing rules, regulations, contracts, practices, and schedules for or
909     in connection with a transit facility that the district owns or controls;
910          (d) control the investment of all funds assigned to the district for investment, including
911     funds:
912          (i) held as part of a district's retirement system; and
913          (ii) invested in accordance with the participating employees' designation or direction
914     pursuant to an employee deferred compensation plan established and operated in compliance
915     with Section 457 of the Internal Revenue Code;
916          (e) invest all funds according to the procedures and requirements of Title 51, Chapter
917     7, State Money Management Act;
918          (f) if a custodian is appointed under Subsection (3)(d), pay the fees for the custodian's
919     services from the interest earnings of the investment fund for which the custodian is appointed;
920          (g) (i) cause an annual audit of all district books and accounts to be made by an
921     independent certified public accountant;
922          (ii) as soon as practicable after the close of each fiscal year, submit to the chief
923     administrative officer and legislative body of each county and municipality with territory
924     within the district a financial report showing:
925          (A) the result of district operations during the preceding fiscal year; and
926          (B) the district's financial status on the final day of the fiscal year; and

927          (iii) supply copies of the report under Subsection (2)(g)(ii) to the general public upon
928     request in a quantity that the board considers appropriate;
929          (h) report at least annually to the Transportation Commission created in Section
930     72-1-301 the district's short-term and long-range public transit plans, including the transit
931     portions of applicable regional transportation plans adopted by a metropolitan planning
932     organization established under 23 U.S.C. Sec. 134;
933          (i) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits
934     that the board of trustees determines to be the most critical to the success of the organization;
935     and
936          (j) hear audit reports for audits conducted in accordance with Subsection (2)(i).
937          (3) A board of trustees of a public transit district may:
938          (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
939     are:
940          (i) not repugnant to the United States Constitution, the Utah Constitution, or the
941     provisions of this part; and
942          (ii) necessary for:
943          (A) the government and management of the affairs of the district;
944          (B) the execution of district powers; and
945          (C) carrying into effect the provisions of this part;
946          (b) provide by resolution, under terms and conditions the board considers fit, for the
947     payment of demands against the district without prior specific approval by the board, if the
948     payment is:
949          (i) for a purpose for which the expenditure has been previously approved by the board;
950          (ii) in an amount no greater than the amount authorized; and
951          (iii) approved by the general manager or other officer or deputy as the board prescribes;
952          (c) (i) hold public hearings and subpoena witnesses; and
953          (ii) appoint district officers to conduct a hearing and require the officers to make
954     findings and conclusions and report them to the board; and
955          (d) appoint a custodian for the funds and securities under its control, subject to
956     Subsection (2)(f).
957          (4) A member of the board of trustees of a public transit district or a hearing officer

958     designated by the board may administer oaths and affirmations in a district investigation or
959     proceeding.
960          (5) (a) The vote of the board of trustees on each ordinance shall be by roll call vote
961     with each affirmative and negative vote recorded.
962          (b) (i) Subject to Subsection (5)(b)(ii), the board of trustees may adopt a resolution or
963     order by voice vote.
964          (ii) The vote of the board of trustees on a resolution or order shall be by roll call vote if
965     a member of the board so demands.
966          (c) (i) Except as provided in Subsection (5)(c)(ii), the board of trustees of a public
967     transit district may not adopt an ordinance unless it is:
968          (A) introduced at least a day before the board of trustees adopts it; or
969          (B) mailed by registered mail, postage prepaid, to each member of the board of trustees
970     at least five days before the day upon which the ordinance is presented for adoption.
971          (ii) Subsection (5)(c)(i) does not apply if the ordinance is adopted by a unanimous vote
972     of all board members present at a meeting at which at least 3/4 of all board members are
973     present.
974          (d) Each ordinance adopted by a public transit district's board of trustees shall take
975     effect upon adoption, unless the ordinance provides otherwise.
976          Section 14. Section 17B-2a-808.1 is enacted to read:
977          17B-2a-808.1. Large public transit district board of trustees powers and duties --
978     Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
979          (1) The powers and duties of a board of trustees of a large public transit district stated
980     in this section are in addition to the powers and duties stated in Section 17B-1-301.
981          (2) The board of trustees of each large public transit district shall:
982          (a) hold public meetings and receive public comment;
983          (b) ensure that the policies, procedures, and management practices established by the
984     public transit district meet state and federal regulatory requirements and federal grantee
985     eligibility;
986          (c) create and approve an annual budget, including the issuance of bonds and other
987     financial instruments, after consultation with the local advisory board;
988          (d) approve any interlocal agreement with a local jurisdiction;

989          (e) in consultation with the local advisory board, approve contracts and overall
990     property acquisitions and dispositions for transit-oriented development;
991          (f) in consultation with constituent counties, municipalities, metropolitan planning
992     organizations, and the local advisory board:
993          (i) develop and approve a strategic plan for development and operations on at least a
994     four-year basis; and
995          (ii) create and pursue funding opportunities for transit capital and service initiatives to
996     meet anticipated growth within the public transit district;
997          (g) annually report the public transit district's long-term financial plan to the State
998     Bonding Commission;
999          (h) annually report the public transit district's progress and expenditures related to state
1000     resources to the Executive Appropriations Committee and the Infrastructure and General
1001     Government Appropriations Subcommittee;
1002          (i) (A) in partnership with the Department of Transportation, study and evaluate the
1003     feasibility of a strategic transition of a large public transit district into a state entity; and
1004          (B) in partnership with the Department of Transportation, before November 30 of each
1005     year, report on the progress of the study to the Transportation Interim Committee and the
1006     Infrastructure and General Government Appropriations Subcommittee;
1007          (j) hire, set salaries, and develop performance targets and evaluations for the executive
1008     director, general counsel, and chief internal auditor of the public transit district;
1009          (k) supervise and regulate each transit facility that the public transit district owns and
1010     operates, including:
1011          (i) fix rates, fares, rentals, charges and any classifications of rates, fares, rentals, and
1012     charges; and
1013          (ii) make and enforce rules, regulations, contracts, practices, and schedules for or in
1014     connection with a transit facility that the district owns or controls;
1015          (l) subject to Subsection (4), control the investment of all funds assigned to the district
1016     for investment, including funds:
1017          (i) held as part of a district's retirement system; and
1018          (ii) invested in accordance with the participating employees' designation or direction
1019     pursuant to an employee deferred compensation plan established and operated in compliance

1020     with Section 457 of the Internal Revenue Code;
1021          (m) in consultation with the local advisory board created under Section 17B-2a-808.2,
1022     invest all funds according to the procedures and requirements of Title 51, Chapter 7, State
1023     Money Management Act;
1024          (n) if a custodian is appointed under Subsection (3)(d), and subject to Subsection (4),
1025     pay the fees for the custodian's services from the interest earnings of the investment fund for
1026     which the custodian is appointed;
1027          (o) (i) cause an annual audit of all public transit district books and accounts to be made
1028     by an independent certified public accountant;
1029          (ii) as soon as practicable after the close of each fiscal year, submit to each of the
1030     councils of governments within the public transit district a financial report showing:
1031          (A) the result of district operations during the preceding fiscal year;
1032          (B) an accounting of the expenditures of all local sales tax revenues generated under
1033     Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for Transportation Act; and
1034          (C) the district's financial status on the final day of the fiscal year; and
1035          (iii) supply copies of the report under Subsection (2)(o)(ii) to the general public upon
1036     request;
1037          (p) report at least annually to the Transportation Commission created in Section
1038     72-1-301, which report shall include:
1039          (i) the district's short-term and long-range public transit plans, including the portions of
1040     applicable regional transportation plans adopted by a metropolitan planning organization
1041     established under 23 U.S.C. Sec. 134; and
1042          (ii) any transit capital development projects that the board of trustees would like the
1043     Transportation Commission to consider;
1044          (q) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits
1045     that the board of trustees determines, in consultation with the local advisory board created in
1046     Section 17B-2a-808.2, to be the most critical to the success of the organization;
1047          (r) together with the local advisory board created in Section 17B-2a-808.2, hear audit
1048     reports for audits conducted in accordance with Subsection (2)(o);
1049          (s) negotiate all contracts pertaining to reduced fares, and evaluate existing contracts,
1050     including review of:

1051          (i) how negotiations occurred;
1052          (ii) the rationale for providing a reduced fare; and
1053          (iii) identification and evaluation of cost shifts to offset operational costs incurred and
1054     impacted by each contract offering a reduced fare; and
1055          (t) in consultation with the local advisory board, develop and approve other board
1056     policies, ordinances, and bylaws.
1057          (3) A board of trustees of a large public transit district may:
1058          (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
1059     are:
1060          (i) not repugnant to the United States Constitution, the Utah Constitution, or the
1061     provisions of this part; and
1062          (ii) necessary for:
1063          (A) the governance and management of the affairs of the district;
1064          (B) the execution of district powers; and
1065          (C) carrying into effect the provisions of this part;
1066          (b) provide by resolution, under terms and conditions the board considers fit, for the
1067     payment of demands against the district without prior specific approval by the board, if the
1068     payment is:
1069          (i) for a purpose for which the expenditure has been previously approved by the board;
1070          (ii) in an amount no greater than the amount authorized; and
1071          (iii) approved by the executive director or other officer or deputy as the board
1072     prescribes;
1073          (c) in consultation with the local advisory board created in Section 17B-2a-808.2:
1074          (i) hold public hearings and subpoena witnesses; and
1075          (ii) appoint district officers to conduct a hearing and require the officers to make
1076     findings and conclusions and report them to the board; and
1077          (d) appoint a custodian for the funds and securities under its control, subject to
1078     Subsection (2)(n).
1079          (4) On or before September 30, 2019, the board of trustees of a large public transit
1080     district shall present a report to the Transportation Interim Committee regarding retirement
1081     benefits of the district, including:

1082          (a) the feasibility of becoming a participating employer and having retirement benefits
1083     of eligible employees and officials covered in applicable systems and plans administered under
1084     Title 49, Utah State Retirement and Insurance Benefit Act;
1085          (b) any legal or contractual restrictions on any employees that are party to a collectively
1086     bargained retirement plan; and
1087          (c) a comparison of retirement plans offered by the large public transit district and
1088     similarly situated public employees, including the costs of each plan and the value of the
1089     benefit offered.
1090          (5) The board of trustees may not issue a bond unless the board of trustees has
1091     consulted and received approval from the State Bonding Commission created in Section
1092     63B-1-201.
1093          (6) A member of the board of trustees of a large public transit district or a hearing
1094     officer designated by the board may administer oaths and affirmations in a district investigation
1095     or proceeding.
1096          (7) (a) The vote of the board of trustees on each ordinance or resolution shall be by roll
1097     call vote with each affirmative and negative vote recorded.
1098          (b) The board of trustees of a large public transit district may not adopt an ordinance
1099     unless it is:
1100          (i) introduced at least a day before the board of trustees adopts it; or
1101          (ii) mailed by registered mail, postage prepaid, to each member of the board of trustees
1102     at least five days before the day upon which the ordinance is presented for adoption.
1103          (c) Each ordinance adopted by a large public transit district's board of trustees shall
1104     take effect upon adoption, unless the ordinance provides otherwise.
1105          Section 15. Section 17B-2a-808.2 is enacted to read:
1106          17B-2a-808.2. Large public transit district local advisory board -- Powers and
1107     duties.
1108          (1) A large public transit district shall create and consult with a local advisory board.
1109          (2) (a) The local advisory board shall have membership selected as described in
1110     Subsection (2)(b).
1111          (b) (i) The council of governments of a county of the first class within a large public
1112     transit district shall appoint three members to the local advisory board.

1113          (ii) The chief executive officer of a city that is the county seat within a county of the
1114     first class within a large public transit district shall appoint one member to the local advisory
1115     board.
1116          (iii) The council of governments of a county of the second class with a population of
1117     500,000 or more within a large public transit district shall appoint two members to the local
1118     advisory board.
1119          (iv) The council of governments of a county of the second class with a population
1120     under 500,000 within a large public transit district shall each appoint one member to the local
1121     advisory board.
1122          (v) The councils of governments of any counties of the third or smaller class or smaller
1123     within a large public transit district shall jointly appoint one member to the local advisory
1124     board.
1125          (c) The population numbers used to apportion appointment powers described in
1126     Subsection (2)(b) shall be based on the most recent official census or census estimate of the
1127     United States Census Bureau.
1128          (3) The local advisory board shall meet at least quarterly in a meeting open to the
1129     public for comment to discuss the service, operations, and any concerns with the public transit
1130     district operations and functionality.
1131          (4) The duties of the local advisory board shall include:
1132          (a) setting the compensation packages of the board of trustees;
1133          (b) reviewing, approving, and recommending final adoption by the board of trustees of
1134     the large public transit district service plans at least every two and one-half years;
1135          (c) reviewing, approving, and recommending final adoption by the board of trustees of
1136     project development plans, including funding, of all new capital development projects;
1137          (d) reviewing, approving, and recommending final adoption by the board of trustees of
1138     any plan for a transit-oriented development where a large public transit district is involved;
1139          (e) at least annually, engaging with the safety and security team of the large public
1140     transit district to ensure coordination with local municipalities and counties;
1141          (f) assisting with coordinated mobility and constituent services provided by the public
1142     transit district;
1143          (g) representing and advocating the concerns of citizens within the public transit

1144     district to the board of trustees; and
1145          (h) other duties described in Section 17B-2a-808.1.
1146          (5) The local advisory board shall meet at least quarterly with and consult with the
1147     board of trustees and advise regarding the operation and management of the public transit
1148     district.
1149          Section 16. Section 17B-2a-810 is amended to read:
1150          17B-2a-810. Officers of a public transit district.
1151          (1) (a) The officers of a public transit district shall consist of:
1152          (i) the members of the board of trustees;
1153          (ii) for a small public transit district, a chair and vice chair, appointed by the board of
1154     trustees, subject to Subsection (1)(c);
1155          (iii) a secretary, appointed by the board of trustees;
1156          (iv) (A) for a small public transit district, a general manager, appointed by the board of
1157     trustees as provided in Section 17B-2a-811, whose duties may be allocated by the board of
1158     trustees, at the board of trustees' discretion, to a chief executive officer, or both; or
1159          (B) for a large public transit district, an executive director appointed by the board of
1160     trustees as provided in Section 17B-2a-811.1;
1161          (v) for a small public transit district, a chief executive officer appointed by the board of
1162     trustees, as provided in Section 17B-2a-811;
1163          (vi) a general counsel, appointed by the board of trustees, subject to Subsection (1)(d);
1164          (vii) a treasurer, appointed as provided in Section 17B-1-633;
1165          (viii) a comptroller, appointed by the board of trustees, subject to Subsection (1)(e);
1166          (ix) for a [public transit district with more than 200,000 people residing within the
1167     boundaries of the] large public transit district, an internal auditor, appointed by the board of
1168     trustees, subject to Subsection (1)(f); and
1169          (x) other officers, assistants, and deputies that the board of trustees considers
1170     necessary.
1171          (b) The board of trustees of a small public transit district may, at its discretion, appoint
1172     a president, who shall also be considered an officer of a public transit district.
1173          (c) The district chair and vice chair of a small public transit district shall be members
1174     of the board of trustees.

1175          (d) The person appointed as general counsel shall:
1176          (i) be admitted to practice law in the state; and
1177          (ii) have been actively engaged in the practice of law for at least seven years next
1178     preceding the appointment.
1179          (e) The person appointed as comptroller shall have been actively engaged in the
1180     practice of accounting for at least seven years next preceding the appointment.
1181          (f) The person appointed as internal auditor shall be a licensed certified internal auditor
1182     or certified public accountant with at least five years experience in the auditing or public
1183     accounting profession, or the equivalent, prior to appointment.
1184          (2) (a) [The] For a small public transit district, the district's general manager or chief
1185     executive officer, as the board prescribes, or for a large public transit district, the executive
1186     director, shall appoint all officers and employees not specified in Subsection (1).
1187          (b) Each officer and employee appointed by the district's general manager or chief
1188     executive officer of a small public transit district, or the executive director of a large public
1189     transit district, serves at the pleasure of the appointing general manager [or], chief executive
1190     officer, or executive director.
1191          (3) The board of trustees shall by ordinance or resolution fix the compensation of all
1192     district officers and employees, except as otherwise provided in this part.
1193          (4) (a) Each officer appointed by the board of trustees or by the district's general
1194     manager [or], chief executive officer, or executive director shall take the oath of office
1195     specified in Utah Constitution, Article IV, Section 10.
1196          (b) Each oath under Subsection (4)(a) shall be subscribed and filed with the district
1197     secretary no later than 15 days after the commencement of the officer's term of office.
1198          Section 17. Section 17B-2a-811 is amended to read:
1199          17B-2a-811. General manager or chief executive officer of a small public transit
1200     district.
1201          (1) (a) The board of trustees of a small public transit district shall appoint a person as a
1202     general manager.
1203          (b) The board of trustees of a small public transit district may, at its discretion, appoint
1204     a person as a chief executive officer.
1205          (c) The board of trustees of a small public transit district shall allocate the

1206     responsibilities defined in Subsection (2) between the general manager and the chief executive
1207     officer, if the board of trustees appoints a chief executive officer.
1208          (d) The chief executive officer shall have the same rights allocated to the general
1209     manager under Subsections (3) and (4).
1210          (e) The appointment of a general manager, chief executive officer, or both, shall be by
1211     the affirmative vote of a majority of all members of the board of trustees.
1212          (f) The board's appointment of a person as general manager, chief executive officer, or
1213     both, shall be based on the person's qualifications, with special reference to the person's actual
1214     experience in or knowledge of accepted practices with respect to the duties of the office.
1215          (g) A person appointed as general manager or chief executive officer of a small public
1216     transit district is not required to be a resident of the state at the time of appointment.
1217          (2) A general manager or chief executive officer of a small public transit district shall
1218     have the following responsibilities as allocated by the board of trustees:
1219          (a) be a full-time officer and devote full time to the district's business;
1220          (b) ensure that all district ordinances are enforced;
1221          (c) prepare and submit to the board of trustees, as soon as practical but not less than 45
1222     days after the end of each fiscal year, a complete report on the district's finances and
1223     administrative activities for the preceding year;
1224          (d) keep the board of trustees advised as to the district's needs;
1225          (e) prepare or cause to be prepared all plans and specifications for the construction of
1226     district works;
1227          (f) cause to be installed and maintained a system of auditing and accounting that
1228     completely shows the district's financial condition at all times; and
1229          (g) attend meetings of the board of trustees.
1230          (3) A general manager of a small public transit district:
1231          (a) serves at the pleasure of the board of trustees;
1232          (b) holds office for an indefinite term;
1233          (c) may be removed by the board of trustees upon the adoption of a resolution by the
1234     affirmative vote of a majority of all members of the board, subject to Subsection (5);
1235          (d) has full charge of:
1236          (i) the acquisition, construction, maintenance, and operation of district facilities; and

1237          (ii) the administration of the district's business affairs;
1238          (e) is entitled to participate in the deliberations of the board of trustees as to any matter
1239     before the board; and
1240          (f) may not vote at a meeting of the board of trustees.
1241          (4) The board of trustees may not reduce the general manager's salary below the
1242     amount fixed at the time of original appointment unless:
1243          (a) the board adopts a resolution by a vote of a majority of all members; and
1244          (b) if the general manager demands in writing, the board gives the general manager the
1245     opportunity to be publicly heard at a meeting of the board before the final vote on the
1246     resolution reducing the general manager's salary.
1247          (5) (a) Before adopting a resolution providing for a general manager's removal as
1248     provided in Subsection (3)(c), the board shall, if the manager makes a written demand:
1249          (i) give the general manager a written statement of the reasons alleged for the general
1250     manager's removal; and
1251          (ii) allow the general manager to be publicly heard at a meeting of the board of
1252     trustees.
1253          (b) Notwithstanding Subsection (5)(a), the board of trustees of a public transit district
1254     may suspend a general manager from office pending and during a hearing under Subsection
1255     (5)(a)(ii).
1256          (6) The action of a board of trustees suspending or removing a general manager or
1257     reducing the general manager's salary is final.
1258          Section 18. Section 17B-2a-811.1 is enacted to read:
1259          17B-2a-811.1. Executive director of a large public transit district.
1260          (1) (a) The board of trustees of a large public transit district shall appoint a person as
1261     an executive director.
1262          (b) The appointment of an executive director shall be by the affirmative vote of a
1263     majority of the board of trustees.
1264          (c) The board's appointment of a person as executive director shall be based on the
1265     person's qualifications, with special reference to the person's actual experience in or knowledge
1266     of accepted practices with respect to the duties of the office.
1267          (d) A person appointed as executive director of a large public transit district is not

1268     required to be a resident of the state at the time of appointment.
1269          (2) An executive director of a large public transit district shall:
1270          (a) be a full-time officer and devote full time to the district's business;
1271          (b) serve at the pleasure of the board of trustees;
1272          (c) hold office for an indefinite term;
1273          (d) ensure that all district ordinances are enforced;
1274          (e) prepare and submit to the board of trustees, as soon as practical but not less than 45
1275     days after the end of each fiscal year, a complete report on the district's finances and
1276     administrative activities for the preceding year;
1277          (f) advise the board of trustees regarding the needs of the district;
1278          (g) in consultation with the board of trustees, prepare or cause to be prepared all plans
1279     and specifications for the construction of district works;
1280          (h) cause to be installed and maintained a system of auditing and accounting that
1281     completely shows the district's financial condition at all times;
1282          (i) attend meetings of the board of trustees;
1283          (j) in consultation with the board of trustees, have charge of:
1284          (i) the acquisition, construction, maintenance, and operation of district facilities; and
1285          (ii) the administration of the district's business affairs; and
1286          (k) be entitled to participate in the deliberations of the board of trustees as to any
1287     matter before the board.
1288          (3) The board of trustees may not remove the executive director or reduce the
1289     executive director's salary below the amount fixed at the time of original appointment unless:
1290          (a) the board adopts a resolution by a vote of a majority of all members; and
1291          (b) if the executive director demands in writing, the board gives the executive director
1292     the opportunity to be publicly heard at a meeting of the board before the final vote on the
1293     resolution removing the executive director or reducing the executive director's salary.
1294          (4) (a) Before adopting a resolution providing for the renewal of the executive director
1295     or a reduction in the executive director's salary as provided in Subsection (3), the board shall, if
1296     the executive director makes a written demand:
1297          (i) give the executive director a written statement of the reasons alleged for the removal
1298     or reduction in salary; and

1299          (ii) allow the executive director to be publicly heard at a meeting of the board of
1300     trustees.
1301          (b) Notwithstanding Subsection (4)(a), the board of trustees of a public transit district
1302     may suspend an executive director from office pending and during a hearing under Subsection
1303     (4)(a)(ii).
1304          (5) The action of a board of trustees suspending or removing an executive director or
1305     reducing the executive director's salary is final.
1306          Section 19. Section 17B-2a-826 is amended to read:
1307          17B-2a-826. Public transit district office of constituent services and office of
1308     coordinated mobility.
1309          (1) (a) The board of trustees of a large public transit district [serving a population over
1310     200,000 people] shall create and employ an office of constituent services.
1311          (b) The duties of the office of constituent services described in Subsection (1)(a) shall
1312     include:
1313          (i) establishing a central call number to hear and respond to complaints, requests,
1314     comments, concerns, and other communications from customers and citizens within the
1315     district;
1316          (ii) keeping a log of the complaints, comments, concerns, and other communications
1317     from customers and citizens within the district; and
1318          (iii) reporting complaints, comments, concerns, and other communications to
1319     management and to the [citizens'] local advisory board created in [Subsection (2)] Section
1320     17B-2a-808.2.
1321          [(2) (a) A public transit district serving a population over 200,000 people shall create
1322     and oversee a citizens' advisory board.]
1323          [(b) (i) The board of trustees of the public transit district shall select up to 12 members
1324     for the public transit district citizens' advisory board with membership representing the
1325     diversity of the public transit district area.]
1326          [(ii) The board of trustees shall ensure that each member of the citizens' advisory board
1327     regularly uses the public transit district services.]
1328          [(c) The public transit district citizens' advisory board shall meet as needed or quarterly
1329     in a meeting open to the public for comment, to discuss the service, operations, and any

1330     concerns with the public transit district operations and functionality.]
1331          [(d) The public transit district management shall meet at least quarterly with and
1332     consult with the citizens' advisory board and take into consideration the input of the citizens'
1333     advisory board in managing and operating the public transit district.]
1334          [(3)] (2) (a) A large public transit district [serving a population over 200,000 people]
1335     shall create and employ an office of coordinated mobility.
1336          (b) The duties of the office of coordinated mobility shall include:
1337          (i) establishing a central call number to facilitate human services transportation;
1338          (ii) coordinating all human services transportation needs within the public transit
1339     district;
1340          (iii) receiving requests and other communications regarding human services
1341     transportation;
1342          (iv) receiving requests and other communications regarding vans, buses, and other
1343     vehicles available for use from the public transit district to maximize the utility of and
1344     investment in those vehicles; and
1345          (v) supporting local efforts and applications for additional funding.
1346          Section 20. Section 41-1a-102 is amended to read:
1347          41-1a-102. Definitions.
1348          As used in this chapter:
1349          (1) "Actual miles" means the actual distance a vehicle has traveled while in operation.
1350          (2) "Actual weight" means the actual unladen weight of a vehicle or combination of
1351     vehicles as operated and certified to by a weighmaster.
1352          (3) "All-terrain type I vehicle" [has the same meaning provided] means the same as that
1353     term is defined in Section 41-22-2.
1354          (4) "All-terrain type II vehicle" [has the same meaning provided] means the same as
1355     that term is defined in Section 41-22-2.
1356          (5) "Amateur radio operator" means any person licensed by the Federal
1357     Communications Commission to engage in private and experimental two-way radio operation
1358     on the amateur band radio frequencies.
1359          (6) "Autocycle" means the same as that term is defined in Section 53-3-102.
1360          (7) "Branded title" means a title certificate that is labeled:

1361          (a) rebuilt and restored to operation;
1362          (b) flooded and restored to operation; or
1363          (c) not restored to operation.
1364          (8) "Camper" means any structure designed, used, and maintained primarily to be
1365     mounted on or affixed to a motor vehicle that contains a floor and is designed to provide a
1366     mobile dwelling, sleeping place, commercial space, or facilities for human habitation or for
1367     camping.
1368          (9) "Certificate of title" means a document issued by a jurisdiction to establish a record
1369     of ownership between an identified owner and the described vehicle, vessel, or outboard motor.
1370          (10) "Certified scale weigh ticket" means a weigh ticket that has been issued by a
1371     weighmaster.
1372          (11) "Commercial vehicle" means a motor vehicle, trailer, or semitrailer used or
1373     maintained for the transportation of persons or property that operates:
1374          (a) as a carrier for hire, compensation, or profit; or
1375          (b) as a carrier to transport the vehicle owner's goods or property in furtherance of the
1376     owner's commercial enterprise.
1377          (12) "Commission" means the State Tax Commission.
1378          (13) "Dealer" means a person engaged or licensed to engage in the business of buying,
1379     selling, or exchanging new or used vehicles, vessels, or outboard motors either outright or on
1380     conditional sale, bailment, lease, chattel mortgage, or otherwise or who has an established
1381     place of business for the sale, lease, trade, or display of vehicles, vessels, or outboard motors.
1382          (14) "Diesel fuel" means the same as that term is defined in Section 59-13-102.
1383          [(14)] (15) "Division" means the Motor Vehicle Division of the commission, created in
1384     Section 41-1a-106.
1385          (16) "Electric vehicle" means a motor vehicle that is powered solely by an electric
1386     motor drawing current from a rechargeable energy storage system.
1387          [(15)] (17) "Essential parts" means all integral and body parts of a vehicle of a type
1388     required to be registered in this state, the removal, alteration, or substitution of which would
1389     tend to conceal the identity of the vehicle or substantially alter its appearance, model, type, or
1390     mode of operation.
1391          [(16)] (18) "Farm tractor" means every motor vehicle designed and used primarily as a

1392     farm implement for drawing plows, mowing machines, and other implements of husbandry.
1393          [(17)] (19) (a) "Farm truck" means a truck used by the owner or operator of a farm
1394     solely for his own use in the transportation of:
1395          (i) farm products, including livestock and its products, poultry and its products,
1396     floricultural and horticultural products;
1397          (ii) farm supplies, including tile, fence, and every other thing or commodity used in
1398     agricultural, floricultural, horticultural, livestock, and poultry production; and
1399          (iii) livestock, poultry, and other animals and things used for breeding, feeding, or
1400     other purposes connected with the operation of a farm.
1401          (b) "Farm truck" does not include the operation of trucks by commercial processors of
1402     agricultural products.
1403          [(18)] (20) "Fleet" means one or more commercial vehicles.
1404          [(19)] (21) "Foreign vehicle" means a vehicle of a type required to be registered,
1405     brought into this state from another state, territory, or country other than in the ordinary course
1406     of business by or through a manufacturer or dealer, and not registered in this state.
1407          [(20)] (22) "Gross laden weight" means the actual weight of a vehicle or combination
1408     of vehicles, equipped for operation, to which shall be added the maximum load to be carried.
1409          [(21)] (23) "Highway" or "street" means the entire width between property lines of
1410     every way or place of whatever nature when any part of it is open to the public, as a matter of
1411     right, for purposes of vehicular traffic.
1412          (24) "Hybrid electric vehicle" means a motor vehicle that draws propulsion energy
1413     from onboard sources of stored energy that are both:
1414          (a) an internal combustion engine or heat engine using consumable fuel; and
1415          (b) a rechargeable energy storage system where energy for the storage system comes
1416     solely from sources onboard the vehicle.
1417          [(22)] (25) (a) "Identification number" means the identifying number assigned by the
1418     manufacturer or by the division for the purpose of identifying the vehicle, vessel, or outboard
1419     motor.
1420          (b) "Identification number" includes a vehicle identification number, state assigned
1421     identification number, hull identification number, and motor serial number.
1422          [(23)] (26) "Implement of husbandry" means every vehicle designed or adapted and

1423     used exclusively for an agricultural operation and only incidentally operated or moved upon the
1424     highways.
1425          [(24)] (27) (a) "In-state miles" means the total number of miles operated in this state
1426     during the preceding year by fleet power units.
1427          (b) If fleets are composed entirely of trailers or semitrailers, "in-state miles" means the
1428     total number of miles that those vehicles were towed on Utah highways during the preceding
1429     year.
1430          [(25)] (28) "Interstate vehicle" means any commercial vehicle operated in more than
1431     one state, province, territory, or possession of the United States or foreign country.
1432          [(26)] (29) "Jurisdiction" means a state, district, province, political subdivision,
1433     territory, or possession of the United States or any foreign country.
1434          [(27)] (30) "Lienholder" means a person with a security interest in particular property.
1435          [(28)] (31) "Manufactured home" means a transportable factory built housing unit
1436     constructed on or after June 15, 1976, according to the Federal Home Construction and Safety
1437     Standards Act of 1974 (HUD Code), in one or more sections, which, in the traveling mode, is
1438     eight body feet or more in width or 40 body feet or more in length, or when erected on site, is
1439     400 or more square feet, and which is built on a permanent chassis and designed to be used as a
1440     dwelling with or without a permanent foundation when connected to the required utilities, and
1441     includes the plumbing, heating, air-conditioning, and electrical systems.
1442          [(29)] (32) "Manufacturer" means a person engaged in the business of constructing,
1443     manufacturing, assembling, producing, or importing new or unused vehicles, vessels, or
1444     outboard motors for the purpose of sale or trade.
1445          [(30)] (33) "Mobile home" means a transportable factory built housing unit built prior
1446     to June 15, 1976, in accordance with a state mobile home code which existed prior to the
1447     Federal Manufactured Housing and Safety Standards Act (HUD Code).
1448          (34) "Motor fuel" means the same as that term is defined in Section 59-13-102.
1449          [(33)] (35) (a) "Motor vehicle" means a self-propelled vehicle intended primarily for
1450     use and operation on the highways.
1451          (b) "Motor vehicle" does not include an off-highway vehicle.
1452          [(31)] (36) "Motorboat" [has the same meaning as provided] means the same as that
1453     term is defined in Section 73-18-2.

1454          [(32)] (37) "Motorcycle" means:
1455          (a) a motor vehicle having a saddle for the use of the rider and designed to travel on not
1456     more than three wheels in contact with the ground; or
1457          (b) an autocycle.
1458          (38) "Natural gas" means a fuel of which the primary constituent is methane.
1459          [(34)] (39) (a) "Nonresident" means a person who is not a resident of this state as
1460     defined by Section 41-1a-202, and who does not engage in intrastate business within this state
1461     and does not operate in that business any motor vehicle, trailer, or semitrailer within this state.
1462          (b) A person who engages in intrastate business within this state and operates in that
1463     business any motor vehicle, trailer, or semitrailer in this state or who, even though engaging in
1464     interstate commerce, maintains any vehicle in this state as the home station of that vehicle is
1465     considered a resident of this state, insofar as that vehicle is concerned in administering this
1466     chapter.
1467          [(35)] (40) "Odometer" means a device for measuring and recording the actual distance
1468     a vehicle travels while in operation, but does not include any auxiliary odometer designed to be
1469     periodically reset.
1470          [(36)] (41) "Off-highway implement of husbandry" [has the same meaning as
1471     provided] means the same as that term is defined in Section 41-22-2.
1472          [(37)] (42) "Off-highway vehicle" [has the same meaning as provided] means the same
1473     as that term is defined in Section 41-22-2.
1474          [(38)] (43) "Operate" means to drive or be in actual physical control of a vehicle or to
1475     navigate a vessel.
1476          [(39)] (44) "Outboard motor" means a detachable self-contained propulsion unit,
1477     excluding fuel supply, used to propel a vessel.
1478          [(40)] (45) (a) "Owner" means a person, other than a lienholder, holding title to a
1479     vehicle, vessel, or outboard motor whether or not the vehicle, vessel, or outboard motor is
1480     subject to a security interest.
1481          (b) If a vehicle is the subject of an agreement for the conditional sale or installment
1482     sale or mortgage of the vehicle with the right of purchase upon performance of the conditions
1483     stated in the agreement and with an immediate right of possession vested in the conditional
1484     vendee or mortgagor, or if the vehicle is the subject of a security agreement, then the

1485     conditional vendee, mortgagor, or debtor is considered the owner for the purposes of this
1486     chapter.
1487          (c) If a vehicle is the subject of an agreement to lease, the lessor is considered the
1488     owner until the lessee exercises his option to purchase the vehicle.
1489          [(41)] (46) "Park model recreational vehicle" means a unit that:
1490          (a) is designed and marketed as temporary living quarters for recreational, camping,
1491     travel, or seasonal use;
1492          (b) is not permanently affixed to real property for use as a permanent dwelling;
1493          (c) requires a special highway movement permit for transit; and
1494          (d) is built on a single chassis mounted on wheels with a gross trailer area not
1495     exceeding 400 square feet in the setup mode.
1496          [(42)] (47) "Personalized license plate" means a license plate that has displayed on it a
1497     combination of letters, numbers, or both as requested by the owner of the vehicle and assigned
1498     to the vehicle by the division.
1499          [(43)] (48) (a) "Pickup truck" means a two-axle motor vehicle with motive power
1500     manufactured, remanufactured, or materially altered to provide an open cargo area.
1501          (b) "Pickup truck" includes motor vehicles with the open cargo area covered with a
1502     camper, camper shell, tarp, removable top, or similar structure.
1503          [(44)] (49) "Pneumatic tire" means every tire in which compressed air is designed to
1504     support the load.
1505          [(45)] (50) "Preceding year" means a period of 12 consecutive months fixed by the
1506     division that is within 16 months immediately preceding the commencement of the registration
1507     or license year in which proportional registration is sought. The division in fixing the period
1508     shall conform it to the terms, conditions, and requirements of any applicable agreement or
1509     arrangement for the proportional registration of vehicles.
1510          [(46)] (51) "Public garage" means every building or other place where vehicles or
1511     vessels are kept and stored and where a charge is made for the storage and keeping of vehicles
1512     and vessels.
1513          [(47)] (52) "Receipt of surrender of ownership documents" means the receipt of
1514     surrender of ownership documents described in Section 41-1a-503.
1515          [(48)] (53) "Reconstructed vehicle" means every vehicle of a type required to be

1516     registered in this state that is materially altered from its original construction by the removal,
1517     addition, or substitution of essential parts, new or used.
1518          [(49)] (54) "Recreational vehicle" [has the same meaning as provided] means the same
1519     as that term is defined in Section 13-14-102.
1520          [(50)] (55) "Registration" means a document issued by a jurisdiction that allows
1521     operation of a vehicle or vessel on the highways or waters of this state for the time period for
1522     which the registration is valid and that is evidence of compliance with the registration
1523     requirements of the jurisdiction.
1524          [(51)] (56) (a) "Registration year" means a 12 consecutive month period commencing
1525     with the completion of all applicable registration criteria.
1526          (b) For administration of a multistate agreement for proportional registration the
1527     division may prescribe a different 12-month period.
1528          [(52)] (57) "Repair or replacement" means the restoration of vehicles, vessels, or
1529     outboard motors to a sound working condition by substituting any inoperative part of the
1530     vehicle, vessel, or outboard motor, or by correcting the inoperative part.
1531          [(53)] (58) "Replica vehicle" means:
1532          (a) a street rod that meets the requirements under Subsection 41-21-1(3)(a)(i)(B); or
1533          (b) a custom vehicle that meets the requirements under Subsection
1534     41-6a-1507(1)(a)(i)(B).
1535          [(54)] (59) "Road tractor" means every motor vehicle designed and used for drawing
1536     other vehicles and constructed so it does not carry any load either independently or any part of
1537     the weight of a vehicle or load that is drawn.
1538          [(55)] (60) "Sailboat" means the same as that term is defined in Section 73-18-2.
1539          [(56)] (61) "Security interest" means an interest that is reserved or created by a security
1540     agreement to secure the payment or performance of an obligation and that is valid against third
1541     parties.
1542          [(57)] (62) "Semitrailer" means every vehicle without motive power designed for
1543     carrying persons or property and for being drawn by a motor vehicle and constructed so that
1544     some part of its weight and its load rests or is carried by another vehicle.
1545          [(58)] (63) "Special group license plate" means a type of license plate designed for a
1546     particular group of people or a license plate authorized and issued by the division in accordance

1547     with Section 41-1a-418.
1548          [(59)] (64) (a) "Special interest vehicle" means a vehicle used for general
1549     transportation purposes and that is:
1550          (i) 20 years or older from the current year; or
1551          (ii) a make or model of motor vehicle recognized by the division director as having
1552     unique interest or historic value.
1553          (b) In making a determination under Subsection [(59)] (64)(a), the division director
1554     shall give special consideration to:
1555          (i) a make of motor vehicle that is no longer manufactured;
1556          (ii) a make or model of motor vehicle produced in limited or token quantities;
1557          (iii) a make or model of motor vehicle produced as an experimental vehicle or one
1558     designed exclusively for educational purposes or museum display; or
1559          (iv) a motor vehicle of any age or make that has not been substantially altered or
1560     modified from original specifications of the manufacturer and because of its significance is
1561     being collected, preserved, restored, maintained, or operated by a collector or hobbyist as a
1562     leisure pursuit.
1563          [(60)] (65) (a) "Special mobile equipment" means every vehicle:
1564          (i) not designed or used primarily for the transportation of persons or property;
1565          (ii) not designed to operate in traffic; and
1566          (iii) only incidentally operated or moved over the highways.
1567          (b) "Special mobile equipment" includes:
1568          (i) farm tractors;
1569          (ii) off-road motorized construction or maintenance equipment including backhoes,
1570     bulldozers, compactors, graders, loaders, road rollers, tractors, and trenchers; and
1571          (iii) ditch-digging apparatus.
1572          (c) "Special mobile equipment" does not include a commercial vehicle as defined
1573     under Section 72-9-102.
1574          [(61)] (66) "Specially constructed vehicle" means every vehicle of a type required to be
1575     registered in this state, not originally constructed under a distinctive name, make, model, or
1576     type by a generally recognized manufacturer of vehicles, and not materially altered from its
1577     original construction.

1578          [(62)] (67) "Title" means the right to or ownership of a vehicle, vessel, or outboard
1579     motor.
1580          [(63)] (68) (a) "Total fleet miles" means the total number of miles operated in all
1581     jurisdictions during the preceding year by power units.
1582          (b) If fleets are composed entirely of trailers or semitrailers, "total fleet miles" means
1583     the number of miles that those vehicles were towed on the highways of all jurisdictions during
1584     the preceding year.
1585          [(64)] (69) "Trailer" means a vehicle without motive power designed for carrying
1586     persons or property and for being drawn by a motor vehicle and constructed so that no part of
1587     its weight rests upon the towing vehicle.
1588          [(65)] (70) "Transferee" means a person to whom the ownership of property is
1589     conveyed by sale, gift, or any other means except by the creation of a security interest.
1590          [(66)] (71) "Transferor" means a person who transfers his ownership in property by
1591     sale, gift, or any other means except by creation of a security interest.
1592          [(67)] (72) "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable
1593     vehicle without motive power, designed as a temporary dwelling for travel, recreational, or
1594     vacation use that does not require a special highway movement permit when drawn by a
1595     self-propelled motor vehicle.
1596          [(68)] (73) "Truck tractor" means a motor vehicle designed and used primarily for
1597     drawing other vehicles and not constructed to carry a load other than a part of the weight of the
1598     vehicle and load that is drawn.
1599          [(69)] (74) "Vehicle" includes a motor vehicle, trailer, semitrailer, off-highway vehicle,
1600     camper, park model recreational vehicle, manufactured home, and mobile home.
1601          [(70)] (75) "Vessel" means the same as that term is defined in Section 73-18-2.
1602          [(71)] (76) "Vintage vehicle" means the same as that term is defined in Section
1603     41-21-1.
1604          [(72)] (77) "Waters of this state" means the same as that term is defined in Section
1605     73-18-2.
1606          [(73)] (78) "Weighmaster" means a person, association of persons, or corporation
1607     permitted to weigh vehicles under this chapter.
1608          Section 21. Section 41-1a-1201 is amended to read:

1609          41-1a-1201. Disposition of fees.
1610          (1) All fees received and collected under this part shall be transmitted daily to the state
1611     treasurer.
1612          (2) Except as provided in Subsections (3), (6), (7), (8), and (9) and Sections 41-1a-422,
1613     41-1a-1220, 41-1a-1221, and 41-1a-1223 all fees collected under this part shall be deposited in
1614     the Transportation Fund.
1615          (3) Funds generated under Subsections 41-1a-1211(1)(b)(ii), (6)(b)(ii), and (7) and
1616     Section 41-1a-1212 may be used by the commission to cover the costs incurred in issuing
1617     license plates under Part 4, License Plates and Registration Indicia.
1618          (4) In accordance with Section 63J-1-602.2, all funds available to the commission for
1619     the purchase and distribution of license plates and decals are nonlapsing.
1620          (5) (a) Except as provided in Subsections (3) and (5)(b) and Section 41-1a-1205, the
1621     expenses of the commission in enforcing and administering this part shall be provided for by
1622     legislative appropriation from the revenues of the Transportation Fund.
1623          (b) Three dollars of the registration fees imposed under Subsections 41-1a-1206(2)(a)
1624     and (b) for each vehicle registered for a six-month registration period under Section
1625     41-1a-215.5 may be used by the commission to cover the costs incurred in enforcing and
1626     administering this part.
1627          (6) (a) The following portions of the registration fees imposed under Section
1628     41-1a-1206 for each vehicle shall be deposited in the Transportation Investment Fund of 2005
1629     created under Section 72-2-124:
1630          (i) $30 of the registration fees imposed under Subsections 41-1a-1206(1)(a), (1)(b)[,](i)
1631     through (viii), (1)(f), [(3), and (6)] (4), and (7);
1632          (ii) $21 of the registration fees imposed under Subsections 41-1a-1206(1)(c)(i) and
1633     (1)(c)(ii);
1634          (iii) $2.50 of the registration fee imposed under Subsection 41-1a-1206(1)(e)(ii);
1635          (iv) $23 of the registration fee imposed under Subsection 41-1a-1206(1)(d)(i);
1636          (v) $24.50 of the registration fee imposed under Subsection 41-1a-1206(1)(e)(i); and
1637          (vi) $1 of the registration fee imposed under Subsection 41-1a-1206(1)(d)(ii).
1638          (b) The following portions of the registration fees collected for each vehicle registered
1639     for a six-month registration period under Section 41-1a-215.5 shall be deposited in the

1640     Transportation Investment Fund of 2005 created by Section 72-2-124:
1641          (i) $23.25 of [each] the registration fee collected under Subsection 41-1a-1206(2)(a);
1642     and
1643          (ii) $23 of [each] the registration fee [collected under Subsection] imposed under
1644     Subsections 41-1a-1206(2)(b)(i) through (viii).
1645          (7) (a) Ninety-four cents of each registration fee imposed under Subsections
1646     41-1a-1206(1)(a) and (b) for each vehicle shall be deposited in the Public Safety Restricted
1647     Account created in Section 53-3-106.
1648          (b) Seventy-one cents of each registration fee imposed under Subsections
1649     41-1a-1206(2)(a) and (b) for each vehicle registered for a six-month registration period under
1650     Section 41-1a-215.5 shall be deposited in the Public Safety Restricted Account created in
1651     Section 53-3-106.
1652          (8) (a) One dollar of each registration fee imposed under Subsections 41-1a-1206(1)(a)
1653     and (b) for each vehicle shall be deposited into the Motor Vehicle Safety Impact Restricted
1654     Account created in Section 53-8-214.
1655          (b) One dollar of each registration fee imposed under Subsections 41-1a-1206(2)(a)
1656     and (b) for each vehicle registered for a six-month registration period under Section
1657     41-1a-215.5 shall be deposited into the Motor Vehicle Safety Impact Restricted Account
1658     created in Section 53-8-214.
1659          (9) Fifty cents of each registration fee imposed under Subsection 41-1a-1206(1)(a) for
1660     each motorcycle shall be deposited in the Spinal Cord and Brain Injury Rehabilitation Fund
1661     created in Section 26-54-102.
1662          Section 22. Section 41-1a-1206 is amended to read:
1663          41-1a-1206. Registration fees -- Fees by gross laden weight.
1664          (1) Except as provided in Subsections (2) and [(3),] (4), and subject to Subsection (3),
1665     at the time application is made for registration or renewal of registration of a vehicle or
1666     combination of vehicles under this chapter, a registration fee shall be paid to the division as
1667     follows:
1668          (a) $46.00 for each motorcycle;
1669          (b) [$44] for each motor vehicle of 12,000 pounds or less gross laden weight, excluding
1670     motorcycles[;]:

1671          (i) $44 for each motor vehicle fueled by motor fuel;
1672          (ii) $44 for each motor vehicle fueled by diesel fuel;
1673          (iii) $44 for each motor vehicle registered under Section 41-1a-301;
1674          (iv) $44 for each motor vehicle fueled by natural gas;
1675          (v) $194 for each electric motor vehicle;
1676          (vi) $65 for each hybrid electric motor vehicle;
1677          (vii) $44 for each motor vehicle fueled by propane; and
1678          (viii) $194 for each motor vehicle not described in Subsections (1)(b)(i) through (vii);
1679          (c) unless the semitrailer or trailer is exempt from registration under Section 41-1a-202
1680     or is registered under Section 41-1a-301:
1681          (i) $31 for each trailer or semitrailer over 750 pounds gross unladen weight; or
1682          (ii) $28.50 for each commercial trailer or commercial semitrailer of 750 pounds or less
1683     gross unladen weight;
1684          (d) (i) $53 for each farm truck over 12,000 pounds, but not exceeding 14,000 pounds
1685     gross laden weight; plus
1686          (ii) $9 for each 2,000 pounds over 14,000 pounds gross laden weight;
1687          (e) (i) $69.50 for each motor vehicle or combination of motor vehicles, excluding farm
1688     trucks, over 12,000 pounds, but not exceeding 14,000 pounds gross laden weight; plus
1689          (ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
1690          (f) (i) $69.50 for each park model recreational vehicle over 12,000 pounds, but not
1691     exceeding 14,000 pounds gross laden weight; plus
1692          (ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight; and
1693          (g) $45 for each vintage vehicle that is less than 40 years old.
1694          (2) At the time application is made for registration or renewal of registration of a
1695     vehicle under this chapter for a six-month registration period under Section 41-1a-215.5, a
1696     registration fee shall be paid to the division as follows:
1697          (a) $34.50 for each motorcycle; and
1698          (b) [$33.50] for each motor vehicle of 12,000 pounds or less gross laden weight,
1699     excluding motorcycles[.]:
1700          (i) $33.50 for each motor vehicle fueled by motor fuel;
1701          (ii) $33.50 for each motor vehicle fueled by diesel fuel;

1702          (iii) $33.50 for each motor vehicle registered under Section 41-1a-301;
1703          (iv) $33.50 for each motor vehicle fueled by natural gas;
1704          (v) $147.75 for each electric motor vehicle;
1705          (vi) $49.50 for each hybrid electric motor vehicle;
1706          (vii) $33.50 for each motor vehicle fueled by propane; and
1707          (viii) $147.75 for each motor vehicle not described in Subsections (2)(b)(i) through
1708     (vii).
1709          (3) (a) Beginning on January 1, 2019, the commission shall, on January 1, annually
1710     adjust the registration fee for each motor vehicle of 12,000 pounds or less gross laden weight,
1711     excluding motorcycles, by taking the registration fee rate for the previous year and adding an
1712     amount equal to the greater of:
1713          (i) an amount calculated by multiplying the registration fee of the previous year by the
1714     actual percentage change during the previous fiscal year in the Consumer Price Index; and
1715          (ii) 0.
1716          (b) The amount calculated as described in Subsection (3)(a) shall be rounded up to the
1717     nearest quarter.
1718          [(3)] (4) (a) The initial registration fee for a vintage vehicle that is 40 years old or older
1719     is $40.
1720          (b) A vintage vehicle that is 40 years old or older is exempt from the renewal of
1721     registration fees under Subsection (1).
1722          (c) A vehicle with a Purple Heart special group license plate issued in accordance with
1723     Section 41-1a-421 is exempt from the registration fees under Subsection (1).
1724          (d) A camper is exempt from the registration fees under Subsection (1).
1725          [(4)] (5) If a motor vehicle is operated in combination with a semitrailer or trailer, each
1726     motor vehicle shall register for the total gross laden weight of all units of the combination if the
1727     total gross laden weight of the combination exceeds 12,000 pounds.
1728          [(5)] (6) (a) Registration fee categories under this section are based on the gross laden
1729     weight declared in the licensee's application for registration.
1730          (b) Gross laden weight shall be computed in units of 2,000 pounds. A fractional part
1731     of 2,000 pounds is a full unit.
1732          [(6)] (7) The owner of a commercial trailer or commercial semitrailer may, as an

1733     alternative to registering under Subsection (1)(c), apply for and obtain a special registration and
1734     license plate for a fee of $130.
1735          [(7)] (8) Except as provided in Section 41-6a-1642, a truck may not be registered as a
1736     farm truck unless:
1737          (a) the truck meets the definition of a farm truck under Section 41-1a-102; and
1738          (b) (i) the truck has a gross vehicle weight rating of more than 12,000 pounds; or
1739          (ii) the truck has a gross vehicle weight rating of 12,000 pounds or less and the owner
1740     submits to the division a certificate of emissions inspection or a waiver in compliance with
1741     Section 41-6a-1642.
1742          [(8)] (9) A violation of Subsection [(7)] (8) is an infraction that shall be punished by a
1743     fine of not less than $200.
1744          [(9)] (10) Trucks used exclusively to pump cement, bore wells, or perform crane
1745     services with a crane lift capacity of five or more tons, are exempt from 50% of the amount of
1746     the fees required for those vehicles under this section.
1747          Section 23. Section 52-4-103 is amended to read:
1748          52-4-103. Definitions.
1749          As used in this chapter:
1750          (1) "Anchor location" means the physical location from which:
1751          (a) an electronic meeting originates; or
1752          (b) the participants are connected.
1753          (2) "Capitol hill complex" means the grounds and buildings within the area bounded by
1754     300 North Street, Columbus Street, 500 North Street, and East Capitol Boulevard in Salt Lake
1755     City.
1756          (3) (a) "Convening" means the calling together of a public body by a person authorized
1757     to do so for the express purpose of discussing or acting upon a subject over which that public
1758     body has jurisdiction or advisory power.
1759          (b) "Convening" does not include the initiation of a routine conversation between
1760     members of a three-member public body if the members involved in the conversation do not,
1761     during the conversation, take a tentative or final vote on the matter that is the subject of the
1762     conversation.
1763          (4) "Electronic meeting" means a public meeting convened or conducted by means of a

1764     conference using electronic communications.
1765          (5) "Electronic message" means a communication transmitted electronically, including:
1766          (a) electronic mail;
1767          (b) instant messaging;
1768          (c) electronic chat;
1769          (d) text messaging as defined in Section 76-4-401; or
1770          (e) any other method that conveys a message or facilitates communication
1771     electronically.
1772          (6) (a) "Meeting" means the convening of a public body or a specified body, with a
1773     quorum present, including a workshop or an executive session, whether in person or by means
1774     of electronic communications, for the purpose of discussing, receiving comments from the
1775     public about, or acting upon a matter over which the public body or specific body has
1776     jurisdiction or advisory power.
1777          (b) "Meeting" does not mean:
1778          (i) a chance gathering or social gathering; [or]
1779          (ii) a convening of the State Tax Commission to consider a confidential tax matter in
1780     accordance with Section 59-1-405[.]; or
1781          (iii) a convening of a three-member board of trustees of a large public transit district as
1782     defined in Section 17B-2a-802 if:
1783          (A) the board members do not, during the conversation, take a tentative or final vote on
1784     the matter that is the subject of the conversation; or
1785          (B) the conversation pertains only to day-to-day management and operation of the
1786     public transit district.
1787          (c) "Meeting" does not mean the convening of a public body that has both legislative
1788     and executive responsibilities if:
1789          (i) no public funds are appropriated for expenditure during the time the public body is
1790     convened; and
1791          (ii) the public body is convened solely for the discussion or implementation of
1792     administrative or operational matters:
1793          (A) for which no formal action by the public body is required; or
1794          (B) that would not come before the public body for discussion or action.

1795          (7) "Monitor" means to hear or observe, live, by audio or video equipment, all of the
1796     public statements of each member of the public body who is participating in a meeting.
1797          (8) "Participate" means the ability to communicate with all of the members of a public
1798     body, either verbally or electronically, so that each member of the public body can hear or
1799     observe the communication.
1800          (9) (a) "Public body" means:
1801          (i) any administrative, advisory, executive, or legislative body of the state or its
1802     political subdivisions that:
1803          (A) is created by the Utah Constitution, statute, rule, ordinance, or resolution;
1804          (B) consists of two or more persons;
1805          (C) expends, disburses, or is supported in whole or in part by tax revenue; and
1806          (D) is vested with the authority to make decisions regarding the public's business; or
1807          (ii) any administrative, advisory, executive, or policymaking body of an association, as
1808     defined in Section 53A-1-1601, that:
1809          (A) consists of two or more persons;
1810          (B) expends, disburses, or is supported in whole or in part by dues paid by a public
1811     school or whose employees participate in a benefit or program described in Title 49, Utah State
1812     Retirement and Insurance Benefit Act; and
1813          (C) is vested with authority to make decisions regarding the participation of a public
1814     school or student in an interscholastic activity as defined in Section 53A-1-1601.
1815          (b) "Public body" includes:
1816          (i) as defined in Section 11-13-103, an interlocal entity or joint or cooperative
1817     undertaking; and
1818          (ii) as defined in Section 11-13a-102, a governmental nonprofit corporation.
1819          (c) "Public body" does not include:
1820          (i) a political party, a political group, or a political caucus;
1821          (ii) a conference committee, a rules committee, or a sifting committee of the
1822     Legislature;
1823          (iii) a school community council or charter trust land council as defined in Section
1824     53A-1a-108.1; or
1825          (iv) the Economic Development Legislative Liaison Committee created in Section

1826     36-30-201.
1827          (10) "Public statement" means a statement made in the ordinary course of business of
1828     the public body with the intent that all other members of the public body receive it.
1829          (11) (a) "Quorum" means a simple majority of the membership of a public body, unless
1830     otherwise defined by applicable law.
1831          (b) "Quorum" does not include a meeting of two elected officials by themselves when
1832     no action, either formal or informal, is taken on a subject over which these elected officials
1833     have advisory power.
1834          (12) "Recording" means an audio, or an audio and video, record of the proceedings of a
1835     meeting that can be used to review the proceedings of the meeting.
1836          (13) "Specified body":
1837          (a) means an administrative, advisory, executive, or legislative body that:
1838          (i) is not a public body;
1839          (ii) consists of three or more members; and
1840          (iii) includes at least one member who is:
1841          (A) a legislator; and
1842          (B) officially appointed to the body by the president of the Senate, speaker of the
1843     House of Representatives, or governor; and
1844          (b) does not include a body listed in Subsection (9)(c)(ii).
1845          (14) "Transmit" means to send, convey, or communicate an electronic message by
1846     electronic means.
1847          Section 24. Section 59-12-1201 is amended to read:
1848          59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
1849     collection, and enforcement of tax -- Administrative charge -- Deposits.
1850          (1) (a) Except as provided in Subsection (3), there is imposed a tax of [2.5%] 5% on all
1851     short-term leases and rentals of motor vehicles not exceeding 30 days.
1852          (b) The tax imposed in this section is in addition to all other state, county, or municipal
1853     fees and taxes imposed on rentals of motor vehicles.
1854          (2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
1855     imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
1856          (b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall

1857     take effect on the first day of the first billing period:
1858          (A) that begins after the effective date of the tax rate increase; and
1859          (B) if the billing period for the transaction begins before the effective date of a tax rate
1860     increase imposed under Subsection (1).
1861          (ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
1862     rate decrease shall take effect on the first day of the last billing period:
1863          (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
1864     and
1865          (B) if the billing period for the transaction begins before the effective date of the repeal
1866     of the tax or the tax rate decrease imposed under Subsection (1).
1867          (3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
1868          (a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
1869          (b) the motor vehicle is rented as a personal household goods moving van; or
1870          (c) the lease or rental of the motor vehicle is made for the purpose of temporarily
1871     replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
1872     insurance agreement.
1873          (4) (a) (i) The tax authorized under this section shall be administered, collected, and
1874     enforced in accordance with:
1875          (A) the same procedures used to administer, collect, and enforce the tax under Part 1,
1876     Tax Collection; and
1877          (B) Chapter 1, General Taxation Policies.
1878          (ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
1879     Subsections 59-12-103(4) through (10) or Section 59-12-107.1 or 59-12-123.
1880          (b) The commission shall retain and deposit an administrative charge in accordance
1881     with Section 59-1-306 from the revenues the commission collects from a tax under this part.
1882          (c) Except as provided under Subsection (4)(b), all revenue received by the
1883     commission under this section shall be deposited daily with the state treasurer and credited
1884     monthly as follows:
1885          (i) 50% to the Marda Dillree Corridor Preservation Fund under Section 72-2-117[.];
1886     and
1887          (ii) 50% to the Public Transportation Capital Investment Fund created in Section

1888     72-2-124.
1889          Section 25. Section 59-12-2002 is amended to read:
1890          59-12-2002. Definitions.
1891          As used in this part[, "public transit district" means a public transit district organized
1892     under Title 17B, Chapter 2a, Part 8, Public Transit District Act.]:
1893          (1) "Large public transit district" means the same as that term is defined in Section
1894     17B-2a-802.
1895          (2) "Public transit district" means the same as that term is defined in Section
1896     17B-2a-802.
1897          Section 26. Section 59-12-2003 is amended to read:
1898          59-12-2003. Imposition -- Base -- Rate -- Revenue distributed to certain public
1899     transit districts.
1900          (1) Subject to the other provisions of this section and except as provided in Subsection
1901     (2) or (4), beginning on July 1, 2008, the state shall impose a tax under this [part] section on
1902     the transactions described in Subsection 59-12-103(1) within a city, town, or the
1903     unincorporated area of a county of the first or second class if, on January 1, 2008, there is a
1904     public transit district within any portion of that county of the first or second class.
1905          (2) The state may not impose a tax under this [part] section within a county of the first
1906     or second class if within all of the cities, towns, and the unincorporated area of the county of
1907     the first or second class there is imposed a sales and use tax of:
1908          (a) .30% under Section 59-12-2213;
1909          (b) .30% under Section 59-12-2215; or
1910          (c) .30% under Section 59-12-2216.
1911          (3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this [part] section,
1912     the tax rate imposed within a city, town, or the unincorporated area of a county of the first or
1913     second class is a percentage equal to the difference between:
1914          (i) .30%; and
1915          (ii) (A) for a city within the county of the first or second class, the highest tax rate
1916     imposed within that city under:
1917          (I) Section 59-12-2213;
1918          (II) Section 59-12-2215; or

1919          (III) Section 59-12-2216;
1920          (B) for a town within the county of the first or second class, the highest tax rate
1921     imposed within that town under:
1922          (I) Section 59-12-2213;
1923          (II) Section 59-12-2215; or
1924          (III) Section 59-12-2216; or
1925          (C) for the unincorporated area of the county of the first or second class, the highest tax
1926     rate imposed within that unincorporated area under:
1927          (I) Section 59-12-2213;
1928          (II) Section 59-12-2215; or
1929          (III) Section 59-12-2216.
1930          (b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of
1931     a county of the first or second class, the highest tax rate imposed under Section 59-12-2213,
1932     59-12-2215, or 59-12-2216 within that city, town, or unincorporated area of the county of the
1933     first or second class is .30%, the state may not impose a tax under this [part] section within that
1934     city, town, or unincorporated area.
1935          (4) (a) The state may not impose a tax under this [part] section on:
1936          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
1937     are exempt from taxation under Section 59-12-104; or
1938          (ii) except as provided in Subsection (4)(b), amounts paid or charged for food and food
1939     ingredients.
1940          (b) The state shall impose a tax under this [part] section on the purchase price or sales
1941     price for amounts paid or charged for food and food ingredients if the food and food
1942     ingredients are sold as part of a bundled transaction attributable to food and ingredients and
1943     tangible personal property other than food and food ingredients.
1944          (5) For purposes of Subsection (1), the location of a transaction shall be determined in
1945     accordance with Sections 59-12-211 through 59-12-215.
1946          (6) The commission shall distribute the revenues the state collects from the sales and
1947     use tax under this [part] section, after subtracting amounts a seller retains in accordance with
1948     Section 59-12-108, to the public transit districts within the cities, towns, and unincorporated
1949     areas:

1950          (a) within which the state imposes a tax under this [part] section; and
1951          (b) in proportion to the revenues collected from the sales and use tax under this [part]
1952     section within each city, town, and unincorporated area within which the state imposes a tax
1953     under this [part] section.
1954          Section 27. Section 59-12-2003.1 is enacted to read:
1955          59-12-2003.1. Additional large public transit district imposition -- Base -- Rate --
1956     Revenue deposited into the Transportation Investment Fund of 2005.
1957          (1) Subject to the other provisions of this section and except as provided in Subsection
1958     (2) or (4), beginning on July 1, 2022, there is imposed a tax under this section on the
1959     transactions described in Subsection 59-12-103(1) within a city, town, or the unincorporated
1960     area of a county of the first, second, or third class if, on January 1, 2022, there is a large public
1961     transit district within any portion of that county of the first, second, or third class.
1962          (2) The state may not impose a tax under this section within a county of the first,
1963     second, or third class if within all of the cities, towns, and the unincorporated area of the
1964     county of the first, second, or third class the total of all the sales and use tax rates imposed
1965     under Sections 59-12-2003, 59-12-2213, 59-12-2214, 59-12-2215, 59-12-2216, 59-12-2217,
1966     59-12-2218, and 59-12-2219 within each of the cities, towns, and the unincorporated area of
1967     the county of the first, second, or third class is 1.05%.
1968          (3) (a) Subject to Subsection (3)(b), if the state imposes a tax under this section, the tax
1969     rate imposed within a city, town, or the unincorporated area of a county of the first, second, or
1970     third class is a percentage equal to the difference between:
1971          (i) 1.05%; and
1972          (ii) (A) for a city within the county of the first, second, or third class, the total of all the
1973     sales and use tax rates imposed within that city under:
1974          (I) Section 59-12-2003;
1975          (II) Section 59-12-2213;
1976          (III) Section 59-12-2214;
1977          (IV) Section 59-12-2215;
1978          (V) Section 59-12-2216;
1979          (VI) Section 59-12-2217;
1980          (VII) Section 59-12-2218; and

1981          (VIII) Section 59-12-2219;
1982          (B) for a town within the county of the first, second, or third class, the total of all the
1983     sales and use tax rates imposed within that town under:
1984          (I) Section 59-12-2003;
1985          (II) Section 59-12-2213;
1986          (III) Section 59-12-2214;
1987          (IV) Section 59-12-2215;
1988          (V) Section 59-12-2216;
1989          (VI) Section 59-12-2217;
1990          (VII) Section 59-12-2218; and
1991          (VIII) Section 59-12-2219; and
1992          (C) for the unincorporated area of the county of the first, second, or third class, the
1993     total of all the sales and use tax rates imposed within that unincorporated area under:
1994          (I) Section 59-12-2003;
1995          (II) Section 59-12-2213;
1996          (III) Section 59-12-2214;
1997          (IV) Section 59-12-2215;
1998          (V) Section 59-12-2216;
1999          (VI) Section 59-12-2217;
2000          (VII) Section 59-12-2218; and
2001          (VIII) Section 59-12-2219.
2002          (b) For purposes of Subsection (3)(a), if for a city, town, or the unincorporated area of
2003     a county of the first, second, or third class, the total of all the sales and use tax rates imposed
2004     under Sections 59-12-2003, 59-12-2213, 59-12-2214, 59-12-2215, 59-12-2216, 59-12-2217,
2005     59-12-2218, and 59-12-2219 within that city, town, or unincorporated area of the county of the
2006     first, second, or third class is 1.05%, the state may not impose a tax under this section within
2007     that city, town, or unincorporated area.
2008          (4) (a) The state may not impose a tax under this section on:
2009          (i) the sales and uses described in Section 59-12-104 to the extent the sales and uses
2010     are exempt from taxation under Section 59-12-104; or
2011          (ii) except as provided in Subsection (4)(b), amounts paid or charged for food and food

2012     ingredients.
2013          (b) The state shall impose a tax under this section on the purchase price or sales price
2014     for amounts paid or charged for food and food ingredients if the food and food ingredients are
2015     sold as part of a bundled transaction attributable to food and food ingredients and tangible
2016     personal property other than food and food ingredients.
2017          (5) For purposes of Subsection (1), the location of a transaction shall be determined in
2018     accordance with Sections 59-12-211 through 59-12-215.
2019          (6) The commission shall deposit the revenues the state collects from the sales and use
2020     tax under this section, after subtracting amounts a seller retains in accordance with Section
2021     59-12-108, into the Transportation Investment Fund of 2005 created in Section 72-2-124.
2022          Section 28. Section 59-12-2213 is amended to read:
2023          59-12-2213. County, city, or town option sales and use tax to fund a system for
2024     public transit -- Base -- Rate.
2025          (1) Subject to the other provisions of this part, but no later than June 30, 2022, a
2026     county, city, or town may impose a sales and use tax under this section of up to:
2027          (a) for a county, city, or town other than a county, city, or town described in Subsection
2028     (1)(b), .25% on the transactions described in Subsection 59-12-103(1) located within the
2029     county, city, or town to fund a system for public transit; or
2030          (b) for a county, city, or town within which a tax is not imposed under Section
2031     59-12-2216, .30% on the transactions described in Subsection 59-12-103(1) located within the
2032     county, city, or town, to fund a system for public transit.
2033          (2) Notwithstanding Section 59-12-2208, a county, city, or town legislative body is not
2034     required to submit an opinion question to the county's, city's, or town's registered voters in
2035     accordance with Section 59-12-2208 to impose a sales and use tax under this section if the
2036     county, city, or town imposes the sales and use tax under Section 59-12-2216 on or before July
2037     1, 2011.
2038          Section 29. Section 59-12-2214 is amended to read:
2039          59-12-2214. County, city, or town option sales and use tax to fund a system for
2040     public transit, an airport facility, a water conservation project, or to be deposited into the
2041     County of the First Class Highway Projects Fund -- Base -- Rate -- Voter approval
2042     exception.

2043          (1) Subject to the other provisions of this part, but no later than June 30, 2022, a
2044     county, city, or town may impose a sales and use tax of .25% on the transactions described in
2045     Subsection 59-12-103(1) located within the county, city, or town.
2046          (2) Subject to Subsection (3), a county, city, or town that imposes a sales and use tax
2047     under this section shall expend the revenues collected from the sales and use tax:
2048          (a) to fund a system for public transit;
2049          (b) to fund a project or service related to an airport facility for the portion of the project
2050     or service that is performed within the county, city, or town within which the sales and use tax
2051     is imposed:
2052          (i) for a county that imposes the sales and use tax, if the airport facility is part of the
2053     regional transportation plan of the area metropolitan planning organization if a metropolitan
2054     planning organization exists for the area; or
2055          (ii) for a city or town that imposes the sales and use tax, if:
2056          (A) that city or town is located within a county of the second class;
2057          (B) that city or town owns or operates the airport facility; and
2058          (C) an airline is headquartered in that city or town; or
2059          (c) for a combination of Subsections (2)(a) and (b).
2060          (3) A county of the first class that imposes a sales and use tax under this section shall
2061     expend the revenues collected from the sales and use tax as follows:
2062          (a) 80% of the revenues collected from the sales and use tax shall be expended to fund
2063     a system for public transit; and
2064          (b) 20% of the revenues collected from the sales and use tax shall be deposited into the
2065     County of the First Class Highway Projects Fund created by Section 72-2-121.
2066          (4) Notwithstanding Section 59-12-2208, a county, city, or town legislative body is not
2067     required to submit an opinion question to the county's, city's, or town's registered voters in
2068     accordance with Section 59-12-2208 to impose a sales and use tax under this section if:
2069          (a) the county, city, or town imposes the sales and use tax under this section on or after
2070     July 1, 2010, but on or before July 1, 2011;
2071          (b) on July 1, 2010, the county, city, or town imposes a sales and use tax under:
2072          (i) Section 59-12-2213; or
2073          (ii) Section 59-12-2215; and

2074          (c) the county, city, or town obtained voter approval to impose the sales and use tax
2075     under:
2076          (i) Section 59-12-2213; or
2077          (ii) Section 59-12-2215.
2078          Section 30. Section 59-12-2215 is amended to read:
2079          59-12-2215. City or town option sales and use tax for highways or to fund a
2080     system for public transit -- Base -- Rate.
2081          (1) Subject to the other provisions of this part, but no later than June 30, 2022, a city or
2082     town may impose a sales and use tax of up to .30% on the transactions described in Subsection
2083     59-12-103(1) located within the city or town.
2084          (2) A city or town imposing a sales and use tax under this section shall expend the
2085     revenues collected from the sales and use tax:
2086          (a) for the construction and maintenance of highways under the jurisdiction of the city
2087     or town imposing the tax;
2088          (b) to fund a system for public transit; or
2089          (c) for a combination of Subsections (2)(a) and (b).
2090          Section 31. Section 59-12-2216 is amended to read:
2091          59-12-2216. County option sales and use tax for a fixed guideway, to fund a
2092     system for public transit, or for highways -- Base -- Rate -- Allocation and expenditure of
2093     revenues.
2094          (1) Subject to the other provisions of this part, but no later than June 30, 2022, a county
2095     legislative body may impose a sales and use tax of up to .30% on the transactions described in
2096     Subsection 59-12-103(1) within the county, including the cities and towns within the county.
2097          (2) Subject to Subsection (3), before obtaining voter approval in accordance with
2098     Section 59-12-2208, a county legislative body shall adopt a resolution specifying the
2099     percentage of revenues the county will receive from the sales and use tax under this section that
2100     will be allocated to fund one or more of the following:
2101          (a) a project or service relating to a fixed guideway for the portion of the project or
2102     service that is performed within the county;
2103          (b) a project or service relating to a system for public transit, except for a fixed
2104     guideway, for the portion of the project or service that is performed within the county;

2105          (c) the following relating to a state highway within the county:
2106          (i) a project within the county if the project:
2107          (A) begins on or after the day on which a county legislative body imposes a tax under
2108     this section; and
2109          (B) involves an environmental study, an improvement, new construction, or a
2110     renovation;
2111          (ii) debt service on a project described in Subsection (2)(c)(i); or
2112          (iii) bond issuance costs related to a project described in Subsection (2)(c)(i); or
2113          (d) a project, debt service, or bond issuance cost described in Subsection (2)(c) relating
2114     to a highway that is:
2115          (i) a principal arterial highway or minor arterial highway;
2116          (ii) included in a metropolitan planning organization's regional transportation plan; and
2117          (iii) not a state highway.
2118          (3) A county legislative body shall in the resolution described in Subsection (2)
2119     allocate 100% of the revenues the county will receive from the sales and use tax under this
2120     section for one or more of the purposes described in Subsection (2).
2121          (4) Notwithstanding Section 59-12-2208, the opinion question required by Section
2122     59-12-2208 shall state the allocations the county legislative body makes in accordance with this
2123     section.
2124          (5) The revenues collected from a sales and use tax under this section shall be:
2125          (a) allocated in accordance with the allocations specified in the resolution under
2126     Subsection (2); and
2127          (b) expended as provided in this section.
2128          (6) If a county legislative body allocates revenues collected from a sales and use tax
2129     under this section for a state highway project described in Subsection (2)(c)(i), before
2130     beginning the state highway project within the county, the county legislative body shall:
2131          (a) obtain approval from the Transportation Commission to complete the project; and
2132          (b) enter into an interlocal agreement established in accordance with Title 11, Chapter
2133     13, Interlocal Cooperation Act, with the Department of Transportation to complete the project.
2134          (7) If after a county legislative body imposes a sales and use tax under this section the
2135     county legislative body seeks to change an allocation specified in the resolution under

2136     Subsection (2), the county legislative body may change the allocation by:
2137          (a) adopting a resolution in accordance with Subsection (2) specifying the percentage
2138     of revenues the county will receive from the sales and use tax under this section that will be
2139     allocated to fund one or more of the items described in Subsection (2);
2140          (b) obtaining approval to change the allocation of the sales and use tax by a majority of
2141     all of the members of the county legislative body; and
2142          (c) subject to Subsection (8):
2143          (i) in accordance with Section 59-12-2208, submitting an opinion question to the
2144     county's registered voters voting on changing the allocation so that each registered voter has the
2145     opportunity to express the registered voter's opinion on whether the allocation should be
2146     changed; and
2147          (ii) in accordance with Section 59-12-2208, obtaining approval to change the allocation
2148     from a majority of the county's registered voters voting on changing the allocation.
2149          (8) Notwithstanding Section 59-12-2208, the opinion question required by Subsection
2150     (7)(c)(i) shall state the allocations specified in the resolution adopted in accordance with
2151     Subsection (7)(a) and approved by the county legislative body in accordance with Subsection
2152     (7)(b).
2153          (9) Revenues collected from a sales and use tax under this section that a county
2154     allocates for a purpose described in Subsection (2)(c) shall be:
2155          (a) deposited into the Highway Projects Within Counties Fund created by Section
2156     72-2-121.1; and
2157          (b) expended as provided in Section 72-2-121.1.
2158          (10) (a) Notwithstanding Section 59-12-2206 and subject to Subsection (10)(b),
2159     revenues collected from a sales and use tax under this section that a county allocates for a
2160     purpose described in Subsection (2)(d) shall be transferred to the Department of Transportation
2161     if the transfer of the revenues is required under an interlocal agreement:
2162          (i) entered into on or before January 1, 2010; and
2163          (ii) established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act.
2164          (b) The Department of Transportation shall expend the revenues described in
2165     Subsection (10)(a) as provided in the interlocal agreement described in Subsection (10)(a).
2166          Section 32. Section 59-12-2217 is amended to read:

2167          59-12-2217. County option sales and use tax for transportation -- Base -- Rate --
2168     Written prioritization process -- Approval by county legislative body.
2169          (1) Subject to the other provisions of this part, but no later than June 30, 2022, a county
2170     legislative body may impose a sales and use tax of up to .25% on the transactions described in
2171     Subsection 59-12-103(1) within the county, including the cities and towns within the county.
2172          (2) Subject to Subsections (3) through (8) and Section 59-12-2207, the revenues
2173     collected from a sales and use tax under this section may only be expended for:
2174          (a) a project or service:
2175          (i) relating to a regionally significant transportation facility for the portion of the
2176     project or service that is performed within the county;
2177          (ii) for new capacity or congestion mitigation if the project or service is performed
2178     within a county:
2179          (A) of the first or second class; or
2180          (B) if that county is part of an area metropolitan planning organization; and
2181          (iii) that is on a priority list:
2182          (A) created by the county's council of governments in accordance with Subsection (7);
2183     and
2184          (B) approved by the county legislative body in accordance with Subsection (7);
2185          (b) Ŝ→ [
corridor preservation for] ←Ŝ a project or service described in Subsection (2)(a) as
2186     provided in Subsection (8); or
2187          (c) debt service or bond issuance costs related to a project or service described in
2188     Subsection (2)(a)(i) or (ii).
2189          (3) If a project or service described in Subsection (2) is for:
2190          (a) a principal arterial highway or a minor arterial highway in a county of the first or
2191     second class or a collector road in a county of the second class, that project or service shall be
2192     part of the:
2193          (i) county and municipal master plan; and
2194          (ii) (A) statewide long-range plan; or
2195          (B) regional transportation plan of the area metropolitan planning organization if a
2196     metropolitan planning organization exists for the area; or
2197          (b) a fixed guideway or an airport, that project or service shall be part of the regional

2198     transportation plan of the area metropolitan planning organization if a metropolitan planning
2199     organization exists for the area.
2200          (4) In a county of the first or second class, a regionally significant transportation
2201     facility project or service described in Subsection (2)(a)(i) shall have a funded year priority
2202     designation on a Statewide Transportation Improvement Program and Transportation
2203     Improvement Program if the project or service described in Subsection (2)(a)(i) is:
2204          (a) a principal arterial highway;
2205          (b) a minor arterial highway;
2206          (c) a collector road in a county of the second class; or
2207          (d) a major collector highway in a rural area.
2208          (5) Of the revenues collected from a sales and use tax imposed under this section
2209     within a county of the first Ŝ→ [
or second] ←Ŝ class, 25% or more shall be expended for the
2209a     purpose
2210     described in Subsection (2)(b).
2211          (6) (a) As provided in this Subsection (6), a council of governments shall:
2212          (i) develop a written prioritization process for the prioritization of projects to be funded
2213     by revenues collected from a sales and use tax under this section;
2214          (ii) create a priority list of regionally significant transportation facility projects or
2215     services described in Subsection (2)(a)(i) in accordance with Subsection (7); and
2216          (iii) present the priority list to the county legislative body for approval in accordance
2217     with Subsection (7).
2218          (b) The written prioritization process described in Subsection (6)(a)(i) shall include:
2219          (i) a definition of the type of projects to which the written prioritization process
2220     applies;
2221          (ii) subject to Subsection (6)(c), the specification of a weighted criteria system that the
2222     council of governments will use to rank proposed projects and how that weighted criteria
2223     system will be used to determine which proposed projects will be prioritized;
2224          (iii) the specification of data that is necessary to apply the weighted criteria system;
2225          (iv) application procedures for a project to be considered for prioritization by the
2226     council of governments; and
2227          (v) any other provision the council of governments considers appropriate.
2228          (c) The weighted criteria system described in Subsection (6)(b)(ii) shall include the

2229     following:
2230          (i) the cost effectiveness of a project;
2231          (ii) the degree to which a project will mitigate regional congestion;
2232          (iii) the compliance requirements of applicable federal laws or regulations;
2233          (iv) the economic impact of a project;
2234          (v) the degree to which a project will require tax revenues to fund maintenance and
2235     operation expenses; and
2236          (vi) any other provision the council of governments considers appropriate.
2237          (d) A council of governments of a county of the first or second class shall submit the
2238     written prioritization process described in Subsection (6)(a)(i) to the Executive Appropriations
2239     Committee for approval prior to taking final action on:
2240          (i) the written prioritization process; or
2241          (ii) any proposed amendment to the written prioritization process.
2242          (7) (a) A council of governments shall use the weighted criteria system adopted in the
2243     written prioritization process developed in accordance with Subsection (6) to create a priority
2244     list of regionally significant transportation facility projects or services for which revenues
2245     collected from a sales and use tax under this section may be expended.
2246          (b) Before a council of governments may finalize a priority list or the funding level of a
2247     project, the council of governments shall conduct a public meeting on:
2248          (i) the written prioritization process; and
2249          (ii) the merits of the projects that are prioritized as part of the written prioritization
2250     process.
2251          (c) A council of governments shall make the weighted criteria system ranking for each
2252     project prioritized as part of the written prioritization process publicly available before the
2253     public meeting required by Subsection (7)(b) is held.
2254          (d) If a council of governments prioritizes a project over another project with a higher
2255     rank under the weighted criteria system, the council of governments shall:
2256          (i) identify the reasons for prioritizing the project over another project with a higher
2257     rank under the weighted criteria system at the public meeting required by Subsection (7)(b);
2258     and
2259          (ii) make the reasons described in Subsection (7)(d)(i) publicly available.

2260          (e) Subject to Subsections (7)(f) and (g), after a council of governments finalizes a
2261     priority list in accordance with this Subsection (7), the council of governments shall:
2262          (i) submit the priority list to the county legislative body for approval; and
2263          (ii) obtain approval of the priority list from a majority of the members of the county
2264     legislative body.
2265          (f) A council of governments may only submit one priority list per calendar year to the
2266     county legislative body.
2267          (g) A county legislative body may only consider and approve one priority list submitted
2268     under Subsection (7)(e) per calendar year.
2269          (8) Ŝ→ [
(a) Except as provided in Subsection (8)(b), revenues collected from a sales and use
2270     tax under this section that a county allocates for a purpose described in Subsection (2)(b) shall
2271     be:
2272          (i) deposited in or transferred to the Local Highway and Transportation Corridor
2273     Preservation Fund created by Section 72-2-117.5; and
2274          (ii) expended as provided in Section 72-2-117.5.
2275          (b)
] ←Ŝ
In a county of the first class, revenues collected from a sales and use tax under this
2276     section that a county allocates for a purpose described in Subsection (2)(b) shall be:
2277          Ŝ→ [
(i)] (a) ←Ŝ deposited in or transferred to the County of the First Class Highway
2277a     Projects Fund
2278     created by Section 72-2-121; and
2279          Ŝ→ [
(ii)] (b) ←Ŝ expended as provided in Section 72-2-121.
2280          (9) Notwithstanding Section 59-12-2208, a county legislative body may, but is not
2281     required to, submit an opinion question to the county's registered voters in accordance with
2282     Section 59-12-2208 to impose a sales and use tax under this section.
2283          Section 33. Section 59-12-2218 is amended to read:
2284          59-12-2218. County, city, or town option sales and use tax for airports, highways,
2285     and systems for public transit -- Base -- Rate -- Administration of sales and use tax --
2286     Voter approval exception.
2287          (1) Subject to the other provisions of this part, but no later than June 30, 2022, the
2288     following may impose a sales and use tax under this section:
2289          (a) if, on April 1, 2009, a county legislative body of a county of the second class
2290     imposes a sales and use tax under this section, the county legislative body of the county of the

2291     second class may impose the sales and use tax on the transactions:
2292          (i) described in Subsection 59-12-103(1); and
2293          (ii) within the county, including the cities and towns within the county; or
2294          (b) if, on April 1, 2009, a county legislative body of a county of the second class does
2295     not impose a sales and use tax under this section:
2296          (i) a city legislative body of a city within the county of the second class may impose a
2297     sales and use tax under this section on the transactions described in Subsection 59-12-103(1)
2298     within that city;
2299          (ii) a town legislative body of a town within the county of the second class may impose
2300     a sales and use tax under this section on the transactions described in Subsection 59-12-103(1)
2301     within that town; and
2302          (iii) the county legislative body of the county of the second class may impose a sales
2303     and use tax on the transactions described in Subsection 59-12-103(1):
2304          (A) within the county, including the cities and towns within the county, if on the date
2305     the county legislative body provides the notice described in Section 59-12-2209 to the
2306     commission stating that the county will enact a sales and use tax under this section, no city or
2307     town within that county imposes a sales and use tax under this section or has provided the
2308     notice described in Section 59-12-2209 to the commission stating that the city or town will
2309     enact a sales and use tax under this section; or
2310          (B) within the county, except for within a city or town within that county, if, on the
2311     date the county legislative body provides the notice described in Section 59-12-2209 to the
2312     commission stating that the county will enact a sales and use tax under this section, that city or
2313     town imposes a sales and use tax under this section or has provided the notice described in
2314     Section 59-12-2209 to the commission stating that the city or town will enact a sales and use
2315     tax under this section.
2316          (2) For purposes of Subsection (1) and subject to the other provisions of this section, a
2317     county, city, or town legislative body that imposes a sales and use tax under this section may
2318     impose the tax at a rate of:
2319          (a) .10%; or
2320          (b) .25%.
2321          (3) A sales and use tax imposed at a rate described in Subsection (2)(a) shall be

2322     expended as determined by the county, city, or town legislative body as follows:
2323          (a) deposited as provided in Subsection (9)(b) into the County of the Second Class
2324     State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
2325     Section 72-2-121.2;
2326          (b) expended for a project or service relating to an airport facility for the portion of the
2327     project or service that is performed within the county, city, or town within which the tax is
2328     imposed:
2329          (i) for a county legislative body that imposes the sales and use tax, if that airport
2330     facility is part of the regional transportation plan of the area metropolitan planning organization
2331     if a metropolitan planning organization exists for the area; or
2332          (ii) for a city or town legislative body that imposes the sales and use tax, if:
2333          (A) that city or town owns or operates the airport facility; and
2334          (B) an airline is headquartered in that city or town; or
2335          (c) deposited or expended for a combination of Subsections (3)(a) and (b).
2336          (4) Subject to Subsections (5) through (7), a sales and use tax imposed at a rate
2337     described in Subsection (2)(b) shall be expended as determined by the county, city, or town
2338     legislative body as follows:
2339          (a) deposited as provided in Subsection (9)(b) into the County of the Second Class
2340     State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
2341     Section 72-2-121.2;
2342          (b) expended for:
2343          (i) a state highway designated under Title 72, Chapter 4, Part 1, State Highways;
2344          (ii) a local highway that is a principal arterial highway, minor arterial highway, major
2345     collector highway, or minor collector road; or
2346          (iii) a combination of Subsections (4)(b)(i) and (ii);
2347          (c) expended for a project or service relating to a system for public transit for the
2348     portion of the project or service that is performed within the county, city, or town within which
2349     the sales and use tax is imposed;
2350          (d) expended for a project or service relating to an airport facility for the portion of the
2351     project or service that is performed within the county, city, or town within which the sales and
2352     use tax is imposed:

2353          (i) for a county legislative body that imposes the sales and use tax, if that airport
2354     facility is part of the regional transportation plan of the area metropolitan planning organization
2355     if a metropolitan planning organization exists for the area; or
2356          (ii) for a city or town legislative body that imposes the sales and use tax, if:
2357          (A) that city or town owns or operates the airport facility; and
2358          (B) an airline is headquartered in that city or town;
2359          (e) expended for:
2360          (i) a class B road, as defined in Section 72-3-103;
2361          (ii) a class C road, as defined in Section 72-3-104; or
2362          (iii) a combination of Subsections (4)(e)(i) and (ii);
2363          (f) expended for traffic and pedestrian safety, including:
2364          (i) for a class B road, as defined in Section 72-3-103, or class C road, as defined in
2365     Section 72-3-104, for:
2366          (A) a sidewalk;
2367          (B) curb and gutter;
2368          (C) a safety feature;
2369          (D) a traffic sign;
2370          (E) a traffic signal;
2371          (F) street lighting; or
2372          (G) a combination of Subsections (4)(f)(i)(A) through (F);
2373          (ii) the construction of an active transportation facility that:
2374          (A) is for nonmotorized vehicles and multimodal transportation; and
2375          (B) connects an origin with a destination; or
2376          (iii) a combination of Subsections (4)(f)(i) and (ii); or
2377          (g) deposited or expended for a combination of Subsections (4)(a) through (f).
2378          (5) A county, city, or town legislative body may not expend revenue collected within a
2379     county, city, or town from a tax under this section for a purpose described in Subsections (4)(b)
2380     through (f) unless the purpose is recommended by:
2381          (a) for a county that is part of a metropolitan planning organization, the metropolitan
2382     planning organization of which the county is a part; or
2383          (b) for a county that is not part of a metropolitan planning organization, the council of

2384     governments of which the county is a part.
2385          (6) (a) (i) Except as provided in Subsection (6)(b), a county, city, or town that imposes
2386     a tax described in Subsection (2)(b) shall deposit the revenue collected from a tax rate of .05%
2387     as provided in Subsection (9)(b)(i) into the Local Highway and Transportation Corridor
2388     Preservation Fund created by Section 72-2-117.5.
2389          (ii) Revenue deposited in accordance with Subsection (6)(a)(i) shall be expended and
2390     distributed in accordance with Section 72-2-117.5.
2391          (b) A county, city, or town is not required to make the deposit required by Subsection
2392     (6)(a)(i) if the county, city, or town:
2393          (i) imposed a tax described in Subsection (2)(b) on July 1, 2010; or
2394          (ii) has continuously imposed a tax described in Subsection (2)(b):
2395          (A) beginning after July 1, 2010; and
2396          (B) for a five-year period.
2397          (7) (a) Subject to the other provisions of this Subsection (7), a city or town within
2398     which a sales and use tax is imposed at the tax rate described in Subsection (2)(b) may:
2399          (i) expend the revenues in accordance with Subsection (4); or
2400          (ii) expend the revenues in accordance with Subsections (7)(b) through (d) if:
2401          (A) that city or town owns or operates an airport facility; and
2402          (B) an airline is headquartered in that city or town.
2403          (b) (i) A city or town legislative body of a city or town within which a sales and use tax
2404     is imposed at the tax rate described in Subsection (2)(b) may expend the revenues collected
2405     from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of
2406     .25% for a purpose described in Subsection (7)(b)(ii) if:
2407          (A) that city or town owns or operates an airport facility; and
2408          (B) an airline is headquartered in that city or town.
2409          (ii) A city or town described in Subsection (7)(b)(i) may expend the revenues collected
2410     from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of
2411     .25% for:
2412          (A) a project or service relating to the airport facility; and
2413          (B) the portion of the project or service that is performed within the city or town
2414     imposing the sales and use tax.

2415          (c) If a city or town legislative body described in Subsection (7)(b)(i) determines to
2416     expend the revenues collected from a tax rate of greater than .10% but not to exceed the
2417     revenues collected from a tax rate of .25% for a project or service relating to an airport facility
2418     as allowed by Subsection (7)(b), any remaining revenue that is collected from the sales and use
2419     tax imposed at the tax rate described in Subsection (2)(b) that is not expended for the project or
2420     service relating to an airport facility as allowed by Subsection (7)(b) shall be expended as
2421     follows:
2422          (i) 75% of the remaining revenues shall be deposited as provided in Subsection (9)(c)
2423     into the County of the Second Class State Highway Projects Fund created by Section
2424     72-2-121.2 and expended as provided in Section 72-2-121.2; and
2425          (ii) 25% of the remaining revenues shall be deposited as provided in Subsection (9)(c)
2426     into the Local Highway and Transportation Corridor Preservation Fund created by Section
2427     72-2-117.5 and expended and distributed in accordance with Section 72-2-117.5.
2428          (d) A city or town legislative body that expends the revenues collected from a sales and
2429     use tax imposed at the tax rate described in Subsection (2)(b) in accordance with Subsections
2430     (7)(b) and (c):
2431          (i) shall, on or before the date the city or town legislative body provides the notice
2432     described in Section 59-12-2209 to the commission stating that the city or town will enact a
2433     sales and use tax under this section:
2434          (A) determine the tax rate, the percentage of which is greater than .10% but does not
2435     exceed .25%, the collections from which the city or town legislative body will expend for a
2436     project or service relating to an airport facility as allowed by Subsection (7)(b); and
2437          (B) notify the commission in writing of the tax rate the city or town legislative body
2438     determines in accordance with Subsection (7)(d)(i)(A);
2439          (ii) shall, on or before the April 1 immediately following the date the city or town
2440     legislative body provides the notice described in Subsection (7)(d)(i) to the commission:
2441          (A) determine the tax rate, the percentage of which is greater than .10% but does not
2442     exceed .25%, the collections from which the city or town legislative body will expend for a
2443     project or service relating to an airport facility as allowed by Subsection (7)(b); and
2444          (B) notify the commission in writing of the tax rate the city or town legislative body
2445     determines in accordance with Subsection (7)(d)(ii)(A);

2446          (iii) shall, on or before April 1 of each year after the April 1 described in Subsection
2447     (7)(d)(ii):
2448          (A) determine the tax rate, the percentage of which is greater than .10% but does not
2449     exceed .25%, the collections from which the city or town legislative body will expend for a
2450     project or service relating to an airport facility as allowed by Subsection (7)(b); and
2451          (B) notify the commission in writing of the tax rate the city or town legislative body
2452     determines in accordance with Subsection (7)(d)(iii)(A); and
2453          (iv) may not change the tax rate the city or town legislative body determines in
2454     accordance with Subsections (7)(d)(i) through (iii) more frequently than as prescribed by
2455     Subsections (7)(d)(i) through (iii).
2456          (8) Before a city or town legislative body may impose a sales and use tax under this
2457     section, the city or town legislative body shall provide a copy of the notice described in Section
2458     59-12-2209 that the city or town legislative body provides to the commission:
2459          (a) to the county legislative body within which the city or town is located; and
2460          (b) at the same time as the city or town legislative body provides the notice to the
2461     commission.
2462          (9) (a) Subject to Subsections (9)(b) through (e) and Section 59-12-2207, the
2463     commission shall transmit revenues collected within a county, city, or town from a tax under
2464     this part that will be expended for a purpose described in Subsection (3)(b) or Subsections
2465     (4)(b) through (f) to the county, city, or town legislative body in accordance with Section
2466     59-12-2206.
2467          (b) Except as provided in Subsection (9)(c) and subject to Section 59-12-2207, the
2468     commission shall deposit revenues collected within a county, city, or town from a sales and use
2469     tax under this section that:
2470          (i) are required to be expended for a purpose described in Subsection (6)(a) into the
2471     Local Transportation Corridor Preservation Fund created by Section 72-2-117.5; or
2472          (ii) a county, city, or town legislative body determines to expend for a purpose
2473     described in Subsection (3)(a) or (4)(a) into the County of the Second Class State Highway
2474     Projects Fund created by Section 72-2-121.2 if the county, city, or town legislative body
2475     provides written notice to the commission requesting the deposit.
2476          (c) Subject to Subsection (9)(d) or (e), if a city or town legislative body provides notice

2477     to the commission in accordance with Subsection (7)(d), the commission shall:
2478          (i) transmit the revenues collected from the tax rate stated on the notice to the city or
2479     town legislative body monthly by electronic funds transfer; and
2480          (ii) deposit any remaining revenues described in Subsection (7)(c) in accordance with
2481     Subsection (7)(c).
2482          (d) (i) If a city or town legislative body provides the notice described in Subsection
2483     (7)(d)(i) to the commission, the commission shall transmit or deposit the revenues collected
2484     from the sales and use tax:
2485          (A) in accordance with Subsection (9)(c);
2486          (B) beginning on the date the city or town legislative body enacts the sales and use tax;
2487     and
2488          (C) ending on the earlier of the June 30 immediately following the date the city or town
2489     legislative body provides the notice described in Subsection (7)(d)(ii) to the commission or the
2490     date the city or town legislative body repeals the sales and use tax.
2491          (ii) If a city or town legislative body provides the notice described in Subsection
2492     (7)(d)(ii) or (iii) to the commission, the commission shall transmit or deposit the revenues
2493     collected from the sales and use tax:
2494          (A) in accordance with Subsection (9)(c);
2495          (B) beginning on the July 1 immediately following the date the city or town legislative
2496     body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission; and
2497          (C) ending on the earlier of the June 30 of the year after the date the city or town
2498     legislative body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission
2499     or the date the city or town legislative body repeals the sales and use tax.
2500          (e) (i) If a city or town legislative body that is required to provide the notice described
2501     in Subsection (7)(d)(i) does not provide the notice described in Subsection (7)(d)(i) to the
2502     commission on or before the date required by Subsection (7)(d) for providing the notice, the
2503     commission shall transmit, transfer, or deposit the revenues collected from the sales and use
2504     tax within the city or town in accordance with Subsections (9)(a) and (b).
2505          (ii) If a city or town legislative body that is required to provide the notice described in
2506     Subsection (7)(d)(ii) or (iii) does not provide the notice described in Subsection (7)(d)(ii) or
2507     (iii) to the commission on or before the date required by Subsection (7)(d) for providing the

2508     notice, the commission shall transmit or deposit the revenues collected from the sales and use
2509     tax within the city or town in accordance with:
2510          (A) Subsection (9)(c); and
2511          (B) the most recent notice the commission received from the city or town legislative
2512     body under Subsection (7)(d).
2513          (10) Notwithstanding Section 59-12-2208, a county, city, or town legislative body may,
2514     but is not required to, submit an opinion question to the county's, city's, or town's registered
2515     voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section.
2516          Section 34. Section 59-12-2219 is amended to read:
2517          59-12-2219. County option sales and use tax for highways and public transit --
2518     Base -- Rate -- Distribution and expenditure of revenue -- Revenue may not supplant
2519     existing budgeted transportation revenue.
2520          (1) As used in this section:
2521          (a) "Class B road" means the same as that term is defined in Section 72-3-103.
2522          (b) "Class C road" means the same as that term is defined in Section 72-3-104.
2523          (c) "Eligible political subdivision" means a political subdivision that:
2524          (i) (A) on May 12, 2015, provides public transit services; or
2525          (B) after May 12, 2015, provides written notice to the commission in accordance with
2526     Subsection (10)(b) that it intends to provide public transit service within a county;
2527          (ii) is not a public transit district; and
2528          (iii) is not annexed into a public transit district.
2529          (d) "Public transit district" means a public transit district organized under Title 17B,
2530     Chapter 2a, Part 8, Public Transit District Act.
2531          (2) Subject to the other provisions of this part, but no later than June 30, 2022, a county
2532     legislative body may impose a sales and use tax of .25% on the transactions described in
2533     Subsection 59-12-103(1) within the county, including the cities and towns within the county.
2534          (3) The commission shall distribute sales and use tax revenue collected under this
2535     section as provided in Subsections (4) through (10).
2536          (4) If the entire boundary of a county that imposes a sales and use tax under this section
2537     is annexed into a single public transit district, the commission shall distribute the sales and use
2538     tax revenue collected within the county as follows:

2539          (a) .10% shall be transferred to the public transit district in accordance with Section
2540     59-12-2206;
2541          (b) .10% shall be distributed as provided in Subsection (8); and
2542          (c) .05% shall be distributed to the county legislative body.
2543          (5) If the entire boundary of a county that imposes a sales and use tax under this section
2544     is not annexed into a single public transit district, but a city or town within the county is
2545     annexed into a single public transit district that also has a county of the first class annexed into
2546     the same public transit district, the commission shall distribute the sales and use tax revenue
2547     collected within the county as follows:
2548          (a) for a city or town within the county that is annexed into a single public transit
2549     district, the commission shall distribute the sales and use tax revenue collected within that city
2550     or town as follows:
2551          (i) .10% shall be transferred to the public transit district in accordance with Section
2552     59-12-2206;
2553          (ii) .10% shall be distributed as provided in Subsection (8); and
2554          (iii) .05% shall be distributed to the county legislative body;
2555          (b) for an eligible political subdivision within the county, the commission shall
2556     distribute the sales and use tax revenue collected within that eligible political subdivision as
2557     follows:
2558          (i) .10% shall be transferred to the eligible political subdivision in accordance with
2559     Section 59-12-2206;
2560          (ii) .10% shall be distributed as provided in Subsection (8); and
2561          (iii) .05% shall be distributed to the county legislative body; and
2562          (c) the commission shall distribute the sales and use tax revenue, except for the sales
2563     and use tax revenue described in Subsections (5)(a) and (b), as follows:
2564          (i) .10% shall be distributed as provided in Subsection (8); and
2565          (ii) .15% shall be distributed to the county legislative body.
2566          (6) For a county not described in Subsection (4) or (5), if the entire boundary of a
2567     county of the first or second class that imposes a sales and use tax under this section is not
2568     annexed into a single public transit district, or if there is not a public transit district within the
2569     county, the commission shall distribute the sales and use tax revenue collected within the

2570     county as follows:
2571          (a) for a city or town within the county that is annexed into a single public transit
2572     district, the commission shall distribute the sales and use tax revenue collected within that city
2573     or town as follows:
2574          (i) .10% shall be transferred to the public transit district in accordance with Section
2575     59-12-2206;
2576          (ii) .10% shall be distributed as provided in Subsection (8); and
2577          (iii) .05% shall be distributed to the county legislative body;
2578          (b) for an eligible political subdivision within the county, the commission shall
2579     distribute the sales and use tax revenue collected within that eligible political subdivision as
2580     follows:
2581          (i) .10% shall be transferred to the eligible political subdivision in accordance with
2582     Section 59-12-2206;
2583          (ii) .10% shall be distributed as provided in Subsection (8); and
2584          (iii) .05% shall be distributed to the county legislative body; and
2585          (c) the commission shall distribute the sales and use tax revenue, except for the sales
2586     and use tax revenue described in Subsections (6)(a) and (b), as follows:
2587          (i) .10% shall be distributed as provided in Subsection (8); and
2588          (ii) .15% shall be distributed to the county legislative body.
2589          (7) For a county not described in Subsection (4) or (5), if the entire boundary of a
2590     county of the third, fourth, fifth, or sixth class that imposes a sales and use tax under this
2591     section is not annexed into a single public transit district, or if there is not a public transit
2592     district within the county, the commission shall distribute the sales and use tax revenue
2593     collected within the county as follows:
2594          (a) for a city or town within the county that is annexed into a single public transit
2595     district, the commission shall distribute the sales and use tax revenue collected within that city
2596     or town as follows:
2597          (i) .10% shall be distributed as provided in Subsection (8);
2598          (ii) .10% shall be distributed as provided in Subsection (9); and
2599          (iii) .05% shall be distributed to the county legislative body;
2600          (b) for an eligible political subdivision within the county, the commission shall

2601     distribute the sales and use tax revenue collected within that eligible political subdivision as
2602     follows:
2603          (i) .10% shall be distributed as provided in Subsection (8);
2604          (ii) .10% shall be distributed as provided in Subsection (9); and
2605          (iii) .05% shall be distributed to the county legislative body; and
2606          (c) the commission shall distribute the sales and use tax revenue, except for the sales
2607     and use tax revenue described in Subsections (7)(a) and (b), as follows:
2608          (i) .10% shall be distributed as provided in Subsection (8); and
2609          (ii) .15% shall be distributed to the county legislative body.
2610          (8) (a) Subject to Subsection (8)(b), the commission shall make the distributions
2611     required by Subsections (4)(b), (5)(a)(ii), (5)(b)(ii), (5)(c)(i) , (6)(a)(ii), (6)(b)(ii), (6)(c)(i),
2612     (7)(a)(i), (7)(b)(i), (7)(c)(i), and (9)(d)(ii)(A) as follows:
2613          (i) 50% of the total revenue collected under Subsections (4)(b), (5)(a)(ii), (5)(b)(ii),
2614     (5)(c)(i) , (6)(a)(ii), (6)(b)(ii), (6)(c)(i), (7)(a)(i), (7)(b)(i), (7)(c)(i), and (9)(d)(ii)(A) within the
2615     counties that impose a tax under this section shall be distributed to the unincorporated areas,
2616     cities, and towns within those counties on the basis of the percentage that the population of
2617     each unincorporated area, city, or town bears to the total population of all of the counties that
2618     impose a tax under this section; and
2619          (ii) 50% of the total revenue collected under Subsections (4)(b), (5)(a)(ii), (5)(b)(ii),
2620     (5)(c)(i) , (6)(a)(ii), (6)(b)(ii), (6)(c)(i), (7)(a)(i), (7)(b)(i), (7)(c)(i), and (9)(d)(ii)(A) within the
2621     counties that impose a tax under this section shall be distributed to the unincorporated areas,
2622     cities, and towns within those counties on the basis of the location of the transaction as
2623     determined under Sections 59-12-211 through 59-12-215.
2624          (b) (i) Population for purposes of this Subsection (8) shall be determined on the basis
2625     of the most recent official census or census estimate of the United States Census Bureau.
2626          (ii) If a needed population estimate is not available from the United States Census
2627     Bureau, population figures shall be derived from an estimate from the Utah Population
2628     Estimates Committee created by executive order of the governor.
2629          (9) (a) (i) Subject to the requirements in Subsections (9)(b) and (c), a county legislative
2630     body:
2631          (A) for a county that obtained approval from a majority of the county's registered

2632     voters voting on the imposition of a sales and use tax under this section prior to May 10, 2016,
2633     may, in consultation with any cities, towns, or eligible political subdivisions within the county,
2634     and in compliance with the requirements for changing an allocation under Subsection (9)(e),
2635     allocate the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) by adopting a resolution specifying
2636     the percentage of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be allocated to a
2637     public transit district or an eligible political subdivision; or
2638          (B) for a county that obtains approval from a majority of the county's registered voters
2639     voting on the imposition of a sales and use tax under this section on or after May 10, 2016,
2640     shall, in consultation with any cities, towns, or eligible political subdivisions within the county,
2641     allocate the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) by adopting a resolution specifying
2642     the percentage of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be allocated to a
2643     public transit district or an eligible political subdivision.
2644          (ii) If a county described in Subsection (9)(a)(i)(A) does not allocate the revenue under
2645     Subsection (7)(a)(ii) or (7)(b)(ii) in accordance with Subsection (9)(a)(i)(A), the commission
2646     shall distribute 100% of the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) to:
2647          (A) a public transit district for a city or town within the county that is annexed into a
2648     single public transit district; or
2649          (B) an eligible political subdivision within the county.
2650          (b) If a county legislative body allocates the revenue as described in Subsection
2651     (9)(a)(i), the county legislative body shall allocate not less than 25% of the revenue under
2652     Subsection (7)(a)(ii) or (7)(b)(ii) to:
2653          (i) a public transit district for a city or town within the county that is annexed into a
2654     single public transit district; or
2655          (ii) an eligible political subdivision within the county.
2656          (c) Notwithstanding Section 59-12-2208, the opinion question required by Section
2657     59-12-2208 shall state the allocations the county legislative body makes in accordance with this
2658     Subsection (9).
2659          (d) The commission shall make the distributions required by Subsection (7)(a)(ii) or
2660     (7)(b)(ii) as follows:
2661          (i) the percentage specified by a county legislative body shall be distributed in
2662     accordance with a resolution adopted by a county legislative body under Subsection (9)(a) to an

2663     eligible political subdivision or a public transit district within the county; and
2664          (ii) except as provided in Subsection (9)(a)(ii), if a county legislative body allocates
2665     less than 100% of the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) to a public transit district
2666     or an eligible political subdivision, the remainder of the revenue under Subsection (7)(a)(ii) or
2667     (7)(b)(ii) not allocated by a county legislative body through a resolution under Subsection
2668     (9)(a) shall be distributed as follows:
2669          (A) 50% of the revenue as provided in Subsection (8); and
2670          (B) 50% of the revenue to the county legislative body.
2671          (e) If a county legislative body seeks to change an allocation specified in a resolution
2672     under Subsection (9)(a), the county legislative body may change the allocation by:
2673          (i) adopting a resolution in accordance with Subsection (9)(a) specifying the percentage
2674     of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be allocated to a public transit
2675     district or an eligible political subdivision;
2676          (ii) obtaining approval to change the allocation of the sales and use tax by a majority of
2677     all the members of the county legislative body; and
2678          (iii) subject to Subsection (9)(f):
2679          (A) in accordance with Section 59-12-2208, submitting an opinion question to the
2680     county's registered voters voting on changing the allocation so that each registered voter has the
2681     opportunity to express the registered voter's opinion on whether the allocation should be
2682     changed; and
2683          (B) in accordance with Section 59-12-2208, obtaining approval to change the
2684     allocation from a majority of the county's registered voters voting on changing the allocation.
2685          (f) Notwithstanding Section 59-12-2208, the opinion question required by Subsection
2686     (9)(e)(iii)(A) shall state the allocations specified in the resolution adopted in accordance with
2687     Subsection (9)(e) and approved by the county legislative body in accordance with Subsection
2688     (9)(e)(ii).
2689          (g) (i) If a county makes an allocation by adopting a resolution under Subsection (9)(a)
2690     or changes an allocation by adopting a resolution under Subsection (9)(e), the allocation shall
2691     take effect on the first distribution the commission makes under this section after a 90-day
2692     period that begins on the date the commission receives written notice meeting the requirements
2693     of Subsection (9)(g)(ii) from the county.

2694          (ii) The notice described in Subsection (9)(g)(i) shall state:
2695          (A) that the county will make or change the percentage of an allocation under
2696     Subsection (9)(a) or (e); and
2697          (B) the percentage of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be
2698     allocated to a public transit district or an eligible political subdivision.
2699          (10) (a) If a public transit district is organized after the date a county legislative body
2700     first imposes a tax under this section, a change in a distribution required by this section may
2701     not take effect until the first distribution the commission makes under this section after a
2702     90-day period that begins on the date the commission receives written notice from the public
2703     transit district of the organization of the public transit district.
2704          (b) If an eligible political subdivision intends to provide public transit service within a
2705     county after the date a county legislative body first imposes a tax under this section, a change
2706     in a distribution required by this section may not take effect until the first distribution the
2707     commission makes under this section after a 90-day period that begins on the date the
2708     commission receives written notice from the eligible political subdivision stating that the
2709     eligible political subdivision intends to provide public transit service within the county.
2710          (11) A county, city, or town may expend revenue collected from a tax under this
2711     section, except for revenue the commission distributes in accordance with Subsection (4)(a),
2712     (5)(a)(i), (5)(b)(i), or (9)(d)(i) for:
2713          (a) a class B road;
2714          (b) a class C road;
2715          (c) traffic and pedestrian safety, including for a class B road or class C road, for:
2716          (i) a sidewalk;
2717          (ii) curb and gutter;
2718          (iii) a safety feature;
2719          (iv) a traffic sign;
2720          (v) a traffic signal;
2721          (vi) street lighting; or
2722          (vii) a combination of Subsections (11)(c)(i) through (vi);
2723          (d) the construction, maintenance, or operation of an active transportation facility that
2724     is for nonmotorized vehicles and multimodal transportation and connects an origin with a

2725     destination;
2726          (e) public transit system services; or
2727          (f) a combination of Subsections (11)(a) through (e).
2728          (12) A public transit district or an eligible political subdivision may expend revenue
2729     the commission distributes in accordance with Subsection (4)(a), (5)(a)(i), (5)(b)(i), or (9)(d)(i)
2730     for capital expenses and service delivery expenses of the public transit district or eligible
2731     political subdivision.
2732          (13) (a) Revenue collected from a sales and use tax under this section may not be used
2733     to supplant existing general fund appropriations that a county, city, or town has budgeted for
2734     transportation as of the date the tax becomes effective for a county, city, or town.
2735          (b) The limitation under Subsection (13)(a) does not apply to a designated
2736     transportation capital or reserve account a county, city, or town may have established prior to
2737     the date the tax becomes effective.
2738          (14) Notwithstanding Section 59-12-2208, a county legislative body may, but is not
2739     required to, submit an opinion question to the county's registered voters in accordance with
2740     Section 59-12-2208 to impose a sales and use tax under this section.
2741          Section 35. Section 59-28-103 is amended to read:
2742          59-28-103. Imposition -- Rate -- Revenue distribution.
2743          (1) Subject to the other provisions of this chapter, the state shall impose a tax on the
2744     transactions described in Subsection 59-12-103(1)(i) at a rate of [.32%] 3%.
2745          (2) The tax imposed under this chapter is in addition to any other taxes imposed on the
2746     transactions described in Subsection 59-12-103(1)(i).
2747          (3) (a) (i) Subject to Subsection (3)(a)(ii), the commission shall deposit 6% of the
2748     revenue the state collects from the tax under this chapter into the Hospitality and Tourism
2749     Management Education Account created in Section 53A-15-207 to fund the Hospitality and
2750     Tourism Management Career and Technical Education Pilot Program created in Section
2751     53A-15-206.
2752          (ii) The commission may not deposit more than $300,000 into the Hospitality and
2753     Tourism Management Education Account under Subsection (3)(a)(i) in a fiscal year.
2754          (b) Except for the amount deposited into the Hospitality and Tourism Management
2755     Education Account under Subsection (3)(a) and the administrative charge retained under

2756     Subsection 59-28-104(4), the commission shall deposit [any] the revenue the state collects
2757     from the tax under this chapter as follows:
2758          (i) an amount equal to the tax revenue generated by a .32% tax rate on the transactions
2759     described in Subsection 59-12-103(1)(i) into the Outdoor Recreation Infrastructure Account
2760     created in Section 63N-9-205 to fund the Outdoor Recreational Infrastructure Grant Program
2761     created in Section 63N-9-202[.]; and
2762          (ii) an amount equal to the tax revenue generated by a 2.68% tax rate on the
2763     transactions described in Subsection 59-12-103(1)(i) into the Public Transportation Capital
2764     Investment Fund created in Section 72-2-124.
2765          Section 36. Section 63G-6a-1402 is amended to read:
2766          63G-6a-1402. Procurement of design-build transportation project contracts.
2767          (1) As used in this section:
2768          (a) "Design-build transportation project contract" means the procurement of both the
2769     design and construction of a transportation project in a single contract with a company or
2770     combination of companies capable of providing the necessary engineering services and
2771     construction.
2772          (b) "Transportation agency" means:
2773          (i) the Department of Transportation;
2774          (ii) a county of the first or second class, as defined in Section 17-50-501;
2775          (iii) a municipality of the first class, as defined in Section 10-2-301;
2776          (iv) a large public transit district [that has more than 200,000 people residing within its
2777     boundaries] as defined in Section 17B-2a-802; and
2778          (v) a public airport authority.
2779          (2) Except as provided in Subsection (3), a transportation agency may award a
2780     design-build transportation project contract for any transportation project that has an estimated
2781     cost of at least $50,000,000 by following the requirements of this section.
2782          (3) (a) The Department of Transportation:
2783          (i) may award a design-build transportation project contract for any transportation
2784     project by following the requirements of this section; and
2785          (ii) shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
2786     Rulemaking Act, establishing requirements for the procurement of its design-build

2787     transportation project contracts in addition to those required by this section.
2788          (b) A public transit district that has more than 200,000 people residing within its
2789     boundaries:
2790          (i) may award a design-build transportation project contract for any transportation
2791     project by following the requirements of this section; and
2792          (ii) shall pass ordinances or a resolution establishing requirements for the procurement
2793     of its design-build transportation project contracts in addition to those required by this section.
2794          (c) A design-build transportation project contract authorized under this Subsection (3)
2795     is not subject to the estimated cost threshold described in Subsection (2).
2796          (d) A design-build transportation project contract may include provision by the
2797     contractor of operations, maintenance, or financing.
2798          (4) (a) Before entering into a design-build transportation project contract, a
2799     transportation agency may issue a request for qualifications to prequalify potential contractors.
2800          (b) Public notice of the request for qualifications shall be given in accordance with
2801     board rules.
2802          (c) A transportation agency shall require, as part of the qualifications specified in the
2803     request for qualifications, that potential contractors at least demonstrate their:
2804          (i) construction experience;
2805          (ii) design experience;
2806          (iii) financial, manpower, and equipment resources available for the project; and
2807          (iv) experience in other design-build transportation projects with attributes similar to
2808     the project being procured.
2809          (d) The request for qualifications shall identify the number of eligible competing
2810     proposers that the transportation agency will select to submit a proposal, which may not be less
2811     than two.
2812          (5) The transportation agency shall:
2813          (a) evaluate the responses received from the request for qualifications;
2814          (b) select from their number those qualified to submit proposals; and
2815          (c) invite those respondents to submit proposals based upon the transportation agency's
2816     request for proposals.
2817          (6) If the transportation agency fails to receive at least two qualified eligible competing

2818     proposals, the transportation agency shall readvertise the project.
2819          (7) The transportation agency shall issue a request for proposals to those qualified
2820     respondents that:
2821          (a) includes a scope of work statement constituting an information for proposal that
2822     may include:
2823          (i) preliminary design concepts;
2824          (ii) design criteria, needs, and objectives;
2825          (iii) warranty and quality control requirements;
2826          (iv) applicable standards;
2827          (v) environmental documents;
2828          (vi) constraints;
2829          (vii) time expectations or limitations;
2830          (viii) incentives or disincentives; and
2831          (ix) other special considerations;
2832          (b) requires submitters to provide:
2833          (i) a sealed cost proposal;
2834          (ii) a critical path matrix schedule, including cash flow requirements;
2835          (iii) proposal security; and
2836          (iv) other items required by the department for the project; and
2837          (c) may include award of a stipulated fee to be paid to offerors who submit
2838     unsuccessful proposals.
2839          (8) The transportation agency shall:
2840          (a) evaluate the submissions received in response to the request for proposals from the
2841     prequalified offerors;
2842          (b) comply with rules relating to discussion of proposals, best and final offers, and
2843     evaluations of the proposals submitted; and
2844          (c) after considering price and other identified factors, award the contract to the
2845     responsible offeror whose responsive proposal is most advantageous to the transportation
2846     agency or the state.
2847          Section 37. Section 72-1-102 is amended to read:
2848          72-1-102. Definitions.

2849          As used in this title:
2850          (1) "Commission" means the Transportation Commission created under Section
2851     72-1-301.
2852          (2) "Construction" means the construction, reconstruction, replacement, and
2853     improvement of the highways, including the acquisition of rights-of-way and material sites.
2854          (3) "Department" means the Department of Transportation created in Section 72-1-201.
2855          (4) "Executive director" means the executive director of the department appointed
2856     under Section 72-1-202.
2857          (5) "Farm tractor" has the meaning set forth in Section 41-1a-102.
2858          (6) "Federal aid primary highway" means that portion of connected main highways
2859     located within this state officially designated by the department and approved by the United
2860     States Secretary of Transportation under Title 23, Highways, U.S.C.
2861          (7) "Highway" means any public road, street, alley, lane, court, place, viaduct, tunnel,
2862     culvert, bridge, or structure laid out or erected for public use, or dedicated or abandoned to the
2863     public, or made public in an action for the partition of real property, including the entire area
2864     within the right-of-way.
2865          (8) "Highway authority" means the department or the legislative, executive, or
2866     governing body of a county or municipality.
2867          (9) "Implement of husbandry" has the meaning set forth in Section 41-1a-102.
2868          (10) "Interstate system" means any highway officially designated by the department
2869     and included as part of the national interstate and defense highways, as provided in the Federal
2870     Aid Highway Act of 1956 and any supplemental acts or amendments.
2871          (11) "Limited-access facility" means a highway especially designated for through
2872     traffic, and over, from, or to which neither owners nor occupants of abutting lands nor other
2873     persons have any right or easement, or have only a limited right or easement of access, light,
2874     air, or view.
2875          (12) "Motor vehicle" has the same meaning set forth in Section 41-1a-102.
2876          (13) "Municipality" has the same meaning set forth in Section 10-1-104.
2877          (14) "National highway systems highways" means that portion of connected main
2878     highways located within this state officially designated by the department and approved by the
2879     United States Secretary of Transportation under Title 23, Highways, U.S.C.

2880          (15) (a) "Port-of-entry" means a fixed or temporary facility constructed, operated, and
2881     maintained by the department where drivers, vehicles, and vehicle loads are checked or
2882     inspected for compliance with state and federal laws as specified in Section 72-9-501.
2883          (b) "Port-of-entry" includes inspection and checking stations and weigh stations.
2884          (16) "Port-of-entry agent" means a person employed at a port-of-entry to perform the
2885     duties specified in Section 72-9-501.
2886          (17) "Public transit facility" means a transit vehicle, transit station, depot, passenger
2887     loading or unloading zone, parking lot, or other facility:
2888          (a) leased by or operated by or on behalf of a public transit district; and
2889          (b) related to the public transit services provided by the district, including:
2890          (i) railway or other right-of-way;
2891          (ii) railway line; and
2892          (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by
2893     a transit vehicle.
2894          [(17)] (18) "Right-of-way" means real property or an interest in real property, usually
2895     in a strip, acquired for or devoted to a highway.
2896          [(18)] (19) "Sealed" does not preclude acceptance of electronically sealed and submitted
2897     bids or proposals in addition to bids or proposals manually sealed and submitted.
2898          [(19)] (20) "Semitrailer" has the meaning set forth in Section 41-1a-102.
2899          [(20)] (21) "SR" means state route and has the same meaning as state highway as
2900     defined in this section.
2901          [(21)] (22) "State highway" means those highways designated as state highways in
2902     Title 72, Chapter 4, Designation of State Highways Act.
2903          [(22)] (23) "State highway purposes" has the meaning set forth in Section 72-5-102.
2904          [(23)] (24) "State transportation systems" means all streets, alleys, roads, highways,
2905     and thoroughfares of any kind, including connected structures, airports, spaceports, public
2906     transit facilities, and all other modes and forms of conveyance used by the public.
2907          [(24)] (25) "Trailer" has the meaning set forth in Section 41-1a-102.
2908          [(25)] (26) "Truck tractor" has the meaning set forth in Section 41-1a-102.
2909          [(26)] (27) "UDOT" means the Utah Department of Transportation.
2910          [(27)] (28) "Vehicle" has the same meaning set forth in Section 41-1a-102.

2911          Section 38. Section 72-1-202 is amended to read:
2912          72-1-202. Executive director of department -- Appointment -- Qualifications --
2913     Term -- Responsibility -- Power to bring suits -- Salary.
2914          (1) (a) The governor, after consultation with the commission and with the consent of
2915     the Senate, shall appoint an executive director to be the chief executive officer of the
2916     department.
2917          (b) The executive director shall be a qualified executive with technical and
2918     administrative experience and training appropriate for the position.
2919          (c) The executive director shall remain in office until a successor is appointed.
2920          (d) The executive director may be removed by the governor.
2921          (2) In addition to the other functions, powers, duties, rights, and responsibilities
2922     prescribed in this chapter, the executive director shall:
2923          (a) have responsibility for the administrative supervision of the state transportation
2924     systems and the various operations of the department;
2925          (b) have the responsibility for the implementation of rules, priorities, and policies
2926     established by the department and the commission;
2927          (c) have the responsibility for the oversight and supervision of any transportation
2928     project for which state funds are expended;
2929          [(c)] (d) have full power to bring suit in courts of competent jurisdiction in the name of
2930     the department as the executive director considers reasonable and necessary for the proper
2931     attainment of the goals of this chapter;
2932          [(d)] (e) receive a salary, to be established by the governor within the salary range fixed
2933     by the Legislature in Title 67, Chapter 22, State Officer Compensation, together with actual
2934     traveling expenses while away from the executive director's office on official business; and
2935          [(e)] (f) purchase all necessary equipment and supplies for the department.
2936          Section 39. Section 72-1-203 is amended to read:
2937          72-1-203. Deputy director -- Appointment -- Qualifications -- Other assistants
2938     and advisers -- Salaries.
2939          (1) The executive director shall appoint [a deputy director, who shall be a registered
2940     professional engineer in the state and] two deputy directors, who shall serve at the discretion of
2941     the executive director.

2942          (2) (a) The deputy director of engineering and operations shall be a registered
2943     professional engineer in the state and is the chief engineer of the department. The deputy
2944     director of engineering and operations shall assist the executive director [and is responsible for]
2945     with areas of responsibility including:
2946          [(a) program and project development; and]
2947          [(b) operation and maintenance of the state transportation systems.]
2948          (i) project development;
2949          (ii) oversight of the management of the region offices described in Section 72-1-205;
2950          (iii) management of operations; and
2951          (iv) oversight of operations of motor carriers and ports.
2952          (b) The deputy director of planning and investment shall assist the executive director
2953     with areas of responsibility including:
2954          (i) oversight and coordination of planning, including:
2955          (A) development of statewide strategic initiatives for planning across all modes of
2956     transportation;
2957          (B) coordination with metropolitan planning organizations and local governments; and
2958          (C) corridor and area planning;
2959          (ii) asset management;
2960          (iii) programming and prioritization of transportation projects;
2961          (iv) fulfilling requirements for environmental studies and impact statements; and
2962          (v) resource investment, including identification and development of public-private
2963     partnership opportunities.
2964          (3) The executive director may also appoint assistants to administer the divisions of the
2965     department. These assistants shall serve at the discretion of the executive director.
2966          (4) In addition, the executive director may employ other assistants and advisers as the
2967     executive director finds necessary and fix salaries in accordance with the salary standards
2968     adopted by the Department of Human Resource Management.
2969          Section 40. Section 72-1-204 is amended to read:
2970          72-1-204. Divisions enumerated -- Duties.
2971          The divisions of the department are:
2972          (1) the Comptroller Division responsible for:

2973          (a) all financial aspects of the department, including budgeting, accounting, and
2974     contracting;
2975          (b) providing all material data and documentation necessary for effective fiscal
2976     planning and programming; and
2977          (c) procuring administrative supplies;
2978          (2) the Internal Audit Division responsible for:
2979          (a) conducting and verifying all internal audits and reviews within the department;
2980          (b) performing financial and compliance audits to determine the allowability and
2981     reasonableness of proposals, accounting records, and final costs of consultants, contractors,
2982     utility companies, and other entities used by the department; and
2983          (c) implementing audit procedures that meet or exceed generally accepted auditing
2984     standards relating to revenues, expenditures, and funding;
2985          (3) the Communications Division responsible for:
2986          (a) developing, managing, and implementing the department's public hearing processes
2987     and programs;
2988          (b) responding to public complaints, requests, and input;
2989          (c) assisting the divisions and regions in the department's public involvement
2990     programs;
2991          (d) developing and managing internal department communications; and
2992          (e) managing and overseeing department media relations;
2993          (4) the Program Development Division responsible for:
2994          (a) developing transportation plans for state transportation systems;
2995          (b) collecting, processing, and storing transportation data to support department's
2996     engineering functions;
2997          (c) maintaining and operating the asset management systems;
2998          (d) designating state transportation systems qualifications;
2999          (e) developing a statewide transportation improvement program for approval by the
3000     commission;
3001          (f) providing cartographic services to the department;
3002          (g) assisting local governments in participating in federal-aid transportation programs;
3003     and

3004          (h) providing research services associated with transportation programs;
3005          (5) the Project Development Division responsible for:
3006          (a) developing statewide standards for project design and construction;
3007          (b) providing support for project development in the areas of design environment,
3008     right-of-way, materials testing, structures, value engineering, and construction; and
3009          (c) designing specialty projects; [and]
3010          (6) the Operations Division responsible for:
3011          (a) maintaining the state transportation systems;
3012          (b) state transportation systems safety;
3013          (c) operating state ports-of-entry;
3014          (d) operating state motor carrier safety programs in accordance with this title and
3015     federal law;
3016          (e) aeronautical operations;
3017          (f) providing equipment for department engineering and maintenance functions; and
3018          (g) risk management[.]; and
3019          (7) the Planning and Investment Division responsible for:
3020          (a) creating and managing an intermodal terminal facility to promote economic
3021     development and investment;
3022          (b) promoting strategies to synergize development of an intermodal inland port; and
3023          (c) overseeing and coordinating public-private partnerships.
3024          Section 41. Section 72-1-208 is amended to read:
3025          72-1-208. Cooperation with counties, cities, towns, the federal government, and
3026     all state departments -- Inspection of work done by a public transit district.
3027          (1) The department shall cooperate with the counties, cities, towns, and community
3028     reinvestment agencies in the construction, maintenance, and use of the highways and in all
3029     related matters, and may provide services to the counties, cities, towns, and community
3030     reinvestment agencies on terms mutually agreed upon.
3031          (2) The department, with the approval of the governor, shall cooperate with the federal
3032     government in all federal-aid projects and with all state departments in all matters in
3033     connection with the use of the highways.
3034          (3) The department:

3035          (a) shall inspect all work done by a public transit district under Title 17B, Chapter 2a,
3036     Part 8, Public Transit District Act, relating to safety appliances and procedures; and
3037          (b) may make further additions or changes necessary for the purpose of safety to
3038     employees and the general public.
3039          (4) (a) The department may assume responsibility for any public transit project that
3040     traverses any portion of the state highway systems.
3041          (b) To determine whether the department will assume responsibility for a public transit
3042     project, the executive director and the public transit agency proposing the development shall
3043     jointly determine whether the department will assume responsibility.
3044          Section 42. Section 72-1-211 is amended to read:
3045          72-1-211. Department to develop strategic initiatives -- Report -- Rulemaking.
3046          (1) (a) The executive director shall develop statewide strategic initiatives [for the
3047     department] across all modes of transportation.
3048          (b) To develop the strategic initiatives described in Subsection (1)(a), the executive
3049     director shall consult with the commission and relevant stakeholders, including:
3050          (i) metropolitan planning organizations;
3051          (ii) county and municipal governments;
3052          (iii) transit districts; and
3053          (iv) other transportation stakeholders.
3054          (c) To develop the strategic initiatives described in Subsection (1)(a), the executive
3055     director shall consider:
3056          (i) regional transportation plans developed by metropolitan planning organizations;
3057          (ii) local transportation plans developed by county and municipal governments;
3058          (iii) public transit plans developed by public transit districts; and
3059          (iv) other relevant transportation plans developed by other stakeholders.
3060          (d) To develop the strategic initiatives described in Subsection (1)(a), the executive
3061     director shall consider projected major centers of economic activity, population growth, and
3062     job centers.
3063          (2) (a) The strategic initiatives developed under Subsection (1) shall include
3064     consideration of the following factors:
3065          [(a)] (i) corridor preservation;

3066          (ii) congestion reduction;
3067          (iii) economic development and job creation;
3068          (iv) asset management;
3069          (v) sustainability;
3070          (vi) optimization of return on investment;
3071          [(b)] (vii) development of new transportation capacity projects;
3072          [(c)] (viii) long-term maintenance and operations of the transportation system;
3073          [(d)] (ix) safety;
3074          [(e)] (x) incident management; [and]
3075          [(f)] (xi) homeland security[.];
3076          (xii) mobility and access; and
3077          (xiii) transportation related air quality.
3078          (b) The strategic initiatives shall include an assessment of capacity needs and establish
3079     goals for corridors that meet all of the following:
3080          (i) high volume of travel and throughput;
3081          (ii) connection of projected major centers of economic activity, population growth, and
3082     future job centers;
3083          (iii) major freight corridors; and
3084          (iv) corridors accommodating multiple modes of travel.
3085          (3) (a) The executive director or the executive director's designee shall report the
3086     strategic initiatives of the department developed under Subsection (1) to the Transportation
3087     Commission and, before December 1 of each year, the Transportation Interim Committee.
3088          (b) The report required under Subsection (3)(a) shall include the measure that will be
3089     used to determine whether the strategic initiatives have been achieved.
3090          (4) After compliance with Subsection (3) and in accordance with Title 63G, Chapter 3,
3091     Utah Administrative Rulemaking Act, the department shall make rules establishing the
3092     strategic initiatives developed under this part.
3093          (5) The executive director shall ensure that the strategic initiatives developed under
3094     Subsection (1):
3095          (a) are reviewed and updated as needed, but no less frequent than every four years; and
3096          (b) cover at least a 20-year horizon.

3097          Section 43. Section 72-1-213 is amended to read:
3098          72-1-213. Road usage charge study -- Recommendations.
3099          (1) (a) The department shall[: (1) continue to] study a road usage charge mileage-based
3100     revenue system, including a [potential] demonstration program, as an alternative to the motor
3101     and special tax[; and].
3102          [(2) make recommendations to the Legislature and other policymaking bodies on the
3103     potential use and future implementation of a road usage charge within the state.]
3104          (b) The demonstration program may consider:
3105          (i) the necessity of protecting all personally identifiable information used in reporting
3106     highway use;
3107          (ii) alternatives to recording and reporting highway use;
3108          (iii) alternatives to administration of a road usage charge program; and
3109          (iv) other factors as determined by the department.
3110          (2) (a) The department shall create a Road Usage Charge Advisory Committee to assist
3111     the department to conduct a road usage charge demonstration program.
3112          (b) The executive director shall appoint members of the committee, considering
3113     individuals with experience and expertise in the following areas:
3114          (i) telecommunications;
3115          (ii) data security and privacy;
3116          (iii) privacy rights advocacy organizations;
3117          (iv) transportation agencies with technical expertise;
3118          (v) national research;
3119          (vi) members of the Legislature;
3120          (vii) representatives from the State Tax Commission; and
3121          (viii) other relevant stakeholders as determined by the executive director.
3122          (c) The executive director or the executive director's designee shall serve as chair of the
3123     committee.
3124          (d) A member of the committee may not receive compensation or benefits for the
3125     member's service, but may receive per diem and travel expenses in accordance with:
3126          (i) Section 63A-3-106;
3127          (ii) Section 63A-3-107; and

3128          (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
3129     63A-3-107.
3130          (e) The department shall provide staff support to the committee.
3131          (3) (a) Beginning in 2019, and no later than September 30 of each year, the department
3132     shall prepare and submit a report of its findings based on the results of the road usage charge
3133     demonstration program to the:
3134          (i) Road Usage Charge Advisory Committee created under Subsection (2);
3135          (ii) Transportation Commission;
3136          (iii) Transportation Interim Committee of the Legislature; and
3137          (iv) Revenue and Taxation Interim Committee of the Legislature.
3138          (b) The report shall review the following issues:
3139          (i) cost;
3140          (ii) privacy, including recommendations regarding public and private access, including
3141     by law enforcement, to data collected and stored for purposes of the road usage charge to
3142     ensure individual privacy rights are protected;
3143          (iii) jurisdictional issues;
3144          (iv) feasibility;
3145          (v) complexity;
3146          (vi) acceptance;
3147          (vii) use of revenues;
3148          (viii) security and compliance, including a discussion of processes and security
3149     measures necessary to minimize fraud and tax evasion rates;
3150          (ix) data collection technology, including a discussion of the advantages and
3151     disadvantages of various types of data collection equipment and the privacy implications and
3152     considerations of the equipment;
3153          (x) potential for additional driver services;
3154          (xi) evaluation of necessary framework for an owner of an electric powered vehicle to
3155     either pay a higher registration fee or participate in a road user charge program; and
3156          (xii) implementation issues.
3157          (c) The report may make recommendations to the Legislature and other policymaking
3158     bodies on the potential use and future implementation of a road usage charge within the state.

3159          Section 44. Section 72-1-303 is amended to read:
3160          72-1-303. Duties of commission.
3161          (1) The commission has the following duties:
3162          (a) determining priorities and funding levels of projects in the state transportation
3163     systems and capital development of new public transit facilities for each fiscal year based on
3164     project lists compiled by the department;
3165          (b) determining additions and deletions to state highways under Chapter 4, Designation
3166     of State Highways Act;
3167          (c) holding public hearings and otherwise providing for public input in transportation
3168     matters;
3169          (d) making policies and rules in accordance with Title 63G, Chapter 3, Utah
3170     Administrative Rulemaking Act, necessary to perform the commission's duties described under
3171     this section;
3172          (e) in accordance with Section 63G-4-301, reviewing orders issued by the executive
3173     director in adjudicative proceedings held in accordance with Title 63G, Chapter 4,
3174     Administrative Procedures Act;
3175          (f) advising the department in state transportation systems policy;
3176          (g) approving settlement agreements of condemnation cases subject to Section
3177     63G-10-401;
3178          (h) in accordance with Section 17B-2a-807, appointing a commissioner to serve as a
3179     nonvoting, ex officio member or a voting member on the board of trustees of a public transit
3180     district;
3181          (i) in accordance with Section 17B-2a-808, reviewing, at least annually, the short-term
3182     and long-range public transit plans; and
3183          (j) reviewing administrative rules made, amended, or repealed by the department.
3184          (2) (a) For projects prioritized with funding provided under Sections 72-2-124 and
3185     72-2-125, the commission shall annually report to a committee designated by the Legislative
3186     Management Committee:
3187          (i) a prioritized list of the new transportation capacity projects in the state
3188     transportation system and the funding levels available for those projects; and
3189          (ii) the unfunded highway construction and maintenance needs within the state.

3190          (b) The committee designated by the Legislative Management Committee under
3191     Subsection (2)(a) shall:
3192          (i) review the list reported by the Transportation Commission; and
3193          (ii) make a recommendation to the Legislature on:
3194          (A) the amount of additional funding to allocate to transportation; and
3195          (B) the source of revenue for the additional funding allocation under Subsection
3196     (2)(b)(ii)(A).
3197          (3) The commission shall review and may approve plans for the construction of a
3198     highway facility over sovereign lakebed lands in accordance with Chapter 6, Part 3, Approval
3199     of Highway Facilities on Sovereign Lands Act.
3200          Section 45. Section 72-1-304 is amended to read:
3201          72-1-304. Written project prioritization process for new transportation capacity
3202     projects -- Rulemaking.
3203          (1) (a) The Transportation Commission, in consultation with the department and the
3204     metropolitan planning organizations as defined in Section 72-1-208.5, shall develop a written
3205     prioritization process for the prioritization of new transportation capacity projects that are or
3206     will be part of the state highway system under Chapter 4, Part 1, State Highways, or public
3207     transit projects that add capacity to the public transit systems within the state.
3208          (b) (i) A local government or district may nominate a project for prioritization.
3209          (ii) If a local government or district nominates a project for prioritization by the
3210     commission, the local government or district shall provide data and evidence to show that:
3211          (A) the project will advance the purposes and goals described in Section 72-1-211; and
3212          (B) the local government or district has an ongoing funding source for operations and
3213     maintenance of the proposed development.
3214          (2) The following shall be included in the written prioritization process under
3215     Subsection (1):
3216          (a) a description of how the strategic initiatives of the department adopted under
3217     Section 72-1-211 are advanced by the written prioritization process;
3218          (b) a definition of the type of projects to which the written prioritization process
3219     applies;
3220          (c) specification of a weighted criteria system that is used to rank proposed projects

3221     and how it will be used to determine which projects will be prioritized;
3222          (d) specification of the data that is necessary to apply the weighted ranking criteria; and
3223          (e) any other provisions the commission considers appropriate[.], which may include
3224     consideration of:
3225          (i) regional and statewide economic development impacts, including improved local
3226     access to:
3227          (A) employment;
3228          (B) recreation;
3229          (C) commerce; and
3230          (D) residential areas; and
3231          (ii) the extent to which local land use plans relevant to a project support and
3232     accomplish the strategic initiatives adopted under Section 72-1-211.
3233          (3) In developing the written prioritization process, the commission:
3234          (a) shall seek and consider public comment by holding public meetings at locations
3235     throughout the state; and
3236          (b) may not consider local matching dollars as provided under Section 72-2-123 unless
3237     the state provides an equal opportunity to raise local matching dollars for state highway
3238     improvements within each county.
3239          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3240     Transportation Commission, in consultation with the department, shall make rules establishing
3241     the written prioritization process under Subsection (1).
3242          (5) The commission shall submit the proposed rules under this section to a committee
3243     or task force designated by the Legislative Management Committee for review prior to taking
3244     final action on the proposed rules or any proposed amendment to the rules described in
3245     Subsection (4).
3246          Section 46. Section 72-1-305 is amended to read:
3247          72-1-305. Project selection using the written prioritization process -- Public
3248     comment -- Report.
3249          (1) Except as provided in Subsection (4), in determining priorities and funding levels
3250     of projects in the state transportation system under Subsection 72-1-303(1)(a) that are new
3251     transportation capacity projects, the commission shall use the weighted criteria system adopted

3252     in the written prioritization process under Section 72-1-304.
3253          (2) Prior to finalizing priorities and funding levels of projects in the state transportation
3254     system, the commission shall conduct public hearings at locations around the state and accept
3255     public comments on:
3256          (a) the written prioritization process;
3257          (b) the merits of new transportation capacity projects that will be prioritized under this
3258     section; and
3259          (c) the merits of new transportation capacity projects as recommended by a consensus
3260     of local elected officials participating in a metropolitan planning organization as defined in
3261     Section 72-1-208.5.
3262          (3) The commission shall make the weighted criteria system ranking for each project
3263     publicly available prior to the public hearings held under Subsection (2).
3264          (4) (a) If the commission prioritizes a project over another project with a higher rank
3265     under the weighted criteria system, the commission shall identify the change and accept public
3266     comment at a hearing held under this section on the merits of prioritizing the project above
3267     higher ranked projects.
3268          (b) The commission shall make the reasons for the prioritization under Subsection
3269     (4)(a) publicly available.
3270          (5) The executive director or the executive director's designee shall report annually to
3271     the governor and a committee designated by the Legislative Management Committee no later
3272     than the last day of October:
3273          (a) the projects prioritized under this section during the year prior to the report; and
3274          (b) the status and progress of all projects prioritized under this section.
3275          (6) (a) The department may not delay a new transportation or public transit capacity
3276     project that was funded by the Legislature in an appropriations act to a different fiscal year than
3277     programmed by the commission due to an unavoidable shortfall in revenues unless the project
3278     delays are prioritized and approved by the Transportation Commission.
3279          (b) The Transportation Commission shall prioritize and approve any new
3280     transportation or public transit capacity project delays for projects that were funded by the
3281     Legislature in an appropriations act due to an unavoidable shortfall in revenues.
3282          Section 47. Section 72-2-117.5 is amended to read:

3283          72-2-117.5. Definitions -- Local Highway and Transportation Corridor
3284     Preservation Fund -- Disposition of fund money.
3285          (1) As used in this section:
3286          (a) "Council of governments" means a decision-making body in each county composed
3287     of membership including the county governing body and the mayors of each municipality in the
3288     county.
3289          (b) "Metropolitan planning organization" has the same meaning as defined in Section
3290     72-1-208.5.
3291          (2) There is created the Local Highway and Transportation Corridor Preservation Fund
3292     within the Transportation Fund.
3293          (3) The fund shall be funded from the following sources:
3294          (a) a local option highway construction and transportation corridor preservation fee
3295     imposed under Section 41-1a-1222;
3296          (b) appropriations made to the fund by the Legislature;
3297          (c) contributions from other public and private sources for deposit into the fund;
3298          (d) all money collected from rents and sales of real property acquired with fund money;
3299          (e) proceeds from general obligation bonds, revenue bonds, or other obligations issued
3300     as authorized by Title 63B, Bonds;
3301          (f) the portion of the sales and use tax described in Subsection 59-12-2217(2)(b) and
3302     required by Subsection 59-12-2217(8)(a) to be deposited into the fund; and
3303          (g) sales and use tax revenues deposited into the fund in accordance with Section
3304     59-12-2218.
3305          (4) (a) The fund shall earn interest.
3306          (b) All interest earned on fund money shall be deposited into the fund.
3307          (c) The State Tax Commission shall allocate the revenues:
3308          (i) provided under Subsection (3)(a) to each county imposing a local option highway
3309     construction and transportation corridor preservation fee under Section 41-1a-1222;
3310          (ii) provided under Subsection 59-12-2217(2)(b) to each county imposing a county
3311     option sales and use tax for transportation; and
3312          (iii) provided under Subsection (3)(g) to each county of the second class or city or town
3313     within a county of the second class that imposes the sales and use tax authorized by Section

3314     59-12-2218.
3315          (d) The department shall distribute the funds allocated to each county, city, or town
3316     under Subsection (4)(c) to each county, city, or town.
3317          (e) The money allocated and distributed under this Subsection (4):
3318          (i) shall be used for the purposes provided in this section for each county, city, or town;
3319          (ii) is allocated to each county, city, or town as provided in this section with the
3320     condition that the state will not be charged for any asset purchased with the money allocated
3321     and distributed under this Subsection (4), unless there is a written agreement in place with the
3322     department prior to the purchase of the asset stipulating a reimbursement by the state to the
3323     county, city, or town of no more than the original purchase price paid by the county, city, or
3324     town; and
3325          (iii) is considered a local matching contribution for the purposes described under
3326     Section 72-2-123 if used on a state highway.
3327          (f) Administrative costs of the department to implement this section shall be paid from
3328     the fund.
3329          (5) (a) A highway authority may acquire real property or any interests in real property
3330     for state, county, and municipal highway or public transit corridors subject to:
3331          (i) money available in the fund to each county under Subsection (4); and
3332          (ii) the provisions of this section.
3333          (b) Fund money may be used to pay interest on debts incurred in accordance with this
3334     section.
3335          (c) (i) (A) Fund money may be used to pay maintenance costs of properties acquired
3336     under this section but limited to a total of 5% of the purchase price of the property.
3337          (B) Any additional maintenance cost shall be paid from funds other than under this
3338     section.
3339          (C) Revenue generated by any property acquired under this section is excluded from
3340     the limitations under this Subsection (5)(c)(i).
3341          (ii) Fund money may be used to pay direct costs of acquisition of properties acquired
3342     under this section.
3343          (d) Fund money allocated and distributed under Subsection (4) may be used by a
3344     county highway authority for countywide transportation or public transit planning if:

3345          (i) the county's planning focus area is outside the boundaries of a metropolitan
3346     planning organization;
3347          (ii) the transportation planning is part of the county's continuing, cooperative, and
3348     comprehensive process for transportation or public transit planning, corridor preservation,
3349     right-of-way acquisition, and project programming;
3350          (iii) no more than four years allocation every 20 years to each county is used for
3351     transportation planning under this Subsection (5)(d); and
3352          (iv) the county otherwise qualifies to use the fund money as provided under this
3353     section.
3354          (e) (i) Subject to Subsection (11), fund money allocated and distributed under
3355     Subsection (4) may be used by a county highway authority for transportation or public transit
3356     corridor planning that is part of the corridor elements of an ongoing work program of
3357     transportation or public transit projects.
3358          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
3359     direction of:
3360          (A) the metropolitan planning organization if the county is within the boundaries of a
3361     metropolitan planning organization; or
3362          (B) the department if the county is not within the boundaries of a metropolitan
3363     planning organization.
3364          (f) (i) A county, city, or town that imposes a local option highway construction and
3365     transportation corridor preservation fee under Section 41-1a-1222 may elect to administer the
3366     funds allocated and distributed to that county, city, or town under Subsection (4) as a revolving
3367     loan fund.
3368          (ii) If a county, city, or town elects to administer the funds allocated and distributed to
3369     that county, city, or town under Subsection (4) as a revolving loan fund, a local highway
3370     authority shall repay the fund money authorized for the project to the fund.
3371          (iii) A county, city, or town that elects to administer the funds allocated and distributed
3372     to that county, city, or town under Subsection (4) as a revolving loan fund shall establish
3373     repayment conditions of the money to the fund from the specified project funds.
3374          (g) (i) Subject to the restrictions in Subsections (5)(g)(ii) and (iii), fund money may be
3375     used by a county of the third, fourth, fifth, or sixth class or by a city or town within a county of

3376     the third, fourth, fifth, or sixth class for:
3377          (A) the construction, operation, or maintenance of a class B road or class C road; or
3378          (B) the restoration or repair of survey monuments associated with transportation
3379     infrastructure.
3380          (ii) A county, city, or town may not use more than 50% of the current balance of fund
3381     money allocated to the county, city, or town for the purposes described in Subsection (5)(g)(i).
3382          (iii) A county, city, or town may not use more than 50% of the fund revenue collections
3383     allocated to a county, city, or town in the current fiscal year for the purposes described in
3384     Subsection (5)(g)(i).
3385          (6) (a) (i) The Local Highway and Transportation Corridor Preservation Fund shall be
3386     used to preserve highway and public transit corridors, promote long-term statewide
3387     transportation planning, save on acquisition costs, and promote the best interests of the state in
3388     a manner which minimizes impact on prime agricultural land.
3389          (ii) The Local Highway and Transportation Corridor Preservation Fund shall only be
3390     used to preserve a highway or public transit corridor that is right-of-way:
3391          (A) in a county of the first or second class for:
3392          (I) a state highway;
3393          (II) a principal arterial highway as defined in Section 72-4-102.5;
3394          (III) a minor arterial highway as defined in Section 72-4-102.5; [or]
3395          (IV) a collector highway in an urban area as defined in Section 72-4-102.5; or
3396          (V) a transit facility as defined in Section 17B-2a-802; or
3397          (B) in a county of the third, fourth, fifth, or sixth class for:
3398          (I) a state highway;
3399          (II) a principal arterial highway as defined in Section 72-4-102.5;
3400          (III) a minor arterial highway as defined in Section 72-4-102.5;
3401          (IV) a major collector highway as defined in Section 72-4-102.5; [or]
3402          (V) a minor collector road as defined in Section 72-4-102.5[.]; or
3403          (VI) a transit facility as defined in Section 17B-2a-802.
3404          (iii) The Local Highway and Transportation Corridor Preservation Fund may not be
3405     used for a highway corridor that is primarily a recreational trail as defined under Section
3406     79-5-102.

3407          (b) A highway authority shall authorize the expenditure of fund money after
3408     determining that the expenditure is being made in accordance with this section from
3409     applications that are:
3410          (i) endorsed by the council of governments; and
3411          (ii) for a right-of-way purchase for a highway or public transit corridor authorized
3412     under Subsection (6)(a)(ii).
3413          (7) (a) (i) A council of governments shall establish a council of governments
3414     endorsement process which includes prioritization and application procedures for use of the
3415     money allocated to each county under this section.
3416          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
3417     endorsement of the preservation project by:
3418          (A) the metropolitan planning organization if the county is within the boundaries of a
3419     metropolitan planning organization; or
3420          (B) the department if the county is not within the boundaries of a metropolitan
3421     planning organization.
3422          (b) All fund money shall be prioritized by each highway authority and council of
3423     governments based on considerations, including:
3424          (i) areas with rapidly expanding population;
3425          (ii) the willingness of local governments to complete studies and impact statements
3426     that meet department standards;
3427          (iii) the preservation of corridors by the use of local planning and zoning processes;
3428          (iv) the availability of other public and private matching funds for a project;
3429          (v) the cost-effectiveness of the preservation projects;
3430          (vi) long and short-term maintenance costs for property acquired; and
3431          (vii) whether the transportation or public transit corridor is included as part of:
3432          (A) the county and municipal master plan; and
3433          (B) (I) the statewide long range plan; or
3434          (II) the regional transportation plan of the area metropolitan planning organization if
3435     one exists for the area.
3436          (c) The council of governments shall:
3437          (i) establish a priority list of highway and public transit corridor preservation projects

3438     within the county;
3439          (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
3440     approval; and
3441          (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the
3442     members of the county legislative body.
3443          (d) A county's council of governments may only submit one priority list described in
3444     Subsection (7)(c)(i) per calendar year.
3445          (e) A county legislative body may only consider and approve one priority list described
3446     in Subsection (7)(c)(i) per calendar year.
3447          (8) (a) Unless otherwise provided by written agreement with another highway authority
3448     or public transit district, the highway authority that holds the deed to the property is responsible
3449     for maintenance of the property.
3450          (b) The transfer of ownership for property acquired under this section from one
3451     highway authority to another shall include a recorded deed for the property and a written
3452     agreement between the highway authorities or public transit district.
3453          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
3454     Local Highway and Transportation Corridor Preservation Fund shall be used for the purposes
3455     authorized for funds under this section.
3456          (b) The highway authority shall pledge the necessary part of the revenues of the Local
3457     Highway and Transportation Corridor Preservation Fund to the payment of principal and
3458     interest on the bonds or other obligations.
3459          (10) (a) A highway authority may not expend money under this section to purchase a
3460     right-of-way for a state highway unless the highway authority has:
3461          (i) a transportation corridor property acquisition policy or ordinance in effect that
3462     meets department requirements for the acquisition of real property or any interests in real
3463     property under this section; and
3464          (ii) an access management policy or ordinance in effect that meets the requirements
3465     under Subsection 72-2-117(8).
3466          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
3467     written agreement with the department for the department to acquire real property or any
3468     interests in real property on behalf of the local highway authority under this section.

3469          (11) The county shall ensure, to the extent possible, that the fund money allocated and
3470     distributed to a city or town in accordance with Subsection (4) is expended:
3471          (a) to fund a project or service as allowed by this section within the city or town to
3472     which the fund money is allocated;
3473          (b) to pay debt service, principal, or interest on a bond or other obligation as allowed
3474     by this section if that bond or other obligation is:
3475          (i) secured by money allocated to the city or town; and
3476          (ii) issued to finance a project or service as allowed by this section within the city or
3477     town to which the fund money is allocated;
3478          (c) to fund transportation planning as allowed by this section within the city or town to
3479     which the fund money is allocated; or
3480          (d) for another purpose allowed by this section within the city or town to which the
3481     fund money is allocated.
3482          (12) Notwithstanding any other provision in this section, any amounts within the fund
3483     allocated to a public transit district or for a public transit corridor may only be derived from the
3484     portion of the fund that does not include constitutionally restricted sources related to the
3485     operation of a motor vehicle or proceeds from an excise tax on liquid motor fuel to propel a
3486     motor vehicle.
3487          Section 48. Section 72-2-121 is amended to read:
3488          72-2-121. County of the First Class Highway Projects Fund.
3489          (1) There is created a special revenue fund within the Transportation Fund known as
3490     the "County of the First Class Highway Projects Fund."
3491          (2) The fund consists of money generated from the following revenue sources:
3492          (a) any voluntary contributions received for new construction, major renovations, and
3493     improvements to highways within a county of the first class;
3494          (b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
3495     deposited in or transferred to the fund;
3496          (c) the portion of the sales and use tax described in Subsection 59-12-2217(2)(b) and
3497     required by Subsection 59-12-2217(8)(b) to be deposited in or transferred to the fund; and
3498          (d) a portion of the local option highway construction and transportation corridor
3499     preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or

3500     transferred to the fund.
3501          (3) (a) The fund shall earn interest.
3502          (b) All interest earned on fund money shall be deposited into the fund.
3503          (4) The executive director shall use the fund money only:
3504          (a) to pay debt service and bond issuance costs for bonds issued under Sections
3505     63B-16-102, 63B-18-402, and 63B-27-102;
3506          (b) for right-of-way acquisition, new construction, major renovations, and
3507     improvements to highways within a county of the first class and to pay any debt service and
3508     bond issuance costs related to those projects, including improvements to a highway located
3509     within a municipality in a county of the first class where the municipality is located within the
3510     boundaries of more than a single county;
3511          (c) for the construction, acquisition, use, maintenance, or operation of:
3512          (i) an active transportation facility for nonmotorized vehicles;
3513          (ii) multimodal transportation that connects an origin with a destination; or
3514          (iii) a facility that may include a:
3515          (A) pedestrian or nonmotorized vehicle trail;
3516          (B) nonmotorized vehicle storage facility;
3517          (C) pedestrian or vehicle bridge; or
3518          (D) vehicle parking lot or parking structure;
3519          (d) for fiscal year 2012-13 only, to pay for or to provide funds to a municipality or
3520     county to pay for a portion of right-of-way acquisition, construction, reconstruction,
3521     renovations, and improvements to highways described in Subsections 72-2-121.4(7), (8), and
3522     (9);
3523          (e) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
3524     Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the amounts
3525     transferred in accordance with Subsection 72-2-124(4)(a)[(iv)](v);
3526          (f) for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
3527     issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the projects
3528     described in Subsection 63B-18-401(4)(a);
3529          (g) for a fiscal year beginning on or after July 1, 2013, and after the department has
3530     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund, to

3531     transfer an amount equal to 50% of the revenue generated by the local option highway
3532     construction and transportation corridor preservation fee imposed under Section 41-1a-1222 in
3533     a county of the first class:
3534          (i) to the legislative body of a county of the first class; and
3535          (ii) to be used by a county of the first class for:
3536          (A) highway construction, reconstruction, or maintenance projects; or
3537          (B) the enforcement of state motor vehicle and traffic laws;
3538          (h) for fiscal year 2015 only, and after the department has verified that the amount
3539     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
3540     Subsection (4)(f) has been made, to transfer an amount equal to the remainder of the revenue
3541     available in the fund for the 2015 fiscal year:
3542          (i) to the legislative body of a county of the first class; and
3543          (ii) to be used by a county of the first class for:
3544          (A) highway construction, reconstruction, or maintenance projects; or
3545          (B) the enforcement of state motor vehicle and traffic laws;
3546          (i) for fiscal year 2015-16 only, and after the department has verified that the amount
3547     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
3548     Subsection (4)(f) has been made, to transfer an amount equal to $25,000,000:
3549          (i) to the legislative body of a county of the first class; and
3550          (ii) to be used by the county for the purposes described in this section;
3551          (j) for a fiscal year beginning on or after July 1, 2015, after the department has verified
3552     that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the
3553     transfer under Subsection (4)(f) has been made, to annually transfer an amount equal to up to
3554     42.5% of the sales and use tax revenue imposed in a county of the first class and deposited into
3555     the fund in accordance with Subsection 59-12-2214(3)(b) to:
3556          (i) the appropriate debt service or sinking fund for the repayment of bonds issued under
3557     Section 63B-27-102; and
3558          (ii) the Transportation Investment Fund of 2005 created in Section 72-2-124 until
3559     $28,079,000 has been deposited into the Transportation Investment Fund of 2005; and
3560          (k) for a fiscal year beginning after the amount described in Subsection (4)(j) has been
3561     repaid to the Transportation Investment Fund of 2005 until fiscal year 2030, after the

3562     department has verified that the amount required under Subsection 72-2-121.3(4)(c) is
3563     available in the fund and the transfer under Subsection (4)(f) has been made, and after the
3564     bonds under Section 63B-27-102 have been repaid, to annually transfer an amount equal to up
3565     to 42.5% of the sales and use tax revenue imposed in a county of the first class and deposited
3566     into the fund in accordance with Subsection 59-12-2214(3)(b):
3567          (i) to the legislative body of a county of the first class; and
3568          (ii) to be used by the county for the purposes described in this section.
3569          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
3570     fund and bond proceeds from bonds issued under Sections 63B-16-102, 63B-18-402, and
3571     63B-27-102 are considered a local matching contribution for the purposes described under
3572     Section 72-2-123.
3573          (6) The additional administrative costs of the department to administer this fund shall
3574     be paid from money in the fund.
3575          (7) Notwithstanding any statutory or other restrictions on the use or expenditure of the
3576     revenue sources deposited into this fund, the Department of Transportation may use the money
3577     in this fund for any of the purposes detailed in Subsection (4).
3578          Section 49. Section 72-2-121.3 is amended to read:
3579          72-2-121.3. Special revenue fund -- 2010 Salt Lake County Revenue Bond
3580     Sinking Fund.
3581          (1) There is created a special revenue fund within the County of the First Class
3582     Highway Projects Fund entitled "2010 Salt Lake County Revenue Bond Sinking Fund."
3583          (2) The fund consists of:
3584          (a) money transferred into the fund from the County of the First Class Highway
3585     Projects Fund in accordance with Subsection 72-2-121(4)(e); and
3586          (b) for a fiscal year beginning on or after July 1, 2013, money transferred into the fund
3587     from the Transportation Investment Fund of 2005 in accordance with Subsection
3588     72-2-124(4)(a)[(iv)](v).
3589          (3) (a) The fund shall earn interest.
3590          (b) All interest earned on fund money shall be deposited into the fund.
3591          (4) (a) The director of the Division of Finance may use fund money only as provided in
3592     this section.

3593          (b) The director of the Division of Finance may not distribute any money from the fund
3594     under this section until the director has received a formal opinion from the attorney general that
3595     Salt Lake County has entered into a binding agreement with the state of Utah containing all of
3596     the terms required by Section 72-2-121.4.
3597          (c) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
3598     County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, on
3599     July 1 of each year beginning July 1, 2011, the director of the Division of Finance shall transfer
3600     from the County of the First Class Highway Projects Fund and the Transportation Investment
3601     Fund of 2005 to the 2010 Salt Lake County Revenue Bond Sinking Fund the amount certified
3602     by Salt Lake County that is necessary to pay:
3603          (i) up to two times the debt service requirement necessary to pay debt service on the
3604     revenue bonds issued by Salt Lake County for that fiscal year; and
3605          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
3606     and fund any debt service reserve requirements.
3607          (d) Except as provided in Subsection (4)(b), and until the bonds issued by Salt Lake
3608     County as provided in the interlocal agreement required by Section 72-2-121.4 are paid off, the
3609     director of the Division of Finance shall, upon request from Salt Lake County, transfer to Salt
3610     Lake County or its designee from the 2010 Salt Lake County Revenue Bond Sinking Fund the
3611     amount certified by Salt Lake County as necessary to pay:
3612          (i) the debt service on the revenue bonds issued by Salt Lake County as provided in the
3613     interlocal agreement required by Section 72-2-121.4; and
3614          (ii) any additional amounts necessary to pay costs of issuance, pay capitalized interest,
3615     and fund any debt service reserve requirements.
3616          (5) Any money remaining in the 2010 Salt Lake County Revenue Bond Sinking Fund
3617     at the end of the fiscal year lapses to the County of the First Class Highway Projects Fund.
3618          Section 50. Section 72-2-124 is amended to read:
3619          72-2-124. Transportation Investment Fund of 2005.
3620          (1) There is created a capital projects fund entitled the Transportation Investment Fund
3621     of 2005.
3622          (2) The fund consists of money generated from the following sources:
3623          (a) any voluntary contributions received for the maintenance, construction,

3624     reconstruction, or renovation of state and federal highways;
3625          (b) appropriations made to the fund by the Legislature;
3626          (c) registration fees designated under Section 41-1a-1201;
3627          [(c)] (d) the sales and use tax revenues deposited into the fund in accordance with
3628     Section 59-12-103; and
3629          [(d) registration fees designated under Section 41-1a-1201; and]
3630          (e) revenues transferred to the fund in accordance with Section 72-2-106.
3631          (3) (a) The fund shall earn interest.
3632          (b) All interest earned on fund money shall be deposited into the fund.
3633          (4) (a) Except as provided in Subsection (4)(b), the executive director may use fund
3634     money only to pay:
3635          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
3636     federal highways prioritized by the Transportation Commission through the prioritization
3637     process for new transportation capacity projects adopted under Section 72-1-304;
3638          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
3639     projects described in Subsections 63B-18-401(2), (3), and (4);
3640          (iii) the costs of construction of public transit facilities prioritized by the commission
3641     through the prioritization process for new transportation capacity projects adopted under
3642     Section 72-1-304;
3643          [(iii)] (iv) principal, interest, and issuance costs of bonds authorized by Section
3644     63B-18-401 minus the costs paid from the County of the First Class Highway Projects Fund in
3645     accordance with Subsection 72-2-121(4)(f);
3646          [(iv)] (v) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
3647     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
3648     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
3649     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
3650          [(v)] (vi) principal, interest, and issuance costs of bonds authorized by Section
3651     63B-16-101 for projects prioritized in accordance with Section 72-2-125;
3652          [(vi)] (vii) all highway general obligation bonds that are intended to be paid from
3653     revenues in the Centennial Highway Fund created by Section 72-2-118; and
3654          [(vii)] (viii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the

3655     First Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes
3656     described in Section 72-2-121.
3657          (b) The executive director may use fund money to exchange for an equal or greater
3658     amount of federal transportation funds to be used as provided in Subsection (4)(a).
3659          (5) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
3660     in any fiscal year, the department and the commission shall appear before the Executive
3661     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
3662     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
3663     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
3664          (b) The Executive Appropriations Committee of the Legislature shall review and
3665     comment on the amount of bond proceeds needed to fund the projects.
3666          (6) The Division of Finance shall, from money deposited into the fund, transfer the
3667     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
3668     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
3669     sinking fund.
3670          (7) (a) There is created in the Transportation Investment Fund of 2005 the Public
3671     Transportation Capital Investment Fund.
3672          (b) The fund shall be funded by:
3673          (i) contributions deposited into the fund in accordance with Section 59-12-1201;
3674          (ii) contributions deposited into the fund in accordance with Section 59-28-103;
3675          (iii) appropriations into the account by the Legislature;
3676          (iv) private contributions; and
3677          (v) donations or grants from public or private entities.
3678          (c) (i) The fund shall earn interest.
3679          (ii) All interest earned on fund money shall be deposited into the fund.
3680          (d) Subject to Subsection (7)(e), the Legislature may appropriate money from the fund
3681     for public transit capital development to be used as prioritized by the commission.
3682          (e) (i) The Legislature may only appropriate money from the fund for a public transit
3683     capital development project if the public transit district or political subdivision provides
3684     matching funds of equal to or greater than 35% of the funds needed for the project.
3685          (ii) A public transit district or political subdivision may use money derived from a loan

3686     granted pursuant to Title 72, Chapter 2, Part 2, Transportation Infrastructure Loan Fund, to
3687     provide all or part of the 35% match described in Subsection (7)(e) if:
3688          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
3689     Transportation Infrastructure Loan Fund; and
3690          (B) the proposed capital project has been prioritized by the commission pursuant to
3691     Section 72-1-303.
3692          Section 51. Section 72-5-401 is amended to read:
3693          72-5-401. Definitions.
3694          As used in this part:
3695          (1) "Corridor" means the path or proposed path of a transportation facility, including a
3696     public transit facility, that exists or that may exist in the future[. A corridor], and may include
3697     the land occupied or to be occupied by a transportation facility, and any other land that may be
3698     needed for expanding a transportation facility or for controlling access to it.
3699          (2) "Corridor preservation" means planning or acquisition processes intended to:
3700          (a) protect or enhance the capacity of existing corridors; and
3701          (b) protect the availability of proposed corridors in advance of the need for and the
3702     actual commencement of the transportation facility construction.
3703          (3) "Development" means:
3704          (a) the subdividing of land;
3705          (b) the construction of improvements, expansions, or additions; or
3706          (c) any other action that will appreciably increase the value of and the future
3707     acquisition cost of land.
3708          (4) "Official map" means a map, drawn by government authorities and recorded in
3709     county recording offices that:
3710          (a) shows actual and proposed rights-of-way, centerline alignments, and setbacks for
3711     highways and other transportation facilities;
3712          (b) provides a basis for restricting development in designated rights-of-way or between
3713     designated setbacks to allow the government authorities time to purchase or otherwise reserve
3714     the land; and
3715          (c) for counties and municipalities may be adopted as an element of the general plan,
3716     pursuant to Title 17, Chapter 27a, Part 4, General Plan, or Title 10, Chapter 9a, Part 4, General

3717     Plan.
3718          (5) "Taking" means an act or regulation, either by exercise of eminent domain or other
3719     police power, whereby government puts private property to public use or restrains use of
3720     private property for public purposes, and that requires compensation to be paid to private
3721     property owners.
3722          Section 52. Section 72-6-120 is amended to read:
3723          72-6-120. Department authorized to participate in federal program assuming
3724     responsibility for environmental review of highway projects -- Rulemaking authority.
3725          (1) The department may:
3726          (a) assume responsibilities under 23 U.S.C. Sec. 326 for:
3727          (i) determining whether state highway design and construction projects are
3728     categorically excluded from requirements for environmental assessments or environmental
3729     impact statements; and
3730          (ii) environmental review, consultation, or other actions required under federal law for
3731     categorically excluded projects;
3732          (b) assume responsibilities under 23 U.S.C. Sec. 327 with respect to one or more
3733     railroad, public transportation, highway [projects], or multimodal projects within the state
3734     under the National Environmental Policy Act of 1969 for environmental review, consultation,
3735     or other action required under any federal environmental law pertaining to the review or
3736     approval of a specific highway project;
3737          (c) enter one or more memoranda of understanding with the United States Department
3738     of Transportation related to federal highway programs as provided in 23 U.S.C. Secs. 326 and
3739     327 subject to the requirements of Subsection 72-1-207(5);
3740          (d) accept, receive, and administer grants, other money, or gifts from public and private
3741     agencies, including the federal government, for the purpose of carrying out the programs
3742     authorized under this section; and
3743          (e) cooperate with the federal government in implementing this section and any
3744     memorandum of understanding entered into under Subsection 72-1-207(5).
3745          (2) Notwithstanding any other provision of law, in implementing a program under this
3746     section that is approved by the United States Department of Transportation, the department is
3747     authorized to:

3748          (a) perform or conduct any of the activities described in a memorandum of
3749     understanding entered into under Subsection 72-1-207(5);
3750          (b) take actions necessary to implement the program; and
3751          (c) adopt relevant federal environmental standards as the standards for this state for
3752     categorically excluded projects.
3753          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3754     department may makes rules to implement the provisions of this section.
3755          Section 53. Repealer.
3756          This bill repeals:
3757          Section 17B-2a-807.5, Public transit district board of trustees -- Transitional
3758     provisions.
3759          Section 54. Effective date.
3760          This bill takes effect on May 8, 2018, except that:
3761          (1) the amendments to Section 59-28-103 in this bill take effect on July 1, 2018; and
3762          (2) the amendments to Sections 41-1a-102, 41-1a-1201, and 41-1a-1206 in this bill
3763     take effect on January 1, 2019.






Legislative Review Note
Office of Legislative Research and General Counsel