Representative Mike Schultz proposes the following substitute bill:


1     
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     General Description:
9          This bill modifies governance of certain public transit districts, amends provisions
10     related to registration fees, modifies taxes related to transportation, modifies the
11     governance of the Department of Transportation, and makes other changes.
12     Highlighted Provisions:
13          This bill:
14          ▸     amends and enacts provisions to allow local jurisdictions to share property tax
15     revenue for transportation capital development projects;
16          ▸     defines "large public transit district" and "small public transit district";
17          ▸     vests in the Legislature the authority to name a large public transit district;
18          ▸     modifies the makeup of the board of trustees of a large public transit district by:
19               •     reducing membership from 16 to three;
20               •     vesting nomination responsibilities in executives of local governments and
21     appointment responsibilities in the governor; and
22               •     defining responsibilities of the members of the board of trustees;
23          ▸     requires a large public transit district to have legal counsel from the Utah attorney
24     general, and provides for a transition for an existing large public transit district;
25          ▸     creates a local advisory board for a large public transit district and defines the

26     membership and duties of a local advisory board;
27          ▸     requires a large public transit district to transition retirement benefits to fall under
28     the provisions and oversight provided in the Utah State Retirement and Insurance
29     Benefit Act;
30          ▸     exempts certain meetings of members of the board of trustees of a large public
31     transit district from the Open and Public Meetings Act;
32          ▸     defines "alternative fuel vehicle," "diesel fuel," "electric motor vehicle," "hybrid
33     electric motor vehicle," "motor fuel," "natural gas," and "plug-in hybrid electric
34     motor vehicle";
35          ▸     modifies provisions imposing registration fees on motor vehicles;
36          ▸      reduces funds allocated from the General Fund into the Transportation Investment
37     Fund of 2005 and deposits funds from the General Fund into the Transit
38     Transportation Investment Fund;
39          ▸     allocates revenue from increased vehicle registration fees to the Transportation
40     Investment Fund of 2005;
41          ▸     creates the "Transit Transportation Investment Fund" within the Transportation
42     Investment Fund of 2005;
43          ▸     imposes a deadline for certain local governments to impose certain local option
44     sales and use taxes;
45          ▸     allows a county, city, or town to impose certain local option sales and use taxes
46     without submitting the question to the county's, city's, or town's registered voters;
47          ▸     allows a city to impose certain local option sales and use taxes not imposed by the
48     county;
49          ▸     amends provisions related to the expenditure of certain local option sales and use
50     taxes;
51          ▸     modifies certain responsibilities of the Department of Transportation and the
52     executive director of the Department of Transportation related to supervision and
53     oversight of certain projects and cooperation with other entities involved in a
54     project;
55          ▸     modifies governance of the Department of Transportation, including:
56               •     requiring a second deputy director;

57               •     describing the qualifications for each deputy; and
58               •     describing the responsibilities of each deputy director;
59          ▸     creates the Planning and Investment Division within the Department of
60     Transportation;
61          ▸     modifies requirements for the Department of Transportation to develop statewide
62     strategic initiatives for coordinating and planning multimodal transportation;
63          ▸     requires the Department of Transportation to study a road user charge and
64     implement a demonstration program;
65          ▸     requires the Transportation Commission to consider public transit projects in the
66     prioritization process to allocate funds;
67          ▸     modifies criteria for the Transportation Commission to consider while prioritizing
68     transportation and public transit projects;
69          ▸     allows corridor preservation funds to be used for public transit district corridors;
70     and
71          ▸     requires the Department of Transportation to assume responsibilities for review and
72     approval of projects under the requirements of the National Environmental Policy
73     Act of 1969.
74     Money Appropriated in this Bill:
75          None
76     Other Special Clauses:
77          This bill provides a special effective date.
78     Utah Code Sections Affected:
79     AMENDS:
80          11-13-103, as last amended by Laws of Utah 2016, Chapter 382
81          11-13-202, as last amended by Laws of Utah 2009, Chapter 218
82          11-13-206, as last amended by Laws of Utah 2015, Chapter 265
83          11-13-207, as last amended by Laws of Utah 2015, Chapter 265
84          17B-1-301, as last amended by Laws of Utah 2014, Chapter 362
85          17B-1-702, as renumbered and amended by Laws of Utah 2007, Chapter 329
86          17B-1-703, as renumbered and amended by Laws of Utah 2007, Chapter 329
87          17B-2a-802, as last amended by Laws of Utah 2016, Chapter 387

88          17B-2a-804, as last amended by Laws of Utah 2017, Chapters 181 and 427
89          17B-2a-807, as last amended by Laws of Utah 2017, Chapter 70
90          17B-2a-808, as last amended by Laws of Utah 2010, Chapter 281
91          17B-2a-810, as last amended by Laws of Utah 2016, Chapter 56
92          17B-2a-811, as last amended by Laws of Utah 2010, Chapter 281
93          17B-2a-826, as enacted by Laws of Utah 2017, Chapter 427
94          41-1a-102, as last amended by Laws of Utah 2016, Chapter 40
95          41-1a-1201, as last amended by Laws of Utah 2017, Chapters 261 and 406
96          41-1a-1206, as last amended by Laws of Utah 2017, Chapters 261, 406 and last
97     amended by Coordination Clause, Laws of Utah 2017, Chapter 261
98          41-1a-1221, as last amended by Laws of Utah 2012, Chapter 397
99          52-4-103, as last amended by Laws of Utah 2017, Chapters 196, 277, and 441
100          59-12-103, as last amended by Laws of Utah 2017, Chapters 234, 421, and 422
101          59-12-2202, as enacted by Laws of Utah 2010, Chapter 263
102          59-12-2217, as last amended by Laws of Utah 2017, Chapter 240
103          59-12-2218, as last amended by Laws of Utah 2017, Chapter 240
104          59-12-2219, as last amended by Laws of Utah 2016, Chapter 373
105          63G-6a-1402, as last amended by Laws of Utah 2017, Chapter 348
106          67-5-3, as last amended by Laws of Utah 2015, Chapter 258
107          72-1-102, as last amended by Laws of Utah 2001, Chapter 372
108          72-1-202, as last amended by Laws of Utah 2013, Chapter 78
109          72-1-203, as last amended by Laws of Utah 2006, Chapter 139
110          72-1-204, as last amended by Laws of Utah 2017, Chapter 97
111          72-1-208, as last amended by Laws of Utah 2016, Chapter 350
112          72-1-211, as last amended by Laws of Utah 2008, Chapter 382
113          72-1-213, as enacted by Laws of Utah 2015, Chapter 275
114          72-1-214, as enacted by Laws of Utah 2017, Chapter 160
115          72-1-303, as last amended by Laws of Utah 2011, Chapter 256
116          72-1-304, as last amended by Laws of Utah 2008, Chapter 382
117          72-1-305, as last amended by Laws of Utah 2009, Chapter 364
118          72-2-117.5, as last amended by Laws of Utah 2017, Chapter 240

119          72-2-121, as last amended by Laws of Utah 2017, Chapter 436
120          72-2-124, as last amended by Laws of Utah 2017, Chapter 436
121          72-5-401, as last amended by Laws of Utah 2005, Chapter 254
122          72-6-120, as last amended by Laws of Utah 2015, Chapter 144
123     ENACTS:
124          11-13-227, Utah Code Annotated 1953
125          17B-2a-803.1, Utah Code Annotated 1953
126          17B-2a-807.1, Utah Code Annotated 1953
127          17B-2a-808.1, Utah Code Annotated 1953
128          17B-2a-808.2, Utah Code Annotated 1953
129          17B-2a-810.1, Utah Code Annotated 1953
130          17B-2a-811.1, Utah Code Annotated 1953
131     REPEALS:
132          17B-2a-807.5, as enacted by Laws of Utah 2009, Chapter 364
133     

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

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

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

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

243     existing capacity;
244          (ii) the capacity replacing existing capacity is owned by the project entity that is the
245     owner of the project, a segment established by the project entity, or a person with whom the
246     project entity or a segment established by the project entity has contracted; or
247          (iii) the facility that provides the capacity replacing existing capacity is constructed,
248     reconstructed, converted, repowered, acquired, leased, used, or installed before or after any
249     actual or anticipated reduction or modification to existing capacity of the project.
250          (22) "Transportation reinvestment zone" means an area created by two or more public
251     agencies by interlocal agreement to capture increased property or sales tax revenue generated
252     by a transportation infrastructure project as described in Section 11-13-227.
253          [(22)] (23) "Utah interlocal entity":
254          (a) means an interlocal entity described in Subsection 11-13-203(2); and
255          (b) includes a separate legal or administrative entity created under Laws of Utah 1977,
256     Chapter 47, Section 3, as amended.
257          [(23)] (24) "Utah public agency" means a public agency under Subsection (19)(a) or
258     (b).
259          Section 2. Section 11-13-202 is amended to read:
260          11-13-202. Agreements for joint or cooperative undertaking, for providing or
261     exchanging services, or for law enforcement services -- Effective date of agreement --
262     Public agencies may restrict their authority or exempt each other regarding permits and
263     fees.
264          (1) Any two or more public agencies may enter into an agreement with one another
265     under this chapter:
266          (a) for joint or cooperative action;
267          (b) to provide services that they are each authorized by statute to provide;
268          (c) to exchange services that they are each authorized by statute to provide;
269          (d) for a public agency to provide law enforcement services to one or more other public
270     agencies, if the public agency providing law enforcement services under the interlocal
271     agreement is authorized by law to provide those services, or to provide joint or cooperative law
272     enforcement services between or among public agencies that are each authorized by law to
273     provide those services; [or]

274          (e) to create a transportation reinvestment zone as defined in Section 11-13-103; or
275          [(e)] (f) to do anything else that they are each authorized by statute to do.
276          (2) An agreement under Subsection (1) does not take effect until it has been approved,
277     as provided in Section 11-13-202.5, by each public agency that is a party to it.
278          (3) (a) In an agreement under Subsection (1), a public agency that is a party to the
279     agreement may agree:
280          (i) to restrict its authority to issue permits to or assess fees from another public agency
281     that is a party to the agreement; and
282          (ii) to exempt another public agency that is a party to the agreement from permit or fee
283     requirements.
284          (b) A provision in an agreement under Subsection (1) whereby the parties agree as
285     provided in Subsection (3)(a) is subject to all remedies provided by law and in the agreement,
286     including injunction, mandamus, abatement, or other remedy to prevent, enjoin, abate, or
287     enforce the provision.
288          (4) An interlocal agreement between a county and one or more municipalities for law
289     enforcement service within an area that includes some or all of the unincorporated area of the
290     county shall require the law enforcement service provided under the agreement to be provided
291     by or under the direction of the county sheriff.
292          Section 3. Section 11-13-206 is amended to read:
293          11-13-206. Requirements for agreements for joint or cooperative action.
294          (1) Each agreement under Section 11-13-202, 11-13-203, [or] 11-13-205, or 11-13-227
295     shall specify:
296          (a) its duration;
297          (b) if the agreement creates an interlocal entity:
298          (i) the precise organization, composition, and nature of the interlocal entity;
299          (ii) the powers delegated to the interlocal entity;
300          (iii) the manner in which the interlocal entity is to be governed; and
301          (iv) subject to Subsection (2), the manner in which the members of its governing board
302     are to be appointed or selected;
303          (c) its purpose or purposes;
304          (d) the manner of financing the joint or cooperative action and of establishing and

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

336          11-13-227. Transportation reinvestment zones.
337          (1) Subject to the provisions of this part, any two or more public agencies may enter
338     into an agreement with one another to create a transportation reinvestment zone as described in
339     this section.
340          (2) To create a transportation reinvestment zone, two or more public agencies, at least
341     one of which has land use authority over the transportation reinvestment zone area, shall:
342          (a) define the transportation infrastructure need and proposed improvement;
343          (b) define the boundaries of the zone;
344          (c) establish terms for sharing sales tax revenue among the members of the agreement;
345          (d) establish a base year to calculate the increase of property tax revenue within the
346     zone;
347          (e) establish terms for sharing any increase in property tax revenue within the zone;
348     and
349          (f) before an agreement is approved as required in Section 11-13-202.5, hold a public
350     hearing regarding the details of the proposed transportation reinvestment zone.
351          (3) Any agreement to establish a transportation reinvestment zone is subject to the
352     requirements of Sections 11-13-202, 11-13-202.5, 11-13-206, and 11-13-207.
353          (4) (a) Each public agency that is party to an agreement under this section shall
354     annually publish a report including a statement of the increased tax revenue and the
355     expenditures made in accordance with the agreement.
356          (b) Each public agency that is party to an agreement under this section shall transmit a
357     copy of the report described in Subsection (4)(a) to the state auditor.
358          (5) If any surplus revenue remains in a tax revenue account created as part of a
359     transportation reinvestment zone agreement, the parties may use the surplus for other purposes
360     as determined by agreement of the parties.
361          Section 6. Section 17B-1-301 is amended to read:
362          17B-1-301. Board of trustees duties and powers.
363          (1) (a) Each local district shall be governed by a board of trustees which shall manage
364     and conduct the business and affairs of the district and shall determine all questions of district
365     policy.
366          (b) All powers of a local district are exercised through the board of trustees.

367          (2) The board of trustees may:
368          (a) fix the location of the local district's principal place of business and the location of
369     all offices and departments, if any;
370          (b) fix the times of meetings of the board of trustees;
371          (c) select and use an official district seal;
372          (d) subject to Subsections (3) and (4), employ employees and agents, or delegate to
373     district officers power to employ employees and agents, for the operation of the local district
374     and its properties and prescribe or delegate to district officers the power to prescribe the duties,
375     compensation, and terms and conditions of employment of those employees and agents;
376          (e) require district officers and employees charged with the handling of district funds to
377     provide surety bonds in an amount set by the board or provide a blanket surety bond to cover
378     officers and employees;
379          (f) contract for or employ professionals to perform work or services for the local
380     district that cannot satisfactorily be performed by the officers or employees of the district;
381          (g) through counsel, prosecute on behalf of or defend the local district in all court
382     actions or other proceedings in which the district is a party or is otherwise involved;
383          (h) adopt bylaws for the orderly functioning of the board;
384          (i) adopt and enforce rules and regulations for the orderly operation of the local district
385     or for carrying out the district's purposes;
386          (j) prescribe a system of civil service for district employees;
387          (k) on behalf of the local district, enter into contracts that the board considers to be for
388     the benefit of the district;
389          (l) acquire, construct or cause to be constructed, operate, occupy, control, and use
390     buildings, works, or other facilities for carrying out the purposes of the local district;
391          (m) on behalf of the local district, acquire, use, hold, manage, occupy, and possess
392     property necessary to carry out the purposes of the district, dispose of property when the board
393     considers it appropriate, and institute and maintain in the name of the district any action or
394     proceeding to enforce, maintain, protect, or preserve rights or privileges associated with district
395     property;
396          (n) delegate to a district officer the exercise of a district duty; and
397          (o) exercise all powers and perform all functions in the operation of the local district

398     and its properties as are ordinarily exercised by the governing body of a political subdivision of
399     the state and as are necessary to accomplish the purposes of the district.
400          (3) (a) As used in this Subsection (3), "interim vacancy period" means:
401          (i) if any member of the local district board is elected, the period of time that:
402          (A) begins on the day on which an election is held to elect a local district board
403     member; and
404          (B) ends on the day on which the local district board member-elect begins the
405     member's term; or
406          (ii) if any member of the local district board is appointed, the period of time that:
407          (A) begins on the day on which an appointing authority posts a notice of vacancy in
408     accordance with Section 17B-1-304; and
409          (B) ends on the day on which the person who is appointed by the local district board to
410     fill the vacancy begins the person's term.
411          (b) (i) The local district may not hire during an interim vacancy period a manager, a
412     chief executive officer, a chief administrative officer, an executive director, or a similar
413     position to perform executive and administrative duties or functions.
414          (ii) Notwithstanding Subsection (3)(b)(i):
415          (A) the local district may hire an interim manager, a chief executive officer, a chief
416     administrative officer, an executive director, or a similar position during an interim vacancy
417     period; and
418          (B) the interim manager's, chief executive officer's, chief administrative officer's, or
419     similar position's employment shall terminate once a new manager, chief executive officer,
420     chief administrative officer, or similar position is hired by the new local district board after the
421     interim vacancy period has ended.
422          (c) Subsection (3)(b) does not apply if:
423          (i) all the elected local district board members who held office on the day of the
424     election for the local district board members, whose term of office was vacant for the election
425     are re-elected to the local district board; and
426          (ii) all the appointed local district board members who were appointed whose term of
427     appointment was expiring are re-appointed to the local district board.
428          (4) A local district board that hires an interim manager, a chief executive officer, a

429     chief administrative officer, an executive director, or a similar position in accordance with this
430     section may not, on or after May 10, 2011, enter into an employment contract that contains an
431     automatic renewal provision with the interim manager, chief executive officer, chief
432     administrative officer, executive director, or similar position.
433          Section 7. Section 17B-1-702 is amended to read:
434          17B-1-702. Local districts to submit budgets.
435          (1) (a) Except as provided in Subsection (1)(b), within 30 days after it is approved by
436     the board, and at least 30 days before the board adopts a final budget, the board of each local
437     district with an annual budget of $50,000 or more shall send a copy of its tentative budget and
438     notice of the time and place for its budget hearing to:
439          (i) each of its constituent entities that has in writing requested a copy; and
440          (ii) to each of its customer agencies that has in writing requested a copy.
441          (b) Within 30 days after it is approved by the board, and at least 30 days before the
442     board adopts a final budget, the board of trustees of a large public transit district [serving a
443     population of more than 200,000 people] as defined in Section 17B-2a-802 shall send a copy of
444     its tentative budget and notice of the time and place for its budget hearing to:
445          (i) each of its constituent entities;
446          (ii) each of its customer agencies that has in writing requested a copy;
447          (iii) the governor; and
448          (iv) the Legislature.
449          (c) The local district shall include with the tentative budget a signature sheet that
450     includes:
451          (i) language that the constituent entity or customer agency received the tentative budget
452     and has no objection to it; and
453          (ii) a place for the chairperson or other designee of the constituent entity or customer
454     agency to sign.
455          (2) Each constituent entity and each customer agency that receives the tentative budget
456     shall review the tentative budget submitted by the district and either:
457          (a) sign the signature sheet and return it to the district; or
458          (b) attend the budget hearing or other meeting scheduled by the district to discuss the
459     objections to the proposed budget.

460          (3) (a) If any constituent entity or customer agency that received the tentative budget
461     has not returned the signature sheet to the local district within 15 calendar days after the
462     tentative budget was mailed, the local district shall send a written notice of the budget hearing
463     to each constituent entity or customer agency that did not return a signature sheet and invite
464     them to attend that hearing.
465          (b) If requested to do so by any constituent entity or customer agency, the local district
466     shall schedule a meeting to discuss the budget with the constituent entities and customer
467     agencies.
468          (c) At the budget hearing, the local district board shall:
469          (i) explain its budget and answer any questions about it;
470          (ii) specifically address any questions or objections raised by the constituent entity,
471     customer agency, or those attending the meeting; and
472          (iii) seek to resolve the objections.
473          (4) Nothing in this part prevents a local district board from approving or implementing
474     a budget over any or all constituent entity's or customer agency's protests, objections, or failure
475     to respond.
476          Section 8. Section 17B-1-703 is amended to read:
477          17B-1-703. Local districts to submit audit reports.
478          (1) (a) Except as provided in Subsection (1)(b), within 30 days after it is presented to
479     the board, the board of each local district with an annual budget of $50,000 or more shall send
480     a copy of any audit report to:
481          (i) each of its constituent entities that has in writing requested a copy; and
482          (ii) each of its customer agencies that has in writing requested a copy.
483          (b) Within 30 days after it is presented to the board, the board of a large public transit
484     district [serving a population of more than 200,000 people] as defined in Section 17B-2a-802
485     shall send a copy of its annual audit report to:
486          (i) each of its constituent entities; and
487          (ii) each of its customer agencies that has in writing requested a copy.
488          (2) Each constituent entity and each customer agency that received the audit report
489     shall review the audit report submitted by the district and, if necessary, request a meeting with
490     the district board to discuss the audit report.

491          (3) At the meeting, the local district board shall:
492          (a) answer any questions about the audit report; and
493          (b) discuss their plans to implement suggestions made by the auditor.
494          Section 9. Section 17B-2a-802 is amended to read:
495          17B-2a-802. Definitions.
496          As used in this part:
497          (1) "Affordable housing" means housing occupied or reserved for occupancy by
498     households that meet certain gross household income requirements based on the area median
499     income for households of the same size.
500          (a) "Affordable housing" may include housing occupied or reserved for occupancy by
501     households that meet specific area median income targets or ranges of area median income
502     targets.
503          (b) "Affordable housing" does not include housing occupied or reserved for occupancy
504     by households with gross household incomes that are more than 60% of the area median
505     income for households of the same size.
506          (2) "Appointing entity" means the person, county, unincorporated area of a county, or
507     municipality appointing a member to a public transit district board of trustees.
508          (3) (a) "Chief executive officer" means a person appointed by the board of trustees of a
509     small public transit district to serve as chief executive officer.
510          (b) "Chief executive officer" shall enjoy all the rights, duties, and responsibilities
511     defined in Sections 17B-2a-810 and 17B-2a-811 and includes all rights, duties, and
512     responsibilities assigned to the general manager but prescribed by the board of trustees to be
513     fulfilled by the chief executive officer.
514          (4) "Council of governments" means a decision-making body in each county composed
515     of membership including the county governing body and the mayors of each municipality in the
516     county.
517          [(4)] (5) "Department" means the Department of Transportation created in Section
518     72-1-201.
519          (6) "Executive director" means a person appointed by the board of trustees of a large
520     public transit district to serve as executive director.
521          [(5)] (7) (a) "General manager" means a person appointed by the board of trustees of a

522     small public transit district to serve as general manager.
523          (b) "General manager" shall enjoy all the rights, duties, and responsibilities defined in
524     Sections 17B-2a-810 and 17B-2a-811 prescribed by the board of trustees of a small public
525     transit district.
526          (8) "Large public transit district" means a public transit district that provides public
527     transit to an area that includes:
528          (a) more than 65% of the population of the state based on the most recent official
529     census or census estimate of the United States Census Bureau; and
530          (b) two or more counties.
531          [(6)] (9) (a) "Locally elected public official" means a person who holds an elected
532     position with a county or municipality.
533          (b) "Locally elected public official" does not include a person who holds an elected
534     position if the elected position is not with a county or municipality.
535          [(7)] (10) "Metropolitan planning organization" means the same as that term is defined
536     in Section 72-1-208.5.
537          [(8)] (11) "Multicounty district" means a public transit district located in more than one
538     county.
539          [(9)] (12) "Operator" means a public entity or other person engaged in the
540     transportation of passengers for hire.
541          [(10)] (13) "Public transit" means the transportation of passengers only and their
542     incidental baggage by means other than:
543          (a) chartered bus;
544          (b) sightseeing bus; or
545          (c) taxi.
546          (14) "Public transit district" means a local district that provides public transit services.
547          (15) "Small public transit district" means any public transit district that is not a large
548     public transit district.
549          [(11)] (16) "Transit facility" means a transit vehicle, transit station, depot, passenger
550     loading or unloading zone, parking lot, or other facility:
551          (a) leased by or operated by or on behalf of a public transit district; and
552          (b) related to the public transit services provided by the district, including:

553          (i) railway or other right-of-way;
554          (ii) railway line; and
555          (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by
556     a transit vehicle.
557          [(14)] (17) "Transit vehicle" means a passenger bus, coach, railcar, van, or other
558     vehicle operated as public transportation by a public transit district.
559          [(12)] (18) "Transit-oriented development" means a mixed use residential or
560     commercial area that is designed to maximize access to public transit and includes the
561     development of land owned by a public transit district that serves a county of the first class.
562          [(13)] (19) "Transit-supportive development" means a mixed use residential or
563     commercial area that is designed to maximize access to public transit and does not include the
564     development of land owned by a public transit district.
565          Section 10. Section 17B-2a-803.1 is enacted to read:
566          17B-2a-803.1. Authority to name a large public transit district.
567          (1) The authority to name any large public transit district is vested in the Legislature
568     and the name shall be codified in this section.
569          (2) (a) For the large public transit district in existence and with a portion of the district
570     within a county of the first class as of May 8, 2018, and beginning on May 8, 2018, the large
571     public transit district shall be called Transit District of Utah.
572          (b) The board of trustees of the large public transit district described in Subsection
573     (2)(a) shall implement the name change over time and as resources permit.
574          Section 11. Section 17B-2a-804 is amended to read:
575          17B-2a-804. Additional public transit district powers.
576          (1) In addition to the powers conferred on a public transit district under Section
577     17B-1-103, a public transit district may:
578          (a) provide a public transit system for the transportation of passengers and their
579     incidental baggage;
580          (b) notwithstanding Subsection 17B-1-103(2)(g) and subject to Section 17B-2a-817,
581     levy and collect property taxes only for the purpose of paying:
582          (i) principal and interest of bonded indebtedness of the public transit district; or
583          (ii) a final judgment against the public transit district if:

584          (A) the amount of the judgment exceeds the amount of any collectable insurance or
585     indemnity policy; and
586          (B) the district is required by a final court order to levy a tax to pay the judgment;
587          (c) insure against:
588          (i) loss of revenues from damage to or destruction of some or all of a public transit
589     system from any cause;
590          (ii) public liability;
591          (iii) property damage; or
592          (iv) any other type of event, act, or omission;
593          (d) acquire, contract for, lease, construct, own, operate, control, or use:
594          (i) a right-of-way, rail line, monorail, bus line, station, platform, switchyard, terminal,
595     parking lot, or any other facility necessary or convenient for public transit service; or
596          (ii) any structure necessary for access by persons and vehicles;
597          (e) (i) hire, lease, or contract for the supplying or management of a facility, operation,
598     equipment, service, employee, or management staff of an operator; and
599          (ii) provide for a sublease or subcontract by the operator upon terms that are in the
600     public interest;
601          (f) operate feeder bus lines and other feeder or ridesharing services as necessary;
602          (g) accept a grant, contribution, or loan, directly through the sale of securities or
603     equipment trust certificates or otherwise, from the United States, or from a department,
604     instrumentality, or agency of the United States;
605          (h) study and plan transit facilities in accordance with any legislation passed by
606     Congress;
607          (i) cooperate with and enter into an agreement with the state or an agency of the state
608     or otherwise contract to finance to establish transit facilities and equipment or to study or plan
609     transit facilities;
610          (j) subject to Subsection 17B-2a-808.1(5), issue bonds as provided in and subject to
611     Chapter 1, Part 11, Local District Bonds, to carry out the purposes of the district;
612          (k) from bond proceeds or any other available funds, reimburse the state or an agency
613     of the state for an advance or contribution from the state or state agency;
614          (l) do anything necessary to avail itself of any aid, assistance, or cooperation available

615     under federal law, including complying with labor standards and making arrangements for
616     employees required by the United States or a department, instrumentality, or agency of the
617     United States;
618          (m) sell or lease property;
619          (n) except as provided in Subsection (2)(b), assist in or operate transit-oriented or
620     transit-supportive developments;
621          (o) establish, finance, participate as a limited partner or member in a development with
622     limited liabilities in accordance with Subsection (1)(p), construct, improve, maintain, or
623     operate transit facilities, equipment, and , in accordance with Subsection (3), transit-oriented
624     developments or transit-supportive developments; and
625          (p) subject to the restrictions and requirements in Subsections (2) and (3), assist in a
626     transit-oriented development or a transit-supportive development in connection with project
627     area development as defined in Section 17C-1-102 by:
628          (i) investing in a project as a limited partner or a member, with limited liabilities; or
629          (ii) subordinating an ownership interest in real property owned by the public transit
630     district.
631          (2) (a) A public transit district may only assist in the development of areas under
632     Subsection (1)(p):
633          (i) in the manner described in Subsection (1)(p)(i) or (ii); and
634          (ii) on no more than eight transit-oriented developments or transit-supportive
635     developments selected by the board of trustees.
636          (b) A public transit district may not invest in a transit-oriented development or
637     transit-supportive development as a limited partner or other limited liability entity under the
638     provisions of Subsection (1)(p)(i), unless the partners, developer, or other investor in the entity,
639     makes an equity contribution equal to no less than 25% of the appraised value of the property
640     to be contributed by the public transit district.
641          (c) (i) For transit-oriented development projects, a public transit district shall adopt
642     transit-oriented development policies and guidelines that include provisions on affordable
643     housing.
644          (ii) For transit-supportive development projects, a public transit district shall work with
645     the metropolitan planning organization and city and county governments where the project is

646     located to collaboratively seek to create joint plans for the areas within one-half mile of transit
647     stations, including plans for affordable housing.
648          (d) A current board member of a public transit district to which the board member is
649     appointed may not have any interest in the transactions engaged in by the public transit district
650     pursuant to Subsection (1)(p)(i) or (ii), except as may be required by the board member's
651     fiduciary duty as a board member.
652          (3) For any transit-oriented development or transit-supportive development authorized
653     in this section, the public transit district shall:
654          (a) perform a cost-benefit analysis of the monetary investment and expenditures of the
655     development, including effect on:
656          (i) service and ridership;
657          (ii) regional plans made by the metropolitan planning agency;
658          (iii) the local economy;
659          (iv) the environment and air quality;
660          (v) affordable housing; and
661          (vi) integration with other modes of transportation; and
662          (b) provide evidence to the public of a quantifiable positive return on investment,
663     including improvements to public transit service.
664          (4) A public transit district may be funded from any combination of federal, state,
665     local, or private funds.
666          (5) A public transit district may not acquire property by eminent domain.
667          Section 12. Section 17B-2a-807 is amended to read:
668          17B-2a-807. Small public transit district board of trustees -- Appointment --
669     Apportionment -- Qualifications -- Quorum -- Compensation -- Terms.
670          (1) (a) [If 200,000 people or fewer reside within the boundaries of a] For a small public
671     transit district, the board of trustees shall consist of members appointed by the legislative
672     bodies of each municipality, county, or unincorporated area within any county on the basis of
673     one member for each full unit of regularly scheduled passenger routes proposed to be served by
674     the district in each municipality or unincorporated area within any county in the following
675     calendar year.
676          (b) For purposes of determining membership under Subsection (1)(a), the number of

677     service miles comprising a unit shall be determined jointly by the legislative bodies of the
678     municipalities or counties comprising the district.
679          (c) The board of trustees of a public transit district under this [Subsection (1)] section
680     may include a member that is a commissioner on the Transportation Commission created in
681     Section 72-1-301 and appointed as provided in Subsection [(11)] (8), who shall serve as a
682     nonvoting, ex officio member.
683          (d) Members appointed under this [Subsection (1)] section shall be appointed and
684     added to the board or omitted from the board at the time scheduled routes are changed, or as
685     municipalities, counties, or unincorporated areas of counties annex to or withdraw from the
686     district using the same appointment procedures.
687          (e) For purposes of appointing members under this [Subsection (1)] section,
688     municipalities, counties, and unincorporated areas of counties in which regularly scheduled
689     passenger routes proposed to be served by the district in the following calendar year is less than
690     a full unit, as defined in Subsection (1)(b), may combine with any other similarly situated
691     municipality or unincorporated area to form a whole unit and may appoint one member for
692     each whole unit formed.
693          [(2) (a) Subject to Section 17B-2a-807.5, if more than 200,000 people reside within the
694     boundaries of a public transit district, the board of trustees shall consist of:]
695          [(i) 11 members:]
696          [(A) appointed as described under this Subsection (2); or]
697          [(B) retained in accordance with Section 17B-2a-807.5;]
698          [(ii) three members appointed as described in Subsection (4);]
699          [(iii) one voting member appointed as provided in Subsection (11); and]
700          [(iv) one nonvoting member appointed as provided in Subsection (12).]
701          [(b) Except as provided in Subsections (2)(c) and (d), the board shall apportion voting
702     members to each county within the district using an average of:]
703          [(i) the proportion of population included in the district and residing within each
704     county, rounded to the nearest 1/11 of the total transit district population; and]
705          [(ii) the cumulative proportion of transit sales and use tax collected from areas
706     included in the district and within each county, rounded to the nearest 1/11 of the total
707     cumulative transit sales and use tax collected for the transit district.]

708          [(c) The board shall join an entire or partial county not apportioned a voting member
709     under this Subsection (2) with an adjacent county for representation. The combined
710     apportionment basis included in the district of both counties shall be used for the
711     apportionment.]
712          [(d) (i) If rounding to the nearest 1/11 of the total public transit district apportionment
713     basis under Subsection (2)(b) results in an apportionment of more than 11 members, the county
714     or combination of counties with the smallest additional fraction of a whole member proportion
715     shall have one less member apportioned to it.]
716          [(ii) If rounding to the nearest 1/11 of the total public transit district apportionment
717     basis under Subsection (2)(b) results in an apportionment of less than 11 members, the county
718     or combination of counties with the largest additional fraction of a whole member proportion
719     shall have one more member apportioned to it.]
720          [(e) If the population of a county is at least 750,000, the county executive, with the
721     advice and consent of the county legislative body, shall appoint one voting member to
722     represent the population of the county.]
723          [(f) If a municipality's population is at least 160,000, the chief municipal executive,
724     with the advice and consent of the municipal legislative body, shall appoint one voting member
725     to represent the population within a municipality.]
726          [(g) (i) The number of voting members appointed from a county and municipalities
727     within a county under Subsections (2)(e) and (f) shall be subtracted from the county's total
728     voting member apportionment under this Subsection (2).]
729          [(ii) Notwithstanding Subsections (2)(l) and (10), no more than one voting member
730     appointed by an appointing entity may be a locally elected public official.]
731          [(h) If the entire county is within the district, the remaining voting members for the
732     county shall represent the county or combination of counties, if Subsection (2)(c) applies, or
733     the municipalities within the county.]
734          [(i) If the entire county is not within the district, and the county is not joined with
735     another county under Subsection (2)(c), the remaining voting members for the county shall
736     represent a municipality or combination of municipalities.]
737          [(j) (i) Except as provided under Subsections (2)(e) and (f), voting members
738     representing counties, combinations of counties if Subsection (2)(c) applies, or municipalities

739     within the county shall be designated and appointed by a simple majority of the chief
740     executives of the municipalities within the county or combinations of counties if Subsection
741     (2)(c) applies.]
742          [(ii) The appointments shall be made by joint written agreement of the appointing
743     municipalities, with the consent and approval of the county legislative body of the county that
744     has at least 1/11 of the district's apportionment basis.]
745          [(k) Voting members representing a municipality or combination of municipalities
746     shall be designated and appointed by the chief executive officer of the municipality or simple
747     majority of chief executive officers of municipalities with the consent of the legislative body of
748     the municipality or municipalities.]
749          [(l) The appointment of members shall be made without regard to partisan political
750     affiliation from among citizens in the community.]
751          [(m) Each member shall be a bona fide resident of the municipality, county, or
752     unincorporated area or areas which the member is to represent for at least six months before the
753     date of appointment, and shall continue in that residency to remain qualified to serve as a
754     member.]
755          [(n) (i) All population figures used under this section shall be derived from the most
756     recent official census or census estimate of the United States Bureau of the Census.]
757          [(ii) If population estimates are not available from the United States Bureau of Census,
758     population figures shall be derived from the estimate from the Utah Population Estimates
759     Committee.]
760          [(iii) All transit sales and use tax totals shall be obtained from the State Tax
761     Commission.]
762          [(o) (i) The board shall be apportioned as provided under this section in conjunction
763     with the decennial United States Census Bureau report every 10 years.]
764          [(ii) Within 120 days following the receipt of the population estimates under this
765     Subsection (2)(o), the district shall reapportion representation on the board of trustees in
766     accordance with this section.]
767          [(iii) The board shall adopt by resolution a schedule reflecting the current and proposed
768     apportionment.]
769          [(iv) Upon adoption of the resolution, the board shall forward a copy of the resolution

770     to each of its constituent entities as defined under Section 17B-1-701.]
771          [(v) The appointing entities gaining a new board member shall appoint a new member
772     within 30 days following receipt of the resolution.]
773          [(vi) The appointing entities losing a board member shall inform the board of which
774     member currently serving on the board will step down:]
775          [(A) upon appointment of a new member under Subsection (2)(o)(v); or]
776          [(B) in accordance with Section 17B-2a-807.5.]
777          [(3)] (2) Upon the completion of an annexation to a public transit district under
778     Chapter 1, Part 4, Annexation, the annexed area shall have a representative on the board of
779     trustees on the same basis as if the area had been included in the district as originally
780     organized.
781          [(4) In addition to the voting members appointed in accordance with Subsection (2),
782     the board shall consist of three voting members appointed as follows:]
783          [(a) one member appointed by the speaker of the House of Representatives;]
784          [(b) one member appointed by the president of the Senate; and]
785          [(c) one member appointed by the governor.]
786          [(5) Except as provided in Section 17B-2a-807.5, the terms of office of the members of
787     the board shall be four years or until a successor is appointed, qualified, seated, and has taken
788     the oath of office.]
789          [(6)] (3) (a) Vacancies for members shall be filled by the official appointing the
790     member creating the vacancy for the unexpired term, unless the official fails to fill the vacancy
791     within 90 days.
792          (b) If the appointing official under Subsection (1) does not fill the vacancy within 90
793     days, the board of trustees of the authority shall fill the vacancy.
794          [(c) If the appointing official under Subsection (2) does not fill the vacancy within 90
795     days, the governor, with the advice and consent of the Senate, shall fill the vacancy.]
796          [(7)] (4) (a) Each voting member may cast one vote on all questions, orders,
797     resolutions, and ordinances coming before the board of trustees.
798          (b) A majority of all voting members of the board of trustees are a quorum for the
799     transaction of business.
800          (c) The affirmative vote of a majority of all voting members present at any meeting at

801     which a quorum was initially present shall be necessary and, except as otherwise provided, is
802     sufficient to carry any order, resolution, ordinance, or proposition before the board of trustees.
803          [(8)] (5) Each public transit district shall pay to each member per diem and travel
804     expenses for meetings actually attended, in accordance with Section 11-55-103.
805          [(9)] (6) (a) Members of the initial board of trustees shall convene at the time and place
806     fixed by the chief executive officer of the entity initiating the proceedings.
807          (b) The board of trustees shall elect from its voting membership a chair, vice chair, and
808     secretary.
809          (c) The members elected under Subsection [(9)] (6)(b) shall serve for a period of two
810     years or until their successors shall be elected and qualified.
811          (d) On or after January 1, 2011, a locally elected public official is not eligible to serve
812     as the chair, vice chair, or secretary of the board of trustees.
813          [(10)] (7) (a) Except as otherwise authorized under [Subsections (2)(g) and (10)(b) and
814     Section 17B-2a-807.5] Subsection (7)(b), at the time of a member's appointment or during a
815     member's tenure in office, a member may not hold any employment, except as an independent
816     contractor or locally elected public official, with a county or municipality within the district.
817          (b) A member appointed by a county or municipality may hold employment with the
818     county or municipality if the employment is disclosed in writing and the public transit district
819     board of trustees ratifies the appointment.
820          [(11)] (8) The Transportation Commission created in Section 72-1-301[: (a) for a
821     public transit district serving a population of 200,000 people or fewer,] may appoint a
822     commissioner of the Transportation Commission to serve on the board of trustees of a small
823     public transit district as a nonvoting, ex officio member[; and].
824          [(b) for a public transit district serving a population of more than 200,000 people, shall
825     appoint a commissioner of the Transportation Commission to serve on the board of trustees as
826     a voting member.]
827          [(12) (a) The board of trustees of a public transit district serving a population of more
828     than 200,000 people shall include a nonvoting member who represents all municipalities and
829     unincorporated areas within the district that are located within a county that is not annexed into
830     the public transit district.]
831          [(b) The nonvoting member representing the combination of municipalities and

832     unincorporated areas described in Subsection (12)(a) shall be designated and appointed by a
833     weighted vote of the majority of the chief executive officers of the municipalities described in
834     Subsection (12)(a).]
835          [(c) Each municipality's vote under Subsection (12)(b) shall be weighted using the
836     proportion of the public transit district population that resides within that municipality and the
837     adjacent unincorporated areas within the same county.]
838          [(13)] (9) (a) (i) Each member of the board of trustees of a public transit district is
839     subject to recall at any time by the legislative body of the county or municipality from which
840     the member is appointed.
841          (ii) Each recall of a board of trustees member shall be made in the same manner as the
842     original appointment.
843          (iii) The legislative body recalling a board of trustees member shall provide written
844     notice to the member being recalled.
845          (b) Upon providing written notice to the board of trustees, a member of the board may
846     resign from the board of trustees.
847          (c) [Except as provided in Section 17B-2a-807.5, if] If a board member is recalled or
848     resigns under this Subsection [(13)] (9), the vacancy shall be filled as provided in Subsection
849     [(6)] (3).
850          Section 13. Section 17B-2a-807.1 is enacted to read:
851          17B-2a-807.1. Large public transit district board of trustees -- Appointment -- --
852     Quorum -- Compensation -- Terms.
853          (1) (a) For a large public transit district, the board of trustees shall consist of three
854     members appointed as described in Subsection (1)(b).
855          (b) (i) The governor, with advice and consent of the Senate, shall appoint the members
856     of the board of trustees, making:
857          (A) one appointment from the nominees described in Subsection (1)(b)(ii);
858          (B) one appointment from the nominees described in Subsection (1)(b)(iii); and
859          (C) one appointment from the nominees described in Subsection (1)(b)(iv).
860          (ii) The chief executive officer of a county of the first class within a large public transit
861     district, with approval of the legislative body of the county, shall nominate two or more
862     individuals to the governor for appointment to the board of trustees.

863          (iii) (A) Subject to Subsection (1)(b)(iii)(B), the executive governing individuals or
864     bodies of a county or counties of the second class, with a population over 500,000, within a
865     large public transit district, shall nominate two or more individuals to the governor for
866     appointment to the board of trustees.
867          (B) To select individuals for nomination, the executive governing individuals or bodies
868     described in Subsection (1)(b)(iii)(A) shall consult with the executive governing individual or
869     body of a county of the third or smaller class within the large public transit district.
870          (iv) (A) Subject to Subsection (1)(b)(iv)(B), the executive governing individuals or
871     bodies of any county or counties of the second class, with a population of 500,000 or less,
872     within a large public transit district, shall jointly nominate two or more individuals to the
873     governor for appointment to the board of trustees.
874          (B) To select individuals for nomination, the executive governing individuals or bodies
875     described in Subsection (1)(b)(iv)(A) shall consult with the executive governing individual or
876     body of a county of the third or smaller class within the large public transit district different
877     from a third or smaller class county consulting with the county or counties described in
878     Subsection (1)(b)(iii).
879          (c) Each nominee shall be a qualified executive with technical and administrative
880     experience and training appropriate for the position.
881          (d) The board of trustees of a large public transit district shall be full-time employees
882     of the public transit district.
883          (e) The compensation package for the board of trustees shall be determined by the local
884     advisory board as described in Section 17B-2a-808.2.
885          (2) (a) Subject to Subsections (3) and (4), each member of the board of trustees of a
886     large public transit district shall serve for a term of three years.
887          (b) A member of the board of trustees may serve an unlimited number of terms.
888          (3) Each member of the board of trustees of a large public transit district shall serve at
889     the pleasure of the governor.
890          (4) The first time the board of trustees is appointed under this section, the governor
891     shall stagger the initial term of each of the members of the board of trustees as follows:
892          (a) one member of the board of trustees shall serve an initial term of two years;
893          (b) one member of the board of trustees shall serve an initial term of three years; and

894          (c) one member of the board of trustees shall serve an initial term of four years.
895          (5) The governor shall designate one member of the board of trustees as chair of the
896     board of trustees.
897          (6) (a) If a vacancy occurs, the nomination and appointment procedures to replace the
898     individual shall occur in the same manner described in Subsection (1) for the member creating
899     the vacancy.
900          (b) A replacement board member shall serve for the remainder of the unexpired term,
901     but may serve an unlimited number of terms as provided in Subsection (2)(b).
902          (c) If the nominating officials under Subsection (1) do not nominate to fill the vacancy
903     within 60 days, the governor shall appoint an individual to fill the vacancy.
904          (7) For any large public transit district in existence as of May 8, 2018:
905          (a) the individuals or bodies providing nominations as described in this section shall
906     provide the nominations to the governor as described in this section before July 31, 2018;
907          (b) the governor shall appoint the members of the board of trustees before August 31,
908     2018; and
909          (c) the new board shall assume control of the large public transit district on or before
910     November 1, 2018.
911          Section 14. Section 17B-2a-808 is amended to read:
912          17B-2a-808. Small public transit district board of trustees powers and duties --
913     Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
914          (1) The powers and duties of a board of trustees of a small public transit district stated
915     in this section are in addition to the powers and duties stated in Section 17B-1-301.
916          (2) The board of trustees of each small public transit district shall:
917          (a) appoint and fix the salary of a general manager, a chief executive officer, or both, as
918     provided in Section 17B-2a-811;
919          (b) determine the transit facilities that the district should acquire or construct;
920          (c) supervise and regulate each transit facility that the district owns and operates,
921     including:
922          (i) fixing rates, fares, rentals, and charges and any classifications of rates, fares, rentals,
923     and charges; and
924          (ii) making and enforcing rules, regulations, contracts, practices, and schedules for or

925     in connection with a transit facility that the district owns or controls;
926          (d) control the investment of all funds assigned to the district for investment, including
927     funds:
928          (i) held as part of a district's retirement system; and
929          (ii) invested in accordance with the participating employees' designation or direction
930     pursuant to an employee deferred compensation plan established and operated in compliance
931     with Section 457 of the Internal Revenue Code;
932          (e) invest all funds according to the procedures and requirements of Title 51, Chapter
933     7, State Money Management Act;
934          (f) if a custodian is appointed under Subsection (3)(d), pay the fees for the custodian's
935     services from the interest earnings of the investment fund for which the custodian is appointed;
936          (g) (i) cause an annual audit of all district books and accounts to be made by an
937     independent certified public accountant;
938          (ii) as soon as practicable after the close of each fiscal year, submit to the chief
939     administrative officer and legislative body of each county and municipality with territory
940     within the district a financial report showing:
941          (A) the result of district operations during the preceding fiscal year; and
942          (B) the district's financial status on the final day of the fiscal year; and
943          (iii) supply copies of the report under Subsection (2)(g)(ii) to the general public upon
944     request in a quantity that the board considers appropriate;
945          (h) report at least annually to the Transportation Commission created in Section
946     72-1-301 the district's short-term and long-range public transit plans, including the transit
947     portions of applicable regional transportation plans adopted by a metropolitan planning
948     organization established under 23 U.S.C. Sec. 134;
949          (i) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits
950     that the board of trustees determines to be the most critical to the success of the organization;
951     and
952          (j) hear audit reports for audits conducted in accordance with Subsection (2)(i).
953          (3) A board of trustees of a public transit district may:
954          (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
955     are:

956          (i) not repugnant to the United States Constitution, the Utah Constitution, or the
957     provisions of this part; and
958          (ii) necessary for:
959          (A) the government and management of the affairs of the district;
960          (B) the execution of district powers; and
961          (C) carrying into effect the provisions of this part;
962          (b) provide by resolution, under terms and conditions the board considers fit, for the
963     payment of demands against the district without prior specific approval by the board, if the
964     payment is:
965          (i) for a purpose for which the expenditure has been previously approved by the board;
966          (ii) in an amount no greater than the amount authorized; and
967          (iii) approved by the general manager or other officer or deputy as the board prescribes;
968          (c) (i) hold public hearings and subpoena witnesses; and
969          (ii) appoint district officers to conduct a hearing and require the officers to make
970     findings and conclusions and report them to the board; and
971          (d) appoint a custodian for the funds and securities under its control, subject to
972     Subsection (2)(f).
973          (4) A member of the board of trustees of a public transit district or a hearing officer
974     designated by the board may administer oaths and affirmations in a district investigation or
975     proceeding.
976          (5) (a) The vote of the board of trustees on each ordinance shall be by roll call vote
977     with each affirmative and negative vote recorded.
978          (b) (i) Subject to Subsection (5)(b)(ii), the board of trustees may adopt a resolution or
979     order by voice vote.
980          (ii) The vote of the board of trustees on a resolution or order shall be by roll call vote if
981     a member of the board so demands.
982          (c) (i) Except as provided in Subsection (5)(c)(ii), the board of trustees of a public
983     transit district may not adopt an ordinance unless it is:
984          (A) introduced at least a day before the board of trustees adopts it; or
985          (B) mailed by registered mail, postage prepaid, to each member of the board of trustees
986     at least five days before the day upon which the ordinance is presented for adoption.

987          (ii) Subsection (5)(c)(i) does not apply if the ordinance is adopted by a unanimous vote
988     of all board members present at a meeting at which at least 3/4 of all board members are
989     present.
990          (d) Each ordinance adopted by a public transit district's board of trustees shall take
991     effect upon adoption, unless the ordinance provides otherwise.
992          Section 15. Section 17B-2a-808.1 is enacted to read:
993          17B-2a-808.1. Large public transit district board of trustees powers and duties --
994     Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
995          (1) The powers and duties of a board of trustees of a large public transit district stated
996     in this section are in addition to the powers and duties stated in Section 17B-1-301.
997          (2) The board of trustees of each large public transit district shall:
998          (a) hold public meetings and receive public comment;
999          (b) ensure that the policies, procedures, and management practices established by the
1000     public transit district meet state and federal regulatory requirements and federal grantee
1001     eligibility;
1002          (c) subject to Subsection (8), create and approve an annual budget, including the
1003     issuance of bonds and other financial instruments, after consultation with the local advisory
1004     board;
1005          (d) approve any interlocal agreement with a local jurisdiction;
1006          (e) in consultation with the local advisory board, approve contracts and overall
1007     property acquisitions and dispositions for transit-oriented development;
1008          (f) in consultation with constituent counties, municipalities, metropolitan planning
1009     organizations, and the local advisory board:
1010          (i) develop and approve a strategic plan for development and operations on at least a
1011     four-year basis; and
1012          (ii) create and pursue funding opportunities for transit capital and service initiatives to
1013     meet anticipated growth within the public transit district;
1014          (g) annually report the public transit district's long-term financial plan to the State
1015     Bonding Commission;
1016          (h) annually report the public transit district's progress and expenditures related to state
1017     resources to the Executive Appropriations Committee and the Infrastructure and General

1018     Government Appropriations Subcommittee;
1019          (i) (i) in partnership with the Department of Transportation, study and evaluate the
1020     feasibility of a strategic transition of a large public transit district into a state entity; and
1021          (ii) in partnership with the Department of Transportation, before November 30 of each
1022     year, report on the progress of the study to the Transportation Interim Committee and the
1023     Infrastructure and General Government Appropriations Subcommittee;
1024          (j) hire, set salaries, and develop performance targets and evaluations for:
1025          (i) the executive director;
1026          (ii) the chief internal auditor;
1027          (iii) the chief people officer;
1028          (iv) any vice president level officer; and
1029          (v) the chief safety, security, and technology officer;
1030          (k) supervise and regulate each transit facility that the public transit district owns and
1031     operates, including:
1032          (i) fix rates, fares, rentals, charges and any classifications of rates, fares, rentals, and
1033     charges; and
1034          (ii) make and enforce rules, regulations, contracts, practices, and schedules for or in
1035     connection with a transit facility that the district owns or controls;
1036          (l) subject to Subsection (4), control the investment of all funds assigned to the district
1037     for investment, including funds:
1038          (i) held as part of a district's retirement system; and
1039          (ii) invested in accordance with the participating employees' designation or direction
1040     pursuant to an employee deferred compensation plan established and operated in compliance
1041     with Section 457 of the Internal Revenue Code;
1042          (m) in consultation with the local advisory board created under Section 17B-2a-808.2,
1043     invest all funds according to the procedures and requirements of Title 51, Chapter 7, State
1044     Money Management Act;
1045          (n) if a custodian is appointed under Subsection (3)(d), and subject to Subsection (4),
1046     pay the fees for the custodian's services from the interest earnings of the investment fund for
1047     which the custodian is appointed;
1048          (o) (i) cause an annual audit of all public transit district books and accounts to be made

1049     by an independent certified public accountant;
1050          (ii) as soon as practicable after the close of each fiscal year, submit to each of the
1051     councils of governments within the public transit district a financial report showing:
1052          (A) the result of district operations during the preceding fiscal year;
1053          (B) an accounting of the expenditures of all local sales tax revenues generated under
1054     Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for Transportation Act;
1055          (C) the district's financial status on the final day of the fiscal year; and
1056          (D) the district's progress and efforts to improve efficiency relative to the previous
1057     fiscal year; and
1058          (iii) supply copies of the report under Subsection (2)(o)(ii) to the general public upon
1059     request;
1060          (p) report at least annually to the Transportation Commission created in Section
1061     72-1-301, which report shall include:
1062          (i) the district's short-term and long-range public transit plans, including the portions of
1063     applicable regional transportation plans adopted by a metropolitan planning organization
1064     established under 23 U.S.C. Sec. 134; and
1065          (ii) any transit capital development projects that the board of trustees would like the
1066     Transportation Commission to consider;
1067          (q) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits
1068     that the board of trustees determines, in consultation with the local advisory board created in
1069     Section 17B-2a-808.2, to be the most critical to the success of the organization;
1070          (r) together with the local advisory board created in Section 17B-2a-808.2, hear audit
1071     reports for audits conducted in accordance with Subsection (2)(o);
1072          (s) review and approve all contracts pertaining to reduced fares, and evaluate existing
1073     contracts, including review of:
1074          (i) how negotiations occurred;
1075          (ii) the rationale for providing a reduced fare; and
1076          (iii) identification and evaluation of cost shifts to offset operational costs incurred and
1077     impacted by each contract offering a reduced fare;
1078          (t) in consultation with the local advisory board, develop and approve other board
1079     policies, ordinances, and bylaws; and

1080          (u) review and approve any:
1081          (i) contract or expense exceeding $200,000; or
1082          (ii) proposed change order to an existing contract if the value of the change order
1083     exceeds:
1084          (A) 15% of the total contract; or
1085          (B) $200,000.
1086          (3) A board of trustees of a large public transit district may:
1087          (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
1088     are:
1089          (i) not repugnant to the United States Constitution, the Utah Constitution, or the
1090     provisions of this part; and
1091          (ii) necessary for:
1092          (A) the governance and management of the affairs of the district;
1093          (B) the execution of district powers; and
1094          (C) carrying into effect the provisions of this part;
1095          (b) provide by resolution, under terms and conditions the board considers fit, for the
1096     payment of demands against the district without prior specific approval by the board, if the
1097     payment is:
1098          (i) for a purpose for which the expenditure has been previously approved by the board;
1099          (ii) in an amount no greater than the amount authorized; and
1100          (iii) approved by the executive director or other officer or deputy as the board
1101     prescribes;
1102          (c) in consultation with the local advisory board created in Section 17B-2a-808.2:
1103          (i) hold public hearings and subpoena witnesses; and
1104          (ii) appoint district officers to conduct a hearing and require the officers to make
1105     findings and conclusions and report them to the board; and
1106          (d) appoint a custodian for the funds and securities under its control, subject to
1107     Subsection (2)(n).
1108          (4) For a large public transit district in existence as of May 8, 2018, on or before
1109     September 30, 2019, the board of trustees of a large public transit district shall present a report
1110     to the Transportation Interim Committee regarding retirement benefits of the district, including:

1111          (a) the feasibility of becoming a participating employer and having retirement benefits
1112     of eligible employees and officials covered in applicable systems and plans administered under
1113     Title 49, Utah State Retirement and Insurance Benefit Act;
1114          (b) any legal or contractual restrictions on any employees that are party to a collectively
1115     bargained retirement plan; and
1116          (c) a comparison of retirement plans offered by the large public transit district and
1117     similarly situated public employees, including the costs of each plan and the value of the
1118     benefit offered.
1119          (5) The board of trustees may not issue a bond unless the board of trustees has
1120     consulted and received approval from the State Bonding Commission created in Section
1121     63B-1-201.
1122          (6) A member of the board of trustees of a large public transit district or a hearing
1123     officer designated by the board may administer oaths and affirmations in a district investigation
1124     or proceeding.
1125          (7) (a) The vote of the board of trustees on each ordinance or resolution shall be by roll
1126     call vote with each affirmative and negative vote recorded.
1127          (b) The board of trustees of a large public transit district may not adopt an ordinance
1128     unless it is introduced at least 24 hours before the board of trustees adopts it.
1129          (c) Each ordinance adopted by a large public transit district's board of trustees shall
1130     take effect upon adoption, unless the ordinance provides otherwise.
1131          (8) (a) For a large public transit district in existence on May 8, 2018, for the budget for
1132     calendar year 2019, the board in place on May 8, 2018, shall create the tentative annual budget.
1133          (b) The budget described in Subsection (8)(a) shall include setting the salary of each of
1134     the members of the board of trustees that will assume control on or before November 1, 2018,
1135     which salary may not exceed $150,000, plus additional retirement and other standard benefits.
1136          (c) For a large public transit district in existence on May 8, 2018, the board of trustees
1137     that assumes control of the large public transit district on or before November 2, 2018, shall
1138     approve the calendar year 2019 budget on or before December 31, 2018.
1139          Section 16. Section 17B-2a-808.2 is enacted to read:
1140          17B-2a-808.2. Large public transit district local advisory board -- Powers and
1141     duties.

1142          (1) A large public transit district shall create and consult with a local advisory board.
1143          (2) (a) The local advisory board shall have membership selected as described in
1144     Subsection (2)(b) on or before November 1, 2018.
1145          (b) (i) The council of governments of a county of the first class within a large public
1146     transit district shall appoint three members to the local advisory board.
1147          (ii) The chief executive officer of a city that is the county seat within a county of the
1148     first class within a large public transit district shall appoint one member to the local advisory
1149     board.
1150          (iii) The council of governments of a county of the second class with a population of
1151     500,000 or more within a large public transit district shall appoint two members to the local
1152     advisory board.
1153          (iv) The council of governments of a county of the second class with a population
1154     under 500,000 within a large public transit district shall each appoint one member to the local
1155     advisory board.
1156          (v) The councils of governments of any counties of the third or smaller class or smaller
1157     within a large public transit district shall jointly appoint one member to the local advisory
1158     board.
1159          (c) The population numbers used to apportion appointment powers described in
1160     Subsection (2)(b) shall be based on the most recent official census or census estimate of the
1161     United States Census Bureau.
1162          (3) The local advisory board shall meet at least quarterly in a meeting open to the
1163     public for comment to discuss the service, operations, and any concerns with the public transit
1164     district operations and functionality.
1165          (4) The duties of the local advisory board shall include:
1166          (a) setting the compensation packages of the board of trustees;
1167          (b) reviewing, approving, and recommending final adoption by the board of trustees of
1168     the large public transit district service plans at least every two and one-half years;
1169          (c) reviewing, approving, and recommending final adoption by the board of trustees of
1170     project development plans, including funding, of all new capital development projects;
1171          (d) reviewing, approving, and recommending final adoption by the board of trustees of
1172     any plan for a transit-oriented development where a large public transit district is involved;

1173          (e) at least annually, engaging with the safety and security team of the large public
1174     transit district to ensure coordination with local municipalities and counties;
1175          (f) assisting with coordinated mobility and constituent services provided by the public
1176     transit district;
1177          (g) representing and advocating the concerns of citizens within the public transit
1178     district to the board of trustees; and
1179          (h) other duties described in Section 17B-2a-808.1.
1180          (5) The local advisory board shall meet at least quarterly with and consult with the
1181     board of trustees and advise regarding the operation and management of the public transit
1182     district.
1183          Section 17. Section 17B-2a-810 is amended to read:
1184          17B-2a-810. Officers of a public transit district.
1185          (1) (a) The officers of a public transit district shall consist of:
1186          (i) the members of the board of trustees;
1187          (ii) for a small public transit district, a chair and vice chair, appointed by the board of
1188     trustees, subject to Subsection (1)(c);
1189          (iii) a secretary, appointed by the board of trustees;
1190          (iv) (A) for a small public transit district, a general manager, appointed by the board of
1191     trustees as provided in Section 17B-2a-811, whose duties may be allocated by the board of
1192     trustees, at the board of trustees' discretion, to a chief executive officer, or both; or
1193          (B) for a large public transit district, an executive director appointed by the board of
1194     trustees as provided in Section 17B-2a-811.1;
1195          (v) for a small public transit district, a chief executive officer appointed by the board of
1196     trustees, as provided in Section 17B-2a-811;
1197          (vi) for a small public transit district, a general counsel, appointed by the board of
1198     trustees, subject to Subsection (1)(d);
1199          (vii) a treasurer, appointed as provided in Section 17B-1-633;
1200          (viii) a comptroller, appointed by the board of trustees, subject to Subsection (1)(e);
1201          (ix) for a [public transit district with more than 200,000 people residing within the
1202     boundaries of the] large public transit district, an internal auditor, appointed by the board of
1203     trustees, subject to Subsection (1)(f); and

1204          (x) other officers, assistants, and deputies that the board of trustees considers
1205     necessary.
1206          (b) The board of trustees of a small public transit district may, at its discretion, appoint
1207     a president, who shall also be considered an officer of a public transit district.
1208          (c) The district chair and vice chair of a small public transit district shall be members
1209     of the board of trustees.
1210          (d) The person appointed as general counsel for a small public transit district shall:
1211          (i) be admitted to practice law in the state; and
1212          (ii) have been actively engaged in the practice of law for at least seven years next
1213     preceding the appointment.
1214          (e) The person appointed as comptroller shall have been actively engaged in the
1215     practice of accounting for at least seven years next preceding the appointment.
1216          (f) The person appointed as internal auditor shall be a licensed certified internal auditor
1217     or certified public accountant with at least five years experience in the auditing or public
1218     accounting profession, or the equivalent, prior to appointment.
1219          (2) (a) [The] For a small public transit district, the district's general manager or chief
1220     executive officer, as the board prescribes, or for a large public transit district, the executive
1221     director, shall appoint all officers and employees not specified in Subsection (1).
1222          (b) Each officer and employee appointed by the district's general manager or chief
1223     executive officer of a small public transit district, or the executive director of a large public
1224     transit district, serves at the pleasure of the appointing general manager [or], chief executive
1225     officer, or executive director.
1226          (3) The board of trustees shall by ordinance or resolution fix the compensation of all
1227     district officers and employees, except as otherwise provided in this part.
1228          (4) (a) Each officer appointed by the board of trustees or by the district's general
1229     manager [or], chief executive officer, or executive director shall take the oath of office
1230     specified in Utah Constitution, Article IV, Section 10.
1231          (b) Each oath under Subsection (4)(a) shall be subscribed and filed with the district
1232     secretary no later than 15 days after the commencement of the officer's term of office.
1233          Section 18. Section 17B-2a-810.1 is enacted to read:
1234          17B-2a-810.1. Attorney general as legal counsel for a large public transit district

1235     -- Large public transit district may sue and be sued.
1236          (1) Subject to Subsection (2), in accordance with Title 67, Chapter 5, Attorney
1237     General, the Utah attorney general shall serve as legal counsel for a large public transit district.
1238          (2) (a) For any large public transit district in existence as of May 8, 2018, the transition
1239     to legal representation by the Utah attorney general shall occur as described in this Subsection
1240     (2), but no later than July 1, 2019.
1241          (b) (i) For any large public transit district in existence as of May 8, 2018, in partnership
1242     with the Utah attorney general, the board of trustees of the large public transit district shall
1243     study and develop a strategy to transition legal representation from a general counsel to the
1244     Utah attorney general.
1245          (ii) In partnership with the Utah attorney general, the board of trustees of the large
1246     public transit district shall present a report to the Transportation Interim Committee before
1247     November 30, 2018, to:
1248          (A) outline the transition strategy; and
1249          (B) request any legislation that might be required for the transition.
1250          (3) Sections 67-5-6 through 13, Attorney General Career Service Act, apply to
1251     representation of a large public transit district by the Utah attorney general.
1252          (4) A large public transit district may sue, and it may be sued only on written contracts
1253     made by it or under its authority.
1254          (5) In all matters requiring legal advice in the performance of the attorney general's
1255     duties and in the prosecution or defense of any action growing out of the performance of the
1256     attorney general's duties, the attorney general is the legal adviser of a large public transit district
1257     and shall perform any and all legal services required by the large public transit district.
1258          (6) The attorney general shall aid in any investigation, hearing, or trial under the
1259     provisions of this part and institute and prosecute actions or proceedings for the enforcement of
1260     the provisions of the Constitution and statutes of this state or any rule or ordinance of the large
1261     public transit district affecting and related to public transit, persons, and property.
1262          Section 19. Section 17B-2a-811 is amended to read:
1263          17B-2a-811. General manager or chief executive officer of a small public transit
1264     district.
1265          (1) (a) The board of trustees of a small public transit district shall appoint a person as a

1266     general manager.
1267          (b) The board of trustees of a small public transit district may, at its discretion, appoint
1268     a person as a chief executive officer.
1269          (c) The board of trustees of a small public transit district shall allocate the
1270     responsibilities defined in Subsection (2) between the general manager and the chief executive
1271     officer, if the board of trustees appoints a chief executive officer.
1272          (d) The chief executive officer shall have the same rights allocated to the general
1273     manager under Subsections (3) and (4).
1274          (e) The appointment of a general manager, chief executive officer, or both, shall be by
1275     the affirmative vote of a majority of all members of the board of trustees.
1276          (f) The board's appointment of a person as general manager, chief executive officer, or
1277     both, shall be based on the person's qualifications, with special reference to the person's actual
1278     experience in or knowledge of accepted practices with respect to the duties of the office.
1279          (g) A person appointed as general manager or chief executive officer of a small public
1280     transit district is not required to be a resident of the state at the time of appointment.
1281          (2) A general manager or chief executive officer of a small public transit district shall
1282     have the following responsibilities as allocated by the board of trustees:
1283          (a) be a full-time officer and devote full time to the district's business;
1284          (b) ensure that all district ordinances are enforced;
1285          (c) prepare and submit to the board of trustees, as soon as practical but not less than 45
1286     days after the end of each fiscal year, a complete report on the district's finances and
1287     administrative activities for the preceding year;
1288          (d) keep the board of trustees advised as to the district's needs;
1289          (e) prepare or cause to be prepared all plans and specifications for the construction of
1290     district works;
1291          (f) cause to be installed and maintained a system of auditing and accounting that
1292     completely shows the district's financial condition at all times; and
1293          (g) attend meetings of the board of trustees.
1294          (3) A general manager of a small public transit district:
1295          (a) serves at the pleasure of the board of trustees;
1296          (b) holds office for an indefinite term;

1297          (c) may be removed by the board of trustees upon the adoption of a resolution by the
1298     affirmative vote of a majority of all members of the board, subject to Subsection (5);
1299          (d) has full charge of:
1300          (i) the acquisition, construction, maintenance, and operation of district facilities; and
1301          (ii) the administration of the district's business affairs;
1302          (e) is entitled to participate in the deliberations of the board of trustees as to any matter
1303     before the board; and
1304          (f) may not vote at a meeting of the board of trustees.
1305          (4) The board of trustees may not reduce the general manager's salary below the
1306     amount fixed at the time of original appointment unless:
1307          (a) the board adopts a resolution by a vote of a majority of all members; and
1308          (b) if the general manager demands in writing, the board gives the general manager the
1309     opportunity to be publicly heard at a meeting of the board before the final vote on the
1310     resolution reducing the general manager's salary.
1311          (5) (a) Before adopting a resolution providing for a general manager's removal as
1312     provided in Subsection (3)(c), the board shall, if the manager makes a written demand:
1313          (i) give the general manager a written statement of the reasons alleged for the general
1314     manager's removal; and
1315          (ii) allow the general manager to be publicly heard at a meeting of the board of
1316     trustees.
1317          (b) Notwithstanding Subsection (5)(a), the board of trustees of a public transit district
1318     may suspend a general manager from office pending and during a hearing under Subsection
1319     (5)(a)(ii).
1320          (6) The action of a board of trustees suspending or removing a general manager or
1321     reducing the general manager's salary is final.
1322          Section 20. Section 17B-2a-811.1 is enacted to read:
1323          17B-2a-811.1. Executive director of a large public transit district.
1324          (1) (a) The board of trustees of a large public transit district shall appoint a person as
1325     an executive director.
1326          (b) The appointment of an executive director shall be by the affirmative vote of a
1327     majority of the board of trustees.

1328          (c) The board's appointment of a person as executive director shall be based on the
1329     person's qualifications, with special reference to the person's actual experience in or knowledge
1330     of accepted practices with respect to the duties of the office.
1331          (d) A person appointed as executive director of a large public transit district is not
1332     required to be a resident of the state at the time of appointment.
1333          (2) An executive director of a large public transit district shall:
1334          (a) be a full-time officer and devote full time to the district's business;
1335          (b) serve at the pleasure of the board of trustees;
1336          (c) hold office for an indefinite term;
1337          (d) ensure that all district ordinances are enforced;
1338          (e) prepare and submit to the board of trustees, as soon as practical but not less than 45
1339     days after the end of each fiscal year, a complete report on the district's finances and
1340     administrative activities for the preceding year;
1341          (f) advise the board of trustees regarding the needs of the district;
1342          (g) in consultation with the board of trustees, prepare or cause to be prepared all plans
1343     and specifications for the construction of district works;
1344          (h) cause to be installed and maintained a system of auditing and accounting that
1345     completely shows the district's financial condition at all times;
1346          (i) attend meetings of the board of trustees;
1347          (j) in consultation with the board of trustees, have charge of:
1348          (i) the acquisition, construction, maintenance, and operation of district facilities; and
1349          (ii) the administration of the district's business affairs; and
1350          (k) be entitled to participate in the deliberations of the board of trustees as to any
1351     matter before the board.
1352          (3) The board of trustees may not remove the executive director or reduce the
1353     executive director's salary below the amount fixed at the time of original appointment unless:
1354          (a) the board adopts a resolution by a vote of a majority of all members; and
1355          (b) if the executive director demands in writing, the board gives the executive director
1356     the opportunity to be publicly heard at a meeting of the board before the final vote on the
1357     resolution removing the executive director or reducing the executive director's salary.
1358          (4) (a) Before adopting a resolution providing for the removal of the executive director

1359     or a reduction in the executive director's salary as provided in Subsection (3), the board shall, if
1360     the executive director makes a written demand:
1361          (i) give the executive director a written statement of the reasons alleged for the removal
1362     or reduction in salary; and
1363          (ii) allow the executive director to be publicly heard at a meeting of the board of
1364     trustees.
1365          (b) Notwithstanding Subsection (4)(a), the board of trustees of a public transit district
1366     may suspend an executive director from office pending and during a hearing under Subsection
1367     (4)(a)(ii).
1368          (5) The action of a board of trustees suspending or removing an executive director or
1369     reducing the executive director's salary is final.
1370          Section 21. Section 17B-2a-826 is amended to read:
1371          17B-2a-826. Public transit district office of constituent services and office of
1372     coordinated mobility.
1373          (1) (a) The board of trustees of a large public transit district [serving a population over
1374     200,000 people] shall create and employ an office of constituent services.
1375          (b) The duties of the office of constituent services described in Subsection (1)(a) shall
1376     include:
1377          (i) establishing a central call number to hear and respond to complaints, requests,
1378     comments, concerns, and other communications from customers and citizens within the
1379     district;
1380          (ii) keeping a log of the complaints, comments, concerns, and other communications
1381     from customers and citizens within the district; and
1382          (iii) reporting complaints, comments, concerns, and other communications to
1383     management and to the [citizens'] local advisory board created in [Subsection (2)] Section
1384     17B-2a-808.2.
1385          [(2) (a) A public transit district serving a population over 200,000 people shall create
1386     and oversee a citizens' advisory board.]
1387          [(b) (i) The board of trustees of the public transit district shall select up to 12 members
1388     for the public transit district citizens' advisory board with membership representing the
1389     diversity of the public transit district area.]

1390          [(ii) The board of trustees shall ensure that each member of the citizens' advisory board
1391     regularly uses the public transit district services.]
1392          [(c) The public transit district citizens' advisory board shall meet as needed or quarterly
1393     in a meeting open to the public for comment, to discuss the service, operations, and any
1394     concerns with the public transit district operations and functionality.]
1395          [(d) The public transit district management shall meet at least quarterly with and
1396     consult with the citizens' advisory board and take into consideration the input of the citizens'
1397     advisory board in managing and operating the public transit district.]
1398          [(3)] (2) (a) A large public transit district [serving a population over 200,000 people]
1399     shall create and employ an office of coordinated mobility.
1400          (b) The duties of the office of coordinated mobility shall include:
1401          (i) establishing a central call number to facilitate human services transportation;
1402          (ii) coordinating all human services transportation needs within the public transit
1403     district;
1404          (iii) receiving requests and other communications regarding human services
1405     transportation;
1406          (iv) receiving requests and other communications regarding vans, buses, and other
1407     vehicles available for use from the public transit district to maximize the utility of and
1408     investment in those vehicles; and
1409          (v) supporting local efforts and applications for additional funding.
1410          Section 22. Section 41-1a-102 is amended to read:
1411          41-1a-102. Definitions.
1412          As used in this chapter:
1413          (1) "Actual miles" means the actual distance a vehicle has traveled while in operation.
1414          (2) "Actual weight" means the actual unladen weight of a vehicle or combination of
1415     vehicles as operated and certified to by a weighmaster.
1416          (3) "All-terrain type I vehicle" [has the same meaning provided] means the same as that
1417     term is defined in Section 41-22-2.
1418          (4) "All-terrain type II vehicle" [has the same meaning provided] means the same as
1419     that term is defined in Section 41-22-2.
1420          (5) "Alternative fuel vehicle" means:

1421          (a) an electric vehicle;
1422          (b) a hybrid electric vehicle;
1423          (c) a plug-in hybrid electric vehicle; or
1424          (d) a motor vehicle powered by a fuel other than:
1425          (i) motor fuel;
1426          (ii) diesel fuel;
1427          (iii) natural gas; or
1428          (iv) propane.
1429          [(5)] (6) "Amateur radio operator" means any person licensed by the Federal
1430     Communications Commission to engage in private and experimental two-way radio operation
1431     on the amateur band radio frequencies.
1432          [(6)] (7) "Autocycle" means the same as that term is defined in Section 53-3-102.
1433          [(7)] (8) "Branded title" means a title certificate that is labeled:
1434          (a) rebuilt and restored to operation;
1435          (b) flooded and restored to operation; or
1436          (c) not restored to operation.
1437          [(8)] (9) "Camper" means any structure designed, used, and maintained primarily to be
1438     mounted on or affixed to a motor vehicle that contains a floor and is designed to provide a
1439     mobile dwelling, sleeping place, commercial space, or facilities for human habitation or for
1440     camping.
1441          [(9)] (10) "Certificate of title" means a document issued by a jurisdiction to establish a
1442     record of ownership between an identified owner and the described vehicle, vessel, or outboard
1443     motor.
1444          [(10)] (11) "Certified scale weigh ticket" means a weigh ticket that has been issued by
1445     a weighmaster.
1446          [(11)] (12) "Commercial vehicle" means a motor vehicle, trailer, or semitrailer used or
1447     maintained for the transportation of persons or property that operates:
1448          (a) as a carrier for hire, compensation, or profit; or
1449          (b) as a carrier to transport the vehicle owner's goods or property in furtherance of the
1450     owner's commercial enterprise.
1451          [(12)] (13) "Commission" means the State Tax Commission.

1452          (14) "Consumer price index" means the same as that term is defined in Section
1453     59-13-102.
1454          [(13)] (15) "Dealer" means a person engaged or licensed to engage in the business of
1455     buying, selling, or exchanging new or used vehicles, vessels, or outboard motors either outright
1456     or on conditional sale, bailment, lease, chattel mortgage, or otherwise or who has an
1457     established place of business for the sale, lease, trade, or display of vehicles, vessels, or
1458     outboard motors.
1459          (16) "Diesel fuel" means the same as that term is defined in Section 59-13-102.
1460          [(14)] (17) "Division" means the Motor Vehicle Division of the commission, created in
1461     Section 41-1a-106.
1462          (18) "Electric motor vehicle" means a motor vehicle that is powered solely by an
1463     electric motor drawing current from a rechargeable energy storage system.
1464          [(15)] (19) "Essential parts" means all integral and body parts of a vehicle of a type
1465     required to be registered in this state, the removal, alteration, or substitution of which would
1466     tend to conceal the identity of the vehicle or substantially alter its appearance, model, type, or
1467     mode of operation.
1468          [(16)] (20) "Farm tractor" means every motor vehicle designed and used primarily as a
1469     farm implement for drawing plows, mowing machines, and other implements of husbandry.
1470          [(17)] (21) (a) "Farm truck" means a truck used by the owner or operator of a farm
1471     solely for his own use in the transportation of:
1472          (i) farm products, including livestock and its products, poultry and its products,
1473     floricultural and horticultural products;
1474          (ii) farm supplies, including tile, fence, and every other thing or commodity used in
1475     agricultural, floricultural, horticultural, livestock, and poultry production; and
1476          (iii) livestock, poultry, and other animals and things used for breeding, feeding, or
1477     other purposes connected with the operation of a farm.
1478          (b) "Farm truck" does not include the operation of trucks by commercial processors of
1479     agricultural products.
1480          [(18)] (22) "Fleet" means one or more commercial vehicles.
1481          [(19)] (23) "Foreign vehicle" means a vehicle of a type required to be registered,
1482     brought into this state from another state, territory, or country other than in the ordinary course

1483     of business by or through a manufacturer or dealer, and not registered in this state.
1484          [(20)] (24) "Gross laden weight" means the actual weight of a vehicle or combination
1485     of vehicles, equipped for operation, to which shall be added the maximum load to be carried.
1486          [(21)] (25) "Highway" or "street" means the entire width between property lines of
1487     every way or place of whatever nature when any part of it is open to the public, as a matter of
1488     right, for purposes of vehicular traffic.
1489          (26) "Hybrid electric motor vehicle" means a motor vehicle that draws propulsion
1490     energy from onboard sources of stored energy that are both:
1491          (a) an internal combustion engine or heat engine using consumable fuel; and
1492          (b) a rechargeable energy storage system where energy for the storage system comes
1493     solely from sources onboard the vehicle.
1494          [(22)] (27) (a) "Identification number" means the identifying number assigned by the
1495     manufacturer or by the division for the purpose of identifying the vehicle, vessel, or outboard
1496     motor.
1497          (b) "Identification number" includes a vehicle identification number, state assigned
1498     identification number, hull identification number, and motor serial number.
1499          [(23)] (28) "Implement of husbandry" means every vehicle designed or adapted and
1500     used exclusively for an agricultural operation and only incidentally operated or moved upon the
1501     highways.
1502          [(24)] (29) (a) "In-state miles" means the total number of miles operated in this state
1503     during the preceding year by fleet power units.
1504          (b) If fleets are composed entirely of trailers or semitrailers, "in-state miles" means the
1505     total number of miles that those vehicles were towed on Utah highways during the preceding
1506     year.
1507          [(25)] (30) "Interstate vehicle" means any commercial vehicle operated in more than
1508     one state, province, territory, or possession of the United States or foreign country.
1509          [(26)] (31) "Jurisdiction" means a state, district, province, political subdivision,
1510     territory, or possession of the United States or any foreign country.
1511          [(27)] (32) "Lienholder" means a person with a security interest in particular property.
1512          [(28)] (33) "Manufactured home" means a transportable factory built housing unit
1513     constructed on or after June 15, 1976, according to the Federal Home Construction and Safety

1514     Standards Act of 1974 (HUD Code), in one or more sections, which, in the traveling mode, is
1515     eight body feet or more in width or 40 body feet or more in length, or when erected on site, is
1516     400 or more square feet, and which is built on a permanent chassis and designed to be used as a
1517     dwelling with or without a permanent foundation when connected to the required utilities, and
1518     includes the plumbing, heating, air-conditioning, and electrical systems.
1519          [(29)] (34) "Manufacturer" means a person engaged in the business of constructing,
1520     manufacturing, assembling, producing, or importing new or unused vehicles, vessels, or
1521     outboard motors for the purpose of sale or trade.
1522          [(30)] (35) "Mobile home" means a transportable factory built housing unit built prior
1523     to June 15, 1976, in accordance with a state mobile home code which existed prior to the
1524     Federal Manufactured Housing and Safety Standards Act (HUD Code).
1525          (36) "Motor fuel" means the same as that term is defined in Section 59-13-102.
1526          [(33)] (37) (a) "Motor vehicle" means a self-propelled vehicle intended primarily for
1527     use and operation on the highways.
1528          (b) "Motor vehicle" does not include an off-highway vehicle.
1529          [(31)] (38) "Motorboat" [has the same meaning as provided] means the same as that
1530     term is defined in Section 73-18-2.
1531          [(32)] (39) "Motorcycle" means:
1532          (a) a motor vehicle having a saddle for the use of the rider and designed to travel on not
1533     more than three wheels in contact with the ground; or
1534          (b) an autocycle.
1535          (40) "Natural gas" means a fuel of which the primary constituent is methane.
1536          [(34)] (41) (a) "Nonresident" means a person who is not a resident of this state as
1537     defined by Section 41-1a-202, and who does not engage in intrastate business within this state
1538     and does not operate in that business any motor vehicle, trailer, or semitrailer within this state.
1539          (b) A person who engages in intrastate business within this state and operates in that
1540     business any motor vehicle, trailer, or semitrailer in this state or who, even though engaging in
1541     interstate commerce, maintains any vehicle in this state as the home station of that vehicle is
1542     considered a resident of this state, insofar as that vehicle is concerned in administering this
1543     chapter.
1544          [(35)] (42) "Odometer" means a device for measuring and recording the actual distance

1545     a vehicle travels while in operation, but does not include any auxiliary odometer designed to be
1546     periodically reset.
1547          [(36)] (43) "Off-highway implement of husbandry" [has the same meaning as
1548     provided] means the same as that term is defined in Section 41-22-2.
1549          [(37)] (44) "Off-highway vehicle" [has the same meaning as provided] means the same
1550     as that term is defined in Section 41-22-2.
1551          [(38)] (45) "Operate" means to drive or be in actual physical control of a vehicle or to
1552     navigate a vessel.
1553          [(39)] (46) "Outboard motor" means a detachable self-contained propulsion unit,
1554     excluding fuel supply, used to propel a vessel.
1555          [(40)] (47) (a) "Owner" means a person, other than a lienholder, holding title to a
1556     vehicle, vessel, or outboard motor whether or not the vehicle, vessel, or outboard motor is
1557     subject to a security interest.
1558          (b) If a vehicle is the subject of an agreement for the conditional sale or installment
1559     sale or mortgage of the vehicle with the right of purchase upon performance of the conditions
1560     stated in the agreement and with an immediate right of possession vested in the conditional
1561     vendee or mortgagor, or if the vehicle is the subject of a security agreement, then the
1562     conditional vendee, mortgagor, or debtor is considered the owner for the purposes of this
1563     chapter.
1564          (c) If a vehicle is the subject of an agreement to lease, the lessor is considered the
1565     owner until the lessee exercises his option to purchase the vehicle.
1566          [(41)] (48) "Park model recreational vehicle" means a unit that:
1567          (a) is designed and marketed as temporary living quarters for recreational, camping,
1568     travel, or seasonal use;
1569          (b) is not permanently affixed to real property for use as a permanent dwelling;
1570          (c) requires a special highway movement permit for transit; and
1571          (d) is built on a single chassis mounted on wheels with a gross trailer area not
1572     exceeding 400 square feet in the setup mode.
1573          [(42)] (49) "Personalized license plate" means a license plate that has displayed on it a
1574     combination of letters, numbers, or both as requested by the owner of the vehicle and assigned
1575     to the vehicle by the division.

1576          [(43)] (50) (a) "Pickup truck" means a two-axle motor vehicle with motive power
1577     manufactured, remanufactured, or materially altered to provide an open cargo area.
1578          (b) "Pickup truck" includes motor vehicles with the open cargo area covered with a
1579     camper, camper shell, tarp, removable top, or similar structure.
1580          (51) "Plug-in hybrid electric motor vehicle" means a hybrid electric motor vehicle that
1581     has the capability to charge the battery or batteries used for vehicle propulsion from an
1582     off-vehicle electric source, such that the off-vehicle source cannot be connected to the vehicle
1583     while the vehicle is in motion.
1584          [(44)] (52) "Pneumatic tire" means every tire in which compressed air is designed to
1585     support the load.
1586          [(45)] (53) "Preceding year" means a period of 12 consecutive months fixed by the
1587     division that is within 16 months immediately preceding the commencement of the registration
1588     or license year in which proportional registration is sought. The division in fixing the period
1589     shall conform it to the terms, conditions, and requirements of any applicable agreement or
1590     arrangement for the proportional registration of vehicles.
1591          [(46)] (54) "Public garage" means every building or other place where vehicles or
1592     vessels are kept and stored and where a charge is made for the storage and keeping of vehicles
1593     and vessels.
1594          [(47)] (55) "Receipt of surrender of ownership documents" means the receipt of
1595     surrender of ownership documents described in Section 41-1a-503.
1596          [(48)] (56) "Reconstructed vehicle" means every vehicle of a type required to be
1597     registered in this state that is materially altered from its original construction by the removal,
1598     addition, or substitution of essential parts, new or used.
1599          [(49)] (57) "Recreational vehicle" [has the same meaning as provided] means the same
1600     as that term is defined in Section 13-14-102.
1601          [(50)] (58) "Registration" means a document issued by a jurisdiction that allows
1602     operation of a vehicle or vessel on the highways or waters of this state for the time period for
1603     which the registration is valid and that is evidence of compliance with the registration
1604     requirements of the jurisdiction.
1605          [(51)] (59) (a) "Registration year" means a 12 consecutive month period commencing
1606     with the completion of all applicable registration criteria.

1607          (b) For administration of a multistate agreement for proportional registration the
1608     division may prescribe a different 12-month period.
1609          [(52)] (60) "Repair or replacement" means the restoration of vehicles, vessels, or
1610     outboard motors to a sound working condition by substituting any inoperative part of the
1611     vehicle, vessel, or outboard motor, or by correcting the inoperative part.
1612          [(53)] (61) "Replica vehicle" means:
1613          (a) a street rod that meets the requirements under Subsection 41-21-1(3)(a)(i)(B); or
1614          (b) a custom vehicle that meets the requirements under Subsection
1615     41-6a-1507(1)(a)(i)(B).
1616          [(54)] (62) "Road tractor" means every motor vehicle designed and used for drawing
1617     other vehicles and constructed so it does not carry any load either independently or any part of
1618     the weight of a vehicle or load that is drawn.
1619          [(55)] (63) "Sailboat" means the same as that term is defined in Section 73-18-2.
1620          [(56)] (64) "Security interest" means an interest that is reserved or created by a security
1621     agreement to secure the payment or performance of an obligation and that is valid against third
1622     parties.
1623          [(57)] (65) "Semitrailer" means every vehicle without motive power designed for
1624     carrying persons or property and for being drawn by a motor vehicle and constructed so that
1625     some part of its weight and its load rests or is carried by another vehicle.
1626          [(58)] (66) "Special group license plate" means a type of license plate designed for a
1627     particular group of people or a license plate authorized and issued by the division in accordance
1628     with Section 41-1a-418.
1629          [(59)] (67) (a) "Special interest vehicle" means a vehicle used for general
1630     transportation purposes and that is:
1631          (i) 20 years or older from the current year; or
1632          (ii) a make or model of motor vehicle recognized by the division director as having
1633     unique interest or historic value.
1634          (b) In making a determination under Subsection [(59)] (67)(a), the division director
1635     shall give special consideration to:
1636          (i) a make of motor vehicle that is no longer manufactured;
1637          (ii) a make or model of motor vehicle produced in limited or token quantities;

1638          (iii) a make or model of motor vehicle produced as an experimental vehicle or one
1639     designed exclusively for educational purposes or museum display; or
1640          (iv) a motor vehicle of any age or make that has not been substantially altered or
1641     modified from original specifications of the manufacturer and because of its significance is
1642     being collected, preserved, restored, maintained, or operated by a collector or hobbyist as a
1643     leisure pursuit.
1644          [(60)] (68) (a) "Special mobile equipment" means every vehicle:
1645          (i) not designed or used primarily for the transportation of persons or property;
1646          (ii) not designed to operate in traffic; and
1647          (iii) only incidentally operated or moved over the highways.
1648          (b) "Special mobile equipment" includes:
1649          (i) farm tractors;
1650          (ii) off-road motorized construction or maintenance equipment including backhoes,
1651     bulldozers, compactors, graders, loaders, road rollers, tractors, and trenchers; and
1652          (iii) ditch-digging apparatus.
1653          (c) "Special mobile equipment" does not include a commercial vehicle as defined
1654     under Section 72-9-102.
1655          [(61)] (69) "Specially constructed vehicle" means every vehicle of a type required to be
1656     registered in this state, not originally constructed under a distinctive name, make, model, or
1657     type by a generally recognized manufacturer of vehicles, and not materially altered from its
1658     original construction.
1659          [(62)] (70) "Title" means the right to or ownership of a vehicle, vessel, or outboard
1660     motor.
1661          [(63)] (71) (a) "Total fleet miles" means the total number of miles operated in all
1662     jurisdictions during the preceding year by power units.
1663          (b) If fleets are composed entirely of trailers or semitrailers, "total fleet miles" means
1664     the number of miles that those vehicles were towed on the highways of all jurisdictions during
1665     the preceding year.
1666          [(64)] (72) "Trailer" means a vehicle without motive power designed for carrying
1667     persons or property and for being drawn by a motor vehicle and constructed so that no part of
1668     its weight rests upon the towing vehicle.

1669          [(65)] (73) "Transferee" means a person to whom the ownership of property is
1670     conveyed by sale, gift, or any other means except by the creation of a security interest.
1671          [(66)] (74) "Transferor" means a person who transfers his ownership in property by
1672     sale, gift, or any other means except by creation of a security interest.
1673          [(67)] (75) "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable
1674     vehicle without motive power, designed as a temporary dwelling for travel, recreational, or
1675     vacation use that does not require a special highway movement permit when drawn by a
1676     self-propelled motor vehicle.
1677          [(68)] (76) "Truck tractor" means a motor vehicle designed and used primarily for
1678     drawing other vehicles and not constructed to carry a load other than a part of the weight of the
1679     vehicle and load that is drawn.
1680          [(69)] (77) "Vehicle" includes a motor vehicle, trailer, semitrailer, off-highway vehicle,
1681     camper, park model recreational vehicle, manufactured home, and mobile home.
1682          [(70)] (78) "Vessel" means the same as that term is defined in Section 73-18-2.
1683          [(71)] (79) "Vintage vehicle" means the same as that term is defined in Section
1684     41-21-1.
1685          [(72)] (80) "Waters of this state" means the same as that term is defined in Section
1686     73-18-2.
1687          [(73)] (81) "Weighmaster" means a person, association of persons, or corporation
1688     permitted to weigh vehicles under this chapter.
1689          Section 23. Section 41-1a-1201 is amended to read:
1690          41-1a-1201. Disposition of fees.
1691          (1) All fees received and collected under this part shall be transmitted daily to the state
1692     treasurer.
1693          (2) Except as provided in Subsections (3), (6), (7), (8), and (9) and Sections 41-1a-422,
1694     41-1a-1220, 41-1a-1221, and 41-1a-1223 all fees collected under this part shall be deposited in
1695     the Transportation Fund.
1696          (3) Funds generated under Subsections 41-1a-1211(1)(b)(ii), (6)(b)(ii), and (7) and
1697     Section 41-1a-1212 may be used by the commission to cover the costs incurred in issuing
1698     license plates under Part 4, License Plates and Registration Indicia.
1699          (4) In accordance with Section 63J-1-602.2, all funds available to the commission for

1700     the purchase and distribution of license plates and decals are nonlapsing.
1701          (5) (a) Except as provided in Subsections (3) and (5)(b) and Section 41-1a-1205, the
1702     expenses of the commission in enforcing and administering this part shall be provided for by
1703     legislative appropriation from the revenues of the Transportation Fund.
1704          (b) Three dollars of the registration fees imposed under Subsections 41-1a-1206(2)(a)
1705     and (b) for each vehicle registered for a six-month registration period under Section
1706     41-1a-215.5 may be used by the commission to cover the costs incurred in enforcing and
1707     administering this part.
1708          (6) (a) The following portions of the registration fees imposed under Section
1709     41-1a-1206 for each vehicle shall be deposited in the Transportation Investment Fund of 2005
1710     created under Section 72-2-124:
1711          (i) $30 of the registration fees imposed under Subsections 41-1a-1206(1)(a), (1)(b),
1712     (1)(f), [(3), and (6)] (4), and (7);
1713          (ii) $21 of the registration fees imposed under Subsections 41-1a-1206(1)(c)(i) and
1714     (1)(c)(ii);
1715          (iii) $2.50 of the registration fee imposed under Subsection 41-1a-1206(1)(e)(ii);
1716          (iv) $23 of the registration fee imposed under Subsection 41-1a-1206(1)(d)(i);
1717          (v) $24.50 of the registration fee imposed under Subsection 41-1a-1206(1)(e)(i); and
1718          (vi) $1 of the registration fee imposed under Subsection 41-1a-1206(1)(d)(ii).
1719          (b) The following portions of the registration fees collected for each vehicle registered
1720     for a six-month registration period under Section 41-1a-215.5 shall be deposited in the
1721     Transportation Investment Fund of 2005 created by Section 72-2-124:
1722          (i) $23.25 of each registration fee collected under Subsection 41-1a-1206(2)(a)(i); and
1723          (ii) $23 of each registration fee collected under Subsection 41-1a-1206(2)[(b)](a)(ii).
1724          (7) (a) Ninety-four cents of each registration fee imposed under Subsections
1725     41-1a-1206(1)(a) and (b) for each vehicle shall be deposited in the Public Safety Restricted
1726     Account created in Section 53-3-106.
1727          (b) Seventy-one cents of each registration fee imposed under Subsections
1728     41-1a-1206(2)(a) and (b) for each vehicle registered for a six-month registration period under
1729     Section 41-1a-215.5 shall be deposited in the Public Safety Restricted Account created in
1730     Section 53-3-106.

1731          (8) (a) One dollar of each registration fee imposed under Subsections 41-1a-1206(1)(a)
1732     and (b) for each vehicle shall be deposited into the Motor Vehicle Safety Impact Restricted
1733     Account created in Section 53-8-214.
1734          (b) One dollar of each registration fee imposed under Subsections 41-1a-1206(2)(a)
1735     and (b) for each vehicle registered for a six-month registration period under Section
1736     41-1a-215.5 shall be deposited into the Motor Vehicle Safety Impact Restricted Account
1737     created in Section 53-8-214.
1738          (9) Fifty cents of each registration fee imposed under Subsection 41-1a-1206(1)(a) for
1739     each motorcycle shall be deposited in the Spinal Cord and Brain Injury Rehabilitation Fund
1740     created in Section 26-54-102.
1741          Section 24. Section 41-1a-1206 is amended to read:
1742          41-1a-1206. Registration fees -- Fees by gross laden weight.
1743          (1) Except as provided in Subsections (2) and (3), at the time application is made for
1744     registration or renewal of registration of a vehicle or combination of vehicles under this
1745     chapter, a registration fee shall be paid to the division as follows:
1746          (a) $46.00 for each motorcycle;
1747          (b) $44 for each motor vehicle of 12,000 pounds or less gross laden weight, excluding
1748     motorcycles;
1749          (c) unless the semitrailer or trailer is exempt from registration under Section 41-1a-202
1750     or is registered under Section 41-1a-301:
1751          (i) $31 for each trailer or semitrailer over 750 pounds gross unladen weight; or
1752          (ii) $28.50 for each commercial trailer or commercial semitrailer of 750 pounds or less
1753     gross unladen weight;
1754          (d) (i) $53 for each farm truck over 12,000 pounds, but not exceeding 14,000 pounds
1755     gross laden weight; plus
1756          (ii) $9 for each 2,000 pounds over 14,000 pounds gross laden weight;
1757          (e) (i) $69.50 for each motor vehicle or combination of motor vehicles, excluding farm
1758     trucks, over 12,000 pounds, but not exceeding 14,000 pounds gross laden weight; plus
1759          (ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
1760          (f) (i) $69.50 for each park model recreational vehicle over 12,000 pounds, but not
1761     exceeding 14,000 pounds gross laden weight; plus

1762          (ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight; [and]
1763          (g) $45 for each vintage vehicle that is less than 40 years old[.]; and
1764          (h) in addition to the fee described in Subsection (1)(b):
1765          (i) for each electric motor vehicle:
1766          (A) $60 during calendar year 2019;
1767          (B) $90 during calendar year 2020; and
1768          (C) $120 beginning January 1, 2021, and thereafter;
1769          (ii) for each hybrid electric motor vehicle:
1770          (A) $10 during calendar year 2019;
1771          (B) $15 during calendar year 2020; and
1772          (C) $20 beginning January 1, 2021, and thereafter;
1773          (iii) for each plug-in hybrid electric motor vehicle:
1774          (A) $26 during calendar year 2019;
1775          (B) $39 during calendar year 2020; and
1776          (C) $52 beginning January 1, 2021, and thereafter; and
1777          (iv) for any motor vehicle not described in Subsections (1)(h)(i) through (iii) that is
1778     fueled by a source other than motor fuel, diesel fuel, natural gas, or propane:
1779          (A) $60 during calendar year 2019;
1780          (B) $90 during calendar year 2020; and
1781          (C) $120 beginning January 1, 2021, and thereafter.
1782          (2) (a) At the time application is made for registration or renewal of registration of a
1783     vehicle under this chapter for a six-month registration period under Section 41-1a-215.5, a
1784     registration fee shall be paid to the division as follows:
1785          [(a)] (i) $34.50 for each motorcycle; and
1786          [(b)] (ii) $33.50 for each motor vehicle of 12,000 pounds or less gross laden weight,
1787     excluding motorcycles.
1788          (b) In addition to the fee described in Subsection (2)(a), for registration or renewal of
1789     registration of a vehicle under this chapter for a six-month registration period under Section
1790     41-1a-215.5 a registration fee shall be paid to the division as follows:
1791          (i) for each electric motor vehicle:
1792          (A) $46.50 during calendar year 2019;

1793          (B) $69.75 during calendar year 2020; and
1794          (C) $93 beginning January 1, 2021, and thereafter;
1795          (ii) for each hybrid electric motor vehicle:
1796          (A) $7.50 during calendar year 2019;
1797          (B) $11.25 during calendar year 2020; and
1798          (C) $15 beginning January 1, 2021, and thereafter;
1799          (iii) for each plug-in hybrid electric motor vehicle:
1800          (A) $20 during calendar year 2019;
1801          (B) $30 during calendar year 2020; and
1802          (C) $40 beginning January 1, 2021, and thereafter; and
1803          (iv) for each motor vehicle not described in Subsections (2)(b)(i) through (iii) that is
1804     fueled by a source other than motor fuel, diesel fuel, natural gas, or propane:
1805          (A) $46.50 during calendar year 2019;
1806          (B) $69.75 during calendar year 2020; and
1807          (C) $93 beginning January 1, 2021, and thereafter.
1808          (3) (a) (i) Beginning on January 1, 2019, the commission shall, on January 1, annually
1809     adjust the registration fees described in Subsections (1)(a), (1)(b), (1)(c)(i), (1)(c)(ii), (1)(d)(i),
1810     (1)(e)(i), (1)(f)(i), (1)(g), (2)(a), (4)(a), and (7), by taking the registration fee rate for the
1811     previous year and adding an amount equal to the greater of:
1812          (A) an amount calculated by multiplying the registration fee of the previous year by the
1813     actual percentage change during the previous fiscal year in the Consumer Price Index; and
1814          (B) 0.
1815          (ii) Beginning on January 1, 2022, the commission shall, on January 1, annually adjust
1816     the registration fees described in Subsections (1)(h)(i)(C), (1)(h)(ii)(C), (1)(h)(iii)(C),
1817     (1)(h)(iv)(C), (2)(b)(i)(C), (2)(b)(ii)(C), (2)(b)(iii)(C), and (2)(b)(iv)(C) by taking the
1818     registration fee rate for the previous year and adding an amount equal to the greater of:
1819          (A) an amount calculated by multiplying the registration fee of the previous year by the
1820     actual percentage change during the previous fiscal year in the Consumer Price Index; and
1821          (B) 0.
1822          (b) The amounts calculated as described in Subsection (3)(a) shall be rounded up to the
1823     nearest 25 cents.

1824          [(3)] (4) (a) The initial registration fee for a vintage vehicle that is 40 years old or older
1825     is $40.
1826          (b) A vintage vehicle that is 40 years old or older is exempt from the renewal of
1827     registration fees under Subsection (1).
1828          (c) A vehicle with a Purple Heart special group license plate issued in accordance with
1829     Section 41-1a-421 is exempt from the registration fees under Subsection (1).
1830          (d) A camper is exempt from the registration fees under Subsection (1).
1831          [(4)] (5) If a motor vehicle is operated in combination with a semitrailer or trailer, each
1832     motor vehicle shall register for the total gross laden weight of all units of the combination if the
1833     total gross laden weight of the combination exceeds 12,000 pounds.
1834          [(5)] (6) (a) Registration fee categories under this section are based on the gross laden
1835     weight declared in the licensee's application for registration.
1836          (b) Gross laden weight shall be computed in units of 2,000 pounds. A fractional part
1837     of 2,000 pounds is a full unit.
1838          [(6)] (7) The owner of a commercial trailer or commercial semitrailer may, as an
1839     alternative to registering under Subsection (1)(c), apply for and obtain a special registration and
1840     license plate for a fee of $130.
1841          [(7)] (8) Except as provided in Section 41-6a-1642, a truck may not be registered as a
1842     farm truck unless:
1843          (a) the truck meets the definition of a farm truck under Section 41-1a-102; and
1844          (b) (i) the truck has a gross vehicle weight rating of more than 12,000 pounds; or
1845          (ii) the truck has a gross vehicle weight rating of 12,000 pounds or less and the owner
1846     submits to the division a certificate of emissions inspection or a waiver in compliance with
1847     Section 41-6a-1642.
1848          [(8)] (9) A violation of Subsection [(7)] (8) is an infraction that shall be punished by a
1849     fine of not less than $200.
1850          [(9)] (10) Trucks used exclusively to pump cement, bore wells, or perform crane
1851     services with a crane lift capacity of five or more tons, are exempt from 50% of the amount of
1852     the fees required for those vehicles under this section.
1853          Section 25. Section 41-1a-1221 is amended to read:
1854          41-1a-1221. Fees to cover the cost of electronic payments.

1855          (1) As used in this section:
1856          (a) "Electronic payment" means use of any form of payment processed through
1857     electronic means, including credit cards, debit cards, and automatic clearinghouse transactions.
1858          (b) "Electronic payment fee" means the fee assessed to defray:
1859          (i) the charge, discount fee, or processing fee charged by credit card companies or
1860     processing agents to process an electronic payment; or
1861          (ii) costs associated with the purchase of equipment necessary for processing electronic
1862     payments.
1863          (2) (a) The Motor Vehicle Division may collect an electronic payment fee on all
1864     registrations and renewals of registration under Subsections 41-1a-1206(1)(a), (1)(b), (2)(a),
1865     (2)(b), and [(3)] (4).
1866          (b) The fee described in Subsection (2)(a):
1867          (i) shall be imposed regardless of the method of payment for a particular transaction;
1868     and
1869          (ii) need not be separately identified from the fees imposed for registration and
1870     renewals of registration under Subsections 41-1a-1206(1)(a), (1)(b), (2)(a), (2)(b), and [(3)] (4).
1871          (3) The division shall establish the fee according to the procedures and requirements of
1872     Section 63J-1-504.
1873          (4) A fee imposed under this section:
1874          (a) shall be deposited in the Electronic Payment Fee Restricted Account created by
1875     Section 41-1a-121; and
1876          (b) is not subject to Subsection 63J-2-202(2).
1877          Section 26. Section 52-4-103 is amended to read:
1878          52-4-103. Definitions.
1879          As used in this chapter:
1880          (1) "Anchor location" means the physical location from which:
1881          (a) an electronic meeting originates; or
1882          (b) the participants are connected.
1883          (2) "Capitol hill complex" means the grounds and buildings within the area bounded by
1884     300 North Street, Columbus Street, 500 North Street, and East Capitol Boulevard in Salt Lake
1885     City.

1886          (3) (a) "Convening" means the calling together of a public body by a person authorized
1887     to do so for the express purpose of discussing or acting upon a subject over which that public
1888     body has jurisdiction or advisory power.
1889          (b) "Convening" does not include the initiation of a routine conversation between
1890     members of a board of trustees of a large public transit district if the members involved in the
1891     conversation do not, during the conversation, take a tentative or final vote on the matter that is
1892     the subject of the conversation.
1893          (4) "Electronic meeting" means a public meeting convened or conducted by means of a
1894     conference using electronic communications.
1895          (5) "Electronic message" means a communication transmitted electronically, including:
1896          (a) electronic mail;
1897          (b) instant messaging;
1898          (c) electronic chat;
1899          (d) text messaging as defined in Section 76-4-401; or
1900          (e) any other method that conveys a message or facilitates communication
1901     electronically.
1902          (6) (a) "Meeting" means the convening of a public body or a specified body, with a
1903     quorum present, including a workshop or an executive session, whether in person or by means
1904     of electronic communications, for the purpose of discussing, receiving comments from the
1905     public about, or acting upon a matter over which the public body or specific body has
1906     jurisdiction or advisory power.
1907          (b) "Meeting" does not mean:
1908          (i) a chance gathering or social gathering; [or]
1909          (ii) a convening of the State Tax Commission to consider a confidential tax matter in
1910     accordance with Section 59-1-405[.]; or
1911          (iii) a convening of a three-member board of trustees of a large public transit district as
1912     defined in Section 17B-2a-802 if:
1913          (A) the board members do not, during the conversation, take a tentative or final vote on
1914     the matter that is the subject of the conversation; or
1915          (B) the conversation pertains only to day-to-day management and operation of the
1916     public transit district.

1917          (c) "Meeting" does not mean the convening of a public body that has both legislative
1918     and executive responsibilities if:
1919          (i) no public funds are appropriated for expenditure during the time the public body is
1920     convened; and
1921          (ii) the public body is convened solely for the discussion or implementation of
1922     administrative or operational matters:
1923          (A) for which no formal action by the public body is required; or
1924          (B) that would not come before the public body for discussion or action.
1925          (7) "Monitor" means to hear or observe, live, by audio or video equipment, all of the
1926     public statements of each member of the public body who is participating in a meeting.
1927          (8) "Participate" means the ability to communicate with all of the members of a public
1928     body, either verbally or electronically, so that each member of the public body can hear or
1929     observe the communication.
1930          (9) (a) "Public body" means:
1931          (i) any administrative, advisory, executive, or legislative body of the state or its
1932     political subdivisions that:
1933          (A) is created by the Utah Constitution, statute, rule, ordinance, or resolution;
1934          (B) consists of two or more persons;
1935          (C) expends, disburses, or is supported in whole or in part by tax revenue; and
1936          (D) is vested with the authority to make decisions regarding the public's business; or
1937          (ii) any administrative, advisory, executive, or policymaking body of an association, as
1938     defined in Section 53A-1-1601, that:
1939          (A) consists of two or more persons;
1940          (B) expends, disburses, or is supported in whole or in part by dues paid by a public
1941     school or whose employees participate in a benefit or program described in Title 49, Utah State
1942     Retirement and Insurance Benefit Act; and
1943          (C) is vested with authority to make decisions regarding the participation of a public
1944     school or student in an interscholastic activity as defined in Section 53A-1-1601.
1945          (b) "Public body" includes:
1946          (i) as defined in Section 11-13-103, an interlocal entity or joint or cooperative
1947     undertaking; and

1948          (ii) as defined in Section 11-13a-102, a governmental nonprofit corporation.
1949          (c) "Public body" does not include:
1950          (i) a political party, a political group, or a political caucus;
1951          (ii) a conference committee, a rules committee, or a sifting committee of the
1952     Legislature;
1953          (iii) a school community council or charter trust land council as defined in Section
1954     53A-1a-108.1; or
1955          (iv) the Economic Development Legislative Liaison Committee created in Section
1956     36-30-201.
1957          (10) "Public statement" means a statement made in the ordinary course of business of
1958     the public body with the intent that all other members of the public body receive it.
1959          (11) (a) "Quorum" means a simple majority of the membership of a public body, unless
1960     otherwise defined by applicable law.
1961          (b) "Quorum" does not include a meeting of two elected officials by themselves when
1962     no action, either formal or informal, is taken on a subject over which these elected officials
1963     have advisory power.
1964          (12) "Recording" means an audio, or an audio and video, record of the proceedings of a
1965     meeting that can be used to review the proceedings of the meeting.
1966          (13) "Specified body":
1967          (a) means an administrative, advisory, executive, or legislative body that:
1968          (i) is not a public body;
1969          (ii) consists of three or more members; and
1970          (iii) includes at least one member who is:
1971          (A) a legislator; and
1972          (B) officially appointed to the body by the president of the Senate, speaker of the
1973     House of Representatives, or governor; and
1974          (b) does not include a body listed in Subsection (9)(c)(ii).
1975          (14) "Transmit" means to send, convey, or communicate an electronic message by
1976     electronic means.
1977          Section 27. Section 59-12-103 is amended to read:
1978          59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use

1979     tax revenues.
1980          (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
1981     sales price for amounts paid or charged for the following transactions:
1982          (a) retail sales of tangible personal property made within the state;
1983          (b) amounts paid for:
1984          (i) telecommunications service, other than mobile telecommunications service, that
1985     originates and terminates within the boundaries of this state;
1986          (ii) mobile telecommunications service that originates and terminates within the
1987     boundaries of one state only to the extent permitted by the Mobile Telecommunications
1988     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1989          (iii) an ancillary service associated with a:
1990          (A) telecommunications service described in Subsection (1)(b)(i); or
1991          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
1992          (c) sales of the following for commercial use:
1993          (i) gas;
1994          (ii) electricity;
1995          (iii) heat;
1996          (iv) coal;
1997          (v) fuel oil; or
1998          (vi) other fuels;
1999          (d) sales of the following for residential use:
2000          (i) gas;
2001          (ii) electricity;
2002          (iii) heat;
2003          (iv) coal;
2004          (v) fuel oil; or
2005          (vi) other fuels;
2006          (e) sales of prepared food;
2007          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
2008     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
2009     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,

2010     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
2011     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
2012     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
2013     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
2014     horseback rides, sports activities, or any other amusement, entertainment, recreation,
2015     exhibition, cultural, or athletic activity;
2016          (g) amounts paid or charged for services for repairs or renovations of tangible personal
2017     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
2018          (i) the tangible personal property; and
2019          (ii) parts used in the repairs or renovations of the tangible personal property described
2020     in Subsection (1)(g)(i), regardless of whether:
2021          (A) any parts are actually used in the repairs or renovations of that tangible personal
2022     property; or
2023          (B) the particular parts used in the repairs or renovations of that tangible personal
2024     property are exempt from a tax under this chapter;
2025          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
2026     assisted cleaning or washing of tangible personal property;
2027          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
2028     accommodations and services that are regularly rented for less than 30 consecutive days;
2029          (j) amounts paid or charged for laundry or dry cleaning services;
2030          (k) amounts paid or charged for leases or rentals of tangible personal property if within
2031     this state the tangible personal property is:
2032          (i) stored;
2033          (ii) used; or
2034          (iii) otherwise consumed;
2035          (l) amounts paid or charged for tangible personal property if within this state the
2036     tangible personal property is:
2037          (i) stored;
2038          (ii) used; or
2039          (iii) consumed; and
2040          (m) amounts paid or charged for a sale:

2041          (i) (A) of a product transferred electronically; or
2042          (B) of a repair or renovation of a product transferred electronically; and
2043          (ii) regardless of whether the sale provides:
2044          (A) a right of permanent use of the product; or
2045          (B) a right to use the product that is less than a permanent use, including a right:
2046          (I) for a definite or specified length of time; and
2047          (II) that terminates upon the occurrence of a condition.
2048          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
2049     is imposed on a transaction described in Subsection (1) equal to the sum of:
2050          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
2051          (A) 4.70%; and
2052          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
2053     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2054     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
2055     State Sales and Use Tax Act; and
2056          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
2057     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
2058     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
2059     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2060          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2061     transaction under this chapter other than this part.
2062          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
2063     on a transaction described in Subsection (1)(d) equal to the sum of:
2064          (i) a state tax imposed on the transaction at a tax rate of 2%; and
2065          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2066     transaction under this chapter other than this part.
2067          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
2068     on amounts paid or charged for food and food ingredients equal to the sum of:
2069          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
2070     a tax rate of 1.75%; and
2071          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the

2072     amounts paid or charged for food and food ingredients under this chapter other than this part.
2073          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
2074     tangible personal property other than food and food ingredients, a state tax and a local tax is
2075     imposed on the entire bundled transaction equal to the sum of:
2076          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
2077          (I) the tax rate described in Subsection (2)(a)(i)(A); and
2078          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
2079     Sales and Use Tax Act, if the location of the transaction as determined under Sections
2080     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
2081     Additional State Sales and Use Tax Act; and
2082          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
2083     Sales and Use Tax Act, if the location of the transaction as determined under Sections
2084     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
2085     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
2086          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
2087     described in Subsection (2)(a)(ii).
2088          (ii) If an optional computer software maintenance contract is a bundled transaction that
2089     consists of taxable and nontaxable products that are not separately itemized on an invoice or
2090     similar billing document, the purchase of the optional computer software maintenance contract
2091     is 40% taxable under this chapter and 60% nontaxable under this chapter.
2092          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
2093     transaction described in Subsection (2)(d)(i) or (ii):
2094          (A) if the sales price of the bundled transaction is attributable to tangible personal
2095     property, a product, or a service that is subject to taxation under this chapter and tangible
2096     personal property, a product, or service that is not subject to taxation under this chapter, the
2097     entire bundled transaction is subject to taxation under this chapter unless:
2098          (I) the seller is able to identify by reasonable and verifiable standards the tangible
2099     personal property, product, or service that is not subject to taxation under this chapter from the
2100     books and records the seller keeps in the seller's regular course of business; or
2101          (II) state or federal law provides otherwise; or
2102          (B) if the sales price of a bundled transaction is attributable to two or more items of

2103     tangible personal property, products, or services that are subject to taxation under this chapter
2104     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
2105     higher tax rate unless:
2106          (I) the seller is able to identify by reasonable and verifiable standards the tangible
2107     personal property, product, or service that is subject to taxation under this chapter at the lower
2108     tax rate from the books and records the seller keeps in the seller's regular course of business; or
2109          (II) state or federal law provides otherwise.
2110          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
2111     seller's regular course of business includes books and records the seller keeps in the regular
2112     course of business for nontax purposes.
2113          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
2114     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
2115     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
2116     of tangible personal property, other property, a product, or a service that is not subject to
2117     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
2118     the seller, at the time of the transaction:
2119          (A) separately states the portion of the transaction that is not subject to taxation under
2120     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
2121          (B) is able to identify by reasonable and verifiable standards, from the books and
2122     records the seller keeps in the seller's regular course of business, the portion of the transaction
2123     that is not subject to taxation under this chapter.
2124          (ii) A purchaser and a seller may correct the taxability of a transaction if:
2125          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
2126     the transaction that is not subject to taxation under this chapter was not separately stated on an
2127     invoice, bill of sale, or similar document provided to the purchaser because of an error or
2128     ignorance of the law; and
2129          (B) the seller is able to identify by reasonable and verifiable standards, from the books
2130     and records the seller keeps in the seller's regular course of business, the portion of the
2131     transaction that is not subject to taxation under this chapter.
2132          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
2133     in the seller's regular course of business includes books and records the seller keeps in the

2134     regular course of business for nontax purposes.
2135          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
2136     personal property, products, or services that are subject to taxation under this chapter at
2137     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
2138     unless the seller, at the time of the transaction:
2139          (A) separately states the items subject to taxation under this chapter at each of the
2140     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
2141          (B) is able to identify by reasonable and verifiable standards the tangible personal
2142     property, product, or service that is subject to taxation under this chapter at the lower tax rate
2143     from the books and records the seller keeps in the seller's regular course of business.
2144          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
2145     seller's regular course of business includes books and records the seller keeps in the regular
2146     course of business for nontax purposes.
2147          (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
2148     rate imposed under the following shall take effect on the first day of a calendar quarter:
2149          (i) Subsection (2)(a)(i)(A);
2150          (ii) Subsection (2)(b)(i);
2151          (iii) Subsection (2)(c)(i); or
2152          (iv) Subsection (2)(d)(i)(A)(I).
2153          (h) (i) A tax rate increase takes effect on the first day of the first billing period that
2154     begins on or after the effective date of the tax rate increase if the billing period for the
2155     transaction begins before the effective date of a tax rate increase imposed under:
2156          (A) Subsection (2)(a)(i)(A);
2157          (B) Subsection (2)(b)(i);
2158          (C) Subsection (2)(c)(i); or
2159          (D) Subsection (2)(d)(i)(A)(I).
2160          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
2161     statement for the billing period is rendered on or after the effective date of the repeal of the tax
2162     or the tax rate decrease imposed under:
2163          (A) Subsection (2)(a)(i)(A);
2164          (B) Subsection (2)(b)(i);

2165          (C) Subsection (2)(c)(i); or
2166          (D) Subsection (2)(d)(i)(A)(I).
2167          (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
2168     computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
2169     change in a tax rate takes effect:
2170          (A) on the first day of a calendar quarter; and
2171          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
2172          (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
2173          (A) Subsection (2)(a)(i)(A);
2174          (B) Subsection (2)(b)(i);
2175          (C) Subsection (2)(c)(i); or
2176          (D) Subsection (2)(d)(i)(A)(I).
2177          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2178     the commission may by rule define the term "catalogue sale."
2179          (3) (a) The following state taxes shall be deposited into the General Fund:
2180          (i) the tax imposed by Subsection (2)(a)(i)(A);
2181          (ii) the tax imposed by Subsection (2)(b)(i);
2182          (iii) the tax imposed by Subsection (2)(c)(i); or
2183          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
2184          (b) The following local taxes shall be distributed to a county, city, or town as provided
2185     in this chapter:
2186          (i) the tax imposed by Subsection (2)(a)(ii);
2187          (ii) the tax imposed by Subsection (2)(b)(ii);
2188          (iii) the tax imposed by Subsection (2)(c)(ii); and
2189          (iv) the tax imposed by Subsection (2)(d)(i)(B).
2190          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2191     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
2192     through (g):
2193          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
2194          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
2195          (B) for the fiscal year; or

2196          (ii) $17,500,000.
2197          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
2198     described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
2199     Department of Natural Resources to:
2200          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
2201     protect sensitive plant and animal species; or
2202          (B) award grants, up to the amount authorized by the Legislature in an appropriations
2203     act, to political subdivisions of the state to implement the measures described in Subsections
2204     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
2205          (ii) Money transferred to the Department of Natural Resources under Subsection
2206     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
2207     person to list or attempt to have listed a species as threatened or endangered under the
2208     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
2209          (iii) At the end of each fiscal year:
2210          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2211     Conservation and Development Fund created in Section 73-10-24;
2212          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
2213     Program Subaccount created in Section 73-10c-5; and
2214          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2215     Program Subaccount created in Section 73-10c-5.
2216          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
2217     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
2218     created in Section 4-18-106.
2219          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
2220     in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
2221     Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
2222     water rights.
2223          (ii) At the end of each fiscal year:
2224          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
2225     Conservation and Development Fund created in Section 73-10-24;
2226          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan

2227     Program Subaccount created in Section 73-10c-5; and
2228          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
2229     Program Subaccount created in Section 73-10c-5.
2230          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
2231     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
2232     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
2233          (ii) In addition to the uses allowed of the Water Resources Conservation and
2234     Development Fund under Section 73-10-24, the Water Resources Conservation and
2235     Development Fund may also be used to:
2236          (A) conduct hydrologic and geotechnical investigations by the Division of Water
2237     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
2238     quantifying surface and ground water resources and describing the hydrologic systems of an
2239     area in sufficient detail so as to enable local and state resource managers to plan for and
2240     accommodate growth in water use without jeopardizing the resource;
2241          (B) fund state required dam safety improvements; and
2242          (C) protect the state's interest in interstate water compact allocations, including the
2243     hiring of technical and legal staff.
2244          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2245     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
2246     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
2247          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
2248     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
2249     created in Section 73-10c-5 for use by the Division of Drinking Water to:
2250          (i) provide for the installation and repair of collection, treatment, storage, and
2251     distribution facilities for any public water system, as defined in Section 19-4-102;
2252          (ii) develop underground sources of water, including springs and wells; and
2253          (iii) develop surface water sources.
2254          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
2255     2006, the difference between the following amounts shall be expended as provided in this
2256     Subsection (5), if that difference is greater than $1:
2257          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the

2258     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
2259          (ii) $17,500,000.
2260          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
2261          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
2262     credits; and
2263          (B) expended by the Department of Natural Resources for watershed rehabilitation or
2264     restoration.
2265          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2266     in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
2267     created in Section 73-10-24.
2268          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
2269     remaining difference described in Subsection (5)(a) shall be:
2270          (A) transferred each fiscal year to the Division of Water Resources as dedicated
2271     credits; and
2272          (B) expended by the Division of Water Resources for cloud-seeding projects
2273     authorized by Title 73, Chapter 15, Modification of Weather.
2274          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
2275     in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
2276     created in Section 73-10-24.
2277          (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
2278     remaining difference described in Subsection (5)(a) shall be deposited into the Water
2279     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
2280     Division of Water Resources for:
2281          (i) preconstruction costs:
2282          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
2283     26, Bear River Development Act; and
2284          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
2285     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
2286          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
2287     Chapter 26, Bear River Development Act;
2288          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project

2289     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
2290          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
2291     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
2292          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
2293     Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be
2294     transferred each year as dedicated credits to the Division of Water Rights to cover the costs
2295     incurred for employing additional technical staff for the administration of water rights.
2296          (f) At the end of each fiscal year, any unexpended dedicated credits described in
2297     Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
2298     Fund created in Section 73-10-24.
2299          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
2300     amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
2301     (1) for the fiscal year shall be deposited as follows:
2302          (a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
2303     shall be deposited into the Transportation Investment Fund of 2005 created by Section
2304     72-2-124;
2305          (b) for fiscal year 2017-18 only:
2306          (i) 80% of the revenue described in this Subsection (6) shall be deposited into the
2307     Transportation Investment Fund of 2005 created by Section 72-2-124; and
2308          (ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
2309     Water Infrastructure Restricted Account created by Section 73-10g-103;
2310          (c) for fiscal year 2018-19 only:
2311          (i) 60% of the revenue described in this Subsection (6) shall be deposited into the
2312     Transportation Investment Fund of 2005 created by Section 72-2-124; and
2313          (ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
2314     Water Infrastructure Restricted Account created by Section 73-10g-103;
2315          (d) for fiscal year 2019-20 only:
2316          (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
2317     Transportation Investment Fund of 2005 created by Section 72-2-124; and
2318          (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
2319     Water Infrastructure Restricted Account created by Section 73-10g-103;

2320          (e) for fiscal year 2020-21 only:
2321          (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
2322     Transportation Investment Fund of 2005 created by Section 72-2-124; and
2323          (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
2324     Water Infrastructure Restricted Account created by Section 73-10g-103; and
2325          (f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
2326     in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
2327     created by Section 73-10g-103.
2328          (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
2329     Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
2330     2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
2331     created by Section 72-2-124:
2332          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
2333     the revenues collected from the following taxes, which represents a portion of the
2334     approximately 17% of sales and use tax revenues generated annually by the sales and use tax
2335     on vehicles and vehicle-related products:
2336          (A) the tax imposed by Subsection (2)(a)(i)(A);
2337          (B) the tax imposed by Subsection (2)(b)(i);
2338          (C) the tax imposed by Subsection (2)(c)(i); and
2339          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
2340          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
2341     current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
2342     (D) that exceeds the amount collected from the sales and use taxes described in Subsections
2343     (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
2344          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
2345     the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
2346     lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
2347     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
2348     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
2349     (7)(a) equal to the product of:
2350          (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the

2351     previous fiscal year; and
2352          (B) the total sales and use tax revenue generated by the taxes described in Subsections
2353     (7)(a)(i)(A) through (D) in the current fiscal year.
2354          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
2355     Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
2356     described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
2357     Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
2358     Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
2359          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
2360     from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) was deposited
2361     under Subsection (7)(a), the Division of Finance shall annually deposit 17% of the revenues
2362     collected from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) in the
2363     current fiscal year under Subsection (7)(a).
2364          (8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
2365     under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
2366     deposit $64,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into
2367     the Transportation Investment Fund of 2005 created by Section 72-2-124.
2368          (b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
2369     Subsections (6) and (7), for the 2017-18 fiscal year only, the Division of Finance shall deposit
2370     $63,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
2371     Transportation Investment Fund of 2005 created by Section 72-2-124.
2372          (c) [(i)] Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
2373     Subsections (6) and (7), [and subject to Subsection (8)(c)(ii), for a fiscal year] beginning on or
2374     after July 1, 2018, the commission shall annually deposit into the Transportation Investment
2375     Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a)
2376     in an amount equal to 3.68% of the revenues collected from the following taxes:
2377          (A) the tax imposed by Subsection (2)(a)(i)(A);
2378          (B) the tax imposed by Subsection (2)(b)(i);
2379          (C) the tax imposed by Subsection (2)(c)(i); and
2380          (D) the tax imposed by Subsection (2)(d)(i)(A)(I).
2381          [(ii) For a fiscal year beginning on or after July 1, 2019, the commission shall annually

2382     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(c)(i)
2383     by an amount that is equal to 35% of the amount of revenue generated in the current fiscal year
2384     by the portion of the tax imposed on motor and special fuel that is sold, used, or received for
2385     sale or use in this state that exceeds 29.4 cents per gallon.]
2386          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
2387     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
2388     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
2389          (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
2390     in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
2391     fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
2392     of 2005 created by Section 72-2-124 the amount of tax revenue generated by a .05% tax rate on
2393     the transactions described in Subsection (1).
2394          (b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
2395     addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
2396     shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
2397     amount of revenue described as follows:
2398          (i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
2399     tax rate on the transactions described in Subsection (1);
2400          (ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
2401     tax rate on the transactions described in Subsection (1);
2402          (iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
2403     tax rate on the transactions described in Subsection (1);
2404          (iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
2405     .05% tax rate on the transactions described in Subsection (1); and
2406          (v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
2407     tax rate on the transactions described in Subsection (1).
2408          (c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
2409     deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts
2410     paid or charged for food and food ingredients, except for tax revenue generated by a bundled
2411     transaction attributable to food and food ingredients and tangible personal property other than
2412     food and food ingredients described in Subsection (2)(d).

2413          (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
2414     fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
2415     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
2416     Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
2417     generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
2418     created in Section 63N-2-512.
2419          (12) (a) Notwithstanding Subsection (3)(a), for the 2016-17 fiscal year only, the
2420     Division of Finance shall deposit $26,000,000 of the revenues generated by the taxes listed
2421     under Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
2422          (b) Notwithstanding Subsection (3)(a), for the 2017-18 fiscal year only, the Division of
2423     Finance shall deposit $27,000,000 of the revenues generated by the taxes listed under
2424     Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
2425          (13) Notwithstanding Subsections (4) through (12), an amount required to be expended
2426     or deposited in accordance with Subsections (4) through (12) may not include an amount the
2427     Division of Finance deposits in accordance with Section 59-12-103.2.
2428          Section 28. Section 59-12-2202 is amended to read:
2429          59-12-2202. Definitions.
2430          As used in this part:
2431          (1) "Airline" [is as] means the same as that term is defined in Section 59-2-102.
2432          (2) "Airport facility" [is as] means the same as that term is defined in Section
2433     59-12-602.
2434          (3) "Airport of regional significance" means an airport identified by the Federal
2435     Aviation Administration in the most current National Plan of Integrated Airport Systems or an
2436     update to the National Plan of Integrated Airport Systems.
2437          (4) "Annexation" means an annexation to:
2438          (a) a county under Title 17, Chapter 2, County Consolidations and Annexations; or
2439          (b) a city or town under Title 10, Chapter 2, Part 4, Annexation.
2440          (5) "Annexing area" means an area that is annexed into a county, city, or town.
2441          (6) "Council of governments" [is as] means the same as that term is defined in Section
2442     72-2-117.5.
2443          (7) "Fixed guideway" [is as] means the same as that term is defined in Section

2444     59-12-102.
2445          (8) "Large public transit district" means the same as that term is defined in Section
2446     17B-2a-802.
2447          [(8)] (9) "Major collector highway" [is as] means the same as that term is defined in
2448     Section 72-4-102.5.
2449          [(9)] (10) "Metropolitan planning organization" [is as] means the same as that term is
2450     defined in Section 72-1-208.5.
2451          [(10)] (11) "Minor arterial highway" [is as] means the same as that term is defined in
2452     Section 72-4-102.5.
2453          [(11)] (12) "Minor collector road" [is as] means the same as that term is defined in
2454     Section 72-4-102.5.
2455          [(12)] (13) "Principal arterial highway" [is as] means the same as that term is defined
2456     in Section 72-4-102.5.
2457          [(13)] (14) "Regionally significant transportation facility" means:
2458          (a) in a county of the first or second class:
2459          (i) a principal arterial highway;
2460          (ii) a minor arterial highway;
2461          (iii) a fixed guideway that:
2462          (A) extends across two or more cities or unincorporated areas; or
2463          (B) is an extension to an existing fixed guideway; or
2464          (iv) an airport of regional significance; or
2465          (b) in a county of the third, fourth, fifth, or sixth class:
2466          (i) a principal arterial highway;
2467          (ii) a minor arterial highway;
2468          (iii) a major collector highway;
2469          (iv) a minor collector road; or
2470          (v) an airport of regional significance.
2471          [(14)] (15) "State highway" means a highway designated as a state highway under Title
2472     72, Chapter 4, Designation of State Highways Act.
2473          [(15)] (16) (a) Subject to Subsection [(15)] (16)(b), "system for public transit" [has the
2474     same meaning as] means the same as the term "public transit" [as] is defined in Section

2475     17B-2a-802.
2476          (b) "System for public transit" includes:
2477          (i) the following costs related to public transit:
2478          (A) maintenance costs; or
2479          (B) operating costs;
2480          (ii) a fixed guideway;
2481          (iii) a park and ride facility;
2482          (iv) a passenger station or passenger terminal;
2483          (v) a right-of-way for public transit; or
2484          (vi) the following that serve a public transit facility:
2485          (A) a maintenance facility;
2486          (B) a platform;
2487          (C) a repair facility;
2488          (D) a roadway;
2489          (E) a storage facility;
2490          (F) a utility line; or
2491          (G) a facility or item similar to Subsections [(15)] (16)(b)(vi)(A) through (F).
2492          Section 29. Section 59-12-2217 is amended to read:
2493          59-12-2217. County option sales and use tax for transportation -- Base -- Rate --
2494     Written prioritization process -- Approval by county legislative body.
2495          (1) Subject to the other provisions of this part, and subject to Subsection (10), a county
2496     legislative body may impose a sales and use tax of up to .25% on the transactions described in
2497     Subsection 59-12-103(1) within the county, including the cities and towns within the county.
2498          (2) Subject to Subsections (3) through (8) and Section 59-12-2207, the revenues
2499     collected from a sales and use tax under this section may only be expended for:
2500          (a) a project or service:
2501          (i) relating to a regionally significant transportation facility for the portion of the
2502     project or service that is performed within the county;
2503          (ii) for new capacity or congestion mitigation if the project or service is performed
2504     within a county:
2505          (A) of the first or second class; or

2506          (B) if that county is part of an area metropolitan planning organization; and
2507          (iii) that is on a priority list:
2508          (A) created by the county's council of governments in accordance with Subsection (7);
2509     and
2510          (B) approved by the county legislative body in accordance with Subsection (7);
2511          (b) corridor preservation for a project or service described in Subsection (2)(a) [as
2512     provided in Subsection (8)]; or
2513          (c) debt service or bond issuance costs related to a project or service described in
2514     Subsection (2)(a)(i) or (ii).
2515          (3) If a project or service described in Subsection (2) is for:
2516          (a) a principal arterial highway or a minor arterial highway in a county of the first or
2517     second class or a collector road in a county of the second class, that project or service shall be
2518     part of the:
2519          (i) county and municipal master plan; and
2520          (ii) (A) statewide long-range plan; or
2521          (B) regional transportation plan of the area metropolitan planning organization if a
2522     metropolitan planning organization exists for the area; or
2523          (b) a fixed guideway or an airport, that project or service shall be part of the regional
2524     transportation plan of the area metropolitan planning organization if a metropolitan planning
2525     organization exists for the area.
2526          (4) In a county of the first or second class, a regionally significant transportation
2527     facility project or service described in Subsection (2)(a)(i) shall have a funded year priority
2528     designation on a Statewide Transportation Improvement Program and Transportation
2529     Improvement Program if the project or service described in Subsection (2)(a)(i) is:
2530          (a) a principal arterial highway;
2531          (b) a minor arterial highway;
2532          (c) a collector road in a county of the second class; or
2533          (d) a major collector highway in a rural area.
2534          (5) Of the revenues collected from a sales and use tax imposed under this section
2535     within a county of the first [or second] class, 25% or more shall be expended for the purpose
2536     described in Subsection (2)(b).

2537          (6) (a) As provided in this Subsection (6), a council of governments shall:
2538          (i) develop a written prioritization process for the prioritization of projects to be funded
2539     by revenues collected from a sales and use tax under this section;
2540          (ii) create a priority list of regionally significant transportation facility projects or
2541     services described in Subsection (2)(a)(i) in accordance with Subsection (7); and
2542          (iii) present the priority list to the county legislative body for approval in accordance
2543     with Subsection (7).
2544          (b) The written prioritization process described in Subsection (6)(a)(i) shall include:
2545          (i) a definition of the type of projects to which the written prioritization process
2546     applies;
2547          (ii) subject to Subsection (6)(c), the specification of a weighted criteria system that the
2548     council of governments will use to rank proposed projects and how that weighted criteria
2549     system will be used to determine which proposed projects will be prioritized;
2550          (iii) the specification of data that is necessary to apply the weighted criteria system;
2551          (iv) application procedures for a project to be considered for prioritization by the
2552     council of governments; and
2553          (v) any other provision the council of governments considers appropriate.
2554          (c) The weighted criteria system described in Subsection (6)(b)(ii) shall include the
2555     following:
2556          (i) the cost effectiveness of a project;
2557          (ii) the degree to which a project will mitigate regional congestion;
2558          (iii) the compliance requirements of applicable federal laws or regulations;
2559          (iv) the economic impact of a project;
2560          (v) the degree to which a project will require tax revenues to fund maintenance and
2561     operation expenses; and
2562          (vi) any other provision the council of governments considers appropriate.
2563          (d) A council of governments of a county of the first or second class shall submit the
2564     written prioritization process described in Subsection (6)(a)(i) to the Executive Appropriations
2565     Committee for approval prior to taking final action on:
2566          (i) the written prioritization process; or
2567          (ii) any proposed amendment to the written prioritization process.

2568          (7) (a) A council of governments shall use the weighted criteria system adopted in the
2569     written prioritization process developed in accordance with Subsection (6) to create a priority
2570     list of regionally significant transportation facility projects or services for which revenues
2571     collected from a sales and use tax under this section may be expended.
2572          (b) Before a council of governments may finalize a priority list or the funding level of a
2573     project, the council of governments shall conduct a public meeting on:
2574          (i) the written prioritization process; and
2575          (ii) the merits of the projects that are prioritized as part of the written prioritization
2576     process.
2577          (c) A council of governments shall make the weighted criteria system ranking for each
2578     project prioritized as part of the written prioritization process publicly available before the
2579     public meeting required by Subsection (7)(b) is held.
2580          (d) If a council of governments prioritizes a project over another project with a higher
2581     rank under the weighted criteria system, the council of governments shall:
2582          (i) identify the reasons for prioritizing the project over another project with a higher
2583     rank under the weighted criteria system at the public meeting required by Subsection (7)(b);
2584     and
2585          (ii) make the reasons described in Subsection (7)(d)(i) publicly available.
2586          (e) Subject to Subsections (7)(f) and (g), after a council of governments finalizes a
2587     priority list in accordance with this Subsection (7), the council of governments shall:
2588          (i) submit the priority list to the county legislative body for approval; and
2589          (ii) obtain approval of the priority list from a majority of the members of the county
2590     legislative body.
2591          (f) A council of governments may only submit one priority list per calendar year to the
2592     county legislative body.
2593          (g) A county legislative body may only consider and approve one priority list submitted
2594     under Subsection (7)(e) per calendar year.
2595          [(8) (a) Except as provided in Subsection (8)(b), revenues collected from a sales and
2596     use tax under this section that a county allocates for a purpose described in Subsection (2)(b)
2597     shall be:]
2598          [(i) deposited in or transferred to the Local Highway and Transportation Corridor

2599     Preservation Fund created by Section 72-2-117.5; and]
2600          [(ii) expended as provided in Section 72-2-117.5.]
2601          [(b)] (8) In a county of the first class, revenues collected from a sales and use tax under
2602     this section that a county allocates for a purpose described in Subsection (2)(b) shall be:
2603          [(i)] (a) deposited in or transferred to the County of the First Class Highway Projects
2604     Fund created by Section 72-2-121; and
2605          [(ii)] (b) expended as provided in Section 72-2-121.
2606          (9) Notwithstanding Section 59-12-2208, a county legislative body may, but is not
2607     required to, submit an opinion question to the county's registered voters in accordance with
2608     Section 59-12-2208 to impose a sales and use tax under this section.
2609          (10) (a) (i) Notwithstanding any other provision in this section, if the entire boundary
2610     of a county is annexed into a large public transit district, to impose a sales and use tax under
2611     this section, the county legislative body shall pass the ordinance to impose a sales and use tax
2612     under this section on or before June 30, 2022.
2613          (ii) If the entire boundary of a county is annexed into a large public transit district, the
2614     county legislative body may not pass an ordinance to impose a sales and use tax under this
2615     section on or after July 1, 2022.
2616          (b) Notwithstanding the deadline described in Subsection (10)(a), any sales and use tax
2617     imposed under this section on or before June 30, 2022, may remain in effect.
2618          Section 30. Section 59-12-2218 is amended to read:
2619          59-12-2218. County, city, or town option sales and use tax for airports, highways,
2620     and systems for public transit -- Base -- Rate -- Administration of sales and use tax --
2621     Voter approval exception.
2622          (1) Subject to the other provisions of this part, and subject to Subsection (11), the
2623     following may impose a sales and use tax under this section:
2624          (a) if, on April 1, 2009, a county legislative body of a county of the second class
2625     imposes a sales and use tax under this section, the county legislative body of the county of the
2626     second class may impose the sales and use tax on the transactions:
2627          (i) described in Subsection 59-12-103(1); and
2628          (ii) within the county, including the cities and towns within the county; or
2629          (b) if, on April 1, 2009, a county legislative body of a county of the second class does

2630     not impose a sales and use tax under this section:
2631          (i) a city legislative body of a city within the county of the second class may impose a
2632     sales and use tax under this section on the transactions described in Subsection 59-12-103(1)
2633     within that city;
2634          (ii) a town legislative body of a town within the county of the second class may impose
2635     a sales and use tax under this section on the transactions described in Subsection 59-12-103(1)
2636     within that town; and
2637          (iii) the county legislative body of the county of the second class may impose a sales
2638     and use tax on the transactions described in Subsection 59-12-103(1):
2639          (A) within the county, including the cities and towns within the county, if on the date
2640     the county legislative body provides the notice described in Section 59-12-2209 to the
2641     commission stating that the county will enact a sales and use tax under this section, no city or
2642     town within that county imposes a sales and use tax under this section or has provided the
2643     notice described in Section 59-12-2209 to the commission stating that the city or town will
2644     enact a sales and use tax under this section; or
2645          (B) within the county, except for within a city or town within that county, if, on the
2646     date the county legislative body provides the notice described in Section 59-12-2209 to the
2647     commission stating that the county will enact a sales and use tax under this section, that city or
2648     town imposes a sales and use tax under this section or has provided the notice described in
2649     Section 59-12-2209 to the commission stating that the city or town will enact a sales and use
2650     tax under this section.
2651          (2) For purposes of Subsection (1) and subject to the other provisions of this section, a
2652     county, city, or town legislative body that imposes a sales and use tax under this section may
2653     impose the tax at a rate of:
2654          (a) .10%; or
2655          (b) .25%.
2656          (3) A sales and use tax imposed at a rate described in Subsection (2)(a) shall be
2657     expended as determined by the county, city, or town legislative body as follows:
2658          (a) deposited as provided in Subsection (9)(b) into the County of the Second Class
2659     State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
2660     Section 72-2-121.2;

2661          (b) expended for a project or service relating to an airport facility for the portion of the
2662     project or service that is performed within the county, city, or town within which the tax is
2663     imposed:
2664          (i) for a county legislative body that imposes the sales and use tax, if that airport
2665     facility is part of the regional transportation plan of the area metropolitan planning organization
2666     if a metropolitan planning organization exists for the area; or
2667          (ii) for a city or town legislative body that imposes the sales and use tax, if:
2668          (A) that city or town owns or operates the airport facility; and
2669          (B) an airline is headquartered in that city or town; or
2670          (c) deposited or expended for a combination of Subsections (3)(a) and (b).
2671          (4) Subject to Subsections (5) through (7), a sales and use tax imposed at a rate
2672     described in Subsection (2)(b) shall be expended as determined by the county, city, or town
2673     legislative body as follows:
2674          (a) deposited as provided in Subsection (9)(b) into the County of the Second Class
2675     State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
2676     Section 72-2-121.2;
2677          (b) expended for:
2678          (i) a state highway designated under Title 72, Chapter 4, Part 1, State Highways;
2679          (ii) a local highway that is a principal arterial highway, minor arterial highway, major
2680     collector highway, or minor collector road; or
2681          (iii) a combination of Subsections (4)(b)(i) and (ii);
2682          (c) expended for a project or service relating to a system for public transit for the
2683     portion of the project or service that is performed within the county, city, or town within which
2684     the sales and use tax is imposed;
2685          (d) expended for a project or service relating to an airport facility for the portion of the
2686     project or service that is performed within the county, city, or town within which the sales and
2687     use tax is imposed:
2688          (i) for a county legislative body that imposes the sales and use tax, if that airport
2689     facility is part of the regional transportation plan of the area metropolitan planning organization
2690     if a metropolitan planning organization exists for the area; or
2691          (ii) for a city or town legislative body that imposes the sales and use tax, if:

2692          (A) that city or town owns or operates the airport facility; and
2693          (B) an airline is headquartered in that city or town;
2694          (e) expended for:
2695          (i) a class B road, as defined in Section 72-3-103;
2696          (ii) a class C road, as defined in Section 72-3-104; or
2697          (iii) a combination of Subsections (4)(e)(i) and (ii);
2698          (f) expended for traffic and pedestrian safety, including:
2699          (i) for a class B road, as defined in Section 72-3-103, or class C road, as defined in
2700     Section 72-3-104, for:
2701          (A) a sidewalk;
2702          (B) curb and gutter;
2703          (C) a safety feature;
2704          (D) a traffic sign;
2705          (E) a traffic signal;
2706          (F) street lighting; or
2707          (G) a combination of Subsections (4)(f)(i)(A) through (F);
2708          (ii) the construction of an active transportation facility that:
2709          (A) is for nonmotorized vehicles and multimodal transportation; and
2710          (B) connects an origin with a destination; or
2711          (iii) a combination of Subsections (4)(f)(i) and (ii); or
2712          (g) deposited or expended for a combination of Subsections (4)(a) through (f).
2713          (5) A county, city, or town legislative body may not expend revenue collected within a
2714     county, city, or town from a tax under this section for a purpose described in Subsections (4)(b)
2715     through (f) unless the purpose is recommended by:
2716          (a) for a county that is part of a metropolitan planning organization, the metropolitan
2717     planning organization of which the county is a part; or
2718          (b) for a county that is not part of a metropolitan planning organization, the council of
2719     governments of which the county is a part.
2720          (6) (a) (i) Except as provided in Subsection (6)(b), a county, city, or town that imposes
2721     a tax described in Subsection (2)(b) shall deposit the revenue collected from a tax rate of .05%
2722     as provided in Subsection (9)(b)(i) into the Local Highway and Transportation Corridor

2723     Preservation Fund created by Section 72-2-117.5.
2724          (ii) Revenue deposited in accordance with Subsection (6)(a)(i) shall be expended and
2725     distributed in accordance with Section 72-2-117.5.
2726          (b) A county, city, or town is not required to make the deposit required by Subsection
2727     (6)(a)(i) if the county, city, or town:
2728          (i) imposed a tax described in Subsection (2)(b) on July 1, 2010; or
2729          (ii) has continuously imposed a tax described in Subsection (2)(b):
2730          (A) beginning after July 1, 2010; and
2731          (B) for a five-year period.
2732          (7) (a) Subject to the other provisions of this Subsection (7), a city or town within
2733     which a sales and use tax is imposed at the tax rate described in Subsection (2)(b) may:
2734          (i) expend the revenues in accordance with Subsection (4); or
2735          (ii) expend the revenues in accordance with Subsections (7)(b) through (d) if:
2736          (A) that city or town owns or operates an airport facility; and
2737          (B) an airline is headquartered in that city or town.
2738          (b) (i) A city or town legislative body of a city or town within which a sales and use tax
2739     is imposed at the tax rate described in Subsection (2)(b) may expend the revenues collected
2740     from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of
2741     .25% for a purpose described in Subsection (7)(b)(ii) if:
2742          (A) that city or town owns or operates an airport facility; and
2743          (B) an airline is headquartered in that city or town.
2744          (ii) A city or town described in Subsection (7)(b)(i) may expend the revenues collected
2745     from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of
2746     .25% for:
2747          (A) a project or service relating to the airport facility; and
2748          (B) the portion of the project or service that is performed within the city or town
2749     imposing the sales and use tax.
2750          (c) If a city or town legislative body described in Subsection (7)(b)(i) determines to
2751     expend the revenues collected from a tax rate of greater than .10% but not to exceed the
2752     revenues collected from a tax rate of .25% for a project or service relating to an airport facility
2753     as allowed by Subsection (7)(b), any remaining revenue that is collected from the sales and use

2754     tax imposed at the tax rate described in Subsection (2)(b) that is not expended for the project or
2755     service relating to an airport facility as allowed by Subsection (7)(b) shall be expended as
2756     follows:
2757          (i) 75% of the remaining revenues shall be deposited as provided in Subsection (9)(c)
2758     into the County of the Second Class State Highway Projects Fund created by Section
2759     72-2-121.2 and expended as provided in Section 72-2-121.2; and
2760          (ii) 25% of the remaining revenues shall be deposited as provided in Subsection (9)(c)
2761     into the Local Highway and Transportation Corridor Preservation Fund created by Section
2762     72-2-117.5 and expended and distributed in accordance with Section 72-2-117.5.
2763          (d) A city or town legislative body that expends the revenues collected from a sales and
2764     use tax imposed at the tax rate described in Subsection (2)(b) in accordance with Subsections
2765     (7)(b) and (c):
2766          (i) shall, on or before the date the city or town legislative body provides the notice
2767     described in Section 59-12-2209 to the commission stating that the city or town will enact a
2768     sales and use tax under this section:
2769          (A) determine the tax rate, the percentage of which is greater than .10% but does not
2770     exceed .25%, the collections from which the city or town legislative body will expend for a
2771     project or service relating to an airport facility as allowed by Subsection (7)(b); and
2772          (B) notify the commission in writing of the tax rate the city or town legislative body
2773     determines in accordance with Subsection (7)(d)(i)(A);
2774          (ii) shall, on or before the April 1 immediately following the date the city or town
2775     legislative body provides the notice described in Subsection (7)(d)(i) to the commission:
2776          (A) determine the tax rate, the percentage of which is greater than .10% but does not
2777     exceed .25%, the collections from which the city or town legislative body will expend for a
2778     project or service relating to an airport facility as allowed by Subsection (7)(b); and
2779          (B) notify the commission in writing of the tax rate the city or town legislative body
2780     determines in accordance with Subsection (7)(d)(ii)(A);
2781          (iii) shall, on or before April 1 of each year after the April 1 described in Subsection
2782     (7)(d)(ii):
2783          (A) determine the tax rate, the percentage of which is greater than .10% but does not
2784     exceed .25%, the collections from which the city or town legislative body will expend for a

2785     project or service relating to an airport facility as allowed by Subsection (7)(b); and
2786          (B) notify the commission in writing of the tax rate the city or town legislative body
2787     determines in accordance with Subsection (7)(d)(iii)(A); and
2788          (iv) may not change the tax rate the city or town legislative body determines in
2789     accordance with Subsections (7)(d)(i) through (iii) more frequently than as prescribed by
2790     Subsections (7)(d)(i) through (iii).
2791          (8) Before a city or town legislative body may impose a sales and use tax under this
2792     section, the city or town legislative body shall provide a copy of the notice described in Section
2793     59-12-2209 that the city or town legislative body provides to the commission:
2794          (a) to the county legislative body within which the city or town is located; and
2795          (b) at the same time as the city or town legislative body provides the notice to the
2796     commission.
2797          (9) (a) Subject to Subsections (9)(b) through (e) and Section 59-12-2207, the
2798     commission shall transmit revenues collected within a county, city, or town from a tax under
2799     this part that will be expended for a purpose described in Subsection (3)(b) or Subsections
2800     (4)(b) through (f) to the county, city, or town legislative body in accordance with Section
2801     59-12-2206.
2802          (b) Except as provided in Subsection (9)(c) and subject to Section 59-12-2207, the
2803     commission shall deposit revenues collected within a county, city, or town from a sales and use
2804     tax under this section that:
2805          (i) are required to be expended for a purpose described in Subsection (6)(a) into the
2806     Local Transportation Corridor Preservation Fund created by Section 72-2-117.5; or
2807          (ii) a county, city, or town legislative body determines to expend for a purpose
2808     described in Subsection (3)(a) or (4)(a) into the County of the Second Class State Highway
2809     Projects Fund created by Section 72-2-121.2 if the county, city, or town legislative body
2810     provides written notice to the commission requesting the deposit.
2811          (c) Subject to Subsection (9)(d) or (e), if a city or town legislative body provides notice
2812     to the commission in accordance with Subsection (7)(d), the commission shall:
2813          (i) transmit the revenues collected from the tax rate stated on the notice to the city or
2814     town legislative body monthly by electronic funds transfer; and
2815          (ii) deposit any remaining revenues described in Subsection (7)(c) in accordance with

2816     Subsection (7)(c).
2817          (d) (i) If a city or town legislative body provides the notice described in Subsection
2818     (7)(d)(i) to the commission, the commission shall transmit or deposit the revenues collected
2819     from the sales and use tax:
2820          (A) in accordance with Subsection (9)(c);
2821          (B) beginning on the date the city or town legislative body enacts the sales and use tax;
2822     and
2823          (C) ending on the earlier of the June 30 immediately following the date the city or town
2824     legislative body provides the notice described in Subsection (7)(d)(ii) to the commission or the
2825     date the city or town legislative body repeals the sales and use tax.
2826          (ii) If a city or town legislative body provides the notice described in Subsection
2827     (7)(d)(ii) or (iii) to the commission, the commission shall transmit or deposit the revenues
2828     collected from the sales and use tax:
2829          (A) in accordance with Subsection (9)(c);
2830          (B) beginning on the July 1 immediately following the date the city or town legislative
2831     body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission; and
2832          (C) ending on the earlier of the June 30 of the year after the date the city or town
2833     legislative body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission
2834     or the date the city or town legislative body repeals the sales and use tax.
2835          (e) (i) If a city or town legislative body that is required to provide the notice described
2836     in Subsection (7)(d)(i) does not provide the notice described in Subsection (7)(d)(i) to the
2837     commission on or before the date required by Subsection (7)(d) for providing the notice, the
2838     commission shall transmit, transfer, or deposit the revenues collected from the sales and use
2839     tax within the city or town in accordance with Subsections (9)(a) and (b).
2840          (ii) If a city or town legislative body that is required to provide the notice described in
2841     Subsection (7)(d)(ii) or (iii) does not provide the notice described in Subsection (7)(d)(ii) or
2842     (iii) to the commission on or before the date required by Subsection (7)(d) for providing the
2843     notice, the commission shall transmit or deposit the revenues collected from the sales and use
2844     tax within the city or town in accordance with:
2845          (A) Subsection (9)(c); and
2846          (B) the most recent notice the commission received from the city or town legislative

2847     body under Subsection (7)(d).
2848          (10) Notwithstanding Section 59-12-2208, a county, city, or town legislative body may,
2849     but is not required to, submit an opinion question to the county's, city's, or town's registered
2850     voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section.
2851          (11) (a) (i) Notwithstanding any other provision in this section, if the entire boundary
2852     of a county, city, or town is annexed into a large public transit district, to impose a sales and
2853     use tax under this section, the county, city, or town legislative body shall pass the ordinance to
2854     impose a sales and use tax under this section on or before June 30, 2022.
2855          (ii) If the entire boundary of a county, city, or town is annexed into a large public
2856     transit district, the county, city, or town legislative body may not pass the ordinance to impose
2857     a sales and use tax under this section on or after July 1, 2022.
2858          (b) Notwithstanding the deadline described in Subsection (11)(a), any sales and use tax
2859     imposed under this section on or before June 30, 2022, may remain in effect.
2860          Section 31. Section 59-12-2219 is amended to read:
2861          59-12-2219. County, city, and town option sales and use tax for highways and
2862     public transit -- Base -- Rate -- Distribution and expenditure of revenue -- Revenue may
2863     not supplant existing budgeted transportation revenue.
2864          (1) As used in this section:
2865          (a) "Class B road" means the same as that term is defined in Section 72-3-103.
2866          (b) "Class C road" means the same as that term is defined in Section 72-3-104.
2867          (c) "Eligible political subdivision" means a political subdivision that:
2868          (i) (A) on May 12, 2015, provides public transit services; or
2869          (B) after May 12, 2015, provides written notice to the commission in accordance with
2870     Subsection (10)(b) that it intends to provide public transit service within a county;
2871          (ii) is not a public transit district; and
2872          (iii) is not annexed into a public transit district.
2873          (d) "Public transit district" means a public transit district organized under Title 17B,
2874     Chapter 2a, Part 8, Public Transit District Act.
2875          (2) Subject to the other provisions of this part, and subject to Subsection (17), a county
2876     legislative body may impose a sales and use tax of .25% on the transactions described in
2877     Subsection 59-12-103(1) within the county, including the cities and towns within the county.

2878          (3) [The] Subject to Subsections (11) and (12), the commission shall distribute sales
2879     and use tax revenue collected under this section as provided in Subsections (4) through (10).
2880          (4) If the entire boundary of a county that imposes a sales and use tax under this section
2881     is annexed into a single public transit district, the commission shall distribute the sales and use
2882     tax revenue collected within the county as follows:
2883          (a) .10% shall be transferred to the public transit district in accordance with Section
2884     59-12-2206;
2885          (b) .10% shall be distributed as provided in Subsection (8); and
2886          (c) .05% shall be distributed to the county legislative body.
2887          (5) If the entire boundary of a county that imposes a sales and use tax under this section
2888     is not annexed into a single public transit district, but a city or town within the county is
2889     annexed into a single public transit district that also has a county of the first class annexed into
2890     the same public transit district, the commission shall distribute the sales and use tax revenue
2891     collected within the county as follows:
2892          (a) for a city or town within the county that is annexed into a single public transit
2893     district, the commission shall distribute the sales and use tax revenue collected within that city
2894     or town as follows:
2895          (i) .10% shall be transferred to the public transit district in accordance with Section
2896     59-12-2206;
2897          (ii) .10% shall be distributed as provided in Subsection (8); and
2898          (iii) .05% shall be distributed to the county legislative body;
2899          (b) for an eligible political subdivision within the county, the commission shall
2900     distribute the sales and use tax revenue collected within that eligible political subdivision as
2901     follows:
2902          (i) .10% shall be transferred to the eligible political subdivision in accordance with
2903     Section 59-12-2206;
2904          (ii) .10% shall be distributed as provided in Subsection (8); and
2905          (iii) .05% shall be distributed to the county legislative body; and
2906          (c) the commission shall distribute the sales and use tax revenue, except for the sales
2907     and use tax revenue described in Subsections (5)(a) and (b), as follows:
2908          (i) .10% shall be distributed as provided in Subsection (8); and

2909          (ii) .15% shall be distributed to the county legislative body.
2910          (6) For a county not described in Subsection (4) or (5), if the entire boundary of a
2911     county of the first or second class that imposes a sales and use tax under this section is not
2912     annexed into a single public transit district, or if there is not a public transit district within the
2913     county, the commission shall distribute the sales and use tax revenue collected within the
2914     county as follows:
2915          (a) for a city or town within the county that is annexed into a single public transit
2916     district, the commission shall distribute the sales and use tax revenue collected within that city
2917     or town as follows:
2918          (i) .10% shall be transferred to the public transit district in accordance with Section
2919     59-12-2206;
2920          (ii) .10% shall be distributed as provided in Subsection (8); and
2921          (iii) .05% shall be distributed to the county legislative body;
2922          (b) for an eligible political subdivision within the county, the commission shall
2923     distribute the sales and use tax revenue collected within that eligible political subdivision as
2924     follows:
2925          (i) .10% shall be transferred to the eligible political subdivision in accordance with
2926     Section 59-12-2206;
2927          (ii) .10% shall be distributed as provided in Subsection (8); and
2928          (iii) .05% shall be distributed to the county legislative body; and
2929          (c) the commission shall distribute the sales and use tax revenue, except for the sales
2930     and use tax revenue described in Subsections (6)(a) and (b), as follows:
2931          (i) .10% shall be distributed as provided in Subsection (8); and
2932          (ii) .15% shall be distributed to the county legislative body.
2933          (7) For a county not described in Subsection (4) or (5), if the entire boundary of a
2934     county of the third, fourth, fifth, or sixth class that imposes a sales and use tax under this
2935     section is not annexed into a single public transit district, or if there is not a public transit
2936     district within the county, the commission shall distribute the sales and use tax revenue
2937     collected within the county as follows:
2938          (a) for a city or town within the county that is annexed into a single public transit
2939     district, the commission shall distribute the sales and use tax revenue collected within that city

2940     or town as follows:
2941          (i) .10% shall be distributed as provided in Subsection (8);
2942          (ii) .10% shall be distributed as provided in Subsection (9); and
2943          (iii) .05% shall be distributed to the county legislative body;
2944          (b) for an eligible political subdivision within the county, the commission shall
2945     distribute the sales and use tax revenue collected within that eligible political subdivision as
2946     follows:
2947          (i) .10% shall be distributed as provided in Subsection (8);
2948          (ii) .10% shall be distributed as provided in Subsection (9); and
2949          (iii) .05% shall be distributed to the county legislative body; and
2950          (c) the commission shall distribute the sales and use tax revenue, except for the sales
2951     and use tax revenue described in Subsections (7)(a) and (b), as follows:
2952          (i) .10% shall be distributed as provided in Subsection (8); and
2953          (ii) .15% shall be distributed to the county legislative body.
2954          (8) (a) Subject to Subsection (8)(b), the commission shall make the distributions
2955     required by Subsections (4)(b), (5)(a)(ii), (5)(b)(ii), (5)(c)(i) , (6)(a)(ii), (6)(b)(ii), (6)(c)(i),
2956     (7)(a)(i), (7)(b)(i), (7)(c)(i), [and] (9)(d)(ii)(A), and (12)(c)(i) as follows:
2957          (i) 50% of the total revenue collected under Subsections (4)(b), (5)(a)(ii), (5)(b)(ii),
2958     (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), and
2959     (12)(c)(i) within the counties and cities that impose a tax under this section shall be distributed
2960     to the unincorporated areas, cities, and towns within those counties and cities on the basis of
2961     the percentage that the population of each unincorporated area, city, or town bears to the total
2962     population of all of the counties and cities that impose a tax under this section; and
2963          (ii) 50% of the total revenue collected under Subsections (4)(b), (5)(a)(ii), (5)(b)(ii),
2964     (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), and
2965     (12)(c)(i) within the counties and cities that impose a tax under this section shall be distributed
2966     to the unincorporated areas, cities, and towns within those counties and cities on the basis of
2967     the location of the transaction as determined under Sections 59-12-211 through 59-12-215.
2968          (b) (i) Population for purposes of this Subsection (8) shall be determined on the basis
2969     of the most recent official census or census estimate of the United States Census Bureau.
2970          (ii) If a needed population estimate is not available from the United States Census

2971     Bureau, population figures shall be derived from an estimate from the Utah Population
2972     Estimates Committee created by executive order of the governor.
2973          (9) (a) (i) Subject to the requirements in Subsections (9)(b) and (c), a county legislative
2974     body:
2975          (A) for a county that obtained approval from a majority of the county's registered
2976     voters voting on the imposition of a sales and use tax under this section prior to May 10, 2016,
2977     may, in consultation with any cities, towns, or eligible political subdivisions within the county,
2978     and in compliance with the requirements for changing an allocation under Subsection (9)(e),
2979     allocate the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) by adopting a resolution specifying
2980     the percentage of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be allocated to a
2981     public transit district or an eligible political subdivision; or
2982          (B) for a county that obtains approval from a majority of the county's registered voters
2983     voting on the imposition of a sales and use tax under this section on or after May 10, 2016,
2984     shall, in consultation with any cities, towns, or eligible political subdivisions within the county,
2985     allocate the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) by adopting a resolution specifying
2986     the percentage of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be allocated to a
2987     public transit district or an eligible political subdivision.
2988          (ii) If a county described in Subsection (9)(a)(i)(A) does not allocate the revenue under
2989     Subsection (7)(a)(ii) or (7)(b)(ii) in accordance with Subsection (9)(a)(i)(A), the commission
2990     shall distribute 100% of the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) to:
2991          (A) a public transit district for a city or town within the county that is annexed into a
2992     single public transit district; or
2993          (B) an eligible political subdivision within the county.
2994          (b) If a county legislative body allocates the revenue as described in Subsection
2995     (9)(a)(i), the county legislative body shall allocate not less than 25% of the revenue under
2996     Subsection (7)(a)(ii) or (7)(b)(ii) to:
2997          (i) a public transit district for a city or town within the county that is annexed into a
2998     single public transit district; or
2999          (ii) an eligible political subdivision within the county.
3000          (c) Notwithstanding Section 59-12-2208, the opinion question required by Section
3001     59-12-2208 shall state the allocations the county legislative body makes in accordance with this

3002     Subsection (9).
3003          (d) The commission shall make the distributions required by Subsection (7)(a)(ii) or
3004     (7)(b)(ii) as follows:
3005          (i) the percentage specified by a county legislative body shall be distributed in
3006     accordance with a resolution adopted by a county legislative body under Subsection (9)(a) to an
3007     eligible political subdivision or a public transit district within the county; and
3008          (ii) except as provided in Subsection (9)(a)(ii), if a county legislative body allocates
3009     less than 100% of the revenue under Subsection (7)(a)(ii) or (7)(b)(ii) to a public transit district
3010     or an eligible political subdivision, the remainder of the revenue under Subsection (7)(a)(ii) or
3011     (7)(b)(ii) not allocated by a county legislative body through a resolution under Subsection
3012     (9)(a) shall be distributed as follows:
3013          (A) 50% of the revenue as provided in Subsection (8); and
3014          (B) 50% of the revenue to the county legislative body.
3015          (e) If a county legislative body seeks to change an allocation specified in a resolution
3016     under Subsection (9)(a), the county legislative body may change the allocation by:
3017          (i) adopting a resolution in accordance with Subsection (9)(a) specifying the percentage
3018     of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be allocated to a public transit
3019     district or an eligible political subdivision;
3020          (ii) obtaining approval to change the allocation of the sales and use tax by a majority of
3021     all the members of the county legislative body; and
3022          (iii) subject to Subsection (9)(f):
3023          (A) in accordance with Section 59-12-2208, submitting an opinion question to the
3024     county's registered voters voting on changing the allocation so that each registered voter has the
3025     opportunity to express the registered voter's opinion on whether the allocation should be
3026     changed; and
3027          (B) in accordance with Section 59-12-2208, obtaining approval to change the
3028     allocation from a majority of the county's registered voters voting on changing the allocation.
3029          (f) Notwithstanding Section 59-12-2208, the opinion question required by Subsection
3030     (9)(e)(iii)(A) shall state the allocations specified in the resolution adopted in accordance with
3031     Subsection (9)(e) and approved by the county legislative body in accordance with Subsection
3032     (9)(e)(ii).

3033          (g) (i) If a county makes an allocation by adopting a resolution under Subsection (9)(a)
3034     or changes an allocation by adopting a resolution under Subsection (9)(e), the allocation shall
3035     take effect on the first distribution the commission makes under this section after a 90-day
3036     period that begins on the date the commission receives written notice meeting the requirements
3037     of Subsection (9)(g)(ii) from the county.
3038          (ii) The notice described in Subsection (9)(g)(i) shall state:
3039          (A) that the county will make or change the percentage of an allocation under
3040     Subsection (9)(a) or (e); and
3041          (B) the percentage of revenue under Subsection (7)(a)(ii) or (7)(b)(ii) that will be
3042     allocated to a public transit district or an eligible political subdivision.
3043          (10) (a) If a public transit district is organized after the date a county legislative body
3044     first imposes a tax under this section, a change in a distribution required by this section may
3045     not take effect until the first distribution the commission makes under this section after a
3046     90-day period that begins on the date the commission receives written notice from the public
3047     transit district of the organization of the public transit district.
3048          (b) If an eligible political subdivision intends to provide public transit service within a
3049     county after the date a county legislative body first imposes a tax under this section, a change
3050     in a distribution required by this section may not take effect until the first distribution the
3051     commission makes under this section after a 90-day period that begins on the date the
3052     commission receives written notice from the eligible political subdivision stating that the
3053     eligible political subdivision intends to provide public transit service within the county.
3054          (11) (a) (i) Notwithstanding Subsections (4) through (10), for a county that has not
3055     imposed a sales and use tax under this section before May 8, 2018, and if the county imposes a
3056     sales and use tax under this section before June 30, 2019, the commission shall distribute all of
3057     the sales and use tax revenue collected by the county before June 30, 2019, to the county for
3058     the purposes described in Subsection (11)(a)(ii).
3059          (ii) For any revenue collected by a county pursuant to Subsection (11)(a)(i) before June
3060     30, 2019, the county may expend that revenue for:
3061          (A) reducing transportation related debt;
3062          (B) a regionally significant transportation facility; or
3063          (C) a public transit project of regional significance.

3064          (b) For a county that has not imposed a sales and use tax under this section before May
3065     8, 2018, and if the county imposes a sales and use tax under this section before June 30, 2019,
3066     the commission shall distribute the sales and use tax revenue collected by the county on or after
3067     July 1, 2019, as described in Subsections (4) through (10).
3068          (c) Subject to Subsection (12), for a county that has not imposed a sales and use tax
3069     under this section before June 30, 2019, if the entire boundary of that county is annexed into a
3070     large public transit district, and if the county imposes a sales and use tax under this section on
3071     or after July 1, 2019, the commission shall distribute the sales and use tax revenue collected by
3072     the county as described in Subsections (4) through (10).
3073          (12) (a) Beginning on July 1, 2020, if a county has not imposed a sales and use tax
3074     under this section, subject to the provisions of this part, the legislative body of a city or town
3075     described in Subsection (12)(b) may impose a .25% sales and use tax on the transactions
3076     described in Subsection 59-12-103(1) within the city or town.
3077          (b) The following cities or towns may impose the sales and use tax as described in
3078     Subsection (12)(a):
3079          (i) in a county of the first, second, or third class, a city or town that:
3080          (A) has been annexed into a public transit district; or
3081          (B) is an eligible political subdivision; or
3082          (ii) a city or town that:
3083          (A) is in a county of the third or smaller class; and
3084          (B) has been annexed into a large public transit district.
3085          (c) If a city or town imposes a sales and use tax as provided in this section, the
3086     commission shall distribute the sales and use tax revenue collected by the city or town as
3087     follows:
3088          (i) .125% to the city or town that imposed the sales and use tax, to be distributed as
3089     provided in Subsection (8); and
3090          (ii) .125%, as applicable, to:
3091          (A) the large public transit district in which the city or town is annexed; or
3092          (B) the eligible political subdivision for public transit services.
3093          (d) If a city or town imposes a sales and use tax under this section and the county
3094     subsequently imposes a sales and use tax under this section, the commission shall distribute the

3095     sales and use tax revenue collected within the city or town as described in Subsection (12)(c).
3096          [(11)] (13) A county, city, or town may expend revenue collected from a tax under this
3097     section, except for revenue the commission distributes in accordance with Subsection (4)(a),
3098     (5)(a)(i), (5)(b)(i), or (9)(d)(i) for:
3099          (a) a class B road;
3100          (b) a class C road;
3101          (c) traffic and pedestrian safety, including for a class B road or class C road, for:
3102          (i) a sidewalk;
3103          (ii) curb and gutter;
3104          (iii) a safety feature;
3105          (iv) a traffic sign;
3106          (v) a traffic signal;
3107          (vi) street lighting; or
3108          (vii) a combination of Subsections [(11)] (13)(c)(i) through (vi);
3109          (d) the construction, maintenance, or operation of an active transportation facility that
3110     is for nonmotorized vehicles and multimodal transportation and connects an origin with a
3111     destination;
3112          (e) public transit system services; or
3113          (f) a combination of Subsections [(11)] (13)(a) through (e).
3114          [(12)] (14) A public transit district or an eligible political subdivision may expend
3115     revenue the commission distributes in accordance with Subsection (4)(a), (5)(a)(i), (5)(b)(i), or
3116     (9)(d)(i) for capital expenses and service delivery expenses of the public transit district or
3117     eligible political subdivision.
3118          [(13)] (15) (a) Revenue collected from a sales and use tax under this section may not be
3119     used to supplant existing general fund appropriations that a county, city, or town has budgeted
3120     for transportation as of the date the tax becomes effective for a county, city, or town.
3121          (b) The limitation under Subsection [(13)] (15)(a) does not apply to a designated
3122     transportation capital or reserve account a county, city, or town may have established prior to
3123     the date the tax becomes effective.
3124          (16) Notwithstanding Section 59-12-2208, a county, city, or town legislative body may,
3125     but is not required to, submit an opinion question to the county's, city's, or town's registered

3126     voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section.
3127          (17) (a) (i) (A) Notwithstanding any other provision in this section, to impose a sales
3128     and use tax under this section, the city or town legislative body shall pass the ordinance to
3129     impose a sales and use tax under this section on or before June 30, 2022.
3130          (B) A city legislative body may not pass an ordinance to impose a sales and use tax
3131     under this section on or after July 1, 2022.
3132          (ii) (A) Notwithstanding any other provision in this section, if the entire boundary of a
3133     county is annexed into a large public transit district, to impose a sales and use tax under this
3134     section, the county legislative body shall pass the ordinance to impose a sales and use tax under
3135     this section on or before June 30, 2022.
3136          (B) If the entire boundary of a county is annexed into a large public transit district, the
3137     county legislative body may not pass an ordinance to impose a sales and use tax under this
3138     section on or after July 1, 2022.
3139          (b) Notwithstanding the deadline described in Subsection (17)(a), any sales and use tax
3140     imposed under this section on or before June 30, 2022, may remain in effect.
3141          Section 32. Section 63G-6a-1402 is amended to read:
3142          63G-6a-1402. Procurement of design-build transportation project contracts.
3143          (1) As used in this section:
3144          (a) "Design-build transportation project contract" means the procurement of both the
3145     design and construction of a transportation project in a single contract with a company or
3146     combination of companies capable of providing the necessary engineering services and
3147     construction.
3148          (b) "Transportation agency" means:
3149          (i) the Department of Transportation;
3150          (ii) a county of the first or second class, as defined in Section 17-50-501;
3151          (iii) a municipality of the first class, as defined in Section 10-2-301;
3152          (iv) a large public transit district [that has more than 200,000 people residing within its
3153     boundaries] as defined in Section 17B-2a-802; and
3154          (v) a public airport authority.
3155          (2) Except as provided in Subsection (3), a transportation agency may award a
3156     design-build transportation project contract for any transportation project that has an estimated

3157     cost of at least $50,000,000 by following the requirements of this section.
3158          (3) (a) The Department of Transportation:
3159          (i) may award a design-build transportation project contract for any transportation
3160     project by following the requirements of this section; and
3161          (ii) shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
3162     Rulemaking Act, establishing requirements for the procurement of its design-build
3163     transportation project contracts in addition to those required by this section.
3164          (b) A public transit district that has more than 200,000 people residing within its
3165     boundaries:
3166          (i) may award a design-build transportation project contract for any transportation
3167     project by following the requirements of this section; and
3168          (ii) shall pass ordinances or a resolution establishing requirements for the procurement
3169     of its design-build transportation project contracts in addition to those required by this section.
3170          (c) A design-build transportation project contract authorized under this Subsection (3)
3171     is not subject to the estimated cost threshold described in Subsection (2).
3172          (d) A design-build transportation project contract may include provision by the
3173     contractor of operations, maintenance, or financing.
3174          (4) (a) Before entering into a design-build transportation project contract, a
3175     transportation agency may issue a request for qualifications to prequalify potential contractors.
3176          (b) Public notice of the request for qualifications shall be given in accordance with
3177     board rules.
3178          (c) A transportation agency shall require, as part of the qualifications specified in the
3179     request for qualifications, that potential contractors at least demonstrate their:
3180          (i) construction experience;
3181          (ii) design experience;
3182          (iii) financial, manpower, and equipment resources available for the project; and
3183          (iv) experience in other design-build transportation projects with attributes similar to
3184     the project being procured.
3185          (d) The request for qualifications shall identify the number of eligible competing
3186     proposers that the transportation agency will select to submit a proposal, which may not be less
3187     than two.

3188          (5) The transportation agency shall:
3189          (a) evaluate the responses received from the request for qualifications;
3190          (b) select from their number those qualified to submit proposals; and
3191          (c) invite those respondents to submit proposals based upon the transportation agency's
3192     request for proposals.
3193          (6) If the transportation agency fails to receive at least two qualified eligible competing
3194     proposals, the transportation agency shall readvertise the project.
3195          (7) The transportation agency shall issue a request for proposals to those qualified
3196     respondents that:
3197          (a) includes a scope of work statement constituting an information for proposal that
3198     may include:
3199          (i) preliminary design concepts;
3200          (ii) design criteria, needs, and objectives;
3201          (iii) warranty and quality control requirements;
3202          (iv) applicable standards;
3203          (v) environmental documents;
3204          (vi) constraints;
3205          (vii) time expectations or limitations;
3206          (viii) incentives or disincentives; and
3207          (ix) other special considerations;
3208          (b) requires submitters to provide:
3209          (i) a sealed cost proposal;
3210          (ii) a critical path matrix schedule, including cash flow requirements;
3211          (iii) proposal security; and
3212          (iv) other items required by the department for the project; and
3213          (c) may include award of a stipulated fee to be paid to offerors who submit
3214     unsuccessful proposals.
3215          (8) The transportation agency shall:
3216          (a) evaluate the submissions received in response to the request for proposals from the
3217     prequalified offerors;
3218          (b) comply with rules relating to discussion of proposals, best and final offers, and

3219     evaluations of the proposals submitted; and
3220          (c) after considering price and other identified factors, award the contract to the
3221     responsible offeror whose responsive proposal is most advantageous to the transportation
3222     agency or the state.
3223          Section 33. Section 67-5-3 is amended to read:
3224          67-5-3. "Agency" defined -- Performance of legal services for agencies -- Billing.
3225          (1) As used in this act, "agency" means a department, division, agency, commission,
3226     board, council, committee, authority, institution, [or] other entity within the state government
3227     of Utah, or a large public transit district as defined in Section 17B-2a-802.
3228          (2) (a) The attorney general may assign a legal assistant to perform legal services for
3229     any agency of state government.
3230          (b) The attorney general shall bill that agency for the legal services performed, if:
3231          (i) the agency billed receives federal funds to pay for the legal services rendered; [or]
3232          (ii) the agency collects funds from any other source in the form of fees, costs, interest,
3233     fines, penalties, forfeitures, or other proceeds reserved or designated for the payment of legal
3234     fees sufficient to pay for all or a portion of the legal services rendered[.]; or
3235          (iii) the agency is a large public transit district as defined in Section 17B-2a-802.
3236          (c) An agency may deduct any unreimbursed costs and expenses incurred by the agency
3237     in connection with the legal services rendered.
3238          Section 34. Section 72-1-102 is amended to read:
3239          72-1-102. Definitions.
3240          As used in this title:
3241          (1) "Commission" means the Transportation Commission created under Section
3242     72-1-301.
3243          (2) "Construction" means the construction, reconstruction, replacement, and
3244     improvement of the highways, including the acquisition of rights-of-way and material sites.
3245          (3) "Department" means the Department of Transportation created in Section 72-1-201.
3246          (4) "Executive director" means the executive director of the department appointed
3247     under Section 72-1-202.
3248          (5) "Farm tractor" has the meaning set forth in Section 41-1a-102.
3249          (6) "Federal aid primary highway" means that portion of connected main highways

3250     located within this state officially designated by the department and approved by the United
3251     States Secretary of Transportation under Title 23, Highways, U.S.C.
3252          (7) "Highway" means any public road, street, alley, lane, court, place, viaduct, tunnel,
3253     culvert, bridge, or structure laid out or erected for public use, or dedicated or abandoned to the
3254     public, or made public in an action for the partition of real property, including the entire area
3255     within the right-of-way.
3256          (8) "Highway authority" means the department or the legislative, executive, or
3257     governing body of a county or municipality.
3258          (9) "Implement of husbandry" has the meaning set forth in Section 41-1a-102.
3259          (10) "Interstate system" means any highway officially designated by the department
3260     and included as part of the national interstate and defense highways, as provided in the Federal
3261     Aid Highway Act of 1956 and any supplemental acts or amendments.
3262          (11) "Limited-access facility" means a highway especially designated for through
3263     traffic, and over, from, or to which neither owners nor occupants of abutting lands nor other
3264     persons have any right or easement, or have only a limited right or easement of access, light,
3265     air, or view.
3266          (12) "Motor vehicle" has the same meaning set forth in Section 41-1a-102.
3267          (13) "Municipality" has the same meaning set forth in Section 10-1-104.
3268          (14) "National highway systems highways" means that portion of connected main
3269     highways located within this state officially designated by the department and approved by the
3270     United States Secretary of Transportation under Title 23, Highways, U.S.C.
3271          (15) (a) "Port-of-entry" means a fixed or temporary facility constructed, operated, and
3272     maintained by the department where drivers, vehicles, and vehicle loads are checked or
3273     inspected for compliance with state and federal laws as specified in Section 72-9-501.
3274          (b) "Port-of-entry" includes inspection and checking stations and weigh stations.
3275          (16) "Port-of-entry agent" means a person employed at a port-of-entry to perform the
3276     duties specified in Section 72-9-501.
3277          (17) "Public transit facility" means a transit vehicle, transit station, depot, passenger
3278     loading or unloading zone, parking lot, or other facility:
3279          (a) leased by or operated by or on behalf of a public transit district; and
3280          (b) related to the public transit services provided by the district, including:

3281          (i) railway or other right-of-way;
3282          (ii) railway line; and
3283          (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by
3284     a transit vehicle.
3285          [(17)] (18) "Right-of-way" means real property or an interest in real property, usually
3286     in a strip, acquired for or devoted to a highway.
3287          [(18)] (19) "Sealed" does not preclude acceptance of electronically sealed and submitted
3288     bids or proposals in addition to bids or proposals manually sealed and submitted.
3289          [(19)] (20) "Semitrailer" has the meaning set forth in Section 41-1a-102.
3290          [(20)] (21) "SR" means state route and has the same meaning as state highway as
3291     defined in this section.
3292          [(21)] (22) "State highway" means those highways designated as state highways in
3293     Title 72, Chapter 4, Designation of State Highways Act.
3294          [(22)] (23) "State highway purposes" has the meaning set forth in Section 72-5-102.
3295          [(23)] (24) "State transportation systems" means all streets, alleys, roads, highways,
3296     and thoroughfares of any kind, including connected structures, airports, spaceports, public
3297     transit facilities, and all other modes and forms of conveyance used by the public.
3298          [(24)] (25) "Trailer" has the meaning set forth in Section 41-1a-102.
3299          [(25)] (26) "Truck tractor" has the meaning set forth in Section 41-1a-102.
3300          [(26)] (27) "UDOT" means the Utah Department of Transportation.
3301          [(27)] (28) "Vehicle" has the same meaning set forth in Section 41-1a-102.
3302          Section 35. Section 72-1-202 is amended to read:
3303          72-1-202. Executive director of department -- Appointment -- Qualifications --
3304     Term -- Responsibility -- Power to bring suits -- Salary.
3305          (1) (a) The governor, after consultation with the commission and with the consent of
3306     the Senate, shall appoint an executive director to be the chief executive officer of the
3307     department.
3308          (b) The executive director shall be a qualified executive with technical and
3309     administrative experience and training appropriate for the position.
3310          (c) The executive director shall remain in office until a successor is appointed.
3311          (d) The executive director may be removed by the governor.

3312          (2) In addition to the other functions, powers, duties, rights, and responsibilities
3313     prescribed in this chapter, the executive director shall:
3314          (a) have responsibility for the administrative supervision of the state transportation
3315     systems and the various operations of the department;
3316          (b) have the responsibility for the implementation of rules, priorities, and policies
3317     established by the department and the commission;
3318          (c) have the responsibility for the oversight and supervision of any transportation
3319     project for which state funds are expended;
3320          [(c)] (d) have full power to bring suit in courts of competent jurisdiction in the name of
3321     the department as the executive director considers reasonable and necessary for the proper
3322     attainment of the goals of this chapter;
3323          [(d)] (e) receive a salary, to be established by the governor within the salary range fixed
3324     by the Legislature in Title 67, Chapter 22, State Officer Compensation, together with actual
3325     traveling expenses while away from the executive director's office on official business; and
3326          [(e)] (f) purchase all necessary equipment and supplies for the department.
3327          Section 36. Section 72-1-203 is amended to read:
3328          72-1-203. Deputy director -- Appointment -- Qualifications -- Other assistants
3329     and advisers -- Salaries.
3330          (1) The executive director shall appoint [a deputy director, who shall be a registered
3331     professional engineer in the state and] two deputy directors, who shall serve at the discretion of
3332     the executive director.
3333          (2) (a) The deputy director of engineering and operations shall be a registered
3334     professional engineer in the state and is the chief engineer of the department. The deputy
3335     director of engineering and operations shall assist the executive director [and is responsible for]
3336     with areas of responsibility including:
3337          [(a) program and project development; and]
3338          [(b) operation and maintenance of the state transportation systems.]
3339          (i) project development;
3340          (ii) oversight of the management of the region offices described in Section 72-1-205;
3341          (iii) management of operations; and
3342          (iv) oversight of operations of motor carriers and ports.

3343          (b) The deputy director of planning and investment shall assist the executive director
3344     with areas of responsibility including:
3345          (i) oversight and coordination of planning, including:
3346          (A) development of statewide strategic initiatives for planning across all modes of
3347     transportation;
3348          (B) coordination with metropolitan planning organizations and local governments; and
3349          (C) corridor and area planning;
3350          (ii) asset management;
3351          (iii) programming and prioritization of transportation projects;
3352          (iv) fulfilling requirements for environmental studies and impact statements; and
3353          (v) resource investment, including identification and development of public-private
3354     partnership opportunities.
3355          (3) The executive director may also appoint assistants to administer the divisions of the
3356     department. These assistants shall serve at the discretion of the executive director.
3357          (4) In addition, the executive director may employ other assistants and advisers as the
3358     executive director finds necessary and fix salaries in accordance with the salary standards
3359     adopted by the Department of Human Resource Management.
3360          Section 37. Section 72-1-204 is amended to read:
3361          72-1-204. Divisions enumerated -- Duties.
3362          The divisions of the department are:
3363          (1) the Comptroller Division responsible for:
3364          (a) all financial aspects of the department, including budgeting, accounting, and
3365     contracting;
3366          (b) providing all material data and documentation necessary for effective fiscal
3367     planning and programming; and
3368          (c) procuring administrative supplies;
3369          (2) the Internal Audit Division responsible for:
3370          (a) conducting and verifying all internal audits and reviews within the department;
3371          (b) performing financial and compliance audits to determine the allowability and
3372     reasonableness of proposals, accounting records, and final costs of consultants, contractors,
3373     utility companies, and other entities used by the department; and

3374          (c) implementing audit procedures that meet or exceed generally accepted auditing
3375     standards relating to revenues, expenditures, and funding;
3376          (3) the Communications Division responsible for:
3377          (a) developing, managing, and implementing the department's public hearing processes
3378     and programs;
3379          (b) responding to public complaints, requests, and input;
3380          (c) assisting the divisions and regions in the department's public involvement
3381     programs;
3382          (d) developing and managing internal department communications; and
3383          (e) managing and overseeing department media relations;
3384          (4) the Program Development Division responsible for:
3385          (a) developing transportation plans for state transportation systems;
3386          (b) collecting, processing, and storing transportation data to support department's
3387     engineering functions;
3388          (c) maintaining and operating the asset management systems;
3389          (d) designating state transportation systems qualifications;
3390          (e) developing a statewide transportation improvement program for approval by the
3391     commission;
3392          (f) providing cartographic services to the department;
3393          (g) assisting local governments in participating in federal-aid transportation programs;
3394     and
3395          (h) providing research services associated with transportation programs;
3396          (5) the Project Development Division responsible for:
3397          (a) developing statewide standards for project design and construction;
3398          (b) providing support for project development in the areas of design environment,
3399     right-of-way, materials testing, structures, value engineering, and construction; and
3400          (c) designing specialty projects; [and]
3401          (6) the Operations Division responsible for:
3402          (a) maintaining the state transportation systems;
3403          (b) state transportation systems safety;
3404          (c) operating state ports-of-entry;

3405          (d) operating state motor carrier safety programs in accordance with this title and
3406     federal law;
3407          (e) aeronautical operations;
3408          (f) providing equipment for department engineering and maintenance functions; and
3409          (g) risk management[.]; and
3410          (7) the Planning and Investment Division responsible for:
3411          (a) creating and managing an intermodal terminal facility to promote economic
3412     development and investment;
3413          (b) promoting strategies to synergize development of an intermodal inland port; and
3414          (c) overseeing and coordinating public-private partnerships.
3415          Section 38. Section 72-1-208 is amended to read:
3416          72-1-208. Cooperation with counties, cities, towns, the federal government, and
3417     all state departments -- Inspection of work done by a public transit district.
3418          (1) The department shall cooperate with the counties, cities, towns, and community
3419     reinvestment agencies in the construction, maintenance, and use of the highways and in all
3420     related matters, and may provide services to the counties, cities, towns, and community
3421     reinvestment agencies on terms mutually agreed upon.
3422          (2) The department, with the approval of the governor, shall cooperate with the federal
3423     government in all federal-aid projects and with all state departments in all matters in
3424     connection with the use of the highways.
3425          (3) The department:
3426          (a) shall inspect all work done by a public transit district under Title 17B, Chapter 2a,
3427     Part 8, Public Transit District Act, relating to safety appliances and procedures; and
3428          (b) may make further additions or changes necessary for the purpose of safety to
3429     employees and the general public.
3430          (4) (a) The department may assume responsibility for any public transit project that
3431     traverses any portion of the state highway systems.
3432          (b) To determine whether the department will assume responsibility for a public transit
3433     project, the executive director and the public transit agency proposing the development shall
3434     jointly determine whether the department will assume responsibility.
3435          Section 39. Section 72-1-211 is amended to read:

3436          72-1-211. Department to develop strategic initiatives -- Report -- Rulemaking.
3437          (1) (a) The executive director shall develop statewide strategic initiatives [for the
3438     department] across all modes of transportation.
3439          (b) To develop the strategic initiatives described in Subsection (1)(a), the executive
3440     director shall consult with the commission and relevant stakeholders, including:
3441          (i) metropolitan planning organizations;
3442          (ii) county and municipal governments;
3443          (iii) transit districts; and
3444          (iv) other transportation stakeholders.
3445          (c) To develop the strategic initiatives described in Subsection (1)(a), the executive
3446     director shall consider:
3447          (i) regional transportation plans developed by metropolitan planning organizations;
3448          (ii) local transportation plans developed by county and municipal governments;
3449          (iii) public transit plans developed by public transit districts; and
3450          (iv) other relevant transportation plans developed by other stakeholders.
3451          (d) To develop the strategic initiatives described in Subsection (1)(a), the executive
3452     director shall consider projected major centers of economic activity, population growth, and
3453     job centers.
3454          (2) (a) The strategic initiatives developed under Subsection (1) shall include
3455     consideration of the following factors:
3456          [(a)] (i) corridor preservation;
3457          (ii) congestion reduction;
3458          (iii) economic development and job creation;
3459          (iv) asset management;
3460          (v) sustainability;
3461          (vi) optimization of return on investment;
3462          [(b)] (vii) development of new transportation capacity projects;
3463          [(c)] (viii) long-term maintenance and operations of the transportation system;
3464          [(d)] (ix) safety;
3465          [(e)] (x) incident management; [and]
3466          [(f)] (xi) homeland security[.];

3467          (xii) mobility and access; and
3468          (xiii) transportation related air quality.
3469          (b) The strategic initiatives shall include an assessment of capacity needs and establish
3470     goals for corridors that meet all of the following:
3471          (i) high volume of travel and throughput;
3472          (ii) connection of projected major centers of economic activity, population growth, and
3473     future job centers;
3474          (iii) major freight corridors; and
3475          (iv) corridors accommodating multiple modes of travel.
3476          (3) (a) The executive director or the executive director's designee shall report the
3477     strategic initiatives of the department developed under Subsection (1) to the Transportation
3478     Commission and, before December 1 of each year, the Transportation Interim Committee.
3479          (b) The report required under Subsection (3)(a) shall include the measure that will be
3480     used to determine whether the strategic initiatives have been achieved.
3481          (4) After compliance with Subsection (3) and in accordance with Title 63G, Chapter 3,
3482     Utah Administrative Rulemaking Act, the department shall make rules establishing the
3483     strategic initiatives developed under this part.
3484          (5) The executive director shall ensure that the strategic initiatives developed under
3485     Subsection (1):
3486          (a) are reviewed and updated as needed, but no less frequent than every four years; and
3487          (b) cover at least a 20-year horizon.
3488          Section 40. Section 72-1-213 is amended to read:
3489          72-1-213. Road usage charge study -- Recommendations.
3490          (1) (a) The department shall[: (1) continue to] study a road usage charge mileage-based
3491     revenue system, including a [potential] demonstration program, as an alternative to the motor
3492     and special tax[; and].
3493          [(2) make recommendations to the Legislature and other policymaking bodies on the
3494     potential use and future implementation of a road usage charge within the state.]
3495          (b) The demonstration program may consider:
3496          (i) the necessity of protecting all personally identifiable information used in reporting
3497     highway use;

3498          (ii) alternatives to recording and reporting highway use;
3499          (iii) alternatives to administration of a road usage charge program; and
3500          (iv) other factors as determined by the department.
3501          (2) (a) The department shall create a Road Usage Charge Advisory Committee to assist
3502     the department to conduct a road usage charge demonstration program.
3503          (b) The executive director shall appoint members of the committee, considering
3504     individuals with experience and expertise in the following areas:
3505          (i) telecommunications;
3506          (ii) data security and privacy;
3507          (iii) privacy rights advocacy organizations;
3508          (iv) transportation agencies with technical expertise;
3509          (v) national research;
3510          (vi) members of the Legislature;
3511          (vii) representatives from the State Tax Commission; and
3512          (viii) other relevant stakeholders as determined by the executive director.
3513          (c) The executive director or the executive director's designee shall serve as chair of the
3514     committee.
3515          (d) A member of the committee may not receive compensation or benefits for the
3516     member's service, but may receive per diem and travel expenses in accordance with:
3517          (i) Section 63A-3-106;
3518          (ii) Section 63A-3-107; and
3519          (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
3520     63A-3-107.
3521          (e) The department shall provide staff support to the committee.
3522          (3) (a) Beginning in 2019, and no later than September 30 of each year, the department
3523     shall prepare and submit a report of its findings based on the results of the road usage charge
3524     demonstration program to the:
3525          (i) Road Usage Charge Advisory Committee created under Subsection (2);
3526          (ii) Transportation Commission;
3527          (iii) Transportation Interim Committee of the Legislature; and
3528          (iv) Revenue and Taxation Interim Committee of the Legislature.

3529          (b) The report shall review the following issues:
3530          (i) cost;
3531          (ii) privacy, including recommendations regarding public and private access, including
3532     by law enforcement, to data collected and stored for purposes of the road usage charge to
3533     ensure individual privacy rights are protected;
3534          (iii) jurisdictional issues;
3535          (iv) feasibility;
3536          (v) complexity;
3537          (vi) acceptance;
3538          (vii) use of revenues;
3539          (viii) security and compliance, including a discussion of processes and security
3540     measures necessary to minimize fraud and tax evasion rates;
3541          (ix) data collection technology, including a discussion of the advantages and
3542     disadvantages of various types of data collection equipment and the privacy implications and
3543     considerations of the equipment;
3544          (x) potential for additional driver services; and
3545          (xi) implementation issues.
3546          (c) The report may make recommendations to the Legislature and other policymaking
3547     bodies on the potential use and future implementation of a road usage charge within the state.
3548          (4) Upon full implementation of a road user charge program for alternative fuel
3549     vehicles, which shall occur no later than January 1, 2020, the department, in coordination with
3550     the Motor Vehicle Division, shall offer the option to an owner of an alternative fuel vehicle as
3551     defined in Section 41-1a-102 to:
3552          (a) pay an increased motor vehicle registration fee required in Subsection
3553     41-1a-1206(1)(h) or (2)(b); or
3554          (b) participate in a road user charge program.
3555          Section 41. Section 72-1-214 is amended to read:
3556          72-1-214. Department designated as state safety oversight agency for rail fixed
3557     guideway public transportation safety -- Powers and duties -- Rulemaking.
3558          (1) (a) Except as provided in Subsection (1)(b), as used in this section, "fixed
3559     guideway" means the same as that term is defined in Section 59-12-102.

3560          (b) For purposes of this section, "fixed guideway" does not include a rail system
3561     subject to regulation by the Federal Railroad Administration.
3562          (2) The department is designated as the state safety oversight agency for rail fixed
3563     guideway public transportation safety in accordance with 49 U.S.C. Sec. 5329(e)(4).
3564          (3) As the state safety oversight agency, the department may, to the extent necessary to
3565     fulfill the department's obligations under federal law:
3566          (a) enter into and inspect the property of a fixed guideway rail system receiving federal
3567     funds without prior notice to the operator;
3568          (b) audit an operator of a fixed guideway rail system receiving federal funds for
3569     compliance with:
3570          (i) federal and state laws regarding the safety of the fixed guideway rail system; and
3571          (ii) a public transportation agency safety plan adopted by a specific operator in
3572     accordance with 49 U.S.C. Sec. 5329(d);
3573          (c) direct the operator of a fixed guideway rail system to correct a safety hazard by a
3574     specified date and time;
3575          (d) prevent the operation of all or part of a fixed guideway rail system that the
3576     department has determined to be unsafe;
3577          (e) audit, review, approve, and oversee an operator of a fixed guideway rail system
3578     receiving federal funds for compliance with a plan adopted by the operator in compliance with
3579     49 U.S.C. Sec. 5329(d); and
3580          (f) enforce statutes, rules, regulations, and executive orders relating to the operation of
3581     a fixed guideway rail public transportation system in Utah.
3582          (4) The department shall, at least annually, provide a status report on the safety of the
3583     rail fixed guideway public transportation systems the department oversees to:
3584          (a) the Federal Transit Administration;
3585          (b) the governor; and
3586          (c) members of the board of any rail fixed guideway public transportation system that
3587     the department oversees in accordance with this section.
3588          (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3589     the department shall make rules necessary to administer and enforce this section[.], including
3590     rules providing for the legal and financial independence of state safety oversight agency

3591     activities and functions.
3592          (b) The rules made in accordance with Subsection (5)(a) shall conform to the
3593     requirements of and regulations enacted in accordance with 49 U.S.C. Sec. 5329.
3594          (6) (a) Notwithstanding any other agreement, a county, city, or town with fixed
3595     guideway rail transit service provided by a public transit district that is subject to safety
3596     oversight as provided in this section may request local option transit sales tax in accordance
3597     with Section 59-12-2206 and spend local option transit sales tax in the amount requested by the
3598     department to meet nonfederal match requirements for costs of safety oversight described in
3599     this section.
3600          (b) A county, city, or town that requests local option transit sales tax as described in
3601     Subsection (6)(a) shall transmit to the department all of the funds requested under Subsection
3602     (6)(a) and transmitted to the county, city, or town under Subsection 59-12-2206(5)(b).
3603          (c) A county, city, or town that requests local option transit sales tax as described in
3604     Subsection (6)(a) may not request more local option transit sales tax than is necessary to carry
3605     out the state safety oversight functions under this section and the amount shall only reflect a
3606     maximum of 20% nonfederal match requirement of eligible costs of state safety oversight.
3607          Section 42. Section 72-1-303 is amended to read:
3608          72-1-303. Duties of commission.
3609          (1) The commission has the following duties:
3610          (a) determining priorities and funding levels of projects in the state transportation
3611     systems and capital development of new public transit facilities for each fiscal year based on
3612     project lists compiled by the department and taking into consideration the strategic initiatives
3613     described in Section 72-1-211;
3614          (b) determining additions and deletions to state highways under Chapter 4, Designation
3615     of State Highways Act;
3616          (c) holding public hearings and otherwise providing for public input in transportation
3617     matters;
3618          (d) making policies and rules in accordance with Title 63G, Chapter 3, Utah
3619     Administrative Rulemaking Act, necessary to perform the commission's duties described under
3620     this section;
3621          (e) in accordance with Section 63G-4-301, reviewing orders issued by the executive

3622     director in adjudicative proceedings held in accordance with Title 63G, Chapter 4,
3623     Administrative Procedures Act;
3624          (f) advising the department in state transportation systems policy;
3625          (g) approving settlement agreements of condemnation cases subject to Section
3626     63G-10-401;
3627          (h) in accordance with Section 17B-2a-807, appointing a commissioner to serve as a
3628     nonvoting, ex officio member or a voting member on the board of trustees of a public transit
3629     district;
3630          (i) in accordance with Section 17B-2a-808, reviewing, at least annually, the short-term
3631     and long-range public transit plans; and
3632          (j) reviewing administrative rules made, amended, or repealed by the department.
3633          (2) (a) For projects prioritized with funding provided under Sections 72-2-124 and
3634     72-2-125, the commission shall annually report to a committee designated by the Legislative
3635     Management Committee:
3636          (i) a prioritized list of the new transportation capacity projects in the state
3637     transportation system and the funding levels available for those projects; and
3638          (ii) the unfunded highway construction and maintenance needs within the state.
3639          (b) The committee designated by the Legislative Management Committee under
3640     Subsection (2)(a) shall:
3641          (i) review the list reported by the Transportation Commission; and
3642          (ii) make a recommendation to the Legislature on:
3643          (A) the amount of additional funding to allocate to transportation; and
3644          (B) the source of revenue for the additional funding allocation under Subsection
3645     (2)(b)(ii)(A).
3646          (3) The commission shall review and may approve plans for the construction of a
3647     highway facility over sovereign lakebed lands in accordance with Chapter 6, Part 3, Approval
3648     of Highway Facilities on Sovereign Lands Act.
3649          Section 43. Section 72-1-304 is amended to read:
3650          72-1-304. Written project prioritization process for new transportation capacity
3651     projects -- Rulemaking.
3652          (1) (a) The Transportation Commission, in consultation with the department and the

3653     metropolitan planning organizations as defined in Section 72-1-208.5, shall develop a written
3654     prioritization process for the prioritization of new transportation capacity projects that are or
3655     will be part of the state highway system under Chapter 4, Part 1, State Highways, or public
3656     transit projects that add capacity to the public transit systems within the state.
3657          (b) (i) A local government or district may nominate a project for prioritization in
3658     accordance with the process established by the commission in rule.
3659          (ii) If a local government or district nominates a project for prioritization by the
3660     commission, the local government or district shall provide data and evidence to show that:
3661          (A) the project will advance the purposes and goals described in Section 72-1-211;
3662          (B) for a public transit project, the local government or district has an ongoing funding
3663     source for operations and maintenance of the proposed development; and
3664          (C) the local government or district will provide 40% of the funds for the project as
3665     required by Subsection 72-2-124(7)(e).
3666          (2) The following shall be included in the written prioritization process under
3667     Subsection (1):
3668          (a) a description of how the strategic initiatives of the department adopted under
3669     Section 72-1-211 are advanced by the written prioritization process;
3670          (b) a definition of the type of projects to which the written prioritization process
3671     applies;
3672          (c) specification of a weighted criteria system that is used to rank proposed projects
3673     and how it will be used to determine which projects will be prioritized;
3674          (d) specification of the data that is necessary to apply the weighted ranking criteria; and
3675          (e) any other provisions the commission considers appropriate[.], which may include
3676     consideration of:
3677          (i) regional and statewide economic development impacts, including improved local
3678     access to:
3679          (A) employment;
3680          (B) recreation;
3681          (C) commerce; and
3682          (D) residential areas;
3683          (ii) the extent to which local land use plans relevant to a project support and

3684     accomplish the strategic initiatives adopted under Section 72-1-211; and
3685          (iii) any matching funds provided by a political subdivision or public transit district in
3686     addition to the 40% required by Subsection 72-2-124(7)(e).
3687          (3) In developing the written prioritization process, the commission:
3688          (a) shall seek and consider public comment by holding public meetings at locations
3689     throughout the state; and
3690          (b) may not consider local matching dollars as provided under Section 72-2-123 unless
3691     the state provides an equal opportunity to raise local matching dollars for state highway
3692     improvements within each county.
3693          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3694     Transportation Commission, in consultation with the department, shall make rules establishing
3695     the written prioritization process under Subsection (1).
3696          (5) The commission shall submit the proposed rules under this section to a committee
3697     or task force designated by the Legislative Management Committee for review prior to taking
3698     final action on the proposed rules or any proposed amendment to the rules described in
3699     Subsection (4).
3700          Section 44. Section 72-1-305 is amended to read:
3701          72-1-305. Project selection using the written prioritization process -- Public
3702     comment -- Report.
3703          (1) Except as provided in Subsection (4), in determining priorities and funding levels
3704     of projects in the state transportation system under Subsection 72-1-303(1)(a) that are new
3705     transportation capacity projects, the commission shall use the weighted criteria system adopted
3706     in the written prioritization process under Section 72-1-304.
3707          (2) Prior to finalizing priorities and funding levels of projects in the state transportation
3708     system, the commission shall conduct public hearings at locations around the state and accept
3709     public comments on:
3710          (a) the written prioritization process;
3711          (b) the merits of new transportation capacity projects that will be prioritized under this
3712     section; and
3713          (c) the merits of new transportation capacity projects as recommended by a consensus
3714     of local elected officials participating in a metropolitan planning organization as defined in

3715     Section 72-1-208.5.
3716          (3) The commission shall make the weighted criteria system ranking for each project
3717     publicly available prior to the public hearings held under Subsection (2).
3718          (4) (a) If the commission prioritizes a project over another project with a higher rank
3719     under the weighted criteria system, the commission shall identify the change and accept public
3720     comment at a hearing held under this section on the merits of prioritizing the project above
3721     higher ranked projects.
3722          (b) The commission shall make the reasons for the prioritization under Subsection
3723     (4)(a) publicly available.
3724          (5) (a) The executive director or the executive director's designee shall report annually
3725     to the governor and a committee designated by the Legislative Management Committee no later
3726     than the last day of October:
3727          [(a)] (i) the projects prioritized under this section during the year prior to the report;
3728     and
3729          [(b)] (ii) the status and progress of all projects prioritized under this section.
3730          (b) Annually, before any funds are programmed and allocated from the Transit
3731     Transportation Investment Fund created in Section 72-2-124 for each fiscal year, the executive
3732     director or the executive director's designee, along with the executive director of a large public
3733     transit district as described in Section 17B-2a-802, shall report to the governor and a committee
3734     designated by the Legislative Management Committee no later than the last day of October:
3735          (i) the public transit projects prioritized under this section during the year prior to the
3736     report; and
3737          (ii) the status and progress of all public transit projects prioritized under this section.
3738          (6) (a) The department may not delay a new transportation capacity project that was
3739     funded by the Legislature in an appropriations act to a different fiscal year than programmed by
3740     the commission due to an unavoidable shortfall in revenues unless the project delays are
3741     prioritized and approved by the Transportation Commission.
3742          (b) The Transportation Commission shall prioritize and approve any new
3743     transportation capacity project delays for projects that were funded by the Legislature in an
3744     appropriations act due to an unavoidable shortfall in revenues.
3745          Section 45. Section 72-2-117.5 is amended to read:

3746          72-2-117.5. Definitions -- Local Highway and Transportation Corridor
3747     Preservation Fund -- Disposition of fund money.
3748          (1) As used in this section:
3749          (a) "Council of governments" means a decision-making body in each county composed
3750     of membership including the county governing body and the mayors of each municipality in the
3751     county.
3752          (b) "Metropolitan planning organization" has the same meaning as defined in Section
3753     72-1-208.5.
3754          (2) There is created the Local Highway and Transportation Corridor Preservation Fund
3755     within the Transportation Fund.
3756          (3) The fund shall be funded from the following sources:
3757          (a) a local option highway construction and transportation corridor preservation fee
3758     imposed under Section 41-1a-1222;
3759          (b) appropriations made to the fund by the Legislature;
3760          (c) contributions from other public and private sources for deposit into the fund;
3761          (d) all money collected from rents and sales of real property acquired with fund money;
3762          (e) proceeds from general obligation bonds, revenue bonds, or other obligations issued
3763     as authorized by Title 63B, Bonds;
3764          (f) the portion of the sales and use tax described in Subsection 59-12-2217[(2)(b) and
3765     required by Subsection 59-12-2217(8)(a) to be] deposited into the fund; and
3766          (g) sales and use tax revenues deposited into the fund in accordance with Section
3767     59-12-2218.
3768          (4) (a) The fund shall earn interest.
3769          (b) All interest earned on fund money shall be deposited into the fund.
3770          (c) The State Tax Commission shall allocate the revenues:
3771          (i) provided under Subsection (3)(a) to each county imposing a local option highway
3772     construction and transportation corridor preservation fee under Section 41-1a-1222;
3773          (ii) provided under Subsection 59-12-2217(2)(b) to each county imposing a county
3774     option sales and use tax for transportation; and
3775          (iii) provided under Subsection (3)(g) to each county of the second class or city or town
3776     within a county of the second class that imposes the sales and use tax authorized by Section

3777     59-12-2218.
3778          (d) The department shall distribute the funds allocated to each county, city, or town
3779     under Subsection (4)(c) to each county, city, or town.
3780          (e) The money allocated and distributed under this Subsection (4):
3781          (i) shall be used for the purposes provided in this section for each county, city, or town;
3782          (ii) is allocated to each county, city, or town as provided in this section with the
3783     condition that the state will not be charged for any asset purchased with the money allocated
3784     and distributed under this Subsection (4), unless there is a written agreement in place with the
3785     department prior to the purchase of the asset stipulating a reimbursement by the state to the
3786     county, city, or town of no more than the original purchase price paid by the county, city, or
3787     town; and
3788          (iii) is considered a local matching contribution for the purposes described under
3789     Section 72-2-123 if used on a state highway.
3790          (f) Administrative costs of the department to implement this section shall be paid from
3791     the fund.
3792          (5) (a) A highway authority may acquire real property or any interests in real property
3793     for state, county, and municipal highway or public transit corridors subject to:
3794          (i) money available in the fund to each county under Subsection (4); and
3795          (ii) the provisions of this section.
3796          (b) Fund money may be used to pay interest on debts incurred in accordance with this
3797     section.
3798          (c) (i) (A) Fund money may be used to pay maintenance costs of properties acquired
3799     under this section but limited to a total of 5% of the purchase price of the property.
3800          (B) Any additional maintenance cost shall be paid from funds other than under this
3801     section.
3802          (C) Revenue generated by any property acquired under this section is excluded from
3803     the limitations under this Subsection (5)(c)(i).
3804          (ii) Fund money may be used to pay direct costs of acquisition of properties acquired
3805     under this section.
3806          (d) Fund money allocated and distributed under Subsection (4) may be used by a
3807     county highway authority for countywide transportation or public transit planning if:

3808          (i) the county's planning focus area is outside the boundaries of a metropolitan
3809     planning organization;
3810          (ii) the transportation planning is part of the county's continuing, cooperative, and
3811     comprehensive process for transportation or public transit planning, corridor preservation,
3812     right-of-way acquisition, and project programming;
3813          (iii) no more than four years allocation every 20 years to each county is used for
3814     transportation planning under this Subsection (5)(d); and
3815          (iv) the county otherwise qualifies to use the fund money as provided under this
3816     section.
3817          (e) (i) Subject to Subsection (11), fund money allocated and distributed under
3818     Subsection (4) may be used by a county highway authority for transportation or public transit
3819     corridor planning that is part of the corridor elements of an ongoing work program of
3820     transportation or public transit projects.
3821          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
3822     direction of:
3823          (A) the metropolitan planning organization if the county is within the boundaries of a
3824     metropolitan planning organization; or
3825          (B) the department if the county is not within the boundaries of a metropolitan
3826     planning organization.
3827          (f) (i) A county, city, or town that imposes a local option highway construction and
3828     transportation corridor preservation fee under Section 41-1a-1222 may elect to administer the
3829     funds allocated and distributed to that county, city, or town under Subsection (4) as a revolving
3830     loan fund.
3831          (ii) If a county, city, or town elects to administer the funds allocated and distributed to
3832     that county, city, or town under Subsection (4) as a revolving loan fund, a local highway
3833     authority shall repay the fund money authorized for the project to the fund.
3834          (iii) A county, city, or town that elects to administer the funds allocated and distributed
3835     to that county, city, or town under Subsection (4) as a revolving loan fund shall establish
3836     repayment conditions of the money to the fund from the specified project funds.
3837          (g) (i) Subject to the restrictions in Subsections (5)(g)(ii) and (iii), fund money may be
3838     used by a county of the third, fourth, fifth, or sixth class or by a city or town within a county of

3839     the third, fourth, fifth, or sixth class for:
3840          (A) the construction, operation, or maintenance of a class B road or class C road; or
3841          (B) the restoration or repair of survey monuments associated with transportation
3842     infrastructure.
3843          (ii) A county, city, or town may not use more than 50% of the current balance of fund
3844     money allocated to the county, city, or town for the purposes described in Subsection (5)(g)(i).
3845          (iii) A county, city, or town may not use more than 50% of the fund revenue collections
3846     allocated to a county, city, or town in the current fiscal year for the purposes described in
3847     Subsection (5)(g)(i).
3848          (6) (a) (i) The Local Highway and Transportation Corridor Preservation Fund shall be
3849     used to preserve highway and public transit corridors, promote long-term statewide
3850     transportation planning, save on acquisition costs, and promote the best interests of the state in
3851     a manner which minimizes impact on prime agricultural land.
3852          (ii) The Local Highway and Transportation Corridor Preservation Fund shall only be
3853     used to preserve a highway or public transit corridor that is right-of-way:
3854          (A) in a county of the first or second class for:
3855          (I) a state highway;
3856          (II) a principal arterial highway as defined in Section 72-4-102.5;
3857          (III) a minor arterial highway as defined in Section 72-4-102.5; [or]
3858          (IV) a collector highway in an urban area as defined in Section 72-4-102.5; or
3859          (V) a transit facility as defined in Section 17B-2a-802; or
3860          (B) in a county of the third, fourth, fifth, or sixth class for:
3861          (I) a state highway;
3862          (II) a principal arterial highway as defined in Section 72-4-102.5;
3863          (III) a minor arterial highway as defined in Section 72-4-102.5;
3864          (IV) a major collector highway as defined in Section 72-4-102.5; [or]
3865          (V) a minor collector road as defined in Section 72-4-102.5[.]; or
3866          (VI) a transit facility as defined in Section 17B-2a-802.
3867          (iii) The Local Highway and Transportation Corridor Preservation Fund may not be
3868     used for a highway corridor that is primarily a recreational trail as defined under Section
3869     79-5-102.

3870          (b) A highway authority shall authorize the expenditure of fund money after
3871     determining that the expenditure is being made in accordance with this section from
3872     applications that are:
3873          (i) endorsed by the council of governments; and
3874          (ii) for a right-of-way purchase for a highway or public transit corridor authorized
3875     under Subsection (6)(a)(ii).
3876          (7) (a) (i) A council of governments shall establish a council of governments
3877     endorsement process which includes prioritization and application procedures for use of the
3878     money allocated to each county under this section.
3879          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
3880     endorsement of the preservation project by:
3881          (A) the metropolitan planning organization if the county is within the boundaries of a
3882     metropolitan planning organization; or
3883          (B) the department if the county is not within the boundaries of a metropolitan
3884     planning organization.
3885          (b) All fund money shall be prioritized by each highway authority and council of
3886     governments based on considerations, including:
3887          (i) areas with rapidly expanding population;
3888          (ii) the willingness of local governments to complete studies and impact statements
3889     that meet department standards;
3890          (iii) the preservation of corridors by the use of local planning and zoning processes;
3891          (iv) the availability of other public and private matching funds for a project;
3892          (v) the cost-effectiveness of the preservation projects;
3893          (vi) long and short-term maintenance costs for property acquired; and
3894          (vii) whether the transportation or public transit corridor is included as part of:
3895          (A) the county and municipal master plan; and
3896          (B) (I) the statewide long range plan; or
3897          (II) the regional transportation plan of the area metropolitan planning organization if
3898     one exists for the area.
3899          (c) The council of governments shall:
3900          (i) establish a priority list of highway and public transit corridor preservation projects

3901     within the county;
3902          (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
3903     approval; and
3904          (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the
3905     members of the county legislative body.
3906          (d) A county's council of governments may only submit one priority list described in
3907     Subsection (7)(c)(i) per calendar year.
3908          (e) A county legislative body may only consider and approve one priority list described
3909     in Subsection (7)(c)(i) per calendar year.
3910          (8) (a) Unless otherwise provided by written agreement with another highway authority
3911     or public transit district, the highway authority that holds the deed to the property is responsible
3912     for maintenance of the property.
3913          (b) The transfer of ownership for property acquired under this section from one
3914     highway authority to another shall include a recorded deed for the property and a written
3915     agreement between the highway authorities or public transit district.
3916          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
3917     Local Highway and Transportation Corridor Preservation Fund shall be used for the purposes
3918     authorized for funds under this section.
3919          (b) The highway authority shall pledge the necessary part of the revenues of the Local
3920     Highway and Transportation Corridor Preservation Fund to the payment of principal and
3921     interest on the bonds or other obligations.
3922          (10) (a) A highway authority may not expend money under this section to purchase a
3923     right-of-way for a state highway unless the highway authority has:
3924          (i) a transportation corridor property acquisition policy or ordinance in effect that
3925     meets department requirements for the acquisition of real property or any interests in real
3926     property under this section; and
3927          (ii) an access management policy or ordinance in effect that meets the requirements
3928     under Subsection 72-2-117(8).
3929          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
3930     written agreement with the department for the department to acquire real property or any
3931     interests in real property on behalf of the local highway authority under this section.

3932          (11) The county shall ensure, to the extent possible, that the fund money allocated and
3933     distributed to a city or town in accordance with Subsection (4) is expended:
3934          (a) to fund a project or service as allowed by this section within the city or town to
3935     which the fund money is allocated;
3936          (b) to pay debt service, principal, or interest on a bond or other obligation as allowed
3937     by this section if that bond or other obligation is:
3938          (i) secured by money allocated to the city or town; and
3939          (ii) issued to finance a project or service as allowed by this section within the city or
3940     town to which the fund money is allocated;
3941          (c) to fund transportation planning as allowed by this section within the city or town to
3942     which the fund money is allocated; or
3943          (d) for another purpose allowed by this section within the city or town to which the
3944     fund money is allocated.
3945          (12) Notwithstanding any other provision in this section, any amounts within the fund
3946     allocated to a public transit district or for a public transit corridor may only be derived from the
3947     portion of the fund that does not include constitutionally restricted sources related to the
3948     operation of a motor vehicle on a public highway or proceeds from an excise tax on liquid
3949     motor fuel to propel a motor vehicle.
3950          Section 46. Section 72-2-121 is amended to read:
3951          72-2-121. County of the First Class Highway Projects Fund.
3952          (1) There is created a special revenue fund within the Transportation Fund known as
3953     the "County of the First Class Highway Projects Fund."
3954          (2) The fund consists of money generated from the following revenue sources:
3955          (a) any voluntary contributions received for new construction, major renovations, and
3956     improvements to highways within a county of the first class;
3957          (b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
3958     deposited in or transferred to the fund;
3959          (c) the portion of the sales and use tax described in Subsection 59-12-2217[(2)(b) and
3960     required by Subsection 59-12-2217(8)(b) to be] deposited in or transferred to the fund; and
3961          (d) a portion of the local option highway construction and transportation corridor
3962     preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or

3963     transferred to the fund.
3964          (3) (a) The fund shall earn interest.
3965          (b) All interest earned on fund money shall be deposited into the fund.
3966          (4) The executive director shall use the fund money only:
3967          (a) to pay debt service and bond issuance costs for bonds issued under Sections
3968     63B-16-102, 63B-18-402, and 63B-27-102;
3969          (b) for right-of-way acquisition, new construction, major renovations, and
3970     improvements to highways within a county of the first class and to pay any debt service and
3971     bond issuance costs related to those projects, including improvements to a highway located
3972     within a municipality in a county of the first class where the municipality is located within the
3973     boundaries of more than a single county;
3974          (c) for the construction, acquisition, use, maintenance, or operation of:
3975          (i) an active transportation facility for nonmotorized vehicles;
3976          (ii) multimodal transportation that connects an origin with a destination; or
3977          (iii) a facility that may include a:
3978          (A) pedestrian or nonmotorized vehicle trail;
3979          (B) nonmotorized vehicle storage facility;
3980          (C) pedestrian or vehicle bridge; or
3981          (D) vehicle parking lot or parking structure;
3982          (d) for fiscal year 2012-13 only, to pay for or to provide funds to a municipality or
3983     county to pay for a portion of right-of-way acquisition, construction, reconstruction,
3984     renovations, and improvements to highways described in Subsections 72-2-121.4(7), (8), and
3985     (9);
3986          (e) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
3987     Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the amounts
3988     transferred in accordance with Subsection 72-2-124(4)(a)(iv);
3989          (f) for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
3990     issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the projects
3991     described in Subsection 63B-18-401(4)(a);
3992          (g) for a fiscal year beginning on or after July 1, 2013, and after the department has
3993     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund, to

3994     transfer an amount equal to 50% of the revenue generated by the local option highway
3995     construction and transportation corridor preservation fee imposed under Section 41-1a-1222 in
3996     a county of the first class:
3997          (i) to the legislative body of a county of the first class; and
3998          (ii) to be used by a county of the first class for:
3999          (A) highway construction, reconstruction, or maintenance projects; or
4000          (B) the enforcement of state motor vehicle and traffic laws;
4001          (h) for fiscal year 2015 only, and after the department has verified that the amount
4002     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
4003     Subsection (4)(f) has been made, to transfer an amount equal to the remainder of the revenue
4004     available in the fund for the 2015 fiscal year:
4005          (i) to the legislative body of a county of the first class; and
4006          (ii) to be used by a county of the first class for:
4007          (A) highway construction, reconstruction, or maintenance projects; or
4008          (B) the enforcement of state motor vehicle and traffic laws;
4009          (i) for fiscal year 2015-16 only, and after the department has verified that the amount
4010     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
4011     Subsection (4)(f) has been made, to transfer an amount equal to $25,000,000:
4012          (i) to the legislative body of a county of the first class; and
4013          (ii) to be used by the county for the purposes described in this section;
4014          (j) for a fiscal year beginning on or after July 1, 2015, after the department has verified
4015     that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the
4016     transfer under Subsection (4)(f) has been made, to annually transfer an amount equal to up to
4017     42.5% of the sales and use tax revenue imposed in a county of the first class and deposited into
4018     the fund in accordance with Subsection 59-12-2214(3)(b) to:
4019          (i) the appropriate debt service or sinking fund for the repayment of bonds issued under
4020     Section 63B-27-102; and
4021          (ii) the Transportation Investment Fund of 2005 created in Section 72-2-124 until
4022     $28,079,000 has been deposited into the Transportation Investment Fund of 2005; and
4023          (k) for a fiscal year beginning after the amount described in Subsection (4)(j) has been
4024     repaid to the Transportation Investment Fund of 2005 until fiscal year 2030, after the

4025     department has verified that the amount required under Subsection 72-2-121.3(4)(c) is
4026     available in the fund and the transfer under Subsection (4)(f) has been made, and after the
4027     bonds under Section 63B-27-102 have been repaid, to annually transfer an amount equal to up
4028     to 42.5% of the sales and use tax revenue imposed in a county of the first class and deposited
4029     into the fund in accordance with Subsection 59-12-2214(3)(b):
4030          (i) to the legislative body of a county of the first class; and
4031          (ii) to be used by the county for the purposes described in this section.
4032          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
4033     fund and bond proceeds from bonds issued under Sections 63B-16-102, 63B-18-402, and
4034     63B-27-102 are considered a local matching contribution for the purposes described under
4035     Section 72-2-123.
4036          (6) The additional administrative costs of the department to administer this fund shall
4037     be paid from money in the fund.
4038          (7) Notwithstanding any statutory or other restrictions on the use or expenditure of the
4039     revenue sources deposited into this fund, the Department of Transportation may use the money
4040     in this fund for any of the purposes detailed in Subsection (4).
4041          Section 47. Section 72-2-124 is amended to read:
4042          72-2-124. Transportation Investment Fund of 2005.
4043          (1) There is created a capital projects fund entitled the Transportation Investment Fund
4044     of 2005.
4045          (2) The fund consists of money generated from the following sources:
4046          (a) any voluntary contributions received for the maintenance, construction,
4047     reconstruction, or renovation of state and federal highways;
4048          (b) appropriations made to the fund by the Legislature;
4049          (c) registration fees designated under Section 41-1a-1201;
4050          [(c)] (d) the sales and use tax revenues deposited into the fund in accordance with
4051     Section 59-12-103; and
4052          [(d) registration fees designated under Section 41-1a-1201; and]
4053          (e) revenues transferred to the fund in accordance with Section 72-2-106.
4054          (3) (a) The fund shall earn interest.
4055          (b) All interest earned on fund money shall be deposited into the fund.

4056          (4) (a) Except as provided in Subsection (4)(b), the executive director may use fund
4057     money only to pay:
4058          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
4059     federal highways prioritized by the Transportation Commission through the prioritization
4060     process for new transportation capacity projects adopted under Section 72-1-304;
4061          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
4062     projects described in Subsections 63B-18-401(2), (3), and (4);
4063          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
4064     minus the costs paid from the County of the First Class Highway Projects Fund in accordance
4065     with Subsection 72-2-121(4)(f);
4066          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
4067     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
4068     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
4069     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
4070          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
4071     for projects prioritized in accordance with Section 72-2-125;
4072          (vi) all highway general obligation bonds that are intended to be paid from revenues in
4073     the Centennial Highway Fund created by Section 72-2-118; and
4074          (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
4075     Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
4076     in Section 72-2-121.
4077          (b) The executive director may use fund money to exchange for an equal or greater
4078     amount of federal transportation funds to be used as provided in Subsection (4)(a).
4079          (5) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
4080     in any fiscal year, the department and the commission shall appear before the Executive
4081     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
4082     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
4083     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
4084          (b) The Executive Appropriations Committee of the Legislature shall review and
4085     comment on the amount of bond proceeds needed to fund the projects.
4086          (6) The Division of Finance shall, from money deposited into the fund, transfer the

4087     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
4088     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
4089     sinking fund.
4090          (7) (a) There is created in the Transportation Investment Fund of 2005 the Transit
4091     Transportation Investment Fund.
4092          (b) The fund shall be funded by:
4093          (i) contributions deposited into the fund in accordance with Section 59-12-103;
4094          (ii) appropriations into the account by the Legislature;
4095          (iii) private contributions; and
4096          (iv) donations or grants from public or private entities.
4097          (c) (i) The fund shall earn interest.
4098          (ii) All interest earned on fund money shall be deposited into the fund.
4099          (d) Subject to Subsection (7)(e), the Legislature may appropriate money from the fund
4100     for public transit capital development of new capacity projects to be used as prioritized by the
4101     commission.
4102          (e) (i) The Legislature may only appropriate money from the fund for a public transit
4103     capital development project if the public transit district or political subdivision provides funds
4104     of equal to or greater than 40% of the funds needed for the project.
4105          (ii) A public transit district or political subdivision may use money derived from a loan
4106     granted pursuant to Title 72, Chapter 2, Part 2, Transportation Infrastructure Loan Fund, to
4107     provide all or part of the 40% requirement described in Subsection (7)(e)(i) if:
4108          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
4109     Transportation Infrastructure Loan Fund; and
4110          (B) the proposed capital project has been prioritized by the commission pursuant to
4111     Section 72-1-303.
4112          Section 48. Section 72-5-401 is amended to read:
4113          72-5-401. Definitions.
4114          As used in this part:
4115          (1) "Corridor" means the path or proposed path of a transportation facility, including a
4116     public transit facility, that exists or that may exist in the future[. A corridor], and may include
4117     the land occupied or to be occupied by a transportation facility, and any other land that may be

4118     needed for expanding a transportation facility or for controlling access to it.
4119          (2) "Corridor preservation" means planning or acquisition processes intended to:
4120          (a) protect or enhance the capacity of existing corridors; and
4121          (b) protect the availability of proposed corridors in advance of the need for and the
4122     actual commencement of the transportation facility construction.
4123          (3) "Development" means:
4124          (a) the subdividing of land;
4125          (b) the construction of improvements, expansions, or additions; or
4126          (c) any other action that will appreciably increase the value of and the future
4127     acquisition cost of land.
4128          (4) "Official map" means a map, drawn by government authorities and recorded in
4129     county recording offices that:
4130          (a) shows actual and proposed rights-of-way, centerline alignments, and setbacks for
4131     highways and other transportation facilities;
4132          (b) provides a basis for restricting development in designated rights-of-way or between
4133     designated setbacks to allow the government authorities time to purchase or otherwise reserve
4134     the land; and
4135          (c) for counties and municipalities may be adopted as an element of the general plan,
4136     pursuant to Title 17, Chapter 27a, Part 4, General Plan, or Title 10, Chapter 9a, Part 4, General
4137     Plan.
4138          (5) "Taking" means an act or regulation, either by exercise of eminent domain or other
4139     police power, whereby government puts private property to public use or restrains use of
4140     private property for public purposes, and that requires compensation to be paid to private
4141     property owners.
4142          Section 49. Section 72-6-120 is amended to read:
4143          72-6-120. Department authorized to participate in federal program assuming
4144     responsibility for environmental review of highway projects -- Rulemaking authority.
4145          (1) The department may:
4146          (a) assume responsibilities under 23 U.S.C. Sec. 326 for:
4147          (i) determining whether state highway design and construction projects are
4148     categorically excluded from requirements for environmental assessments or environmental

4149     impact statements; and
4150          (ii) environmental review, consultation, or other actions required under federal law for
4151     categorically excluded projects;
4152          (b) assume responsibilities under 23 U.S.C. Sec. 327 with respect to one or more
4153     railroad, public transportation, highway [projects], or multimodal projects within the state
4154     under the National Environmental Policy Act of 1969 for environmental review, consultation,
4155     or other action required under any federal environmental law pertaining to the review or
4156     approval of a specific highway project;
4157          (c) enter one or more memoranda of understanding with the United States Department
4158     of Transportation related to federal highway programs as provided in 23 U.S.C. Secs. 326 and
4159     327 subject to the requirements of Subsection 72-1-207(5);
4160          (d) accept, receive, and administer grants, other money, or gifts from public and private
4161     agencies, including the federal government, for the purpose of carrying out the programs
4162     authorized under this section; and
4163          (e) cooperate with the federal government in implementing this section and any
4164     memorandum of understanding entered into under Subsection 72-1-207(5).
4165          (2) Notwithstanding any other provision of law, in implementing a program under this
4166     section that is approved by the United States Department of Transportation, the department is
4167     authorized to:
4168          (a) perform or conduct any of the activities described in a memorandum of
4169     understanding entered into under Subsection 72-1-207(5);
4170          (b) take actions necessary to implement the program; and
4171          (c) adopt relevant federal environmental standards as the standards for this state for
4172     categorically excluded projects.
4173          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4174     department may makes rules to implement the provisions of this section.
4175          Section 50. Repealer.
4176          This bill repeals:
4177          Section 17B-2a-807.5, Public transit district board of trustees -- Transitional
4178     provisions.
4179          Section 51. Effective date.

4180          This bill takes effect on May 8, 2018, except that the amendments to Sections
4181     41-1a-102, 41-1a-1201, 41-1a-1206, and 59-12-103 in this bill take effect on January 1, 2019.