1     
TRANSPORTATION GOVERNANCE AND FUNDING

2     
REVISIONS

3     
2019 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Wayne A. Harper

6     
House Sponsor: Kay J. Christofferson

7     

8     LONG TITLE
9     General Description:
10          This bill amends provisions related to transportation including transportation
11     reinvestment zones, public transit districts, local option sales and use taxes,
12     transportation governance, and a road usage charge program.
13     Highlighted Provisions:
14          This bill:
15          ▸     amends provisions related to transportation reinvestment zones;
16          ▸     amends provisions related to public transit district governance structure and
17     responsibilities;
18          ▸     renames the local advisory board of a large public transit district as a "local advisory
19     council";
20          ▸     repeals a provision related to the name of a large public transit district;
21          ▸     amends the procedure for appointment to the board of trustees of a large public
22     transit district;
23          ▸     requires two or more entities providing public transit services in adjacent or
24     overlapping areas to integrate and coordinate services and fees with oversight by the
25     Department of Transportation;
26          ▸     allows a public transit district to exclude applicants for certain positions of
27     employment based on results of a background check;
28          ▸     amends definitions related to motor vehicles;
29          ▸     amends provisions related to motor vehicle registration;

30          ▸     amends allowable uses of certain local option sales and use tax revenue;
31          ▸     makes technical changes regarding local option sales and use taxes;
32          ▸     amends provisions related to the governance structure and duties of certain positions
33     within the Department of Transportation;
34          ▸     amends certain provisions related to transportation funding procedures;
35          ▸     exempts the Transportation Commission from certain restrictions on setting rates
36     for certain programs administered by the Department of Transportation;
37          ▸     creates a road usage charge program, requires the Department of Transportation to
38     administer the program, and grants rulemaking authority;
39          ▸     amends provisions related to the State Infrastructure Bank;
40          ▸     amends certain provisions pertaining to anonymized location data of certain
41     connected vehicles; and
42          ▸     makes technical changes.
43     Money Appropriated in this Bill:
44          None
45     Other Special Clauses:
46          This bill provides a special effective date.
47          This bill provides a coordination clause.
48     Utah Code Sections Affected:
49     AMENDS:
50          11-13-227, as enacted by Laws of Utah 2018, Chapter 424
51          17B-1-311, as last amended by Laws of Utah 2013, Chapter 448
52          17B-2a-802, as last amended by Laws of Utah 2018, Chapter 424
53          17B-2a-807.1, as enacted by Laws of Utah 2018, Chapter 424
54          17B-2a-808.1, as enacted by Laws of Utah 2018, Chapter 424
55          17B-2a-808.2, as enacted by Laws of Utah 2018, Chapter 424
56          17B-2a-826, as last amended by Laws of Utah 2018, Chapter 424
57          34-52-201, as enacted by Laws of Utah 2017, Chapter 242

58          41-1a-102, as last amended by Laws of Utah 2018, Chapters 166 and 424
59          41-1a-203, as last amended by Laws of Utah 2018, Chapter 269
60          41-1a-1206, as last amended by Laws of Utah 2018, Chapter 424
61          51-2a-202, as last amended by Laws of Utah 2016, Chapter 373
62          59-12-103, as amended by Statewide Initiative -- Proposition 3, Nov. 6, 2018
63          59-12-2202, as last amended by Laws of Utah 2018, Chapter 424
64          59-12-2203, as last amended by Laws of Utah 2018, Chapter 424
65          59-12-2214, as last amended by Laws of Utah 2015, Chapter 421
66          59-12-2215, as enacted by Laws of Utah 2010, Chapter 263
67          59-12-2216, as enacted by Laws of Utah 2010, Chapter 263
68          59-12-2217, as last amended by Laws of Utah 2018, Chapter 424
69          59-12-2218, as last amended by Laws of Utah 2018, Chapter 424
70          59-12-2219, as last amended by Laws of Utah 2018, Chapters 330 and 424
71          59-12-2220, as enacted by Laws of Utah 2018, Chapter 424
72          59-13-301, as last amended by Laws of Utah 2018, Chapter 281
73          63B-1b-102, as last amended by Laws of Utah 2017, Chapter 345
74          63B-18-401, as last amended by Laws of Utah 2013, Chapter 389
75          63B-27-101, as last amended by Laws of Utah 2018, Chapter 280
76          63I-1-259, as last amended by Laws of Utah 2018, Chapter 281
77          72-1-102, as last amended by Laws of Utah 2018, Chapter 424
78          72-1-202, as last amended by Laws of Utah 2018, Chapter 424
79          72-1-203, as last amended by Laws of Utah 2018, Chapter 424
80          72-1-204, as last amended by Laws of Utah 2018, Chapter 424
81          72-1-205, as renumbered and amended by Laws of Utah 1998, Chapter 270
82          72-1-213, as last amended by Laws of Utah 2018, Chapter 424
83          72-1-301, as last amended by Laws of Utah 2011, Chapter 336
84          72-1-304, as last amended by Laws of Utah 2018, Chapter 424
85          72-2-107, as last amended by Laws of Utah 2017, Chapter 144

86          72-2-117.5, as last amended by Laws of Utah 2018, Chapter 424
87          72-2-121, as last amended by Laws of Utah 2018, Chapters 403 and 424
88          72-2-121.1, as last amended by Laws of Utah 2010, Chapters 263 and 278
89          72-2-121.2, as last amended by Laws of Utah 2011, Chapter 342
90          72-2-124, as last amended by Laws of Utah 2018, Chapter 424
91          72-2-201, as last amended by Laws of Utah 2017, Chapter 216
92          72-2-202, as last amended by Laws of Utah 2008, Chapter 382
93          72-2-203, as last amended by Laws of Utah 2008, Chapter 382
94          72-2-204, as last amended by Laws of Utah 2008, Chapter 382
95          72-5-111, as last amended by Laws of Utah 2017, Chapter 273
96          72-6-403, as enacted by Laws of Utah 2014, Chapter 132
97          72-10-102, as last amended by Laws of Utah 2008, Chapters 206 and 286
98          77-23c-101, as enacted by Laws of Utah 2014, Chapter 223
99          77-23c-102, as last amended by Laws of Utah 2016, Chapter 161
100     ENACTS:
101          17B-2a-807.2, Utah Code Annotated 1953
102          17B-2a-827, Utah Code Annotated 1953
103          59-12-2212.2, Utah Code Annotated 1953
104          72-1-213.1, Utah Code Annotated 1953
105     REPEALS:
106          17B-2a-803.1, as enacted by Laws of Utah 2018, Chapter 424
107     Utah Code Sections Affected by Coordination Clause:
108          77-23c-101, as enacted by Laws of Utah 2014, Chapter 223
109          77-23c-102, as last amended by Laws of Utah 2016, Chapter 161
110     

111     Be it enacted by the Legislature of the state of Utah:
112          Section 1. Section 11-13-227 is amended to read:
113          11-13-227. Transportation reinvestment zones.

114          (1) Subject to the provisions of this part, any two or more public agencies may enter
115     into an agreement with one another to create a transportation reinvestment zone as described in
116     this section.
117          (2) To create a transportation reinvestment zone, two or more public agencies, at least
118     one of which has land use authority over the transportation reinvestment zone area, shall:
119          (a) define the transportation infrastructure need and proposed improvement;
120          (b) define the boundaries of the zone;
121          (c) establish terms for sharing sales tax revenue among the members of the agreement;
122          (d) establish a base year to calculate the increase of property tax revenue within the
123     zone;
124          (e) establish terms for sharing any increase in property tax revenue within the zone;
125     and
126          (f) before an agreement is approved as required in Section 11-13-202.5, hold a public
127     hearing regarding the details of the proposed transportation reinvestment zone.
128          (3) Any agreement to establish a transportation reinvestment zone is subject to the
129     requirements of Sections 11-13-202, 11-13-202.5, 11-13-206, and 11-13-207.
130          (4) (a) Each public agency that is party to an agreement under this section shall
131     annually publish a report including a statement of the increased tax revenue and the
132     expenditures made in accordance with the agreement.
133          (b) Each public agency that is party to an agreement under this section shall transmit a
134     copy of the report described in Subsection (4)(a) to the state auditor.
135          (5) If any surplus revenue remains in a tax revenue account created as part of a
136     transportation reinvestment zone agreement, the parties may use the surplus for other purposes
137     as determined by agreement of the parties.
138          (6) (a) An action taken under this section is not subject to:
139          (i) Section 10-8-2;
140          (ii) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act;
141          (iii) Title 17, Chapter 27a, County Land Use, Development, and Management Act; or

142          (iv) Section 17-50-312.
143          (b) An ordinance, resolution, or agreement adopted under this title is not a land use
144     regulation as defined in Sections 10-9a-103 and 17-27a-103.
145          Section 2. Section 17B-1-311 is amended to read:
146          17B-1-311. Board member prohibited from district employment -- Exception.
147          (1) No elected or appointed member of the board of trustees of a local district may,
148     while serving on the board, be employed by the district, whether as an employee or under a
149     contract.
150          (2) No person employed by a local district, whether as an employee or under a contract,
151     may serve on the board of that local district.
152          (3) A local district is not in violation of a prohibition described in Subsection (1) or (2)
153     if the local district:
154          (a) treats a member of a board of trustees as an employee for income tax purposes; and
155          (b) complies with the compensation limits of Section 17B-1-307 for purposes of that
156     member.
157          (4) This section does not apply to a local district if:
158          (a) fewer than 3,000 people live within 40 miles of the primary place of employment,
159     measured over all weather public roads; and
160          (b) with respect to the employment of a board of trustees member under Subsection
161     (1):
162          (i) the job opening has had reasonable public notice; and
163          (ii) the person employed is the best qualified candidate for the position.
164          (5) This section does not apply to a board of trustees of a large public transit district as
165     described in Chapter 2a, Part 8, Public Transit District Act.
166          Section 3. Section 17B-2a-802 is amended to read:
167          17B-2a-802. Definitions.
168          As used in this part:
169          (1) "Affordable housing" means housing occupied or reserved for occupancy by

170     households that meet certain gross household income requirements based on the area median
171     income for households of the same size.
172          (a) "Affordable housing" may include housing occupied or reserved for occupancy by
173     households that meet specific area median income targets or ranges of area median income
174     targets.
175          (b) "Affordable housing" does not include housing occupied or reserved for occupancy
176     by households with gross household incomes that are more than 60% of the area median
177     income for households of the same size.
178          (2) "Appointing entity" means the person, county, unincorporated area of a county, or
179     municipality appointing a member to a public transit district board of trustees.
180          (3) (a) "Chief executive officer" means a person appointed by the board of trustees of a
181     small public transit district to serve as chief executive officer.
182          (b) "Chief executive officer" shall enjoy all the rights, duties, and responsibilities
183     defined in Sections 17B-2a-810 and 17B-2a-811 and includes all rights, duties, and
184     responsibilities assigned to the general manager but prescribed by the board of trustees to be
185     fulfilled by the chief executive officer.
186          (4) "Council of governments" means a decision-making body in each county composed
187     of membership including the county governing body and the mayors of each municipality in the
188     county.
189          (5) "Department" means the Department of Transportation created in Section 72-1-201.
190          (6) "Executive director" means a person appointed by the board of trustees of a large
191     public transit district to serve as executive director.
192          (7) (a) "General manager" means a person appointed by the board of trustees of a small
193     public transit district to serve as general manager.
194          (b) "General manager" shall enjoy all the rights, duties, and responsibilities defined in
195     Sections 17B-2a-810 and 17B-2a-811 prescribed by the board of trustees of a small public
196     transit district.
197          (8) "Large public transit district" means a public transit district that provides public

198     transit to an area that includes:
199          (a) more than 65% of the population of the state based on the most recent official
200     census or census estimate of the United States Census Bureau; and
201          (b) two or more counties.
202          (9) (a) "Locally elected public official" means a person who holds an elected position
203     with a county or municipality.
204          (b) "Locally elected public official" does not include a person who holds an elected
205     position if the elected position is not with a county or municipality.
206          (10) "Metropolitan planning organization" means the same as that term is defined in
207     Section 72-1-208.5.
208          (11) "Multicounty district" means a public transit district located in more than one
209     county.
210          (12) "Operator" means a public entity or other person engaged in the transportation of
211     passengers for hire.
212          [(13) "Public transit" means the transportation of passengers only and their incidental
213     baggage by means other than:]
214          [(a) chartered bus;]
215          [(b) sightseeing bus; or]
216          [(c) taxi.]
217          (13) (a) "Public transit" means regular, continuing, shared-ride, surface transportation
218     services that are open to the general public or open to a segment of the general public defined
219     by age, disability, or low income.
220          (b) "Public transit" does not include transportation services provided by:
221          (i) chartered bus;
222          (ii) sightseeing bus;
223          (iii) taxi;
224          (iv) school bus service;
225          (v) courtesy shuttle service for patrons of one or more specific establishments; or

226          (vi) intra-terminal or intra-facility shuttle services.
227          (14) "Public transit district" means a local district that provides public transit services.
228          (15) "Small public transit district" means any public transit district that is not a large
229     public transit district.
230          (16) "Transit facility" means a transit vehicle, transit station, depot, passenger loading
231     or unloading zone, parking lot, or other facility:
232          (a) leased by or operated by or on behalf of a public transit district; and
233          (b) related to the public transit services provided by the district, including:
234          (i) railway or other right-of-way;
235          (ii) railway line; and
236          (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by
237     a transit vehicle.
238          (17) "Transit vehicle" means a passenger bus, coach, railcar, van, or other vehicle
239     operated as public transportation by a public transit district.
240          (18) "Transit-oriented development" means a mixed use residential or commercial area
241     that is designed to maximize access to public transit and includes the development of land
242     owned by a public transit district that serves a county of the first class.
243          (19) "Transit-supportive development" means a mixed use residential or commercial
244     area that is designed to maximize access to public transit and does not include the development
245     of land owned by a public transit district.
246          Section 4. Section 17B-2a-807.1 is amended to read:
247          17B-2a-807.1. Large public transit district board of trustees -- Appointment --
248     Quorum -- Compensation -- Terms.
249          (1) (a) For a large public transit district, the board of trustees shall consist of three
250     members appointed as described in Subsection (1)(b).
251          (b) (i) The governor, with advice and consent of the Senate, shall appoint the members
252     of the board of trustees, making[:] an appointment from nominations given from each region
253     created in Subsection (1)(b)(ii).

254          [(A) one appointment from the nominees described in Subsection (1)(b)(ii);]
255          [(B) one appointment from the nominees described in Subsection (1)(b)(iii); and]
256          [(C) one appointment from the nominees described in Subsection (1)(b)(iv).]
257          [(ii) The chief executive officer of a county of the first class within a large public
258     transit district, with approval of the legislative body of the county, shall nominate two or more
259     individuals to the governor for appointment to the board of trustees.]
260          [(iii) (A) Subject to Subsection (1)(b)(iii)(B), the executive governing individuals or
261     bodies of a county or counties of the second class, with a population over 500,000, within a
262     large public transit district, shall nominate two or more individuals to the governor for
263     appointment to the board of trustees.]
264          [(B) To select individuals for nomination, the executive governing individuals or
265     bodies described in Subsection (1)(b)(iii)(A) shall consult with the executive governing
266     individual or body of a county of the third or smaller class within the large public transit
267     district.]
268          [(iv) (A) Subject to Subsection (1)(b)(iv)(B), the executive governing individuals or
269     bodies of any county or counties of the second class, with a population of 500,000 or less,
270     within a large public transit district, shall jointly nominate two or more individuals to the
271     governor for appointment to the board of trustees.]
272          [(B) To select individuals for nomination, the executive governing individuals or
273     bodies described in Subsection (1)(b)(iv)(A) shall consult with the executive governing
274     individual or body of a county of the third or smaller class within the large public transit
275     district different from a third or smaller class county consulting with the county or counties
276     described in Subsection (1)(b)(iii).]
277          (ii) (A) Before creation of a large public transit district, the political subdivision or
278     subdivisions forming the large public transit district shall submit to the Legislature for approval
279     a proposal for the creation of three regions for nominating members to the board of trustees of
280     the large public transit district.
281          (B) For a large public transit district created after January 1, 2019, the Legislature, after

282     receiving and considering the proposal described in Subsection (1)(b)(ii)(A), shall designate
283     three regions for nominating members to the board of trustees of the large public transit
284     district, and further describe the process for nomination for appointment to the board of
285     trustees.
286          (c) Each nominee shall be a qualified executive with technical and administrative
287     experience and training appropriate for the position.
288          (d) The board of trustees of a large public transit district shall be full-time employees
289     of the public transit district.
290          (e) The compensation package for the board of trustees shall be determined by [the] a
291     local advisory [board ] council as described in Section 17B-2a-808.2.
292          (f) (i) Subject to Subsection (1)(f)(iii), for a board of trustees of a large public transit
293     district, "quorum" means at least two members of the board of trustees.
294          (ii) Action by a majority of a quorum constitutes an action of the board of trustees.
295          (iii) A meeting of a quorum of the board of trustees of a large public transit district is
296     subject to Section 52-4-103 regarding convening of a three-member board of trustees and what
297     constitutes a public meeting.
298          (2) (a) Subject to Subsections (3) and (4), each member of the board of trustees of a
299     large public transit district shall serve for a term of [three] four years.
300          (b) A member of the board of trustees may serve an unlimited number of terms.
301          (3) Each member of the board of trustees of a large public transit district shall serve at
302     the pleasure of the governor.
303          (4) The first time the board of trustees is appointed under this section, the governor
304     shall stagger the initial term of each of the members of the board of trustees as follows:
305          (a) one member of the board of trustees shall serve an initial term of two years;
306          (b) one member of the board of trustees shall serve an initial term of three years; and
307          (c) one member of the board of trustees shall serve an initial term of four years.
308          (5) The governor shall designate one member of the board of trustees as chair of the
309     board of trustees.

310          (6) (a) If a vacancy occurs, the nomination and appointment procedures to replace the
311     individual shall occur in the same manner described in Subsection (1) for the member creating
312     the vacancy.
313          (b) A replacement board member shall serve for the remainder of the unexpired term,
314     but may serve an unlimited number of terms as provided in Subsection (2)(b).
315          (c) If the nominating officials under Subsection (1) do not nominate to fill the vacancy
316     within 60 days, the governor shall appoint an individual to fill the vacancy.
317          [(7) For any large public transit district in existence as of May 8, 2018:]
318          [(a) the individuals or bodies providing nominations as described in this section shall
319     provide the nominations to the governor as described in this section before July 31, 2018;]
320          [(b) the governor shall appoint the members of the board of trustees before August 31,
321     2018; and]
322          [(c) the new board shall assume control of the large public transit district on or before
323     November 1, 2018.]
324          Section 5. Section 17B-2a-807.2 is enacted to read:
325          17B-2a-807.2. Existing large public transit district board of trustees --
326     Appointment -- Quorum -- Compensation -- Terms.
327          (1) (a) (i) For a large public transit district created before January 1, 2019, and except
328     as provided in Subsection (7), the board of trustees shall consist of three members appointed as
329     described in Subsection (1)(b).
330          (ii) For purposes of a large public transit district created before January 1, 2019, the
331     nominating regions are as follows:
332          (A) a central region that is Salt Lake County;
333          (B) a southern region that is comprised of Utah County and the portion of Tooele
334     County that is part of the large public transit district; and
335          (C) a northern region that is comprised of Davis County, Weber County, and the
336     portion of Box Elder County that is part of the large public transit district.
337          (iii) (A) If a large public transit district created before January 1, 2019, annexes an

338     additional county into the large public transit district pursuant to Section 17B-1-402, following
339     the issuance of the certificate of annexation by the lieutenant governor, the political
340     subdivisions making up the large public transit district shall submit to the Legislature for
341     approval a proposal for the creation of three regions for nominating members to the board of
342     trustees of the large public transit district.
343          (B) If a large public transit district created before January 1, 2019, has a change to the
344     boundaries of the large public transit district, the Legislature, after receiving and considering
345     the proposal described in Subsection (1)(a)(iii)(A), shall designate the three regions for
346     nominating members to the board of trustees of the large public transit district.
347          (b) (i) Except as provided in Subsection (5), the governor, with advice and consent of
348     the Senate, shall appoint the members of the board of trustees, making:
349          (A) one appointment from individuals nominated from the central region as described
350     in Subsection (2);
351          (B) one appointment from individuals nominated from the southern region described in
352     Subsection (3); and
353          (C) one appointment from individuals nominated from the northern region described in
354     Subsection (4).
355          (2) For the appointment from the central region, the governor shall appoint one
356     individual selected from five individuals nominated as follows:
357          (a) two individuals nominated by the council of governments of Salt Lake County; and
358          (b) three individuals nominated by the mayor of Salt Lake County, with approval of the
359     Salt Lake County council.
360          (3) For the appointment from the southern region, the governor shall appoint one
361     individual selected from five individuals nominated as follows:
362          (a) two individuals nominated by the council of governments of Utah County;
363          (b) two individuals nominated by the county commission of Utah County; and
364          (c) one individual nominated by the county commission of Tooele County.
365          (4) For the appointment from the northern region, the governor shall appoint one

366     individual selected from five individuals nominated as follows:
367          (a) one individual nominated by the council of governments of Davis County;
368          (b) one individual nominated by the council of governments of Weber County;
369          (c) one individual nominated by the county commission of Davis County;
370          (d) one individual nominated by the county commission of Weber County; and
371          (e) one individual nominated by the county commission of Box Elder County.
372          (5) If the governor fails to appoint one of the individuals nominated as described in
373     Subsection (2), (3), or (4), as applicable, within 60 days of the nominations, the following
374     appointment procedures apply:
375          (a) for an appointment for the central region, the Salt Lake County council shall
376     appoint an individual, with confirmation by the Senate;
377          (b) for an appointment for the southern region, the Utah County commission shall
378     appoint an individual, in consultation with the Tooele County commission, with confirmation
379     by the Senate; and
380          (c) for an appointment for the northern region, the Davis County commission and the
381     Weber County commission, collectively, and in consultation with the Box Elder County
382     commission, shall appoint an individual, with confirmation by the Senate.
383          (6) (a) Each nominee shall be a qualified executive with technical and administrative
384     experience and training appropriate for the position.
385          (b) The board of trustees of a large public transit district shall be full-time employees
386     of the public transit district.
387          (c) The compensation package for the board of trustees shall be determined by the local
388     advisory council as described in Section 17B-2a-808.2.
389          (d) (i) Subject to Subsection (6)(d)(iii), for a board of trustees of a large public transit
390     district, "quorum" means at least two members of the board of trustees.
391          (ii) Action by a majority of a quorum constitutes an action of the board of trustees.
392          (iii) A meeting of a quorum of a board of trustees of a large public transit district is
393     subject to Section 52-4-103 regarding convening of a three-member board of trustees and what

394     constitutes a public meeting.
395          (7) (a) Subject to Subsection (8), each member of the board of trustees of a large public
396     transit district shall serve for a term of four years.
397          (b) A member of the board of trustees may serve an unlimited number of terms.
398          (c) Notwithstanding Subsection (2), (3), or (4), as applicable, at the expiration of a
399     term of a member of the board of trustees, if the respective nominating entities and individuals
400     for the respective region described in Subsection (2), (3), or (4), unanimously agree to retain
401     the existing member of the board of trustees, the respective nominating individuals or bodies
402     described in Subsection (2), (3), or (4) are not required to make nominations to the governor,
403     and the governor may reappoint the existing member to the board of trustees.
404          (8) Each member of the board of trustees of a large public transit district shall serve at
405     the pleasure of the governor.
406          (9) Subject to Subsections (7) and (8), a board of trustees of a large public transit
407     district that is in place as of February 1, 2019, may remain in place.
408          (10) The governor shall designate one member of the board of trustees as chair of the
409     board of trustees.
410          (11) (a) If a vacancy occurs, the nomination and appointment procedures to replace the
411     individual shall occur in the same manner described in Subsection (2), (3), or (4), and, if
412     applicable, Subsection (5), for the respective member of the board of trustees creating the
413     vacancy.
414          (b) If a vacancy occurs on the board of trustees of a large public transit district, the
415     respective nominating region shall nominate individuals to the governor as described in this
416     section within 60 days after the vacancy occurs.
417          (c) If the respective nominating region does not nominate to fill the vacancy within 60
418     days, the governor shall appoint an individual to fill the vacancy.
419          (d) A replacement board member shall serve for the remainder of the unexpired term,
420     but may serve an unlimited number of terms as provided in Subsection (7)(b).
421          Section 6. Section 17B-2a-808.1 is amended to read:

422          17B-2a-808.1. Large public transit district board of trustees powers and duties --
423     Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
424          (1) The powers and duties of a board of trustees of a large public transit district stated
425     in this section are in addition to the powers and duties stated in Section 17B-1-301.
426          (2) The board of trustees of each large public transit district shall:
427          (a) hold public meetings and receive public comment;
428          (b) ensure that the policies, procedures, and management practices established by the
429     public transit district meet state and federal regulatory requirements and federal grantee
430     eligibility;
431          (c) subject to Subsection (8), create and approve an annual budget, including the
432     issuance of bonds and other financial instruments, after consultation with the local advisory
433     [board] council;
434          (d) approve any interlocal agreement with a local jurisdiction;
435          (e) in consultation with the local advisory [board] council, approve contracts and
436     overall property acquisitions and dispositions for transit-oriented development;
437          (f) in consultation with constituent counties, municipalities, metropolitan planning
438     organizations, and the local advisory [board] council:
439          (i) develop and approve a strategic plan for development and operations on at least a
440     four-year basis; and
441          (ii) create and pursue funding opportunities for transit capital and service initiatives to
442     meet anticipated growth within the public transit district;
443          (g) annually report the public transit district's long-term financial plan to the State
444     Bonding Commission;
445          (h) annually report the public transit district's progress and expenditures related to state
446     resources to the Executive Appropriations Committee and the Infrastructure and General
447     Government Appropriations Subcommittee;
448          (i) annually report to the Transportation Interim Committee the public transit district's
449     efforts to engage in public-private partnerships for public transit services;

450          [(i)] (j) (i) in partnership with the Department of Transportation, study and evaluate the
451     feasibility of a strategic transition of a large public transit district into a state entity; and
452          (ii) in partnership with the Department of Transportation, before November 30 [of each
453     year], 2019, report on the progress of the study to the Transportation Interim Committee and
454     the Infrastructure and General Government Appropriations Subcommittee;
455          [(j)] (k) hire, set salaries, and develop performance targets and evaluations for:
456          (i) the executive director; and
457          (ii) all chief level officers;
458          [(ii) the chief internal auditor;]
459          [(iii) the chief people officer;]
460          [(iv) any vice president level officer; and]
461          [(v) the chief safety, security, and technology officer;]
462          [(k)] (l) supervise and regulate each transit facility that the public transit district owns
463     and operates, including:
464          (i) fix rates, fares, rentals, charges and any classifications of rates, fares, rentals, and
465     charges; and
466          (ii) make and enforce rules, regulations, contracts, practices, and schedules for or in
467     connection with a transit facility that the district owns or controls;
468          [(l)] (m) subject to Subsection (4), control the investment of all funds assigned to the
469     district for investment, including funds:
470          (i) held as part of a district's retirement system; and
471          (ii) invested in accordance with the participating employees' designation or direction
472     pursuant to an employee deferred compensation plan established and operated in compliance
473     with Section 457 of the Internal Revenue Code;
474          [(m)] (n) in consultation with the local advisory [board] council created under Section
475     17B-2a-808.2, invest all funds according to the procedures and requirements of Title 51,
476     Chapter 7, State Money Management Act;
477          [(n)] (o) if a custodian is appointed under Subsection (3)(d), and subject to Subsection

478     (4), pay the fees for the custodian's services from the interest earnings of the investment fund
479     for which the custodian is appointed;
480          [(o)] (p) (i) cause an annual audit of all public transit district books and accounts to be
481     made by an independent certified public accountant;
482          (ii) as soon as practicable after the close of each fiscal year, submit to each of the
483     councils of governments within the public transit district a financial report showing:
484          (A) the result of district operations during the preceding fiscal year;
485          (B) an accounting of the expenditures of all local sales and use tax revenues generated
486     under Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for Transportation Act;
487          (C) the district's financial status on the final day of the fiscal year; and
488          (D) the district's progress and efforts to improve efficiency relative to the previous
489     fiscal year; and
490          (iii) supply copies of the report under Subsection (2)[(o)](p)(ii) to the general public
491     upon request;
492          [(p)] (q) report at least annually to the Transportation Commission created in Section
493     72-1-301, which report shall include:
494          (i) the district's short-term and long-range public transit plans, including the portions of
495     applicable regional transportation plans adopted by a metropolitan planning organization
496     established under 23 U.S.C. Sec. 134; and
497          (ii) any transit capital development projects that the board of trustees would like the
498     Transportation Commission to consider;
499          [(q)] (r) direct the internal auditor appointed under Section 17B-2a-810 to conduct
500     audits that the board of trustees determines, in consultation with the local advisory [board]
501     council created in Section 17B-2a-808.2, to be the most critical to the success of the
502     organization;
503          [(r)] (s) together with the local advisory [board] council created in Section
504     17B-2a-808.2, hear audit reports for audits conducted in accordance with Subsection
505     (2)[(o)](p);

506          [(s)] (t) review and approve all contracts pertaining to reduced fares, and evaluate
507     existing contracts, including review of:
508          (i) how negotiations occurred;
509          (ii) the rationale for providing a reduced fare; and
510          (iii) identification and evaluation of cost shifts to offset operational costs incurred and
511     impacted by each contract offering a reduced fare;
512          [(t)] (u) in consultation with the local advisory [board] council, develop and approve
513     other board policies, ordinances, and bylaws; and
514          [(u)] (v) review and approve any:
515          (i) contract or expense exceeding $200,000; or
516          (ii) proposed change order to an existing contract if the value of the change order
517     exceeds:
518          (A) 15% of the total contract; or
519          (B) $200,000.
520          (3) A board of trustees of a large public transit district may:
521          (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
522     are:
523          (i) not repugnant to the United States Constitution, the Utah Constitution, or the
524     provisions of this part; and
525          (ii) necessary for:
526          (A) the governance and management of the affairs of the district;
527          (B) the execution of district powers; and
528          (C) carrying into effect the provisions of this part;
529          (b) provide by resolution, under terms and conditions the board considers fit, for the
530     payment of demands against the district without prior specific approval by the board, if the
531     payment is:
532          (i) for a purpose for which the expenditure has been previously approved by the board;
533          (ii) in an amount no greater than the amount authorized; and

534          (iii) approved by the executive director or other officer or deputy as the board
535     prescribes;
536          (c) in consultation with the local advisory [board] council created in Section
537     17B-2a-808.2:
538          (i) hold public hearings and subpoena witnesses; and
539          (ii) appoint district officers to conduct a hearing and require the officers to make
540     findings and conclusions and report them to the board; and
541          (d) appoint a custodian for the funds and securities under its control, subject to
542     Subsection (2)[(n)](o).
543          (4) For a large public transit district in existence as of May 8, 2018, on or before
544     September 30, 2019, the board of trustees of a large public transit district shall present a report
545     to the Transportation Interim Committee regarding retirement benefits of the district, including:
546          (a) the feasibility of becoming a participating employer and having retirement benefits
547     of eligible employees and officials covered in applicable systems and plans administered under
548     Title 49, Utah State Retirement and Insurance Benefit Act;
549          (b) any legal or contractual restrictions on any employees that are party to a collectively
550     bargained retirement plan; and
551          (c) a comparison of retirement plans offered by the large public transit district and
552     similarly situated public employees, including the costs of each plan and the value of the
553     benefit offered.
554          (5) The board of trustees may not issue a bond unless the board of trustees has
555     consulted and received approval from the State Bonding Commission created in Section
556     63B-1-201.
557          (6) A member of the board of trustees of a large public transit district or a hearing
558     officer designated by the board may administer oaths and affirmations in a district investigation
559     or proceeding.
560          (7) (a) The vote of the board of trustees on each ordinance or resolution shall be by roll
561     call vote with each affirmative and negative vote recorded.

562          (b) The board of trustees of a large public transit district may not adopt an ordinance
563     unless it is introduced at least 24 hours before the board of trustees adopts it.
564          (c) Each ordinance adopted by a large public transit district's board of trustees shall
565     take effect upon adoption, unless the ordinance provides otherwise.
566          (8) (a) For a large public transit district in existence on May 8, 2018, for the budget for
567     calendar year 2019, the board in place on May 8, 2018, shall create the tentative annual budget.
568          (b) The budget described in Subsection (8)(a) shall include setting the salary of each of
569     the members of the board of trustees that will assume control on or before November 1, 2018,
570     which salary may not exceed $150,000, plus additional retirement and other standard benefits,
571     as set by the local advisory council as described in Section 17B-2a-808.2.
572          (c) For a large public transit district in existence on May 8, 2018, the board of trustees
573     that assumes control of the large public transit district on or before November 2, 2018, shall
574     approve the calendar year 2019 budget on or before December 31, 2018.
575          Section 7. Section 17B-2a-808.2 is amended to read:
576          17B-2a-808.2. Large public transit district local advisory council -- Powers and
577     duties.
578          (1) A large public transit district shall create and consult with a local advisory [board]
579     council.
580          (2) (a) [The] (i) For a large public transit district in existence as of January 1, 2019, the
581     local advisory [board] council shall have membership selected as described in Subsection
582     (2)(b) [on or before November 1, 2018].
583          (ii) (A) For a large public transit district created after January 1, 2019, the political
584     subdivision or subdivisions forming the large public transit district shall submit to the
585     Legislature for approval a proposal for the appointments to the local advisory council of the
586     large public transit district similar to the appointment process described in Subsection (2)(b).
587          (B) Upon approval of the Legislature, each nominating individual or body shall appoint
588     individuals to the local advisory council.
589          (b) (i) The council of governments of [a county of the first class within a large public

590     transit district] Salt Lake County shall appoint three members to the local advisory [board]
591     council.
592          (ii) [The chief executive officer of a city that is the county seat within a county of the
593     first class within a large public transit district] The mayor of Salt Lake City shall appoint one
594     member to the local advisory [board] council.
595          (iii) The council of governments of [a county of the second class with a population of
596     500,000 or more within a large public transit district] Utah County shall appoint two members
597     to the local advisory [board] council.
598          (iv) The council of governments of [a county of the second class with a population
599     under 500,000 within a large public transit district] Davis County and Weber County shall each
600     appoint one member to the local advisory [board] council.
601          (v) The councils of governments of [any counties of the third class or smaller within a
602     large public transit district] Box Elder County and Tooele County shall jointly appoint one
603     member to the local advisory [board] council.
604          [(c) The population numbers used to apportion appointment powers described in
605     Subsection (2)(b) shall be based on the most recent official census or census estimate of the
606     United States Census Bureau.]
607          (3) The local advisory [board] council shall meet at least quarterly in a meeting open to
608     the public for comment to discuss the service, operations, and any concerns with the public
609     transit district operations and functionality.
610          (4) The duties of the local advisory [board] council shall include:
611          (a) setting the compensation packages of the board of trustees, which salary may not
612     exceed $150,000, plus additional retirement and other standard benefits;
613          (b) reviewing, approving, and recommending final adoption by the board of trustees of
614     the large public transit district service plans at least every two and one-half years;
615          (c) reviewing, approving, and recommending final adoption by the board of trustees of
616     project development plans, including funding, of all new capital development projects;
617          (d) reviewing, approving, and recommending final adoption by the board of trustees of

618     any plan for a transit-oriented development where a large public transit district is involved;
619          (e) at least annually, engaging with the safety and security team of the large public
620     transit district to ensure coordination with local municipalities and counties;
621          (f) assisting with coordinated mobility and constituent services provided by the public
622     transit district;
623          (g) representing and advocating the concerns of citizens within the public transit
624     district to the board of trustees; and
625          (h) other duties described in Section 17B-2a-808.1.
626          (5) The local advisory [board] council shall meet at least quarterly with and consult
627     with the board of trustees and advise regarding the operation and management of the public
628     transit district.
629          Section 8. Section 17B-2a-826 is amended to read:
630          17B-2a-826. Public transit district office of constituent services and office of
631     coordinated mobility.
632          (1) (a) The board of trustees of a large public transit district shall create and employ an
633     office of constituent services.
634          (b) The duties of the office of constituent services described in Subsection (1)(a) shall
635     include:
636          (i) establishing a central call number to hear and respond to complaints, requests,
637     comments, concerns, and other communications from customers and citizens within the
638     district;
639          (ii) keeping a log of the complaints, comments, concerns, and other communications
640     from customers and citizens within the district; and
641          (iii) reporting complaints, comments, concerns, and other communications to
642     management and to the local advisory [board] council created in Section 17B-2a-808.2.
643          (2) (a) A large public transit district shall create and employ an office of coordinated
644     mobility.
645          (b) The duties of the office of coordinated mobility shall include:

646          (i) establishing a central call number to facilitate human services transportation;
647          (ii) coordinating all human services transportation needs within the public transit
648     district;
649          (iii) receiving requests and other communications regarding human services
650     transportation;
651          (iv) receiving requests and other communications regarding vans, buses, and other
652     vehicles available for use from the public transit district to maximize the utility of and
653     investment in those vehicles; and
654          (v) supporting local efforts and applications for additional funding.
655          Section 9. Section 17B-2a-827 is enacted to read:
656          17B-2a-827. Integration of public transit services and facilities.
657          (1) If a public transit district provides public transit services in an area that is adjacent
658     to or overlaps with an area in which public transit services are also provided by another public
659     transit provider, including a public-private partnership entity, the public transit district and the
660     public transit provider entity shall ensure that:
661          (a) any public transit facilities of one provider connect with the public transit facilities
662     of the other provider;
663          (b) the schedules of all relevant public transit providers are coordinated as one public
664     transit system; and
665          (c) (i) if both public transit providers collect a fare directly from public transit
666     passengers, an integrated and uniform fare system is implemented across the coordinated
667     public transit system; and
668          (ii) the revenue generated from the uniform fare system is equitably divided among the
669     public transit providers according to service provided and mileage covered.
670          (2) A public transit district and a public transit provider, including a public-private
671     partnership entity, may negotiate the ability of one public transit provider to operate on the
672     transit facilities of the other public transit provider.
673          (3) (a) The Department of Transportation shall oversee the negotiation, integration, and

674     coordination described in Subsection (1).
675          (b) For the negotiation, integration, or coordination between a public transit district and
676     a public-private partnership, the oversight described in Subsection (3)(a) applies only to
677     fixed-route bus or rail services.
678          Section 10. Section 34-52-201 is amended to read:
679          34-52-201. Employer requirements.
680          (1) A public employer may not exclude an applicant from an initial interview because
681     of a past criminal conviction.
682          (2) A public employer excludes an applicant from an initial interview if the public
683     employer:
684          (a) requires an applicant to disclose, on an employment application, a criminal
685     conviction;
686          (b) requires an applicant to disclose, before an initial interview, a criminal conviction;
687     or
688          (c) if no interview is conducted, requires an applicant to disclose, before making a
689     conditional offer of employment, a criminal conviction.
690          (3) Subject to Subsections (1) and (2), nothing in this section prevents an employer
691     from:
692          (a) asking an applicant for information about an applicant's criminal conviction history
693     during an initial interview or after an initial interview; or
694          (b) considering an applicant's conviction history when making a hiring decision.
695          (4) Subsections (1) and (2) do not apply:
696          (a) if federal, state, or local law, including corresponding administrative rules, requires
697     the consideration of an applicant's criminal conviction history;
698          (b) to a public employer that is a law enforcement agency;
699          (c) to a public employer that is part of the criminal or juvenile justice system;
700          (d) to a public employer seeking a nonemployee volunteer;
701          (e) to a public employer that works with children or vulnerable adults;

702          (f) to the Department of Alcoholic Beverage Control created in Section 32B-2-203;
703          (g) to the State Tax Commission; [and]
704          (h) to a public employer whose primary purpose is performing financial or fiduciary
705     functions[.]; and
706          (i) to a public transit district hiring or promoting an individual for a safety sensitive
707     position described in Section 17B-2a-825.
708          Section 11. Section 41-1a-102 is amended to read:
709          41-1a-102. Definitions.
710          As used in this chapter:
711          (1) "Actual miles" means the actual distance a vehicle has traveled while in operation.
712          (2) "Actual weight" means the actual unladen weight of a vehicle or combination of
713     vehicles as operated and certified to by a weighmaster.
714          (3) "All-terrain type I vehicle" means the same as that term is defined in Section
715     41-22-2.
716          (4) "All-terrain type II vehicle" means the same as that term is defined in Section
717     41-22-2.
718          (5) "All-terrain type III vehicle" means the same as that term is defined in Section
719     41-22-2.
720          (6) "Alternative fuel vehicle" means:
721          (a) an electric motor vehicle;
722          (b) a hybrid electric motor vehicle;
723          (c) a plug-in hybrid electric motor vehicle; or
724          (d) a motor vehicle powered exclusively by a fuel other than:
725          (i) motor fuel;
726          (ii) diesel fuel;
727          (iii) natural gas; or
728          (iv) propane.
729          (7) "Amateur radio operator" means any person licensed by the Federal

730     Communications Commission to engage in private and experimental two-way radio operation
731     on the amateur band radio frequencies.
732          (8) "Autocycle" means the same as that term is defined in Section 53-3-102.
733          (9) "Branded title" means a title certificate that is labeled:
734          (a) rebuilt and restored to operation;
735          (b) flooded and restored to operation; or
736          (c) not restored to operation.
737          (10) "Camper" means any structure designed, used, and maintained primarily to be
738     mounted on or affixed to a motor vehicle that contains a floor and is designed to provide a
739     mobile dwelling, sleeping place, commercial space, or facilities for human habitation or for
740     camping.
741          (11) "Certificate of title" means a document issued by a jurisdiction to establish a
742     record of ownership between an identified owner and the described vehicle, vessel, or outboard
743     motor.
744          (12) "Certified scale weigh ticket" means a weigh ticket that has been issued by a
745     weighmaster.
746          (13) "Commercial vehicle" means a motor vehicle, trailer, or semitrailer used or
747     maintained for the transportation of persons or property that operates:
748          (a) as a carrier for hire, compensation, or profit; or
749          (b) as a carrier to transport the vehicle owner's goods or property in furtherance of the
750     owner's commercial enterprise.
751          (14) "Commission" means the State Tax Commission.
752          (15) "Consumer price index" means the same as that term is defined in Section
753     59-13-102.
754          (16) "Dealer" means a person engaged or licensed to engage in the business of buying,
755     selling, or exchanging new or used vehicles, vessels, or outboard motors either outright or on
756     conditional sale, bailment, lease, chattel mortgage, or otherwise or who has an established
757     place of business for the sale, lease, trade, or display of vehicles, vessels, or outboard motors.

758          (17) "Diesel fuel" means the same as that term is defined in Section 59-13-102.
759          (18) "Division" means the Motor Vehicle Division of the commission, created in
760     Section 41-1a-106.
761          (19) "Electric motor vehicle" means a motor vehicle that is powered solely by an
762     electric motor drawing current from a rechargeable energy storage system.
763          (20) "Essential parts" means all integral and body parts of a vehicle of a type required
764     to be registered in this state, the removal, alteration, or substitution of which would tend to
765     conceal the identity of the vehicle or substantially alter its appearance, model, type, or mode of
766     operation.
767          (21) "Farm tractor" means every motor vehicle designed and used primarily as a farm
768     implement for drawing plows, mowing machines, and other implements of husbandry.
769          (22) (a) "Farm truck" means a truck used by the owner or operator of a farm solely for
770     the owner's or operator's own use in the transportation of:
771          (i) farm products, including livestock and its products, poultry and its products,
772     floricultural and horticultural products;
773          (ii) farm supplies, including tile, fence, and every other thing or commodity used in
774     agricultural, floricultural, horticultural, livestock, and poultry production; and
775          (iii) livestock, poultry, and other animals and things used for breeding, feeding, or
776     other purposes connected with the operation of a farm.
777          (b) "Farm truck" does not include the operation of trucks by commercial processors of
778     agricultural products.
779          (23) "Fleet" means one or more commercial vehicles.
780          (24) "Foreign vehicle" means a vehicle of a type required to be registered, brought into
781     this state from another state, territory, or country other than in the ordinary course of business
782     by or through a manufacturer or dealer, and not registered in this state.
783          (25) "Gross laden weight" means the actual weight of a vehicle or combination of
784     vehicles, equipped for operation, to which shall be added the maximum load to be carried.
785          (26) "Highway" or "street" means the entire width between property lines of every way

786     or place of whatever nature when any part of it is open to the public, as a matter of right, for
787     purposes of vehicular traffic.
788          (27) "Hybrid electric motor vehicle" means a motor vehicle that draws propulsion
789     energy from onboard sources of stored energy that are both:
790          (a) an internal combustion engine or heat engine using consumable fuel; and
791          (b) a rechargeable energy storage system where energy for the storage system comes
792     solely from sources onboard the vehicle.
793          (28) (a) "Identification number" means the identifying number assigned by the
794     manufacturer or by the division for the purpose of identifying the vehicle, vessel, or outboard
795     motor.
796          (b) "Identification number" includes a vehicle identification number, state assigned
797     identification number, hull identification number, and motor serial number.
798          (29) "Implement of husbandry" means every vehicle designed or adapted and used
799     exclusively for an agricultural operation and only incidentally operated or moved upon the
800     highways.
801          (30) (a) "In-state miles" means the total number of miles operated in this state during
802     the preceding year by fleet power units.
803          (b) If fleets are composed entirely of trailers or semitrailers, "in-state miles" means the
804     total number of miles that those vehicles were towed on Utah highways during the preceding
805     year.
806          (31) "Interstate vehicle" means any commercial vehicle operated in more than one
807     state, province, territory, or possession of the United States or foreign country.
808          (32) "Jurisdiction" means a state, district, province, political subdivision, territory, or
809     possession of the United States or any foreign country.
810          (33) "Lienholder" means a person with a security interest in particular property.
811          (34) "Manufactured home" means a transportable factory built housing unit constructed
812     on or after June 15, 1976, according to the Federal Home Construction and Safety Standards
813     Act of 1974 (HUD Code), in one or more sections, which, in the traveling mode, is eight body

814     feet or more in width or 40 body feet or more in length, or when erected on site, is 400 or more
815     square feet, and which is built on a permanent chassis and designed to be used as a dwelling
816     with or without a permanent foundation when connected to the required utilities, and includes
817     the plumbing, heating, air-conditioning, and electrical systems.
818          (35) "Manufacturer" means a person engaged in the business of constructing,
819     manufacturing, assembling, producing, or importing new or unused vehicles, vessels, or
820     outboard motors for the purpose of sale or trade.
821          (36) "Mobile home" means a transportable factory built housing unit built prior to June
822     15, 1976, in accordance with a state mobile home code which existed prior to the Federal
823     Manufactured Housing and Safety Standards Act (HUD Code).
824          (37) "Motor fuel" means the same as that term is defined in Section 59-13-102.
825          (38) (a) "Motor vehicle" means a self-propelled vehicle intended primarily for use and
826     operation on the highways.
827          (b) "Motor vehicle" does not include an off-highway vehicle.
828          (39) "Motorboat" means the same as that term is defined in Section 73-18-2.
829          (40) "Motorcycle" means:
830          (a) a motor vehicle having a saddle for the use of the rider and designed to travel on not
831     more than three wheels in contact with the ground; or
832          (b) an autocycle.
833          (41) "Natural gas" means a fuel of which the primary constituent is methane.
834          (42) (a) "Nonresident" means a person who is not a resident of this state as defined by
835     Section 41-1a-202, and who does not engage in intrastate business within this state and does
836     not operate in that business any motor vehicle, trailer, or semitrailer within this state.
837          (b) A person who engages in intrastate business within this state and operates in that
838     business any motor vehicle, trailer, or semitrailer in this state or who, even though engaging in
839     interstate commerce, maintains any vehicle in this state as the home station of that vehicle is
840     considered a resident of this state, insofar as that vehicle is concerned in administering this
841     chapter.

842          (43) "Odometer" means a device for measuring and recording the actual distance a
843     vehicle travels while in operation, but does not include any auxiliary odometer designed to be
844     periodically reset.
845          (44) "Off-highway implement of husbandry" means the same as that term is defined in
846     Section 41-22-2.
847          (45) "Off-highway vehicle" means the same as that term is defined in Section 41-22-2.
848          (46) "Operate" means to drive or be in actual physical control of a vehicle or to
849     navigate a vessel.
850          (47) "Outboard motor" means a detachable self-contained propulsion unit, excluding
851     fuel supply, used to propel a vessel.
852          (48) (a) "Owner" means a person, other than a lienholder, holding title to a vehicle,
853     vessel, or outboard motor whether or not the vehicle, vessel, or outboard motor is subject to a
854     security interest.
855          (b) If a vehicle is the subject of an agreement for the conditional sale or installment
856     sale or mortgage of the vehicle with the right of purchase upon performance of the conditions
857     stated in the agreement and with an immediate right of possession vested in the conditional
858     vendee or mortgagor, or if the vehicle is the subject of a security agreement, then the
859     conditional vendee, mortgagor, or debtor is considered the owner for the purposes of this
860     chapter.
861          (c) If a vehicle is the subject of an agreement to lease, the lessor is considered the
862     owner until the lessee exercises the lessee's option to purchase the vehicle.
863          (49) "Park model recreational vehicle" means a unit that:
864          (a) is designed and marketed as temporary living quarters for recreational, camping,
865     travel, or seasonal use;
866          (b) is not permanently affixed to real property for use as a permanent dwelling;
867          (c) requires a special highway movement permit for transit; and
868          (d) is built on a single chassis mounted on wheels with a gross trailer area not
869     exceeding 400 square feet in the setup mode.

870          (50) "Personalized license plate" means a license plate that has displayed on it a
871     combination of letters, numbers, or both as requested by the owner of the vehicle and assigned
872     to the vehicle by the division.
873          (51) (a) "Pickup truck" means a two-axle motor vehicle with motive power
874     manufactured, remanufactured, or materially altered to provide an open cargo area.
875          (b) "Pickup truck" includes motor vehicles with the open cargo area covered with a
876     camper, camper shell, tarp, removable top, or similar structure.
877          (52) "Plug-in hybrid electric motor vehicle" means a hybrid electric motor vehicle that
878     has the capability to charge the battery or batteries used for vehicle propulsion from an
879     off-vehicle electric source, such that the off-vehicle source cannot be connected to the vehicle
880     while the vehicle is in motion.
881          (53) "Pneumatic tire" means every tire in which compressed air is designed to support
882     the load.
883          (54) "Preceding year" means a period of 12 consecutive months fixed by the division
884     that is within 16 months immediately preceding the commencement of the registration or
885     license year in which proportional registration is sought. The division in fixing the period shall
886     conform it to the terms, conditions, and requirements of any applicable agreement or
887     arrangement for the proportional registration of vehicles.
888          (55) "Public garage" means every building or other place where vehicles or vessels are
889     kept and stored and where a charge is made for the storage and keeping of vehicles and vessels.
890          (56) "Receipt of surrender of ownership documents" means the receipt of surrender of
891     ownership documents described in Section 41-1a-503.
892          (57) "Reconstructed vehicle" means every vehicle of a type required to be registered in
893     this state that is materially altered from its original construction by the removal, addition, or
894     substitution of essential parts, new or used.
895          (58) "Recreational vehicle" means the same as that term is defined in Section
896     13-14-102.
897          (59) "Registration" means a document issued by a jurisdiction that allows operation of

898     a vehicle or vessel on the highways or waters of this state for the time period for which the
899     registration is valid and that is evidence of compliance with the registration requirements of the
900     jurisdiction.
901          (60) (a) "Registration year" means a 12 consecutive month period commencing with
902     the completion of all applicable registration criteria.
903          (b) For administration of a multistate agreement for proportional registration the
904     division may prescribe a different 12-month period.
905          (61) "Repair or replacement" means the restoration of vehicles, vessels, or outboard
906     motors to a sound working condition by substituting any inoperative part of the vehicle, vessel,
907     or outboard motor, or by correcting the inoperative part.
908          (62) "Replica vehicle" means:
909          (a) a street rod that meets the requirements under Subsection 41-21-1(3)(a)(i)(B); or
910          (b) a custom vehicle that meets the requirements under Subsection
911     41-6a-1507(1)(a)(i)(B).
912          (63) "Road tractor" means every motor vehicle designed and used for drawing other
913     vehicles and constructed so it does not carry any load either independently or any part of the
914     weight of a vehicle or load that is drawn.
915          (64) "Sailboat" means the same as that term is defined in Section 73-18-2.
916          (65) "Security interest" means an interest that is reserved or created by a security
917     agreement to secure the payment or performance of an obligation and that is valid against third
918     parties.
919          (66) "Semitrailer" means every vehicle without motive power designed for carrying
920     persons or property and for being drawn by a motor vehicle and constructed so that some part
921     of its weight and its load rests or is carried by another vehicle.
922          (67) "Special group license plate" means a type of license plate designed for a
923     particular group of people or a license plate authorized and issued by the division in accordance
924     with Section 41-1a-418.
925          (68) (a) "Special interest vehicle" means a vehicle used for general transportation

926     purposes and that is:
927          (i) 20 years or older from the current year; or
928          (ii) a make or model of motor vehicle recognized by the division director as having
929     unique interest or historic value.
930          (b) In making a determination under Subsection (68)(a), the division director shall give
931     special consideration to:
932          (i) a make of motor vehicle that is no longer manufactured;
933          (ii) a make or model of motor vehicle produced in limited or token quantities;
934          (iii) a make or model of motor vehicle produced as an experimental vehicle or one
935     designed exclusively for educational purposes or museum display; or
936          (iv) a motor vehicle of any age or make that has not been substantially altered or
937     modified from original specifications of the manufacturer and because of its significance is
938     being collected, preserved, restored, maintained, or operated by a collector or hobbyist as a
939     leisure pursuit.
940          (69) (a) "Special mobile equipment" means every vehicle:
941          (i) not designed or used primarily for the transportation of persons or property;
942          (ii) not designed to operate in traffic; and
943          (iii) only incidentally operated or moved over the highways.
944          (b) "Special mobile equipment" includes:
945          (i) farm tractors;
946          (ii) off-road motorized construction or maintenance equipment including backhoes,
947     bulldozers, compactors, graders, loaders, road rollers, tractors, and trenchers; and
948          (iii) ditch-digging apparatus.
949          (c) "Special mobile equipment" does not include a commercial vehicle as defined
950     under Section 72-9-102.
951          (70) "Specially constructed vehicle" means every vehicle of a type required to be
952     registered in this state, not originally constructed under a distinctive name, make, model, or
953     type by a generally recognized manufacturer of vehicles, and not materially altered from its

954     original construction.
955          (71) "Title" means the right to or ownership of a vehicle, vessel, or outboard motor.
956          (72) (a) "Total fleet miles" means the total number of miles operated in all jurisdictions
957     during the preceding year by power units.
958          (b) If fleets are composed entirely of trailers or semitrailers, "total fleet miles" means
959     the number of miles that those vehicles were towed on the highways of all jurisdictions during
960     the preceding year.
961          (73) "Trailer" means a vehicle without motive power designed for carrying persons or
962     property and for being drawn by a motor vehicle and constructed so that no part of its weight
963     rests upon the towing vehicle.
964          (74) "Transferee" means a person to whom the ownership of property is conveyed by
965     sale, gift, or any other means except by the creation of a security interest.
966          (75) "Transferor" means a person who transfers the person's ownership in property by
967     sale, gift, or any other means except by creation of a security interest.
968          (76) "Travel trailer," "camping trailer," or "fifth wheel trailer" means a portable vehicle
969     without motive power, designed as a temporary dwelling for travel, recreational, or vacation
970     use that does not require a special highway movement permit when drawn by a self-propelled
971     motor vehicle.
972          (77) "Truck tractor" means a motor vehicle designed and used primarily for drawing
973     other vehicles and not constructed to carry a load other than a part of the weight of the vehicle
974     and load that is drawn.
975          (78) "Vehicle" includes a motor vehicle, trailer, semitrailer, off-highway vehicle,
976     camper, park model recreational vehicle, manufactured home, and mobile home.
977          (79) "Vessel" means the same as that term is defined in Section 73-18-2.
978          (80) "Vintage vehicle" means the same as that term is defined in Section 41-21-1.
979          (81) "Waters of this state" means the same as that term is defined in Section 73-18-2.
980          (82) "Weighmaster" means a person, association of persons, or corporation permitted
981     to weigh vehicles under this chapter.

982          Section 12. Section 41-1a-203 is amended to read:
983          41-1a-203. Prerequisites for registration, transfer of ownership, or registration
984     renewal.
985          (1) Except as otherwise provided, before registration of a vehicle, an owner shall:
986          (a) obtain an identification number inspection under Section 41-1a-204;
987          (b) obtain a certificate of emissions inspection, if required in the current year, as
988     provided under Section 41-6a-1642;
989          (c) pay property taxes, the in lieu fee, or receive a property tax clearance under Section
990     41-1a-206 or 41-1a-207;
991          (d) pay the automobile driver education tax required by Section 41-1a-208;
992          (e) pay the applicable registration fee under Part 12, Fee and Tax Requirements;
993          (f) pay the uninsured motorist identification fee under Section 41-1a-1218, if
994     applicable;
995          (g) pay the motor carrier fee under Section 41-1a-1219, if applicable;
996          (h) pay any applicable local emissions compliance fee under Section 41-1a-1223; and
997          (i) pay the taxes applicable under Title 59, Chapter 12, Sales and Use Tax Act.
998          (2) In addition to the requirements in Subsection (1), an owner of a vehicle that has not
999     been previously registered or that is currently registered under a previous owner's name shall
1000     apply for a valid certificate of title in the owner's name before registration.
1001          (3) The division may not issue a new registration, transfer of ownership, or registration
1002     renewal under Section 73-18-7 for a vessel or outboard motor that is subject to this chapter
1003     unless a certificate of title has been or is in the process of being issued in the same owner's
1004     name.
1005          (4) The division may not issue a new registration, transfer of ownership, or registration
1006     renewal under Section 41-22-3 for an off-highway vehicle that is subject to this chapter unless
1007     a certificate of title has been or is in the process of being issued in the same owner's name.
1008          (5) The division may not issue a registration renewal for a motor vehicle if the division
1009     has received a hold request [as described in Section 72-6-118 involving] for the motor vehicle

1010     for which a registration renewal has been requested[.] as described in:
1011          (a) Section 72-1-213.1; or
1012          (b) Section 72-6-118.
1013          Section 13. Section 41-1a-1206 is amended to read:
1014          41-1a-1206. Registration fees -- Fees by gross laden weight.
1015          (1) Except as provided in Subsections (2) and (3), at the time application is made for
1016     registration or renewal of registration of a vehicle or combination of vehicles under this
1017     chapter, a registration fee shall be paid to the division as follows:
1018          (a) $46.00 for each motorcycle;
1019          (b) $44 for each motor vehicle of 12,000 pounds or less gross laden weight, excluding
1020     motorcycles;
1021          (c) unless the semitrailer or trailer is exempt from registration under Section 41-1a-202
1022     or is registered under Section 41-1a-301:
1023          (i) $31 for each trailer or semitrailer over 750 pounds gross unladen weight; or
1024          (ii) $28.50 for each commercial trailer or commercial semitrailer of 750 pounds or less
1025     gross unladen weight;
1026          (d) (i) $53 for each farm truck over 12,000 pounds, but not exceeding 14,000 pounds
1027     gross laden weight; plus
1028          (ii) $9 for each 2,000 pounds over 14,000 pounds gross laden weight;
1029          (e) (i) $69.50 for each motor vehicle or combination of motor vehicles, excluding farm
1030     trucks, over 12,000 pounds, but not exceeding 14,000 pounds gross laden weight; plus
1031          (ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
1032          (f) (i) $69.50 for each park model recreational vehicle over 12,000 pounds, but not
1033     exceeding 14,000 pounds gross laden weight; plus
1034          (ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
1035          (g) $45 for each vintage vehicle that is less than 40 years old; and
1036          (h) in addition to the fee described in Subsection (1)(b):
1037          (i) for each electric motor vehicle:

1038          (A) $60 during calendar year 2019;
1039          (B) $90 during calendar year 2020; and
1040          (C) $120 beginning January 1, 2021, and thereafter;
1041          (ii) for each hybrid electric motor vehicle:
1042          (A) $10 during calendar year 2019;
1043          (B) $15 during calendar year 2020; and
1044          (C) $20 beginning January 1, 2021, and thereafter;
1045          (iii) for each plug-in hybrid electric motor vehicle:
1046          (A) $26 during calendar year 2019;
1047          (B) $39 during calendar year 2020; and
1048          (C) $52 beginning January 1, 2021, and thereafter; and
1049          (iv) for any motor vehicle not described in Subsections (1)(h)(i) through (iii) that is
1050     fueled exclusively by a source other than motor fuel, diesel fuel, natural gas, or propane:
1051          (A) $60 during calendar year 2019;
1052          (B) $90 during calendar year 2020; and
1053          (C) $120 beginning January 1, 2021, and thereafter.
1054          (2) (a) At the time application is made for registration or renewal of registration of a
1055     vehicle under this chapter for a six-month registration period under Section 41-1a-215.5, a
1056     registration fee shall be paid to the division as follows:
1057          (i) $34.50 for each motorcycle; and
1058          (ii) $33.50 for each motor vehicle of 12,000 pounds or less gross laden weight,
1059     excluding motorcycles.
1060          (b) In addition to the fee described in Subsection (2)(a)(ii), for registration or renewal
1061     of registration of a vehicle under this chapter for a six-month registration period under Section
1062     41-1a-215.5 a registration fee shall be paid to the division as follows:
1063          (i) for each electric motor vehicle:
1064          (A) $46.50 during calendar year 2019;
1065          (B) $69.75 during calendar year 2020; and

1066          (C) $93 beginning January 1, 2021, and thereafter;
1067          (ii) for each hybrid electric motor vehicle:
1068          (A) $7.50 during calendar year 2019;
1069          (B) $11.25 during calendar year 2020; and
1070          (C) $15 beginning January 1, 2021, and thereafter;
1071          (iii) for each plug-in hybrid electric motor vehicle:
1072          (A) $20 during calendar year 2019;
1073          (B) $30 during calendar year 2020; and
1074          (C) $40 beginning January 1, 2021, and thereafter; and
1075          (iv) for each motor vehicle not described in Subsections (2)(b)(i) through (iii) that is
1076     fueled by a source other than motor fuel, diesel fuel, natural gas, or propane:
1077          (A) $46.50 during calendar year 2019;
1078          (B) $69.75 during calendar year 2020; and
1079          (C) $93 beginning January 1, 2021, and thereafter.
1080          (3) (a) (i) Beginning on January 1, 2019, the commission shall, on January 1, annually
1081     adjust the registration fees described in Subsections (1)(a), (1)(b), (1)(c)(i), (1)(c)(ii), (1)(d)(i),
1082     (1)(e)(i), (1)(f)(i), (1)(g), (2)(a), (4)(a), and (7), by taking the registration fee rate for the
1083     previous year and adding an amount equal to the greater of:
1084          (A) an amount calculated by multiplying the registration fee of the previous year by the
1085     actual percentage change during the previous fiscal year in the Consumer Price Index; and
1086          (B) 0.
1087          (ii) Beginning on January 1, 2022, the commission shall, on January 1, annually adjust
1088     the registration fees described in Subsections (1)(h)(i)(C), (1)(h)(ii)(C), (1)(h)(iii)(C),
1089     (1)(h)(iv)(C), (2)(b)(i)(C), (2)(b)(ii)(C), (2)(b)(iii)(C), and (2)(b)(iv)(C) by taking the
1090     registration fee rate for the previous year and adding an amount equal to the greater of:
1091          (A) an amount calculated by multiplying the registration fee of the previous year by the
1092     actual percentage change during the previous fiscal year in the Consumer Price Index; and
1093          (B) 0.

1094          (b) The amounts calculated as described in Subsection (3)(a) shall be rounded up to the
1095     nearest 25 cents.
1096          (4) (a) The initial registration fee for a vintage vehicle that is 40 years old or older is
1097     $40.
1098          (b) A vintage vehicle that is 40 years old or older is exempt from the renewal of
1099     registration fees under Subsection (1).
1100          (c) A vehicle with a Purple Heart special group license plate issued in accordance with
1101     Section 41-1a-421 is exempt from the registration fees under Subsection (1).
1102          (d) A camper is exempt from the registration fees under Subsection (1).
1103          (5) If a motor vehicle is operated in combination with a semitrailer or trailer, each
1104     motor vehicle shall register for the total gross laden weight of all units of the combination if the
1105     total gross laden weight of the combination exceeds 12,000 pounds.
1106          (6) (a) Registration fee categories under this section are based on the gross laden
1107     weight declared in the licensee's application for registration.
1108          (b) Gross laden weight shall be computed in units of 2,000 pounds. A fractional part
1109     of 2,000 pounds is a full unit.
1110          (7) The owner of a commercial trailer or commercial semitrailer may, as an alternative
1111     to registering under Subsection (1)(c), apply for and obtain a special registration and license
1112     plate for a fee of $130.
1113          (8) Except as provided in Section 41-6a-1642, a truck may not be registered as a farm
1114     truck unless:
1115          (a) the truck meets the definition of a farm truck under Section 41-1a-102; and
1116          (b) (i) the truck has a gross vehicle weight rating of more than 12,000 pounds; or
1117          (ii) the truck has a gross vehicle weight rating of 12,000 pounds or less and the owner
1118     submits to the division a certificate of emissions inspection or a waiver in compliance with
1119     Section 41-6a-1642.
1120          (9) A violation of Subsection (8) is an infraction that shall be punished by a fine of not
1121     less than $200.

1122          (10) Trucks used exclusively to pump cement, bore wells, or perform crane services
1123     with a crane lift capacity of five or more tons, are exempt from 50% of the amount of the fees
1124     required for those vehicles under this section.
1125          Section 14. Section 51-2a-202 is amended to read:
1126          51-2a-202. Reporting requirements.
1127          (1) The governing board of each entity required to have an audit, review, compilation,
1128     or fiscal report shall ensure that the audit, review, compilation, or fiscal report is:
1129          (a) made at least annually; and
1130          (b) filed with the state auditor within six months of the close of the fiscal year of the
1131     entity.
1132          (2) If the political subdivision, interlocal organization, or other local entity receives
1133     federal funding, the audit, review, or compilation shall be performed in accordance with both
1134     federal and state auditing requirements.
1135          (3) If a political subdivision receives revenue from a sales and use tax imposed under
1136     Section 59-12-2219, the political subdivision shall identify the amount of revenue the political
1137     subdivision budgets for transportation and verify compliance with Subsection 59-12-2219(13),
1138     regarding new revenue supplanting existing allocations, in the audit, review, compilation, or
1139     fiscal report.
1140          Section 15. Section 59-12-103 is amended to read:
1141          59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
1142     tax revenues.
1143          (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
1144     sales price for amounts paid or charged for the following transactions:
1145          (a) retail sales of tangible personal property made within the state;
1146          (b) amounts paid for:
1147          (i) telecommunications service, other than mobile telecommunications service, that
1148     originates and terminates within the boundaries of this state;
1149          (ii) mobile telecommunications service that originates and terminates within the

1150     boundaries of one state only to the extent permitted by the Mobile Telecommunications
1151     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1152          (iii) an ancillary service associated with a:
1153          (A) telecommunications service described in Subsection (1)(b)(i); or
1154          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
1155          (c) sales of the following for commercial use:
1156          (i) gas;
1157          (ii) electricity;
1158          (iii) heat;
1159          (iv) coal;
1160          (v) fuel oil; or
1161          (vi) other fuels;
1162          (d) sales of the following for residential use:
1163          (i) gas;
1164          (ii) electricity;
1165          (iii) heat;
1166          (iv) coal;
1167          (v) fuel oil; or
1168          (vi) other fuels;
1169          (e) sales of prepared food;
1170          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
1171     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
1172     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
1173     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
1174     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
1175     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
1176     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
1177     horseback rides, sports activities, or any other amusement, entertainment, recreation,

1178     exhibition, cultural, or athletic activity;
1179          (g) amounts paid or charged for services for repairs or renovations of tangible personal
1180     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
1181          (i) the tangible personal property; and
1182          (ii) parts used in the repairs or renovations of the tangible personal property described
1183     in Subsection (1)(g)(i), regardless of whether:
1184          (A) any parts are actually used in the repairs or renovations of that tangible personal
1185     property; or
1186          (B) the particular parts used in the repairs or renovations of that tangible personal
1187     property are exempt from a tax under this chapter;
1188          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
1189     assisted cleaning or washing of tangible personal property;
1190          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
1191     accommodations and services that are regularly rented for less than 30 consecutive days;
1192          (j) amounts paid or charged for laundry or dry cleaning services;
1193          (k) amounts paid or charged for leases or rentals of tangible personal property if within
1194     this state the tangible personal property is:
1195          (i) stored;
1196          (ii) used; or
1197          (iii) otherwise consumed;
1198          (l) amounts paid or charged for tangible personal property if within this state the
1199     tangible personal property is:
1200          (i) stored;
1201          (ii) used; or
1202          (iii) consumed; and
1203          (m) amounts paid or charged for a sale:
1204          (i) (A) of a product transferred electronically; or
1205          (B) of a repair or renovation of a product transferred electronically; and

1206          (ii) regardless of whether the sale provides:
1207          (A) a right of permanent use of the product; or
1208          (B) a right to use the product that is less than a permanent use, including a right:
1209          (I) for a definite or specified length of time; and
1210          (II) that terminates upon the occurrence of a condition.
1211          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
1212     is imposed on a transaction described in Subsection (1) equal to the sum of:
1213          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1214          (A) (I) through March 31, 2019, 4.70%; and
1215          (II) beginning on April 1, 2019, 4.70% plus the rate specified in Subsection (14)(a); and
1216          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
1217     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1218     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
1219     State Sales and Use Tax Act; and
1220          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
1221     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
1222     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
1223     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1224          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1225     transaction under this chapter other than this part.
1226          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
1227     on a transaction described in Subsection (1)(d) equal to the sum of:
1228          (i) a state tax imposed on the transaction at a tax rate of 2%; and
1229          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1230     transaction under this chapter other than this part.
1231          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
1232     on amounts paid or charged for food and food ingredients equal to the sum of:
1233          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at

1234     a tax rate of 1.75%; and
1235          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1236     amounts paid or charged for food and food ingredients under this chapter other than this part.
1237          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
1238     tangible personal property other than food and food ingredients, a state tax and a local tax is
1239     imposed on the entire bundled transaction equal to the sum of:
1240          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
1241          (I) the tax rate described in Subsection (2)(a)(i)(A); and
1242          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
1243     Sales and Use Tax Act, if the location of the transaction as determined under Sections
1244     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
1245     Additional State Sales and Use Tax Act; and
1246          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
1247     Sales and Use Tax Act, if the location of the transaction as determined under Sections
1248     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
1249     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
1250          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
1251     described in Subsection (2)(a)(ii).
1252          (ii) If an optional computer software maintenance contract is a bundled transaction that
1253     consists of taxable and nontaxable products that are not separately itemized on an invoice or
1254     similar billing document, the purchase of the optional computer software maintenance contract
1255     is 40% taxable under this chapter and 60% nontaxable under this chapter.
1256          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
1257     transaction described in Subsection (2)(d)(i) or (ii):
1258          (A) if the sales price of the bundled transaction is attributable to tangible personal
1259     property, a product, or a service that is subject to taxation under this chapter and tangible
1260     personal property, a product, or service that is not subject to taxation under this chapter, the
1261     entire bundled transaction is subject to taxation under this chapter unless:

1262          (I) the seller is able to identify by reasonable and verifiable standards the tangible
1263     personal property, product, or service that is not subject to taxation under this chapter from the
1264     books and records the seller keeps in the seller's regular course of business; or
1265          (II) state or federal law provides otherwise; or
1266          (B) if the sales price of a bundled transaction is attributable to two or more items of
1267     tangible personal property, products, or services that are subject to taxation under this chapter
1268     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
1269     higher tax rate unless:
1270          (I) the seller is able to identify by reasonable and verifiable standards the tangible
1271     personal property, product, or service that is subject to taxation under this chapter at the lower
1272     tax rate from the books and records the seller keeps in the seller's regular course of business; or
1273          (II) state or federal law provides otherwise.
1274          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
1275     seller's regular course of business includes books and records the seller keeps in the regular
1276     course of business for nontax purposes.
1277          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
1278     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
1279     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
1280     of tangible personal property, other property, a product, or a service that is not subject to
1281     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
1282     the seller, at the time of the transaction:
1283          (A) separately states the portion of the transaction that is not subject to taxation under
1284     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
1285          (B) is able to identify by reasonable and verifiable standards, from the books and
1286     records the seller keeps in the seller's regular course of business, the portion of the transaction
1287     that is not subject to taxation under this chapter.
1288          (ii) A purchaser and a seller may correct the taxability of a transaction if:
1289          (A) after the transaction occurs, the purchaser and the seller discover that the portion of

1290     the transaction that is not subject to taxation under this chapter was not separately stated on an
1291     invoice, bill of sale, or similar document provided to the purchaser because of an error or
1292     ignorance of the law; and
1293          (B) the seller is able to identify by reasonable and verifiable standards, from the books
1294     and records the seller keeps in the seller's regular course of business, the portion of the
1295     transaction that is not subject to taxation under this chapter.
1296          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
1297     in the seller's regular course of business includes books and records the seller keeps in the
1298     regular course of business for nontax purposes.
1299          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
1300     personal property, products, or services that are subject to taxation under this chapter at
1301     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
1302     unless the seller, at the time of the transaction:
1303          (A) separately states the items subject to taxation under this chapter at each of the
1304     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
1305          (B) is able to identify by reasonable and verifiable standards the tangible personal
1306     property, product, or service that is subject to taxation under this chapter at the lower tax rate
1307     from the books and records the seller keeps in the seller's regular course of business.
1308          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
1309     seller's regular course of business includes books and records the seller keeps in the regular
1310     course of business for nontax purposes.
1311          (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
1312     rate imposed under the following shall take effect on the first day of a calendar quarter:
1313          (i) Subsection (2)(a)(i)(A);
1314          (ii) Subsection (2)(b)(i);
1315          (iii) Subsection (2)(c)(i); or
1316          (iv) Subsection (2)(d)(i)(A)(I).
1317          (h) (i) A tax rate increase takes effect on the first day of the first billing period that

1318     begins on or after the effective date of the tax rate increase if the billing period for the
1319     transaction begins before the effective date of a tax rate increase imposed under:
1320          (A) Subsection (2)(a)(i)(A);
1321          (B) Subsection (2)(b)(i);
1322          (C) Subsection (2)(c)(i); or
1323          (D) Subsection (2)(d)(i)(A)(I).
1324          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
1325     statement for the billing period is rendered on or after the effective date of the repeal of the tax
1326     or the tax rate decrease imposed under:
1327          (A) Subsection (2)(a)(i)(A);
1328          (B) Subsection (2)(b)(i);
1329          (C) Subsection (2)(c)(i); or
1330          (D) Subsection (2)(d)(i)(A)(I).
1331          (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
1332     computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
1333     change in a tax rate takes effect:
1334          (A) on the first day of a calendar quarter; and
1335          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
1336          (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
1337          (A) Subsection (2)(a)(i)(A);
1338          (B) Subsection (2)(b)(i);
1339          (C) Subsection (2)(c)(i); or
1340          (D) Subsection (2)(d)(i)(A)(I).
1341          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1342     the commission may by rule define the term "catalogue sale."
1343          (3) (a) The following state taxes shall be deposited into the General Fund:
1344          (i) the tax imposed by Subsection (2)(a)(i)(A);
1345          (ii) the tax imposed by Subsection (2)(b)(i);

1346          (iii) the tax imposed by Subsection (2)(c)(i); or
1347          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
1348          (b) The following local taxes shall be distributed to a county, city, or town as provided
1349     in this chapter:
1350          (i) the tax imposed by Subsection (2)(a)(ii);
1351          (ii) the tax imposed by Subsection (2)(b)(ii);
1352          (iii) the tax imposed by Subsection (2)(c)(ii); and
1353          (iv) the tax imposed by Subsection (2)(d)(i)(B).
1354          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1355     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
1356     through (g):
1357          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
1358          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
1359          (B) for the fiscal year; or
1360          (ii) $17,500,000.
1361          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
1362     described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
1363     Department of Natural Resources to:
1364          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
1365     protect sensitive plant and animal species; or
1366          (B) award grants, up to the amount authorized by the Legislature in an appropriations
1367     act, to political subdivisions of the state to implement the measures described in Subsections
1368     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
1369          (ii) Money transferred to the Department of Natural Resources under Subsection
1370     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
1371     person to list or attempt to have listed a species as threatened or endangered under the
1372     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
1373          (iii) At the end of each fiscal year:

1374          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1375     Conservation and Development Fund created in Section 73-10-24;
1376          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1377     Program Subaccount created in Section 73-10c-5; and
1378          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1379     Program Subaccount created in Section 73-10c-5.
1380          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
1381     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
1382     created in Section 4-18-106.
1383          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
1384     in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
1385     Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
1386     water rights.
1387          (ii) At the end of each fiscal year:
1388          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
1389     Conservation and Development Fund created in Section 73-10-24;
1390          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
1391     Program Subaccount created in Section 73-10c-5; and
1392          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
1393     Program Subaccount created in Section 73-10c-5.
1394          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
1395     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
1396     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
1397          (ii) In addition to the uses allowed of the Water Resources Conservation and
1398     Development Fund under Section 73-10-24, the Water Resources Conservation and
1399     Development Fund may also be used to:
1400          (A) conduct hydrologic and geotechnical investigations by the Division of Water
1401     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of

1402     quantifying surface and ground water resources and describing the hydrologic systems of an
1403     area in sufficient detail so as to enable local and state resource managers to plan for and
1404     accommodate growth in water use without jeopardizing the resource;
1405          (B) fund state required dam safety improvements; and
1406          (C) protect the state's interest in interstate water compact allocations, including the
1407     hiring of technical and legal staff.
1408          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1409     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
1410     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
1411          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
1412     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
1413     created in Section 73-10c-5 for use by the Division of Drinking Water to:
1414          (i) provide for the installation and repair of collection, treatment, storage, and
1415     distribution facilities for any public water system, as defined in Section 19-4-102;
1416          (ii) develop underground sources of water, including springs and wells; and
1417          (iii) develop surface water sources.
1418          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1419     2006, the difference between the following amounts shall be expended as provided in this
1420     Subsection (5), if that difference is greater than $1:
1421          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
1422     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
1423          (ii) $17,500,000.
1424          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
1425          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
1426     credits; and
1427          (B) expended by the Department of Natural Resources for watershed rehabilitation or
1428     restoration.
1429          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described

1430     in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
1431     created in Section 73-10-24.
1432          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
1433     remaining difference described in Subsection (5)(a) shall be:
1434          (A) transferred each fiscal year to the Division of Water Resources as dedicated
1435     credits; and
1436          (B) expended by the Division of Water Resources for cloud-seeding projects
1437     authorized by Title 73, Chapter 15, Modification of Weather.
1438          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
1439     in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
1440     created in Section 73-10-24.
1441          (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
1442     remaining difference described in Subsection (5)(a) shall be deposited into the Water
1443     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
1444     Division of Water Resources for:
1445          (i) preconstruction costs:
1446          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
1447     26, Bear River Development Act; and
1448          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
1449     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
1450          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
1451     Chapter 26, Bear River Development Act;
1452          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
1453     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
1454          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
1455     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
1456          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
1457     Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be

1458     transferred each year as dedicated credits to the Division of Water Rights to cover the costs
1459     incurred for employing additional technical staff for the administration of water rights.
1460          (f) At the end of each fiscal year, any unexpended dedicated credits described in
1461     Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
1462     Fund created in Section 73-10-24.
1463          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
1464     amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
1465     (1) for the fiscal year shall be deposited as follows:
1466          (a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
1467     shall be deposited into the Transportation Investment Fund of 2005 created by Section
1468     72-2-124;
1469          (b) for fiscal year 2017-18 only:
1470          (i) 80% of the revenue described in this Subsection (6) shall be deposited into the
1471     Transportation Investment Fund of 2005 created by Section 72-2-124; and
1472          (ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
1473     Water Infrastructure Restricted Account created by Section 73-10g-103;
1474          (c) for fiscal year 2018-19 only:
1475          (i) 60% of the revenue described in this Subsection (6) shall be deposited into the
1476     Transportation Investment Fund of 2005 created by Section 72-2-124; and
1477          (ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
1478     Water Infrastructure Restricted Account created by Section 73-10g-103;
1479          (d) for fiscal year 2019-20 only:
1480          (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
1481     Transportation Investment Fund of 2005 created by Section 72-2-124; and
1482          (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
1483     Water Infrastructure Restricted Account created by Section 73-10g-103;
1484          (e) for fiscal year 2020-21 only:
1485          (i) 20% of the revenue described in this Subsection (6) shall be deposited into the

1486     Transportation Investment Fund of 2005 created by Section 72-2-124; and
1487          (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
1488     Water Infrastructure Restricted Account created by Section 73-10g-103; and
1489          (f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
1490     in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
1491     created by Section 73-10g-103.
1492          (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
1493     Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
1494     2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
1495     created by Section 72-2-124:
1496          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
1497     the revenues collected from the following taxes, which represents a portion of the
1498     approximately 17% of sales and use tax revenues generated annually by the sales and use tax
1499     on vehicles and vehicle-related products:
1500          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1501          (B) the tax imposed by Subsection (2)(b)(i);
1502          (C) the tax imposed by Subsection (2)(c)(i); and
1503          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
1504          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
1505     current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
1506     (D) that exceeds the amount collected from the sales and use taxes described in Subsections
1507     (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
1508          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
1509     the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
1510     lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
1511     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
1512     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
1513     (7)(a) equal to the product of:

1514          (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
1515     previous fiscal year; and
1516          (B) the total sales and use tax revenue generated by the taxes described in Subsections
1517     (7)(a)(i)(A) through (D) in the current fiscal year.
1518          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
1519     Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
1520     described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
1521     Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
1522     Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
1523          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
1524     from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) was deposited
1525     under Subsection (7)(a), the Division of Finance shall annually deposit 17% of the revenues
1526     collected from the sales and use taxes described in Subsections (7)(a)(i)(A) through (D) in the
1527     current fiscal year under Subsection (7)(a).
1528          (8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
1529     under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
1530     deposit $64,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into
1531     the Transportation Investment Fund of 2005 created by Section 72-2-124.
1532          (b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
1533     Subsections (6) and (7), for the 2017-18 fiscal year only, the Division of Finance shall deposit
1534     $63,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
1535     Transportation Investment Fund of 2005 created by Section 72-2-124.
1536          (c) (i) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
1537     Subsections (6) and (7), and subject to Subsection (8)(c)(ii), for a fiscal year beginning on or
1538     after July 1, 2018, the commission shall annually deposit into the Transportation Investment
1539     Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under Subsection (3)(a)
1540     in an amount equal to 3.68% of the revenues collected from the following taxes:
1541          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;

1542          (B) the tax imposed by Subsection (2)(b)(i);
1543          (C) the tax imposed by Subsection (2)(c)(i); and
1544          (D) the tax imposed by Subsection (2)(d)(i)(A)(I).
1545          (ii) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
1546     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(c)(i)
1547     by an amount that is equal to 35% of the amount of revenue generated in the current fiscal year
1548     by the portion of the tax imposed on motor and special fuel that is sold, used, or received for
1549     sale or use in this state that exceeds 29.4 cents per gallon.
1550          (iii) The commission shall annually deposit the amount described in Subsection
1551     (8)(c)(ii) into the Transit [and] Transportation Investment Fund created in Section 72-2-124.
1552          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
1553     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
1554     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
1555          (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
1556     in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
1557     fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
1558     of 2005 created by Section 72-2-124 the amount of tax revenue generated by a .05% tax rate on
1559     the transactions described in Subsection (1).
1560          (b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
1561     addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
1562     shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
1563     amount of revenue described as follows:
1564          (i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
1565     tax rate on the transactions described in Subsection (1);
1566          (ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
1567     tax rate on the transactions described in Subsection (1);
1568          (iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
1569     tax rate on the transactions described in Subsection (1);

1570          (iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
1571     .05% tax rate on the transactions described in Subsection (1); and
1572          (v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
1573     tax rate on the transactions described in Subsection (1).
1574          (c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
1575     deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts
1576     paid or charged for food and food ingredients, except for tax revenue generated by a bundled
1577     transaction attributable to food and food ingredients and tangible personal property other than
1578     food and food ingredients described in Subsection (2)(d).
1579          (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
1580     fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
1581     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
1582     Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
1583     generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
1584     created in Section 63N-2-512.
1585          (12) (a) Notwithstanding Subsection (3)(a), for the 2016-17 fiscal year only, the
1586     Division of Finance shall deposit $26,000,000 of the revenues generated by the taxes listed
1587     under Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
1588          (b) Notwithstanding Subsection (3)(a), for the 2017-18 fiscal year only, the Division of
1589     Finance shall deposit $27,000,000 of the revenues generated by the taxes listed under
1590     Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
1591          [(13) Notwithstanding Subsections (4) through (12) and (14), an amount required to be
1592     expended or deposited in accordance with Subsections (4) through (12) and (14) may not
1593     include an amount the Division of Finance deposits in accordance with Section 59-12-103.2.]
1594          [(14)] (13) (a) The rate specified in this subsection is 0.15%.
1595          (b) Notwithstanding Subsection (3)(a), the Division of Finance shall:
1596          (i) on or before September 30, 2019, transfer the amount of revenue generated by a
1597     0.15% tax rate imposed beginning on April 1, 2019, and ending on June 30, 2019, on the

1598     transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(A) as dedicated
1599     credits to the Division of Health Care Financing; and
1600          (ii) for a fiscal year beginning on or after fiscal year 2019-20, annually transfer the
1601     amount of revenue generated by a 0.15% tax rate on the transactions that are subject to the
1602     sales and use tax under Subsection (2)(a)(i)(A) as dedicated credits to the Division of Health
1603     Care Financing.
1604          (c) The revenue described in Subsection [(14)] (13)(b) that the Division of Finance
1605     transfers to the Division of Health Care Financing as dedicated credits shall be expended for
1606     the following uses:
1607          (i) implementation of the Medicaid expansion described in Sections 26-18-3.1(4) and
1608     26-18-3.9(2)(b);
1609          (ii) if revenue remains after the use specified in Subsection [(14)] (13)(c)(i), other
1610     measures required by Section 26-18-3.9; and
1611          (iii) if revenue remains after the uses specified in Subsections [(14)] (13)(c)(i) and (ii),
1612     other measures described in Title 26, Chapter 18, Medical Assistance Act.
1613          Section 16. Section 59-12-2202 is amended to read:
1614          59-12-2202. Definitions.
1615          As used in this part:
1616          (1) "Airline" means the same as that term is defined in Section 59-2-102.
1617          (2) "Airport facility" means the same as that term is defined in Section 59-12-602.
1618          (3) "Airport of regional significance" means an airport identified by the Federal
1619     Aviation Administration in the most current National Plan of Integrated Airport Systems or an
1620     update to the National Plan of Integrated Airport Systems.
1621          (4) "Annexation" means an annexation to:
1622          (a) a county under Title 17, Chapter 2, County Consolidations and Annexations; or
1623          (b) a city or town under Title 10, Chapter 2, Part 4, Annexation.
1624          (5) "Annexing area" means an area that is annexed into a county, city, or town.
1625          (6) "Class A road" means the same as that term is described in Section 72-3-102.

1626          (7) "Class B road" means the same as that term is described in Section 72-3-103.
1627          (8) "Class C road" means the same as that term is described in Section 72-3-104.
1628          (9) "Class D road" means the same as that term is described in Section 72-3-105.
1629          [(6)] (10) "Council of governments" means the same as that term is defined in Section
1630     72-2-117.5.
1631          [(7)] (11) "Fixed guideway" means the same as that term is defined in Section
1632     59-12-102.
1633          [(8)] (12) "Large public transit district" means the same as that term is defined in
1634     Section 17B-2a-802.
1635          [(9)] (13) "Major collector highway" means the same as that term is defined in Section
1636     72-4-102.5.
1637          [(10)] (14) "Metropolitan planning organization" means the same as that term is
1638     defined in Section 72-1-208.5.
1639          [(11)] (15) "Minor arterial highway" means the same as that term is defined in Section
1640     72-4-102.5.
1641          [(12)] (16) "Minor collector road" means the same as that term is defined in Section
1642     72-4-102.5.
1643          [(13)] (17) "Principal arterial highway" means the same as that term is defined in
1644     Section 72-4-102.5.
1645          [(14)] (18) "Regionally significant transportation facility" means:
1646          (a) in a county of the first or second class:
1647          (i) a principal arterial highway;
1648          (ii) a minor arterial highway;
1649          (iii) a fixed guideway that:
1650          (A) extends across two or more cities or unincorporated areas; or
1651          (B) is an extension to an existing fixed guideway; or
1652          (iv) an airport of regional significance; or
1653          (b) in a county of the second class that is not part of a large public transit district, or in

1654     a county of the third, fourth, fifth, or sixth class:
1655          (i) a principal arterial highway;
1656          (ii) a minor arterial highway;
1657          (iii) a major collector highway;
1658          (iv) a minor collector road; or
1659          (v) an airport of regional significance.
1660          [(15)] (19) "State highway" means a highway designated as a state highway under Title
1661     72, Chapter 4, Designation of State Highways Act.
1662          [(16)] (20) (a) Subject to Subsection [(16)] (20)(b), "system for public transit" means
1663     the same as the term "public transit" is defined in Section 17B-2a-802.
1664          (b) "System for public transit" includes:
1665          (i) the following costs related to public transit:
1666          (A) maintenance costs; or
1667          (B) operating costs;
1668          (ii) a fixed guideway;
1669          (iii) a park and ride facility;
1670          (iv) a passenger station or passenger terminal;
1671          (v) a right-of-way for public transit; or
1672          (vi) the following that serve a public transit facility:
1673          (A) a maintenance facility;
1674          (B) a platform;
1675          (C) a repair facility;
1676          (D) a roadway;
1677          (E) a storage facility;
1678          (F) a utility line; or
1679          (G) a facility or item similar to those described in Subsections [(16)] (20)(b)(vi)(A)
1680     through (F).
1681          Section 17. Section 59-12-2203 is amended to read:

1682          59-12-2203. Authority to impose a sales and use tax under this part.
1683          (1) As provided in this Subsection (1), one of the following sales and use taxes may be
1684     imposed within the boundaries of a local taxing jurisdiction:
1685          (a) a county, city, or town may impose the sales and use tax authorized by Section
1686     59-12-2213 in accordance with Section 59-12-2213; or
1687          (b) a city or town may impose the sales and use tax authorized by Section 59-12-2215
1688     in accordance with Section 59-12-2215.
1689          (2) As provided in this Subsection (2), one of the following sales and use taxes may be
1690     imposed within the boundaries of a local taxing jurisdiction:
1691          (a) a county, city, or town may impose the sales and use tax authorized by Section
1692     59-12-2214 in accordance with Section 59-12-2214; or
1693          (b) a county may impose the sales and use tax authorized by Section 59-12-2216 in
1694     accordance with Section 59-12-2216.
1695          (3) As provided in this Subsection (3), one of the following sales and use taxes may be
1696     imposed within the boundaries of a local taxing jurisdiction:
1697          (a) a county may impose the sales and use tax authorized by Section 59-12-2217 in
1698     accordance with Section 59-12-2217; or
1699          (b) a county, city, or town may impose the sales and use tax authorized by Section
1700     59-12-2218 in accordance with Section 59-12-2218.
1701          (4) A county may impose the sales and use tax authorized by Section 59-12-2219 in
1702     accordance with Section 59-12-2219.
1703          (5) A county[, city, or town] may impose the sales and use tax authorized by Section
1704     59-12-2220 in accordance with Section 59-12-2220.
1705          Section 18. Section 59-12-2212.2 is enacted to read:
1706          59-12-2212.2. Allowable uses of local option sales and use tax revenue.
1707          (1) Except as otherwise provided in this part, a county, city, or town that imposes a
1708     local option sales and use tax under this part may expend the revenue generated from the local
1709     option sales and use tax for the following purposes:

1710          (a) the development, construction, maintenance, or operation of:
1711          (i) a class A road;
1712          (ii) a class B road;
1713          (iii) a class C road;
1714          (iv) a class D road;
1715          (v) traffic and pedestrian safety infrastructure, including:
1716          (A) a sidewalk;
1717          (B) curb and gutter;
1718          (C) a safety feature;
1719          (D) a traffic sign;
1720          (E) a traffic signal; or
1721          (F) street lighting;
1722          (vi) streets, alleys, roads, highways, and thoroughfares of any kind, including
1723     connected structures;
1724          (vii) an airport facility;
1725          (viii) an active transportation facility that is for nonmotorized vehicles and multimodal
1726     transportation and connects an origin with a destination; or
1727          (ix) an intelligent transportation system;
1728          (b) a system for public transit;
1729          (c) all other modes and forms of conveyance used by the public;
1730          (d) debt service or bond issuance costs related to a project or facility described in
1731     Subsections (1)(a) through (c); or
1732          (e) corridor preservation related to a project or facility described in Subsections (1)(a)
1733     through (c).
1734          (2) Any revenue subject to rights or obligations under a contract between a county,
1735     city, or town and a public transit district entered into before January 1, 2019, remains subject to
1736     existing contractual rights and obligations.
1737          Section 19. Section 59-12-2214 is amended to read:

1738          59-12-2214. County, city, or town option sales and use tax to fund a system for
1739     public transit, an airport facility, a water conservation project, or to be deposited into the
1740     County of the First Class Highway Projects Fund -- Base -- Rate.
1741          (1) Subject to the other provisions of this part, a county, city, or town may impose a
1742     sales and use tax of .25% on the transactions described in Subsection 59-12-103(1) located
1743     within the county, city, or town.
1744          (2) [Subject] Notwithstanding Section 59-12-2212.2, and subject to Subsection (3), a
1745     county, city, or town that imposes a sales and use tax under this section shall expend the
1746     revenues collected from the sales and use tax:
1747          (a) to fund a system for public transit;
1748          (b) to fund a project or service related to an airport facility for the portion of the project
1749     or service that is performed within the county, city, or town within which the sales and use tax
1750     is imposed:
1751          (i) for a county that imposes the sales and use tax, if the airport facility is part of the
1752     regional transportation plan of the area metropolitan planning organization if a metropolitan
1753     planning organization exists for the area; or
1754          (ii) for a city or town that imposes the sales and use tax, if:
1755          (A) that city or town is located within a county of the second class;
1756          (B) that city or town owns or operates the airport facility; and
1757          (C) an airline is headquartered in that city or town; or
1758          (c) for a combination of Subsections (2)(a) and (b).
1759          (3) A county of the first class that imposes a sales and use tax under this section shall
1760     expend the revenues collected from the sales and use tax as follows:
1761          (a) 80% of the revenues collected from the sales and use tax shall be expended to fund
1762     a system for public transit; and
1763          (b) 20% of the revenues collected from the sales and use tax shall be deposited into the
1764     County of the First Class Highway Projects Fund created by Section 72-2-121.
1765          [(4) Notwithstanding Section 59-12-2208, a county, city, or town legislative body is

1766     not required to submit an opinion question to the county's, city's, or town's registered voters in
1767     accordance with Section 59-12-2208 to impose a sales and use tax under this section if:]
1768          [(a) the county, city, or town imposes the sales and use tax under this section on or
1769     after July 1, 2010, but on or before July 1, 2011;]
1770          [(b) on July 1, 2010, the county, city, or town imposes a sales and use tax under:]
1771          [(i) Section 59-12-2213; or]
1772          [(ii) Section 59-12-2215; and]
1773          [(c) the county, city, or town obtained voter approval to impose the sales and use tax
1774     under:]
1775          [(i) Section 59-12-2213; or]
1776          [(ii) Section 59-12-2215.]
1777          Section 20. Section 59-12-2215 is amended to read:
1778          59-12-2215. City or town option sales and use tax for highways or to fund a
1779     system for public transit -- Base -- Rate.
1780          (1) Subject to the other provisions of this part, a city or town may impose a sales and
1781     use tax of up to .30% on the transactions described in Subsection 59-12-103(1) located within
1782     the city or town.
1783          [(2) A city or town imposing a sales and use tax under this section shall expend the
1784     revenues collected from the sales and use tax:]
1785          [(a) for the construction and maintenance of highways under the jurisdiction of the city
1786     or town imposing the tax;]
1787          [(b) to fund a system for public transit; or]
1788          [(c) for a combination of Subsections (2)(a) and (b).]
1789          (2) A city or town imposing a sales and use tax under this section shall expend the
1790     revenues collected from the sales and use tax as described in Section 59-12-2212.2.
1791          Section 21. Section 59-12-2216 is amended to read:
1792          59-12-2216. County option sales and use tax for a fixed guideway, to fund a
1793     system for public transit, or for highways -- Base -- Rate -- Allocation and expenditure of

1794     revenues.
1795          (1) Subject to the other provisions of this part, a county legislative body may impose a
1796     sales and use tax of up to .30% on the transactions described in Subsection 59-12-103(1)
1797     within the county, including the cities and towns within the county.
1798          [(2) Subject to Subsection (3), before obtaining voter approval in accordance with
1799     Section 59-12-2208, a county legislative body shall adopt a resolution specifying the
1800     percentage of revenues the county will receive from the sales and use tax under this section that
1801     will be allocated to fund one or more of the following:]
1802          [(a) a project or service relating to a fixed guideway for the portion of the project or
1803     service that is performed within the county;]
1804          [(b) a project or service relating to a system for public transit, except for a fixed
1805     guideway, for the portion of the project or service that is performed within the county;]
1806          [(c) the following relating to a state highway within the county:]
1807          [(i) a project within the county if the project:]
1808          [(A) begins on or after the day on which a county legislative body imposes a tax under
1809     this section; and]
1810          [(B) involves an environmental study, an improvement, new construction, or a
1811     renovation;]
1812          [(ii) debt service on a project described in Subsection (2)(c)(i); or]
1813          [(iii) bond issuance costs related to a project described in Subsection (2)(c)(i); or]
1814          [(d) a project, debt service, or bond issuance cost described in Subsection (2)(c)
1815     relating to a highway that is:]
1816          [(i) a principal arterial highway or minor arterial highway;]
1817          [(ii) included in a metropolitan planning organization's regional transportation plan;
1818     and]
1819          [(iii) not a state highway.]
1820          (2) Subject to Subsection (3), before obtaining voter approval in accordance with
1821     Section 59-12-2208, a county legislative body shall adopt a resolution specifying the

1822     percentage of revenues the county will receive from the sales and use tax under this section that
1823     will be allocated to fund uses described in Section 59-12-2212.2.
1824          (3) A county legislative body shall in the resolution described in Subsection (2)
1825     allocate 100% of the revenues the county will receive from the sales and use tax under this
1826     section for one or more of the purposes described in [Subsection (2)] Section 59-12-2212.2.
1827          (4) Notwithstanding Section 59-12-2208, the opinion question required by Section
1828     59-12-2208 shall state the allocations the county legislative body makes in accordance with this
1829     section.
1830          (5) The revenues collected from a sales and use tax under this section shall be:
1831          (a) allocated in accordance with the allocations specified in the resolution under
1832     Subsection (2); and
1833          (b) expended as provided in this section.
1834          (6) If a county legislative body allocates revenues collected from a sales and use tax
1835     under this section for a state highway project [described in Subsection (2)(c)(i)], before
1836     beginning the state highway project within the county, the county legislative body shall:
1837          (a) obtain approval from the Transportation Commission to complete the project; and
1838          (b) enter into an interlocal agreement established in accordance with Title 11, Chapter
1839     13, Interlocal Cooperation Act, with the Department of Transportation to complete the project.
1840          (7) If after a county legislative body imposes a sales and use tax under this section the
1841     county legislative body seeks to change an allocation specified in the resolution under
1842     Subsection (2), the county legislative body may change the allocation by:
1843          (a) adopting a resolution in accordance with Subsection (2) specifying the percentage
1844     of revenues the county will receive from the sales and use tax under this section that will be
1845     allocated to fund one or more of the items described in [Subsection (2)] Section 59-12-2212.2;
1846          (b) obtaining approval to change the allocation of the sales and use tax by a majority of
1847     all of the members of the county legislative body; and
1848          (c) subject to Subsection (8):
1849          (i) in accordance with Section 59-12-2208, submitting an opinion question to the

1850     county's registered voters voting on changing the allocation so that each registered voter has the
1851     opportunity to express the registered voter's opinion on whether the allocation should be
1852     changed; and
1853          (ii) in accordance with Section 59-12-2208, obtaining approval to change the allocation
1854     from a majority of the county's registered voters voting on changing the allocation.
1855          (8) Notwithstanding Section 59-12-2208, the opinion question required by Subsection
1856     (7)(c)(i) shall state the allocations specified in the resolution adopted in accordance with
1857     Subsection (7)(a) and approved by the county legislative body in accordance with Subsection
1858     (7)(b).
1859          (9) Revenues collected from a sales and use tax under this section that a county
1860     allocates for a [purpose described in Subsection (2)(c)] state highway within the county shall
1861     be:
1862          (a) deposited into the Highway Projects Within Counties Fund created by Section
1863     72-2-121.1; and
1864          (b) expended as provided in Section 72-2-121.1.
1865          (10) (a) Notwithstanding Section 59-12-2206 and subject to Subsection (10)(b),
1866     revenues collected from a sales and use tax under this section that a county allocates for a
1867     [purpose described in Subsection (2)(d)] project, debt service, or bond issuance cost relating to
1868     a highway that is a principal arterial highway or minor arterial highway that is included in a
1869     metropolitan planning organization's regional transportation plan, but is not a state highway,
1870     shall be transferred to the Department of Transportation if the transfer of the revenues is
1871     required under an interlocal agreement:
1872          (i) entered into on or before January 1, 2010; and
1873          (ii) established in accordance with Title 11, Chapter 13, Interlocal Cooperation Act.
1874          (b) The Department of Transportation shall expend the revenues described in
1875     Subsection (10)(a) as provided in the interlocal agreement described in Subsection (10)(a).
1876          Section 22. Section 59-12-2217 is amended to read:
1877          59-12-2217. County option sales and use tax for transportation -- Base -- Rate --

1878     Written prioritization process -- Approval by county legislative body.
1879          (1) Subject to the other provisions of this part, and subject to Subsection [(10)] (8), a
1880     county legislative body may impose a sales and use tax of up to .25% on the transactions
1881     described in Subsection 59-12-103(1) within the county, including the cities and towns within
1882     the county.
1883          [(2) Subject to Subsections (3) through (8) and Section 59-12-2207, the revenues
1884     collected from a sales and use tax under this section may only be expended for:]
1885          [(a) a project or service:]
1886          [(i) relating to a regionally significant transportation facility for the portion of the
1887     project or service that is performed within the county;]
1888          [(ii) for new capacity or congestion mitigation if the project or service is performed
1889     within a county:]
1890          [(A) of the first or second class; or]
1891          [(B) if that county is part of an area metropolitan planning organization; and]
1892          [(iii) that is on a priority list:]
1893          [(A) created by the county's council of governments in accordance with Subsection (7);
1894     and]
1895          [(B) approved by the county legislative body in accordance with Subsection (7);]
1896          [(b) corridor preservation for a project or service described in Subsection (2)(a); or]
1897          [(c) debt service or bond issuance costs related to a project or service described in
1898     Subsection (2)(a)(i) or (ii).]
1899          [(3) If a project or service described in Subsection (2) is for: (a) a principal arterial
1900     highway or a minor arterial highway in a county of the first or second class or a collector road
1901     in a county of the second class, that project or service shall be part of the:]
1902          [(i) county and municipal master plan; and]
1903          [(ii) (A) statewide long-range plan; or]
1904          [(B) regional transportation plan of the area metropolitan planning organization if a
1905     metropolitan planning organization exists for the area; or]

1906          [(b) a fixed guideway or an airport, that project or service shall be part of the regional
1907     transportation plan of the area metropolitan planning organization if a metropolitan planning
1908     organization exists for the area.]
1909          [(4) In a county of the first or second class, a regionally significant transportation
1910     facility project or service described in Subsection (2)(a)(i) shall have a funded year priority
1911     designation on a Statewide Transportation Improvement Program and Transportation
1912     Improvement Program if the project or service described in Subsection (2)(a)(i) is:]
1913          [(a) a principal arterial highway;]
1914          [(b) a minor arterial highway;]
1915          [(c) a collector road in a county of the second class; or]
1916          [(d) a major collector highway in a rural area.]
1917          [(5) Of the revenues collected from a sales and use tax imposed under this section
1918     within a county of the first class, 25% or more shall be expended for the purpose described in
1919     Subsection (2)(b).]
1920          (2) (a) Except as provided in Subsection (2)(b), and subject to Subsections (3) through
1921     (6) and Section 59-12-2207, the revenue collected from a sales and use tax under this section
1922     may only be expended as described in Section 59-12-2212.2.
1923          (b) Subject to Subsections (3) through (6), in a county of the first or second class, or if
1924     a county is part of an area metropolitan planning organization, that portion of the county within
1925     the metropolitan planning organization, the revenue collected from a sales and use tax under
1926     this section may only be expended as described in Section 59-12-2212.2, and only if the
1927     expenditure is for:
1928          (i) a project or service:
1929          (A) relating to a regionally significant transportation facility for the portion of the
1930     project or service that is performed within the county;
1931          (B) for new capacity or congestion mitigation, and not for operation or maintenance, if
1932     the project or service is performed within the county; and
1933          (C) on a priority list created by the county's council of governments in accordance with

1934     Subsection (5) and approved by the county legislative body in accordance with Subsection (5);
1935          (ii) corridor preservation for a project or service described in Subsection (2)(b)(i)(A) or
1936     (B); or
1937          (iii) debt service or bond issuance costs related to a project or service described in
1938     Subsection (2)(b)(i)(A) or (B).
1939          (c) The restriction in Subsection (2)(b)(i)(B) from using revenue for operation or
1940     maintenance does not apply to any revenue subject to rights or obligations under a contract
1941     entered into before January 1, 2019, between a county and a public transit district.
1942          (3) For revenue expended under this section for a project or service described in
1943     Subsection (2) that is on or part of a regionally significant transportation facility and that
1944     constructs or adds a new through lane or interchange, or provides new fixed guideway public
1945     transit service, the project shall be part of:
1946          (a) the statewide long-range plan; or
1947          (b) a regional transportation plan of the area metropolitan planning organization if a
1948     metropolitan planning organization area exists for the area.
1949          [(6)] (4) (a) As provided in this Subsection [(6)] (4), a council of governments shall:
1950          (i) develop a written prioritization process for the prioritization of projects to be funded
1951     by revenues collected from a sales and use tax under this section;
1952          (ii) create a priority list of [regionally significant] transportation [facility] projects or
1953     services described in [Subsection (2)(a)(i)] Section 59-12-2212.2 in accordance with
1954     Subsection [(7)] (5); and
1955          (iii) present the priority list to the county legislative body for approval in accordance
1956     with Subsection [(7)] (5).
1957          (b) The written prioritization process described in Subsection [(6)] (4)(a)(i) shall
1958     include:
1959          (i) a definition of the type of projects to which the written prioritization process
1960     applies;
1961          (ii) subject to Subsection [(6)] (4)(c), the specification of a weighted criteria system

1962     that the council of governments will use to rank proposed projects and how that weighted
1963     criteria system will be used to determine which proposed projects will be prioritized;
1964          (iii) the specification of data that is necessary to apply the weighted criteria system;
1965          (iv) application procedures for a project to be considered for prioritization by the
1966     council of governments; and
1967          (v) any other provision the council of governments considers appropriate.
1968          (c) The weighted criteria system described in Subsection [(6)] (4)(b)(ii) shall include
1969     the following:
1970          (i) the cost effectiveness of a project;
1971          (ii) the degree to which a project will mitigate regional congestion;
1972          (iii) the compliance requirements of applicable federal laws or regulations;
1973          (iv) the economic impact of a project;
1974          (v) the degree to which a project will require tax revenues to fund maintenance and
1975     operation expenses; and
1976          (vi) any other provision the council of governments considers appropriate.
1977          (d) A council of governments of a county of the first or second class shall submit the
1978     written prioritization process described in Subsection [(6)] (4)(a)(i) to the Executive
1979     Appropriations Committee for approval prior to taking final action on:
1980          (i) the written prioritization process; or
1981          (ii) any proposed amendment to the written prioritization process.
1982          [(7)] (5) (a) A council of governments shall use the weighted criteria system adopted in
1983     the written prioritization process developed in accordance with Subsection [(6)] (4) to create a
1984     priority list of [regionally significant] transportation [facility] projects or services for which
1985     revenues collected from a sales and use tax under this section may be expended.
1986          (b) Before a council of governments may finalize a priority list or the funding level of a
1987     project, the council of governments shall conduct a public meeting on:
1988          (i) the written prioritization process; and
1989          (ii) the merits of the projects that are prioritized as part of the written prioritization

1990     process.
1991          (c) A council of governments shall make the weighted criteria system ranking for each
1992     project prioritized as part of the written prioritization process publicly available before the
1993     public meeting required by Subsection [(7)] (5)(b) is held.
1994          (d) If a council of governments prioritizes a project over another project with a higher
1995     rank under the weighted criteria system, the council of governments shall:
1996          (i) identify the reasons for prioritizing the project over another project with a higher
1997     rank under the weighted criteria system at the public meeting required by Subsection [(7)]
1998     (5)(b); and
1999          (ii) make the reasons described in Subsection [(7)] (5)(d)(i) publicly available.
2000          (e) Subject to Subsections [(7)] (5)(f) and (g), after a council of governments finalizes
2001     a priority list in accordance with this Subsection [(7)] (5), the council of governments shall:
2002          (i) submit the priority list to the county legislative body for approval; and
2003          (ii) obtain approval of the priority list from a majority of the members of the county
2004     legislative body.
2005          (f) A council of governments may only submit one priority list per calendar year to the
2006     county legislative body.
2007          (g) A county legislative body may only consider and approve one priority list submitted
2008     under Subsection [(7)] (5)(e) per calendar year.
2009          [(8)] (6) In a county of the first class, revenues collected from a sales and use tax under
2010     this section that a county allocates for a purpose described in Subsection [(2)(b)]
2011     59-12-2212.2(5) shall be:
2012          (a) deposited in or transferred to the County of the First Class Highway Projects Fund
2013     created by Section 72-2-121; and
2014          (b) expended as provided in Section 72-2-121.
2015          [(9)] (7) Notwithstanding Section 59-12-2208, a county legislative body may, but is not
2016     required to, submit an opinion question to the county's registered voters in accordance with
2017     Section 59-12-2208 to impose a sales and use tax under this section.

2018          [(10)] (8) (a) (i) Notwithstanding any other provision in this section, if the entire
2019     boundary of a county is annexed into a large public transit district, if the county legislative
2020     body wishes to impose a sales and use tax under this section, the county legislative body shall
2021     pass the ordinance to impose a sales and use tax under this section on or before June 30, 2022.
2022          (ii) If the entire boundary of a county is annexed into a large public transit district, the
2023     county legislative body may not pass an ordinance to impose a sales and use tax under this
2024     section on or after July 1, 2022.
2025          (b) Notwithstanding the deadline described in Subsection [(10)] (8)(a), any sales and
2026     use tax imposed under this section on or before June 30, 2022, may remain in effect.
2027          Section 23. Section 59-12-2218 is amended to read:
2028          59-12-2218. County, city, or town option sales and use tax for airports, highways,
2029     and systems for public transit -- Base -- Rate -- Administration of sales and use tax --
2030     Voter approval exception.
2031          (1) Subject to the other provisions of this part, and subject to Subsection [(11)] (8), the
2032     following may impose a sales and use tax under this section:
2033          (a) if, on April 1, 2009, a county legislative body of a county of the second class
2034     imposes a sales and use tax under this section, the county legislative body of the county of the
2035     second class may impose the sales and use tax on the transactions:
2036          (i) described in Subsection 59-12-103(1); and
2037          (ii) within the county, including the cities and towns within the county; or
2038          (b) if, on April 1, 2009, a county legislative body of a county of the second class does
2039     not impose a sales and use tax under this section:
2040          (i) a city legislative body of a city within the county of the second class may impose a
2041     sales and use tax under this section on the transactions described in Subsection 59-12-103(1)
2042     within that city;
2043          (ii) a town legislative body of a town within the county of the second class may impose
2044     a sales and use tax under this section on the transactions described in Subsection 59-12-103(1)
2045     within that town; and

2046          (iii) the county legislative body of the county of the second class may impose a sales
2047     and use tax on the transactions described in Subsection 59-12-103(1):
2048          (A) within the county, including the cities and towns within the county, if on the date
2049     the county legislative body provides the notice described in Section 59-12-2209 to the
2050     commission stating that the county will enact a sales and use tax under this section, no city or
2051     town within that county imposes a sales and use tax under this section or has provided the
2052     notice described in Section 59-12-2209 to the commission stating that the city or town will
2053     enact a sales and use tax under this section; or
2054          (B) within the county, except for within a city or town within that county, if, on the
2055     date the county legislative body provides the notice described in Section 59-12-2209 to the
2056     commission stating that the county will enact a sales and use tax under this section, that city or
2057     town imposes a sales and use tax under this section or has provided the notice described in
2058     Section 59-12-2209 to the commission stating that the city or town will enact a sales and use
2059     tax under this section.
2060          (2) For purposes of Subsection (1) and subject to the other provisions of this section, a
2061     county, city, or town legislative body that imposes a sales and use tax under this section may
2062     impose the tax at a rate of[: (a) .10%; or (b)] .25%.
2063          [(3) A sales and use tax imposed at a rate described in Subsection (2)(a) shall be
2064     expended as determined by the county, city, or town legislative body as follows:]
2065          [(a) deposited as provided in Subsection (9)(b) into the County of the Second Class
2066     State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
2067     Section 72-2-121.2;]
2068          [(b) expended for a project or service relating to an airport facility for the portion of the
2069     project or service that is performed within the county, city, or town within which the tax is
2070     imposed:]
2071          [(i) for a county legislative body that imposes the sales and use tax, if that airport
2072     facility is part of the regional transportation plan of the area metropolitan planning organization
2073     if a metropolitan planning organization exists for the area; or]

2074          [(ii) for a city or town legislative body that imposes the sales and use tax, if:]
2075          [(A) that city or town owns or operates the airport facility; and]
2076          [(B) an airline is headquartered in that city or town; or]
2077          [(c) deposited or expended for a combination of Subsections (3)(a) and (b).]
2078          [(4) Subject to Subsections (5) through (7), a sales and use tax imposed at a rate
2079     described in Subsection (2)(b) shall be expended as determined by the county, city, or town
2080     legislative body as follows:]
2081          [(a) deposited as provided in Subsection (9)(b) into the County of the Second Class
2082     State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
2083     Section 72-2-121.2;]
2084          [(b) expended for:]
2085          [(i) a state highway designated under Title 72, Chapter 4, Part 1, State Highways;]
2086          [(ii) a local highway that is a principal arterial highway, minor arterial highway, major
2087     collector highway, or minor collector road; or]
2088          [(iii) a combination of Subsections (4)(b)(i) and (ii);]
2089          [(c) expended for a project or service relating to a system for public transit for the
2090     portion of the project or service that is performed within the county, city, or town within which
2091     the sales and use tax is imposed;]
2092          [(d) expended for a project or service relating to an airport facility for the portion of the
2093     project or service that is performed within the county, city, or town within which the sales and
2094     use tax is imposed:]
2095          [(i) for a county legislative body that imposes the sales and use tax, if that airport
2096     facility is part of the regional transportation plan of the area metropolitan planning organization
2097     if a metropolitan planning organization exists for the area; or]
2098          [(ii) for a city or town legislative body that imposes the sales and use tax, if:]
2099          [(A) that city or town owns or operates the airport facility; and]
2100          [(B) an airline is headquartered in that city or town;]
2101          [(e) expended for:]

2102          [(i) a class B road, as defined in Section 72-3-103;]
2103          [(ii) a class C road, as defined in Section 72-3-104; or]
2104          [(iii) a combination of Subsections (4)(e)(i) and (ii);]
2105          [(f) expended for traffic and pedestrian safety, including:]
2106          [(i) for a class B road, as defined in Section 72-3-103, or class C road, as defined in
2107     Section 72-3-104, for:]
2108          [(A) a sidewalk;]
2109          [(B) curb and gutter;]
2110          [(C) a safety feature;]
2111          [(D) a traffic sign;]
2112          [(E) a traffic signal;]
2113          [(F) street lighting; or]
2114          [(G) a combination of Subsections (4)(f)(i)(A) through (F);]
2115          [(ii) the construction of an active transportation facility that:]
2116          [(A) is for nonmotorized vehicles and multimodal transportation; and]
2117          [(B) connects an origin with a destination; or]
2118          [(iii) a combination of Subsections (4)(f)(i) and (ii); or]
2119          [(g) deposited or expended for a combination of Subsections (4)(a) through (f).]
2120          (3) (a) Except as provided in Subsection (3)(b), and subject to Subsection (4), a sales
2121     and use tax imposed under this section shall be expended as determined by the county, city, or
2122     town legislative body for uses described in Section 59-12-2212.2.
2123          (b) (i) Notwithstanding Subsection 59-12-2212.2(1)(a), revenues collected from a sales
2124     and use tax under this section may only be used for new capacity or congestion mitigation
2125     projects, and may not be expended for operation or maintenance purposes.
2126          (ii) The restriction in Subsection (3)(b)(i) from using revenue for operation or
2127     maintenance purposes does not apply to any revenue subject to rights or obligations under a
2128     contract entered into before January 1, 2019, between a county, city, or town legislative body
2129     and a public transit district.

2130          [(5)] (4) A county, city, or town legislative body may not expend revenue collected
2131     within a county, city, or town from a tax under this section for a purpose described in
2132     [Subsections (4)(b) through (f)] Section 59-12-2212.2 unless the purpose is recommended by:
2133          (a) for a county that is part of a metropolitan planning organization, the metropolitan
2134     planning organization of which the county is a part; or
2135          (b) for a county that is not part of a metropolitan planning organization, the council of
2136     governments of which the county is a part.
2137          [(6) (a) (i) Except as provided in Subsection (6)(b), a county, city, or town that imposes
2138     a tax described in Subsection (2)(b) shall deposit the revenue collected from a tax rate of .05%
2139     as provided in Subsection (9)(b)(i) into the Local Highway and Transportation Corridor
2140     Preservation Fund created by Section 72-2-117.5.]
2141          [(ii) Revenue deposited in accordance with Subsection (6)(a)(i) shall be expended and
2142     distributed in accordance with Section 72-2-117.5.]
2143          [(b) A county, city, or town is not required to make the deposit required by Subsection
2144     (6)(a)(i) if the county, city, or town:]
2145          [(i) imposed a tax described in Subsection (2)(b) on July 1, 2010; or]
2146          [(ii) has continuously imposed a tax described in Subsection (2)(b):]
2147          [(A) beginning after July 1, 2010; and]
2148          [(B) for a five-year period.]
2149          [(7) (a) Subject to the other provisions of this Subsection (7), a city or town within
2150     which a sales and use tax is imposed at the tax rate described in Subsection (2)(b) may:]
2151          [(i) expend the revenues in accordance with Subsection (4); or]
2152          [(ii) expend the revenues in accordance with Subsections (7)(b) through (d) if:]
2153          [(A) that city or town owns or operates an airport facility; and]
2154          [(B) an airline is headquartered in that city or town.]
2155          [(b) (i) A city or town legislative body of a city or town within which a sales and use
2156     tax is imposed at the tax rate described in Subsection (2)(b) may expend the revenues collected
2157     from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of

2158     .25% for a purpose described in Subsection (7)(b)(ii) if:]
2159          [(A) that city or town owns or operates an airport facility; and]
2160          [(B) an airline is headquartered in that city or town.]
2161          [(ii) A city or town described in Subsection (7)(b)(i) may expend the revenues
2162     collected from a tax rate of greater than .10% but not to exceed the revenues collected from a
2163     tax rate of .25% for:]
2164          [(A) a project or service relating to the airport facility; and]
2165          [(B) the portion of the project or service that is performed within the city or town
2166     imposing the sales and use tax.]
2167          [(c) If a city or town legislative body described in Subsection (7)(b)(i) determines to
2168     expend the revenues collected from a tax rate of greater than .10% but not to exceed the
2169     revenues collected from a tax rate of .25% for a project or service relating to an airport facility
2170     as allowed by Subsection (7)(b), any remaining revenue that is collected from the sales and use
2171     tax imposed at the tax rate described in Subsection (2)(b) that is not expended for the project or
2172     service relating to an airport facility as allowed by Subsection (7)(b) shall be expended as
2173     follows:]
2174          [(i) 75% of the remaining revenues shall be deposited as provided in Subsection (9)(c)
2175     into the County of the Second Class State Highway Projects Fund created by Section
2176     72-2-121.2 and expended as provided in Section 72-2-121.2; and]
2177          [(ii) 25% of the remaining revenues shall be deposited as provided in Subsection (9)(c)
2178     into the Local Highway and Transportation Corridor Preservation Fund created by Section
2179     72-2-117.5 and expended and distributed in accordance with Section 72-2-117.5.]
2180          [(d) A city or town legislative body that expends the revenues collected from a sales
2181     and use tax imposed at the tax rate described in Subsection (2)(b) in accordance with
2182     Subsections (7)(b) and (c):]
2183          [(i) shall, on or before the date the city or town legislative body provides the notice
2184     described in Section 59-12-2209 to the commission stating that the city or town will enact a
2185     sales and use tax under this section:]

2186          [(A) determine the tax rate, the percentage of which is greater than .10% but does not
2187     exceed .25%, the collections from which the city or town legislative body will expend for a
2188     project or service relating to an airport facility as allowed by Subsection (7)(b); and]
2189          [(B) notify the commission in writing of the tax rate the city or town legislative body
2190     determines in accordance with Subsection (7)(d)(i)(A);]
2191          [(ii) shall, on or before the April 1 immediately following the date the city or town
2192     legislative body provides the notice described in Subsection (7)(d)(i) to the commission:]
2193          [(A) determine the tax rate, the percentage of which is greater than .10% but does not
2194     exceed .25%, the collections from which the city or town legislative body will expend for a
2195     project or service relating to an airport facility as allowed by Subsection (7)(b); and]
2196          [(B) notify the commission in writing of the tax rate the city or town legislative body
2197     determines in accordance with Subsection (7)(d)(ii)(A);]
2198          [(iii) shall, on or before April 1 of each year after the April 1 described in Subsection
2199     (7)(d)(ii):]
2200          [(A) determine the tax rate, the percentage of which is greater than .10% but does not
2201     exceed .25%, the collections from which the city or town legislative body will expend for a
2202     project or service relating to an airport facility as allowed by Subsection (7)(b); and]
2203          [(B) notify the commission in writing of the tax rate the city or town legislative body
2204     determines in accordance with Subsection (7)(d)(iii)(A); and]
2205          [(iv) may not change the tax rate the city or town legislative body determines in
2206     accordance with Subsections (7)(d)(i) through (iii) more frequently than as prescribed by
2207     Subsections (7)(d)(i) through (iii).]
2208          [(8)] (5) Before a city or town legislative body may impose a sales and use tax under
2209     this section, the city or town legislative body shall provide a copy of the notice described in
2210     Section 59-12-2209 that the city or town legislative body provides to the commission:
2211          (a) to the county legislative body within which the city or town is located; and
2212          (b) at the same time as the city or town legislative body provides the notice to the
2213     commission.

2214          [(9) (a)] (6) Subject to [Subsections (9)(b) through (e) and] Section 59-12-2207, the
2215     commission shall transmit revenues collected within a county, city, or town from a tax under
2216     this part that will be expended for a purpose described in [Subsection (3)(b) or Subsections
2217     (4)(b) through (f)] Section 59-12-2212.2 to the county, city, or town legislative body in
2218     accordance with Section 59-12-2206.
2219          [(b) Except as provided in Subsection (9)(c) and subject to Section 59-12-2207, the
2220     commission shall deposit revenues collected within a county, city, or town from a sales and use
2221     tax under this section that:]
2222          [(i) are required to be expended for a purpose described in Subsection (6)(a) into the
2223     Local Transportation Corridor Preservation Fund created by Section 72-2-117.5; or]
2224          [(ii) a county, city, or town legislative body determines to expend for a purpose
2225     described in Subsection (3)(a) or (4)(a) into the County of the Second Class State Highway
2226     Projects Fund created by Section 72-2-121.2 if the county, city, or town legislative body
2227     provides written notice to the commission requesting the deposit.]
2228          [(c) Subject to Subsection (9)(d) or (e), if a city or town legislative body provides
2229     notice to the commission in accordance with Subsection (7)(d), the commission shall:]
2230          [(i) transmit the revenues collected from the tax rate stated on the notice to the city or
2231     town legislative body monthly by electronic funds transfer; and]
2232          [(ii) deposit any remaining revenues described in Subsection (7)(c) in accordance with
2233     Subsection (7)(c).]
2234          [(d) (i) If a city or town legislative body provides the notice described in Subsection
2235     (7)(d)(i) to the commission, the commission shall transmit or deposit the revenues collected
2236     from the sales and use tax:]
2237          [(A) in accordance with Subsection (9)(c);]
2238          [(B) beginning on the date the city or town legislative body enacts the sales and use
2239     tax; and]
2240          [(C) ending on the earlier of the June 30 immediately following the date the city or
2241     town legislative body provides the notice described in Subsection (7)(d)(ii) to the commission

2242     or the date the city or town legislative body repeals the sales and use tax.]
2243          [(ii) If a city or town legislative body provides the notice described in Subsection
2244     (7)(d)(ii) or (iii) to the commission, the commission shall transmit or deposit the revenues
2245     collected from the sales and use tax:]
2246          [(A) in accordance with Subsection (9)(c);]
2247          [(B) beginning on the July 1 immediately following the date the city or town legislative
2248     body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission; and]
2249          [(C) ending on the earlier of the June 30 of the year after the date the city or town
2250     legislative body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission
2251     or the date the city or town legislative body repeals the sales and use tax.]
2252          [(e) (i) If a city or town legislative body that is required to provide the notice described
2253     in Subsection (7)(d)(i) does not provide the notice described in Subsection (7)(d)(i) to the
2254     commission on or before the date required by Subsection (7)(d) for providing the notice, the
2255     commission shall transmit, transfer, or deposit the revenues collected from the sales and use
2256     tax within the city or town in accordance with Subsections (9)(a) and (b).]
2257          [(ii) If a city or town legislative body that is required to provide the notice described in
2258     Subsection (7)(d)(ii) or (iii) does not provide the notice described in Subsection (7)(d)(ii) or
2259     (iii) to the commission on or before the date required by Subsection (7)(d) for providing the
2260     notice, the commission shall transmit or deposit the revenues collected from the sales and use
2261     tax within the city or town in accordance with:]
2262          [(A) Subsection (9)(c); and]
2263          [(B) the most recent notice the commission received from the city or town legislative
2264     body under Subsection (7)(d).]
2265          [(10)] (7) Notwithstanding Section 59-12-2208, a county, city, or town legislative body
2266     may, but is not required to, submit an opinion question to the county's, city's, or town's
2267     registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under
2268     this section.
2269          [(11)] (8) (a) (i) Notwithstanding any other provision in this section, if the entire

2270     boundary of a county, city, or town is annexed into a large public transit district, if the county,
2271     city, or town legislative body wishes to impose a sales and use tax under this section, the
2272     county, city, or town legislative body shall pass the ordinance to impose a sales and use tax
2273     under this section on or before June 30, 2022.
2274          (ii) If the entire boundary of a county, city, or town is annexed into a large public
2275     transit district, the county, city, or town legislative body may not pass the ordinance to impose
2276     a sales and use tax under this section on or after July 1, 2022.
2277          (b) Notwithstanding the deadline described in Subsection [(11)] (8)(a), any sales and
2278     use tax imposed under this section by passage of a county, city, or town ordinance on or before
2279     June 30, 2022, may remain in effect.
2280          Section 24. Section 59-12-2219 is amended to read:
2281          59-12-2219. County option sales and use tax for highways and public transit --
2282     Base -- Rate -- Distribution and expenditure of revenue -- Revenue may not supplant
2283     existing budgeted transportation revenue.
2284          (1) As used in this section:
2285          [(a) "Class B road" means the same as that term is defined in Section 72-3-103.]
2286          [(b) "Class C road" means the same as that term is defined in Section 72-3-104.]
2287          [(c)] (a) "Eligible political subdivision" means a political subdivision that:
2288          (i) (A) on May 12, 2015, provides public transit services; or
2289          (B) after May 12, 2015, provides written notice to the commission in accordance with
2290     Subsection [(10)] (9)(b) that it intends to provide public transit service within a county;
2291          (ii) is not a public transit district; and
2292          (iii) is not annexed into a public transit district.
2293          [(d)] (b) "Public transit district" means a public transit district organized under Title
2294     17B, Chapter 2a, Part 8, Public Transit District Act.
2295          (2) Subject to the other provisions of this part, and subject to Subsection [(17)] (15), a
2296     county legislative body may impose a sales and use tax of .25% on the transactions described in
2297     Subsection 59-12-103(1) within the county, including the cities and towns within the county.

2298          (3) Subject to [Subsections (11) and (12)] Subsection (10), the commission shall
2299     distribute sales and use tax revenue collected under this section as provided in Subsections (4)
2300     through [(10)] (9).
2301          (4) If the entire boundary of a county that imposes a sales and use tax under this section
2302     is annexed into a single public transit district, the commission shall distribute the sales and use
2303     tax revenue collected within the county as follows:
2304          (a) .10% shall be transferred to the public transit district in accordance with Section
2305     59-12-2206;
2306          (b) .10% shall be distributed as provided in Subsection [(8)] (7); and
2307          (c) .05% shall be distributed to the county legislative body.
2308          (5) If the entire boundary of a county that imposes a sales and use tax under this section
2309     is not annexed into a single public transit district, but a city or town within the county is
2310     annexed into a single large public transit district [that also has a county of the first class
2311     annexed into the same public transit district], the commission shall distribute the sales and use
2312     tax revenue collected within the county as follows:
2313          (a) for a city or town within the county that is annexed into a single public transit
2314     district, the commission shall distribute the sales and use tax revenue collected within that city
2315     or town as follows:
2316          (i) .10% shall be transferred to the public transit district in accordance with Section
2317     59-12-2206;
2318          (ii) .10% shall be distributed as provided in Subsection [(8)] (7); and
2319          (iii) .05% shall be distributed to the county legislative body;
2320          (b) for an eligible political subdivision within the county, the commission shall
2321     distribute the sales and use tax revenue collected within that eligible political subdivision as
2322     follows:
2323          (i) .10% shall be transferred to the eligible political subdivision in accordance with
2324     Section 59-12-2206;
2325          (ii) .10% shall be distributed as provided in Subsection [(8)] (7); and

2326          (iii) .05% shall be distributed to the county legislative body; and
2327          (c) the commission shall distribute the sales and use tax revenue, except for the sales
2328     and use tax revenue described in Subsections (5)(a) and (b), as follows:
2329          (i) .10% shall be distributed as provided in Subsection [(8)] (7); and
2330          (ii) .15% shall be distributed to the county legislative body.
2331          [(6) For a county not described in Subsection (4) or (5), if the entire boundary of a
2332     county of the first or second class that imposes a sales and use tax under this section is not
2333     annexed into a single public transit district, or if there is not a public transit district within the
2334     county, the commission shall distribute the sales and use tax revenue collected within the
2335     county as follows:]
2336          [(a) for a city or town within the county that is annexed into a single public transit
2337     district, the commission shall distribute the sales and use tax revenue collected within that city
2338     or town as follows:]
2339          [(i) .10% shall be transferred to the public transit district in accordance with Section
2340     59-12-2206;]
2341          [(ii) .10% shall be distributed as provided in Subsection (8); and]
2342          [(iii) .05% shall be distributed to the county legislative body;]
2343          [(b) for an eligible political subdivision within the county, the commission shall
2344     distribute the sales and use tax revenue collected within that eligible political subdivision as
2345     follows:]
2346          [(i) .10% shall be transferred to the eligible political subdivision in accordance with
2347     Section 59-12-2206;]
2348          [(ii) .10% shall be distributed as provided in Subsection (8); and]
2349          [(iii) .05% shall be distributed to the county legislative body; and]
2350          [(c) the commission shall distribute the sales and use tax revenue, except for the sales
2351     and use tax revenue described in Subsections (6)(a) and (b), as follows:]
2352          [(i) .10% shall be distributed as provided in Subsection (8); and]
2353          [(ii) .15% shall be distributed to the county legislative body.]

2354          [(7)] (6) For a county not described in Subsection (4) or (5), if [the entire boundary of]
2355     a county of the second, third, fourth, fifth, or sixth class [that] imposes a sales and use tax
2356     under this section [is not annexed into a single public transit district, or if there is not a public
2357     transit district within the county], the commission shall distribute the sales and use tax revenue
2358     collected within the county as follows:
2359          (a) for a city or town within the county that is annexed into a single public transit
2360     district, the commission shall distribute the sales and use tax revenue collected within that city
2361     or town as follows:
2362          (i) .10% shall be distributed as provided in Subsection [(8)] (7);
2363          (ii) .10% shall be distributed as provided in Subsection [(9)] (8); and
2364          (iii) .05% shall be distributed to the county legislative body;
2365          (b) for an eligible political subdivision within the county, the commission shall
2366     distribute the sales and use tax revenue collected within that eligible political subdivision as
2367     follows:
2368          (i) .10% shall be distributed as provided in Subsection [(8)] (7);
2369          (ii) .10% shall be distributed as provided in Subsection [(9)] (8); and
2370          (iii) .05% shall be distributed to the county legislative body; and
2371          (c) the commission shall distribute the sales and use tax revenue, except for the sales
2372     and use tax revenue described in Subsections [(7)] (6)(a) and (b), as follows:
2373          (i) .10% shall be distributed as provided in Subsection [(8)] (7); and
2374          (ii) .15% shall be distributed to the county legislative body.
2375          [(8)] (7) (a) Subject to Subsection [(8)] (7)(b), the commission shall make the
2376     distributions required by Subsections (4)(b), (5)(a)(ii), (5)(b)(ii), (5)(c)(i) , [(6)(a)(ii), (6)(b)(ii),
2377     (6)(c)(i), (7)(a)(i), (7)(b)(i), (7)(c)(i), (9)(d)(ii)(A), and (12)(c)(i) ] (6)(a)(i), (6)(b)(i), (6)(c)(i),
2378     and (8)(d)(ii)(A) as follows:
2379          (i) 50% of the total revenue collected under Subsections (4)(b), (5)(a)(ii), (5)(b)(ii),
2380     (5)(c)(i) , [(6)(a)(ii), (6)(b)(ii), (6)(c)(i), (7)(a)(i), (7)(b)(i), (7)(c)(i), (9)(d)(ii)(A), and (12)(c)(i) ]
2381     (6)(a)(i), (6)(b)(i), (6)(c)(i), and (8)(d)(ii)(A) within the counties and cities that impose a tax

2382     under this section shall be distributed to the unincorporated areas, cities, and towns within
2383     those counties and cities on the basis of the percentage that the population of each
2384     unincorporated area, city, or town bears to the total population of all of the counties and cities
2385     that impose a tax under this section; and
2386          (ii) 50% of the total revenue collected under Subsections (4)(b), (5)(a)(ii), (5)(b)(ii),
2387     (5)(c)(i) , [(6)(a)(ii), (6)(b)(ii), (6)(c)(i), (7)(a)(i), (7)(b)(i), (7)(c)(i), (9)(d)(ii)(A), and (12)(c)(i)]
2388     (6)(a)(i), (6)(b)(i), (6)(c)(i), and (8)(d)(ii)(A) within the counties and cities that impose a tax
2389     under this section shall be distributed to the unincorporated areas, cities, and towns within
2390     those counties and cities on the basis of the location of the transaction as determined under
2391     Sections 59-12-211 through 59-12-215.
2392          (b) (i) Population for purposes of this Subsection [(8)] (7) shall be determined on the
2393     basis of the most recent official census or census estimate of the United States Bureau of the
2394     Census.
2395          (ii) If a needed population estimate is not available from the United States Bureau of
2396     the Census, population figures shall be derived from an estimate from the Utah Population
2397     Committee.
2398          [(9)] (8) (a) (i) Subject to the requirements in Subsections [(9)] (8)(b) and (c), a county
2399     legislative body:
2400          (A) for a county that obtained approval from a majority of the county's registered
2401     voters voting on the imposition of a sales and use tax under this section prior to May 10, 2016,
2402     may, in consultation with any cities, towns, or eligible political subdivisions within the county,
2403     and in compliance with the requirements for changing an allocation under Subsection [(9)]
2404     (8)(e), allocate the revenue under Subsection [(7)] (6)(a)(ii) or [(7)] (6)(b)(ii) by adopting a
2405     resolution specifying the percentage of revenue under Subsection [(7)] (6)(a)(ii) or [(7)]
2406     (6)(b)(ii) that will be allocated to a public transit district or an eligible political subdivision; or
2407          (B) for a county that [obtains approval from a majority of the county's registered voters
2408     voting on the imposition of] imposes a sales and use tax under this section on or after May 10,
2409     2016, shall, in consultation with any cities, towns, or eligible political subdivisions within the

2410     county, allocate the revenue under Subsection [(7)] (6)(a)(ii) or [(7)] (6)(b)(ii) by adopting a
2411     resolution specifying the percentage of revenue under Subsection [(7)] (6)(a)(ii) or [(7)]
2412     (6)(b)(ii) that will be allocated to a public transit district or an eligible political subdivision.
2413          (ii) If a county described in Subsection [(9)] (8)(a)(i)(A) does not allocate the revenue
2414     under Subsection [(7)] (6)(a)(ii) or [(7)] (6)(b)(ii) in accordance with Subsection [(9)]
2415     (8)(a)(i)(A), the commission shall distribute 100% of the revenue under Subsection [(7)]
2416     (6)(a)(ii) or [(7)] (6)(b)(ii) to:
2417          (A) a public transit district for a city or town within the county that is annexed into a
2418     single public transit district; or
2419          (B) an eligible political subdivision within the county.
2420          (b) If a county legislative body allocates the revenue as described in Subsection [(9)]
2421     (8)(a)(i), the county legislative body shall allocate not less than 25% of the revenue under
2422     Subsection [(7)] (6)(a)(ii) or [(7)] (6)(b)(ii) to:
2423          (i) a public transit district for a city or town within the county that is annexed into a
2424     single public transit district; or
2425          (ii) an eligible political subdivision within the county.
2426          (c) Notwithstanding Section 59-12-2208, the opinion question [required by] described
2427     in Section 59-12-2208 shall state the allocations the county legislative body makes in
2428     accordance with this Subsection [(9)] (8).
2429          (d) The commission shall make the distributions required by Subsection [(7)] (6)(a)(ii)
2430     or [(7)] (6)(b)(ii) as follows:
2431          (i) the percentage specified by a county legislative body shall be distributed in
2432     accordance with a resolution adopted by a county legislative body under Subsection [(9)] (8)(a)
2433     to an eligible political subdivision or a public transit district within the county; and
2434          (ii) except as provided in Subsection [(9)] (8)(a)(ii), if a county legislative body
2435     allocates less than 100% of the revenue under Subsection [(7)] (6)(a)(ii) or [(7)] (6)(b)(ii) to a
2436     public transit district or an eligible political subdivision, the remainder of the revenue under
2437     Subsection [(7)] (6)(a)(ii) or [(7)] (6)(b)(ii) not allocated by a county legislative body through a

2438     resolution under Subsection [(9)] (8)(a) shall be distributed as follows:
2439          (A) 50% of the revenue as provided in Subsection [(8)] (7); and
2440          (B) 50% of the revenue to the county legislative body.
2441          (e) If a county legislative body seeks to change an allocation specified in a resolution
2442     under Subsection [(9)] (8)(a), the county legislative body may change the allocation by:
2443          (i) adopting a resolution in accordance with Subsection [(9)] (8)(a) specifying the
2444     percentage of revenue under Subsection [(7)] (6)(a)(ii) or [(7)] (6)(b)(ii) that will be allocated
2445     to a public transit district or an eligible political subdivision;
2446          (ii) obtaining approval to change the allocation of the sales and use tax by a majority of
2447     all the members of the county legislative body; and
2448          (iii) subject to Subsection [(9)] (8)(f):
2449          (A) in accordance with Section 59-12-2208, submitting an opinion question to the
2450     county's registered voters voting on changing the allocation so that each registered voter has the
2451     opportunity to express the registered voter's opinion on whether the allocation should be
2452     changed; and
2453          (B) in accordance with Section 59-12-2208, obtaining approval to change the
2454     allocation from a majority of the county's registered voters voting on changing the allocation.
2455          (f) Notwithstanding Section 59-12-2208, the opinion question required by Subsection
2456     [(9)] (8)(e)(iii)(A) shall state the allocations specified in the resolution adopted in accordance
2457     with Subsection [(9)] (8)(e) and approved by the county legislative body in accordance with
2458     Subsection [(9)] (8)(e)(ii).
2459          (g) (i) If a county makes an allocation by adopting a resolution under Subsection [(9)]
2460     (8)(a) or changes an allocation by adopting a resolution under Subsection [(9)] (8)(e), the
2461     allocation shall take effect on the first distribution the commission makes under this section
2462     after a 90-day period that begins on the date the commission receives written notice meeting
2463     the requirements of Subsection [(9)] (8)(g)(ii) from the county.
2464          (ii) The notice described in Subsection [(9)] (8)(g)(i) shall state:
2465          (A) that the county will make or change the percentage of an allocation under

2466     Subsection [(9)] (8)(a) or (e); and
2467          (B) the percentage of revenue under Subsection [(7)] (6)(a)(ii) or [(7)] (6)(b)(ii) that
2468     will be allocated to a public transit district or an eligible political subdivision.
2469          [(10)] (9) (a) If a public transit district is organized after the date a county legislative
2470     body first imposes a tax under this section, a change in a distribution required by this section
2471     may not take effect until the first distribution the commission makes under this section after a
2472     90-day period that begins on the date the commission receives written notice from the public
2473     transit district of the organization of the public transit district.
2474          (b) If an eligible political subdivision intends to provide public transit service within a
2475     county after the date a county legislative body first imposes a tax under this section, a change
2476     in a distribution required by this section may not take effect until the first distribution the
2477     commission makes under this section after a 90-day period that begins on the date the
2478     commission receives written notice from the eligible political subdivision stating that the
2479     eligible political subdivision intends to provide public transit service within the county.
2480          [(11)] (10) (a) (i) Notwithstanding Subsections (4) through [(10)] (9), for a county that
2481     has not imposed a sales and use tax under this section before May 8, 2018, and if the county
2482     imposes a sales and use tax under this section before June 30, 2019, the commission shall
2483     distribute all of the sales and use tax revenue collected by the county before June 30, 2019, to
2484     the county for the purposes described in Subsection [(11)] (10)(a)(ii).
2485          (ii) For any revenue collected by a county pursuant to Subsection [(11)] (10)(a)(i)
2486     before June 30, 2019, the county may expend that revenue for:
2487          (A) reducing transportation related debt;
2488          (B) a regionally significant transportation facility; or
2489          (C) a public transit project of regional significance.
2490          (b) For a county that has not imposed a sales and use tax under this section before May
2491     8, 2018, and if the county imposes a sales and use tax under this section before June 30, 2019,
2492     the commission shall distribute the sales and use tax revenue collected by the county on or after
2493     July 1, 2019, as described in Subsections (4) through [(10)] (9).

2494          (c) [Subject to Subsection (12), for] For a county that has not imposed a sales and use
2495     tax under this section before June 30, 2019, if the entire boundary of that county is annexed
2496     into a large public transit district, and if the county imposes a sales and use tax under this
2497     section on or after July 1, 2019, the commission shall distribute the sales and use tax revenue
2498     collected by the county as described in Subsections (4) through [(10)] (9).
2499          [(12) (a) Beginning on July 1, 2020, if a county has not imposed a sales and use tax
2500     under this section, subject to the provisions of this part, the legislative body of a city or town
2501     described in Subsection (12)(b) may impose a .25% sales and use tax on the transactions
2502     described in Subsection 59-12-103(1) within the city or town.]
2503          [(b) The following cities or towns may impose the sales and use tax as described in
2504     Subsection (12)(a):]
2505          [(i) in a county of the first, second, or third class, a city or town that:]
2506          [(A) has been annexed into a public transit district; or]
2507          [(B) is an eligible political subdivision; or]
2508          [(ii) a city or town that:]
2509          [(A) is in a county of the third or smaller class; and]
2510          [(B) has been annexed into a large public transit district.]
2511          [(c) If a city or town imposes a sales and use tax as provided in this section, the
2512     commission shall distribute the sales and use tax revenue collected by the city or town as
2513     follows:]
2514          [(i) .125% to the city or town that imposed the sales and use tax, to be distributed as
2515     provided in Subsection (8); and]
2516          [(ii) .125%, as applicable, to:]
2517          [(A) the large public transit district in which the city or town is annexed; or]
2518          [(B) the eligible political subdivision for public transit services.]
2519          [(d) If a city or town imposes a sales and use tax under this section and the county
2520     subsequently imposes a sales and use tax under this section, the commission shall distribute the
2521     sales and use tax revenue collected within the city or town as described in Subsection (12)(c).]

2522          [(13) A county, city, or town may expend revenue collected from a tax under this
2523     section, except for revenue the commission distributes in accordance with Subsection (4)(a),
2524     (5)(a)(i), (5)(b)(i), or (9)(d)(i) for:]
2525          [(a) a class B road;]
2526          [(b) a class C road;]
2527          [(c) traffic and pedestrian safety, including for a class B road or class C road, for:]
2528          [(i) a sidewalk;]
2529          [(ii) curb and gutter;]
2530          [(iii) a safety feature;]
2531          [(iv) a traffic sign;]
2532          [(v) a traffic signal;]
2533          [(vi) street lighting; or]
2534          [(vii) a combination of Subsections (13)(c)(i) through (vi);]
2535          [(d) the construction, maintenance, or operation of an active transportation facility that
2536     is for nonmotorized vehicles and multimodal transportation and connects an origin with a
2537     destination;]
2538          [(e) public transit system services; or]
2539          [(f) a combination of Subsections (13)(a) through (e).]
2540          (11) A county, city, or town may expend revenue collected from a tax under this
2541     section, except for revenue the commission distributes in accordance with Subsection (4)(a),
2542     (5)(a)(i), (5)(b)(i), or (8)(d)(i), for a purpose described in Section 59-12-2212.2.
2543          [(14)] (12) A public transit district or an eligible political subdivision may expend
2544     revenue the commission distributes in accordance with Subsection (4)(a), (5)(a)(i), (5)(b)(i), or
2545     [(9)] (8)(d)(i) for capital expenses and service delivery expenses of the public transit district or
2546     eligible political subdivision.
2547          [(15)] (13) (a) Revenue collected from a sales and use tax under this section may not be
2548     used to supplant existing general fund appropriations that a county, city, or town has budgeted
2549     for transportation as of the date the tax becomes effective for a county, city, or town.

2550          (b) The limitation under Subsection [(15)] (13)(a) does not apply to a designated
2551     transportation capital or reserve account a county, city, or town may have established prior to
2552     the date the tax becomes effective.
2553          [(16)] (14) Notwithstanding Section 59-12-2208, a county, city, or town legislative
2554     body may, but is not required to, submit an opinion question to the county's, city's, or town's
2555     registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under
2556     this section.
2557          [(17) (a) (i) (A) Notwithstanding any other provision in this section, if the county, city,
2558     or town legislative body wishes to impose a sales and use tax under this section, the city or
2559     town legislative body shall pass the ordinance to impose a sales and use tax under this section
2560     on or before June 30, 2022.]
2561          [(B) A city legislative body may not pass an ordinance to impose a sales and use tax
2562     under this section on or after July 1, 2022.]
2563          [(ii) (A)] (15) (a) (i) Notwithstanding any other provision in this section, if the entire
2564     boundary of a county is annexed into a large public transit district, if the county legislative
2565     body wishes to impose a sales and use tax under this section, the county legislative body shall
2566     pass the ordinance to impose a sales and use tax under this section on or before June 30, 2022.
2567          [(B)] (ii) If the entire boundary of a county is annexed into a large public transit
2568     district, the county legislative body may not pass an ordinance to impose a sales and use tax
2569     under this section on or after July 1, 2022.
2570          (b) Notwithstanding the deadline described in Subsection [(17)] (15)(a), any sales and
2571     use tax imposed under this section by passage of a county ordinance on or before June 30,
2572     2022, may remain in effect.
2573          (16) (a) Beginning on July 1, 2020, and subject to Subsection (17), if a county has not
2574     imposed a sales and use tax under this section, subject to the provisions of this part, the
2575     legislative body of a city or town described in Subsection (16)(b) may impose a .25% sales and
2576     use tax on the transactions described in Subsection 59-12-103(1) within the city or town.
2577          (b) The following cities or towns may impose a sales and use tax described in

2578     Subsection (16)(a):
2579          (i) a city or town that has been annexed into a public transit district; or
2580          (ii) an eligible political subdivision.
2581          (c) If a city or town imposes a sales and use tax as provided in this section, the
2582     commission shall distribute the sales and use tax revenue collected by the city or town as
2583     follows:
2584          (i) .125% to the city or town that imposed the sales and use tax, to be distributed as
2585     provided in Subsection (7); and
2586          (ii) .125%, as applicable, to:
2587          (A) the public transit district in which the city or town is annexed; or
2588          (B) the eligible political subdivision for public transit services.
2589          (d) If a city or town imposes a sales and use tax under this section and the county
2590     subsequently imposes a sales and use tax under this section, the commission shall distribute the
2591     sales and use tax revenue collected within the city or town as described in Subsection (16)(c).
2592          (17) (a) (i) Notwithstanding any other provision in this section, if a city or town
2593     legislative body wishes to impose a sales and use tax under this section, the city or town
2594     legislative body shall pass the ordinance to impose a sales and use tax under this section on or
2595     before June 30, 2022.
2596          (ii) A city or town legislative body may not pass an ordinance to impose a sales and use
2597     tax under this section on or after July 1, 2022.
2598          (b) Notwithstanding the deadline described in Subsection (17)(a), any sales and use tax
2599     imposed under this section by passage of an ordinance by a city or town legislative body on or
2600     before June 30, 2022, may remain in effect.
2601          Section 25. Section 59-12-2220 is amended to read:
2602          59-12-2220. County option sales and use tax to fund a system for public transit --
2603     Base -- Rate.
2604          (1) Subject to the other provisions of this part and subject to the requirements of this
2605     section, beginning on July 1, 2019, the following counties may impose a sales and use tax

2606     under this section:
2607          (a) a county legislative body may impose the sales and use tax on the transactions
2608     described in Subsection 59-12-103(1) located within the county, including the cities and towns
2609     within the county if:
2610          (i) the entire boundary of a county is annexed into a large public transit district; and
2611          (ii) [the county has imposed] the maximum amount of sales and use tax authorizations
2612     allowed pursuant to Section 59-12-2203 and authorized under the following sections has been
2613     imposed:
2614          (A) Section 59-12-2213;
2615          (B) Section 59-12-2214;
2616          (C) Section 59-12-2215;
2617          (D) Section 59-12-2216;
2618          (E) Section 59-12-2217;
2619          (F) Section 59-12-2218; and
2620          (G) Section 59-12-2219;
2621          (b) if the county is not annexed into a large public transit district, the county legislative
2622     body may impose the sales and use tax on the transactions described in Subsection
2623     59-12-103(1) located within the county, including the cities and towns within the county if:
2624          (i) the county is an eligible political subdivision as defined in Section 59-12-2219; or
2625          (ii) a city or town within the boundary of the county is an eligible political subdivision
2626     as defined in Section 59-12-2219; or
2627          (c) a county legislative body of a county not described in Subsection (1)(a) may impose
2628     the sales and use tax on the transactions described in Subsection 59-12-103(1) located within
2629     the county, including the cities and towns within the county, if there is a [small] public transit
2630     district within the boundary of the county.
2631          (2) For purposes of Subsection (1) and subject to the other provisions of this section, a
2632     county legislative body that imposes a sales and use tax under this section may impose the tax
2633     at a rate of [up to] .2%.

2634          (3) A county imposing a sales and use tax under this section shall expend the revenues
2635     collected from the sales and use tax for capital expenses and service delivery expenses of:
2636          (a) a public transit district;
2637          (b) an eligible political subdivision; or
2638          (c) another entity providing a service for public transit or a transit facility within the
2639     county as those terms are defined in Section 17B-2a-802.
2640          (4) Notwithstanding Section 59-12-2208, a county legislative body may, but is not
2641     required to, submit an opinion question to the county's registered voters in accordance with
2642     Section 59-12-2208 to impose a sales and use tax under this section.
2643          (5) (a) Notwithstanding any other provision in this section, if a county wishes to
2644     impose a sales and use tax under this section, the county legislative body shall pass the
2645     ordinance to impose a sales and use tax under this section on or before June 30, 2023.
2646          (b) The county legislative body may not pass an ordinance to impose a sales and use
2647     tax under this section on or after July 1, 2023.
2648          (c) Notwithstanding the deadline described in Subsection (5)(a), any sales and use tax
2649     imposed under this section on or before June 30, 2023, may remain in effect.
2650          (6) (a) Revenue collected from a sales and use tax under this section may not be used
2651     to supplant existing General Fund appropriations that a county has budgeted for transportation
2652     or public transit as of the date the tax becomes effective for a county.
2653          (b) The limitation under Subsection (6)(a) does not apply to a designated transportation
2654     or public transit capital or reserve account a county may have established prior to the date the
2655     tax becomes effective.
2656          Section 26. Section 59-13-301 is amended to read:
2657          59-13-301. Tax basis -- Rate -- Exemptions -- Revenue deposited with treasurer
2658     and credited to Transportation Fund -- Reduction of tax in limited circumstances.
2659          (1) (a) Except as provided in Subsections (2), (3), (11), and (12) and Section
2660     59-13-304, a tax is imposed at the same rate imposed under Subsection 59-13-201(1)(a) on the:
2661          (i) removal of undyed diesel fuel from any refinery;

2662          (ii) removal of undyed diesel fuel from any terminal;
2663          (iii) entry into the state of any undyed diesel fuel for consumption, use, sale, or
2664     warehousing;
2665          (iv) sale of undyed diesel fuel to any person who is not registered as a supplier under
2666     this part unless the tax has been collected under this section;
2667          (v) any untaxed special fuel blended with undyed diesel fuel; or
2668          (vi) use of untaxed special fuel other than propane or electricity.
2669          (b) The tax imposed under this section shall only be imposed once upon any special
2670     fuel.
2671          (2) (a) No special fuel tax is imposed or collected upon dyed diesel fuel which:
2672          (i) is sold or used for any purpose other than to operate or propel a motor vehicle upon
2673     the public highways of the state, but this exemption applies only in those cases where the
2674     purchasers or the users of special fuel establish to the satisfaction of the commission that the
2675     special fuel was used for purposes other than to operate a motor vehicle upon the public
2676     highways of the state; or
2677          (ii) is sold to this state or any of its political subdivisions.
2678          (b) No special fuel tax is imposed on undyed diesel fuel or clean fuel that is:
2679          (i) sold to the United States government or any of its instrumentalities or to this state or
2680     any of its political subdivisions;
2681          (ii) exported from this state if proof of actual exportation on forms prescribed by the
2682     commission is made within 180 days after exportation;
2683          (iii) used in a vehicle off-highway;
2684          (iv) used to operate a power take-off unit of a vehicle;
2685          (v) used for off-highway agricultural uses;
2686          (vi) used in a separately fueled engine on a vehicle that does not propel the vehicle
2687     upon the highways of the state; or
2688          (vii) used in machinery and equipment not registered and not required to be registered
2689     for highway use.

2690          (3) No tax is imposed or collected on special fuel if it is:
2691          (a) (i) purchased for business use in machinery and equipment not registered and not
2692     required to be registered for highway use; and
2693          (ii) used pursuant to the conditions of a state implementation plan approved under Title
2694     19, Chapter 2, Air Conservation Act; or
2695          (b) propane or electricity.
2696          (4) Upon request of a buyer meeting the requirements under Subsection (3), the
2697     Division of Air Quality shall issue an exemption certificate that may be shown to a seller.
2698          (5) The special fuel tax shall be paid by the supplier.
2699          (6) (a) The special fuel tax shall be paid by every user who is required by Sections
2700     59-13-303 and 59-13-305 to obtain a special fuel user permit and file special fuel tax reports.
2701          (b) The user shall receive a refundable credit for special fuel taxes paid on purchases
2702     which are delivered into vehicles and for which special fuel tax liability is reported.
2703          (7) (a) Except as provided under Subsections (7)(b) and (c), all revenue received by the
2704     commission from taxes and license fees under this part shall be deposited daily with the state
2705     treasurer and credited to the Transportation Fund.
2706          (b) An appropriation from the Transportation Fund shall be made to the commission to
2707     cover expenses incurred in the administration and enforcement of this part and the collection of
2708     the special fuel tax.
2709          (c) Five dollars of each special fuel user trip permit fee paid under Section 59-13-303
2710     may be used by the commission as a dedicated credit to cover the costs of electronic
2711     credentialing as provided in Section 41-1a-303.
2712          (8) The commission may either collect no tax on special fuel exported from the state
2713     or, upon application, refund the tax paid.
2714          (9) (a) The United States government or any of its instrumentalities, this state, or a
2715     political subdivision of this state that has purchased special fuel from a supplier or from a retail
2716     dealer of special fuel and has paid the tax on the special fuel as provided in this section is
2717     entitled to a refund of the tax and may file with the commission for a quarterly refund in a

2718     manner prescribed by the commission.
2719          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2720     commission shall make rules governing the application and refund provided for in Subsection
2721     (9)(a).
2722          (10) (a) The purchaser shall pay the tax on diesel fuel or clean fuel purchased for uses
2723     under Subsections (2)(b)(i), (iii), (iv), (v), (vi), and (vii) and apply for a refund for the tax paid
2724     as provided in Subsection (9) and this Subsection (10).
2725          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2726     commission shall make rules governing the application and refund for off-highway and
2727     nonhighway uses provided under Subsections (2)(b)(iii), (iv), (vi), and (vii).
2728          (c) A refund of tax paid under this part on diesel fuel used for nonhighway agricultural
2729     uses shall be made in accordance with the tax return procedures under Section 59-13-202.
2730          (11) (a) Beginning on April 1, 2001, a tax imposed under this section on special fuel is
2731     reduced to the extent provided in Subsection (11)(b) if:
2732          (i) the Navajo Nation imposes a tax on the special fuel;
2733          (ii) the tax described in Subsection (11)(a)(i) is imposed without regard to whether the
2734     person required to pay the tax is an enrolled member of the Navajo Nation; and
2735          (iii) the commission and the Navajo Nation execute and maintain an agreement as
2736     provided in this Subsection (11) for the administration of the reduction of tax.
2737          (b) (i) If but for Subsection (11)(a) the special fuel is subject to a tax imposed by this
2738     section:
2739          (A) the state shall be paid the difference described in Subsection (11)(b)(ii) if that
2740     difference is greater than $0; and
2741          (B) a person may not require the state to provide a refund, a credit, or similar tax relief
2742     if the difference described in Subsection (11)(b)(ii) is less than or equal to $0.
2743          (ii) The difference described in Subsection (11)(b)(i) is equal to the difference
2744     between:
2745          (A) the amount of tax imposed on the special fuel by this section; less

2746          (B) the tax imposed and collected by the Navajo Nation on the special fuel.
2747          (c) For purposes of Subsections (11)(a) and (b), the tax paid to the Navajo Nation on
2748     the special fuel does not include any interest or penalties a taxpayer may be required to pay to
2749     the Navajo Nation.
2750          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2751     commission shall make rules governing the procedures for administering the reduction of tax
2752     provided under this Subsection (11).
2753          (e) The agreement required under Subsection (11)(a):
2754          (i) may not:
2755          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
2756          (B) provide a reduction of taxes greater than or different from the reduction described
2757     in this Subsection (11); or
2758          (C) affect the power of the state to establish rates of taxation;
2759          (ii) shall:
2760          (A) be in writing;
2761          (B) be signed by:
2762          (I) the chair of the commission or the chair's designee; and
2763          (II) a person designated by the Navajo Nation that may bind the Navajo Nation;
2764          (C) be conditioned on obtaining any approval required by federal law;
2765          (D) state the effective date of the agreement; and
2766          (E) state any accommodation the Navajo Nation makes related to the construction and
2767     maintenance of state highways and other infrastructure within the Utah portion of the Navajo
2768     Nation; and
2769          (iii) may:
2770          (A) notwithstanding Section 59-1-403, authorize the commission to disclose to the
2771     Navajo Nation information that is:
2772          (I) contained in a document filed with the commission; and
2773          (II) related to the tax imposed under this section;

2774          (B) provide for maintaining records by the commission or the Navajo Nation; or
2775          (C) provide for inspections or audits of suppliers, distributors, carriers, or retailers
2776     located or doing business within the Utah portion of the Navajo Nation.
2777          (f) (i) If, on or after April 1, 2001, the Navajo Nation changes the tax rate of a tax
2778     imposed on special fuel, any change in the amount of the reduction of taxes under this
2779     Subsection (11) as a result of the change in the tax rate is not effective until the first day of the
2780     calendar quarter after a 60-day period beginning on the date the commission receives notice:
2781          (A) from the Navajo Nation; and
2782          (B) meeting the requirements of Subsection (11)(f)(ii).
2783          (ii) The notice described in Subsection (11)(f)(i) shall state:
2784          (A) that the Navajo Nation has changed or will change the tax rate of a tax imposed on
2785     special fuel;
2786          (B) the effective date of the rate change of the tax described in Subsection
2787     (11)(f)(ii)(A); and
2788          (C) the new rate of the tax described in Subsection (11)(f)(ii)(A).
2789          (g) If the agreement required by Subsection (11)(a) terminates, a reduction of tax is not
2790     permitted under this Subsection (11) beginning on the first day of the calendar quarter after a
2791     30-day period beginning on the day the agreement terminates.
2792          (h) If there is a conflict between this Subsection (11) and the agreement required by
2793     Subsection (11)(a), this Subsection (11) governs.
2794          (12) (a) (i) [A] Subject to Subsections (12)(a)(ii) and (iii), a tax imposed under this
2795     section on compressed natural gas is imposed at a rate of:
2796          [(i)] (A) until June 30, 2016, 10-1/2 cents per gasoline gallon equivalent;
2797          [(ii)] (B) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per gasoline
2798     gallon equivalent;
2799          [(iii)] (C) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per gasoline
2800     gallon equivalent; and
2801          [(iv)] (D) beginning on or after July 1, 2018, 16-1/2 cents per gasoline gallon

2802     equivalent.
2803          (ii) Beginning on January 1, 2020, the commission shall, on January 1, annually adjust
2804     the rate of a tax imposed under this section on compressed natural gas by taking the rate for the
2805     previous calendar year and adding an amount equal to the greater of:
2806          (A) an amount calculated by multiplying the rate of a tax imposed under this section on
2807     compressed natural gas for the previous calendar year by the actual percent change during the
2808     previous fiscal year in the Consumer Price Index; and
2809          (B) 0.
2810          (iii) The rate of a tax imposed under this section on compressed natural gas determined
2811     by the commission under Subsection (12)(a)(ii) may not exceed 22-1/2 cents per gasoline
2812     gallon equivalent.
2813          (b) (i) [A] Subject to Subsections (12)(b)(ii) and (iii), a tax imposed under this section
2814     on liquified natural gas is imposed at a rate of:
2815          [(i)] (A) until June 30, 2016, 10-1/2 cents per diesel gallon equivalent;
2816          [(ii)] (B) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per diesel
2817     gallon equivalent;
2818          [(iii)] (C) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per diesel
2819     gallon equivalent; and
2820          [(iv)] (D) beginning on or after July 1, 2018, 16-1/2 cents per diesel gallon equivalent.
2821          (ii) Beginning on January 1, 2020, the commission shall, on January 1, annually adjust
2822     the rate of a tax imposed under this section on liquified natural gas by taking the rate for the
2823     previous calendar year and adding an amount equal to the greater of:
2824          (A) an amount calculated by multiplying the rate of a tax imposed under this section on
2825     liquified natural gas for the previous calendar year by the actual percent change during the
2826     previous fiscal year in the Consumer Price Index; and
2827          (B) 0.
2828          (iii) The rate of a tax imposed under this section on liquified natural gas determined by
2829     the commission under Subsection (12)(b)(ii) may not exceed 22-1/2 cents per diesel gallon

2830     equivalent.
2831          (c) (i) [A] Subject to Subsections (12)(c)(ii) and (iii), a tax imposed under this section
2832     on hydrogen used to operate or propel a motor vehicle upon the public highways of the state is
2833     imposed at a rate of:
2834          [(i)] (A) until June 30, 2016, 10-1/2 cents per gasoline gallon equivalent;
2835          [(ii)] (B) beginning on July 1, 2016, and until June 30, 2017, 12-1/2 cents per gasoline
2836     gallon equivalent;
2837          [(iii)] (C) beginning on July 1, 2017, and until June 30, 2018, 14-1/2 cents per gasoline
2838     gallon equivalent; and
2839          [(iv)] (D) beginning on or after July 1, 2018, 16-1/2 cents per gasoline gallon
2840     equivalent.
2841          (ii) Beginning on January 1, 2020, the commission shall, on January 1, annually adjust
2842     the rate of a tax imposed under this section on hydrogen used to operate or propel a motor
2843     vehicle upon the public highways of the state by taking the rate for the previous calendar year
2844     and adding an amount equal to the greater of:
2845          (A) an amount calculated by multiplying the rate of a tax imposed under this section on
2846     hydrogen used to operate or propel a motor vehicle upon the public highways of the state for
2847     the previous calendar year by the actual percent change during the previous fiscal year in the
2848     Consumer Price Index; and
2849          (B) 0.
2850          (iii) The rate of a tax imposed under this section on hydrogen used to operate or propel
2851     a motor vehicle upon the public highways of the state determined by the commission under
2852     Subsection (12)(c)(ii) may not exceed 22-1/2 cents per gasoline gallon equivalent.
2853          (d) (i) The commission shall annually:
2854          (A) adjust the fuel tax rates imposed under Subsections (12)(a)(ii), (b)(ii), and (c)(ii),
2855     rounded to the nearest one-tenth of a cent;
2856          (B) publish the adjusted fuel tax as a cents per gallon rate; and
2857          (C) post or otherwise make public the adjusted fuel tax rate as determined in

2858     Subsection (12)(d)(i)(A) no later than 60 days prior to the annual effective date under
2859     Subsection (12)(d)(ii).
2860          (ii) The tax rates imposed under this Subsection (12) and adjusted as required under
2861     Subsection (12)(d)(i) shall take effect on January 1 of each year.
2862          Section 27. Section 63B-1b-102 is amended to read:
2863          63B-1b-102. Definitions.
2864          As used in this chapter:
2865          (1) "Agency bonds" means any bond, note, contract, or other evidence of indebtedness
2866     representing loans or grants made by an authorizing agency.
2867          (2) "Authorized official" means the state treasurer or other person authorized by a bond
2868     document to perform the required action.
2869          (3) "Authorizing agency" means the board, person, or unit with legal responsibility for
2870     administering and managing revolving loan funds.
2871          (4) "Bond document" means:
2872          (a) a resolution of the commission; or
2873          (b) an indenture or other similar document authorized by the commission that
2874     authorizes and secures outstanding revenue bonds from time to time.
2875          (5) "Commission" means the State Bonding Commission, created in Section
2876     63B-1-201.
2877          (6) "Revenue bonds" means any special fund revenue bonds issued under this chapter.
2878          (7) "Revolving Loan Funds" means:
2879          (a) the Water Resources Conservation and Development Fund, created in Section
2880     73-10-24;
2881          (b) the Water Resources Construction Fund, created in Section 73-10-8;
2882          (c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22;
2883          (d) the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean
2884     Fuels and Vehicle Technology Program Act;
2885          (e) the Water Development Security Fund and its subaccounts, created in Section

2886     73-10c-5;
2887          (f) the Agriculture Resource Development Fund, created in Section 4-18-106;
2888          (g) the Utah Rural Rehabilitation Fund, created in Section 4-19-105;
2889          (h) the Permanent Community Impact Fund, created in Section 35A-8-303;
2890          (i) the Petroleum Storage Tank Trust Fund, created in Section 19-6-409; and
2891          (j) the [Transportation Infrastructure Loan] State Infrastructure Bank Fund, created in
2892     Section 72-2-202.
2893          Section 28. Section 63B-18-401 is amended to read:
2894          63B-18-401. Highway bonds -- Maximum amount -- Use of proceeds for highway
2895     projects.
2896          (1) (a) The total amount of bonds issued under this section may not exceed
2897     $2,077,000,000.
2898          (b) When the Department of Transportation certifies to the commission that the
2899     requirements of Subsection 72-2-124(5) have been met and certifies the amount of bond
2900     proceeds that it needs to provide funding for the projects described in Subsection (2) for the
2901     next fiscal year, the commission may issue and sell general obligation bonds in an amount
2902     equal to the certified amount plus costs of issuance.
2903          (2) Except as provided in Subsections (3) and (4), proceeds from the issuance of bonds
2904     shall be provided to the Department of Transportation to pay all or part of the costs of the
2905     following state highway construction or reconstruction projects:
2906          (a) Interstate 15 reconstruction in Utah County;
2907          (b) the Mountain View Corridor;
2908          (c) the Southern Parkway; and
2909          (d) state and federal highways prioritized by the Transportation Commission through:
2910          (i) the prioritization process for new transportation capacity projects adopted under
2911     Section 72-1-304; or
2912          (ii) the state highway construction program.
2913          (3) (a) Except as provided in Subsection (5), the bond proceeds issued under this

2914     section shall be provided to the Department of Transportation.
2915          (b) The Department of Transportation shall use bond proceeds and the funds provided
2916     to it under Section 72-2-124 to pay for the costs of right-of-way acquisition, construction,
2917     reconstruction, renovations, or improvements to the following highways:
2918          (i) $35 million to add highway capacity on I-15 south of the Spanish Fork Main Street
2919     interchange to Payson;
2920          (ii) $28 million for improvements to Riverdale Road in Ogden;
2921          (iii) $1 million for intersection improvements on S.R. 36 at South Mountain Road;
2922          (iv) $2 million for capacity enhancements on S.R. 248 between Sidewinder Drive and
2923     Richardson Flat Road;
2924          (v) $12 million for Vineyard Connector from 800 North Geneva Road to Lake Shore
2925     Road;
2926          (vi) $7 million for 2600 South interchange modifications in Woods Cross;
2927          (vii) $9 million for reconfiguring the 1100 South interchange on I-15 in Box Elder
2928     County;
2929          (viii) $18 million for the Provo west-side connector;
2930          (ix) $8 million for interchange modifications on I-15 in the Layton area;
2931          (x) $3,000,000 for an energy corridor study and environmental review for
2932     improvements in the Uintah Basin;
2933          (xi) $2,000,000 for highway improvements to Harrison Boulevard in Ogden City;
2934          (xii) $2,500,000 to be provided to Tooele City for roads around the Utah State
2935     University campus to create improved access to an institution of higher education;
2936          (xiii) $3,000,000 to be provided to the Utah Office of Tourism within the Governor's
2937     Office of Economic Development for transportation infrastructure improvements associated
2938     with annual tourism events that have:
2939          (A) a significant economic development impact within the state; and
2940          (B) significant needs for congestion mitigation;
2941          (xiv) $4,500,000 to be provided to the Governor's Office of Economic Development

2942     for transportation infrastructure acquisitions and improvements that have a significant
2943     economic development impact within the state;
2944          (xv) $125,000,000 to pay all or part of the costs of state and federal highway
2945     construction or reconstruction projects prioritized by the Transportation Commission through
2946     the prioritization process for new transportation capacity projects adopted under Section
2947     72-1-304; and
2948          (xvi) $10,000,000 for the Transportation Fund to pay all or part of the costs of state
2949     and federal highway construction or reconstruction projects as prioritized by the Transportation
2950     Commission.
2951          (4) (a) The Department of Transportation shall use bond proceeds and the funds under
2952     Section 72-2-121 to pay for, or to provide funds to, a municipality, county, or political
2953     subdivision to pay for the costs of right-of-way acquisition, construction, reconstruction,
2954     renovations, or improvements to the following highway or transit projects in Salt Lake County:
2955          (i) $4,000,000 to Taylorsville City for bus rapid transit planning on 4700 South;
2956          (ii) $4,200,000 to Taylorsville City for highway improvements on or surrounding 6200
2957     South and pedestrian crossings and system connections;
2958          (iii) $2,250,000 to Herriman City for highway improvements to the Salt Lake
2959     Community College Road;
2960          (iv) $5,300,000 to West Jordan City for highway improvements on 5600 West from
2961     6200 South to 8600 South;
2962          (v) $4,000,000 to West Jordan City for highway improvements to 7800 South from
2963     1300 West to S.R. 111;
2964          (vi) $7,300,000 to Sandy City for highway improvements on Monroe Street;
2965          (vii) $3,000,000 to Draper City for highway improvements to 13490 South from 200
2966     West to 700 West;
2967          (viii) $5,000,000 to Draper City for highway improvements to Suncrest Road;
2968          (ix) $1,200,000 to Murray City for highway improvements to 5900 South from State
2969     Street to 900 East;

2970          (x) $1,800,000 to Murray City for highway improvements to 1300 East;
2971          (xi) $3,000,000 to South Salt Lake City for intersection improvements on West
2972     Temple, Main Street, and State Street;
2973          (xii) $2,000,000 to Salt Lake County for highway improvements to 5400 South from
2974     5600 West to Mountain View Corridor;
2975          (xiii) $3,000,000 to West Valley City for highway improvements to 6400 West from
2976     Parkway Boulevard to SR-201 Frontage Road;
2977          (xiv) $4,300,000 to West Valley City for highway improvements to 2400 South from
2978     4800 West to 7200 West and pedestrian crossings;
2979          (xv) $4,000,000 to Salt Lake City for highway improvements to 700 South from 2800
2980     West to 5600 West;
2981          (xvi) $2,750,000 to Riverton City for highway improvements to 4570 West from
2982     12600 South to Riverton Boulevard;
2983          (xvii) $1,950,000 to Cottonwood Heights for improvements to Union Park Avenue
2984     from I-215 exit south to Creek Road and Wasatch Boulevard and Big Cottonwood Canyon;
2985          (xviii) $1,300,000 to Cottonwood Heights for highway improvements to Bengal
2986     Boulevard;
2987          (xix) $1,500,000 to Midvale City for highway improvements to 7200 South from I-15
2988     to 1000 West;
2989          (xx) $1,000,000 to Bluffdale City for an environmental impact study on Porter
2990     Rockwell Boulevard;
2991          (xxi) $2,900,000 to the Utah Transit Authority for the following public transit studies:
2992          (A) a circulator study; and
2993          (B) a mountain transport study; and
2994          (xxii) $1,000,000 to South Jordan City for highway improvements to 2700 West.
2995          (b) (i) Before providing funds to a municipality or county under this Subsection (4), the
2996     Department of Transportation shall obtain from the municipality or county:
2997          (A) a written certification signed by the county or city mayor or the mayor's designee

2998     certifying that the municipality or county will use the funds provided under this Subsection (4)
2999     solely for the projects described in Subsection (4)(a); and
3000          (B) other documents necessary to protect the state and the bondholders and to ensure
3001     that all legal requirements are met.
3002          (ii) Except as provided in Subsection (4)(c), by January 1 of each year, the municipality
3003     or county receiving funds described in this Subsection (4) shall submit to the Department of
3004     Transportation a statement of cash flow for the next fiscal year detailing the funds necessary to
3005     pay project costs for the projects described in Subsection (4)(a).
3006          (iii) After receiving the statement required under Subsection (4)(b)(ii) and after July 1,
3007     the Department of Transportation shall provide funds to the municipality or county necessary to
3008     pay project costs for the next fiscal year based upon the statement of cash flow submitted by
3009     the municipality or county.
3010          (iv) Upon the financial close of each project described in Subsection (4)(a), the
3011     municipality or county receiving funds under this Subsection (4) shall submit a statement to the
3012     Department of Transportation detailing the expenditure of funds received for each project.
3013          (c) For calendar year 2012 only:
3014          (i) the municipality or county shall submit to the Department of Transportation a
3015     statement of cash flow as provided in Subsection (4)(b)(ii) as soon as possible; and
3016          (ii) the Department of Transportation shall provide funds to the municipality or county
3017     necessary to pay project costs based upon the statement of cash flow.
3018          (5) Twenty million dollars of the bond proceeds issued under this section and funds
3019     available under Section 72-2-124 shall be provided to the [Transportation Infrastructure Loan]
3020     State Infrastructure Bank Fund created by Section 72-2-202 to make funds available for
3021     transportation infrastructure loans and transportation infrastructure assistance under Title 72,
3022     Chapter 2, Part 2, [Transportation Infrastructure Loan] State Infrastructure Bank Fund.
3023          (6) The costs under Subsections (2), (3), and (4) may include the costs of studies
3024     necessary to make transportation infrastructure improvements, the cost of acquiring land,
3025     interests in land, easements and rights-of-way, improving sites, and making all improvements

3026     necessary, incidental, or convenient to the facilities, interest estimated to accrue on these bonds
3027     during the period to be covered by construction of the projects plus a period of six months after
3028     the end of the construction period, interest estimated to accrue on any bond anticipation notes
3029     issued under the authority of this title, and all related engineering, architectural, and legal fees.
3030          (7) The commission or the state treasurer may make any statement of intent relating to
3031     a reimbursement that is necessary or desirable to comply with federal tax law.
3032          (8) The Department of Transportation may enter into agreements related to the projects
3033     described in Subsections (2), (3), and (4) before the receipt of proceeds of bonds issued under
3034     this section.
3035          (9) The Department of Transportation may enter into a new or amend an existing
3036     interlocal agreement related to the projects described in Subsections (3) and (4) to establish any
3037     necessary covenants or requirements not otherwise provided for by law.
3038          Section 29. Section 63B-27-101 is amended to read:
3039          63B-27-101. Highway bonds -- Maximum amount -- Use of proceeds for highway
3040     projects.
3041          (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
3042     under this section may not exceed $1,000,000,000 for acquisition and construction proceeds ,
3043     plus additional amounts necessary to pay costs of issuance, to pay capitalized interest, and to
3044     fund any existing debt service reserve requirements, with the total amount of the bonds not to
3045     exceed $1,010,000,000 .
3046          (b) When the Department of Transportation certifies to the commission that the
3047     requirements of Subsection 72-2-124(5) have been met and certifies the amount of bond
3048     proceeds that the commission needs to provide funding for the projects described in Subsection
3049     (2) for the current or next fiscal year, the commission may issue and sell general obligation
3050     bonds in an amount equal to the certified amount, plus additional amounts necessary to pay
3051     costs of issuance , to pay capitalized interest, and to fund any existing debt service reserve
3052     requirements, not to exceed one percent of the certified amount .
3053          (c) The commission may not issue general obligation bonds authorized under this

3054     section if the issuance of the general obligation bonds would result in the total current
3055     outstanding general obligation debt of the state exceeding 50% of the limitation described in
3056     the Utah Constitution, Article XIV, Section 1.
3057          (2) Except as provided in Subsections (3) and (4), proceeds from the issuance of bonds
3058     shall be provided to the Department of Transportation to pay all or part of the costs of the
3059     following state highway construction or reconstruction projects:
3060          (a) state and federal highways prioritized by the Transportation Commission through
3061     the prioritization process for new transportation capacity projects adopted under Section
3062     72-1-304, giving priority consideration for projects with a regional significance or that support
3063     economic development within the state, including:
3064          (i) projects that are prioritized but exceed available cash flow beyond the normal
3065     programming horizon; or
3066          (ii) projects prioritized in the state highway construction program; and
3067          (b) $100,000,000 to be used by the Department of Transportation for transportation
3068     improvements as prioritized by the Transportation Commission for projects that:
3069          (i) have a significant economic development impact associated with recreation and
3070     tourism within the state; and
3071          (ii) address significant needs for congestion mitigation.
3072          (3) Thirty-nine million dollars of the bond proceeds issued under this section shall be
3073     provided to the [Transportation Infrastructure Loan] State Infrastructure Bank Fund created by
3074     Section 72-2-202 to make funds available for a transportation infrastructure loan or
3075     transportation infrastructure assistance under Title 72, Chapter 2, Part 2, [Transportation
3076     Infrastructure Loan] State Infrastructure Bank Fund, including the amounts as follows:
3077          (a) $14,000,000 to the military installation development authority created in Section
3078     63H-1-201; and
3079          (b) $5,000,000 for right-of-way acquisition and highway construction in Salt Lake
3080     County for roads in the northwest quadrant of Salt Lake City.
3081          (4) (a) Four million dollars of the bond proceeds issued under this section shall be used

3082     for a public transit fixed guideway rail station associated with or adjacent to an institution of
3083     higher education.
3084          (b) Ten million dollars of the bond proceeds issued under this section shall be used by
3085     the Department of Transportation for the design, engineering, construction, or reconstruction of
3086     underpasses under a state highway connecting a state park and a project area created by a
3087     military installation development authority created in Section 63H-1-201.
3088          (5) The bond proceeds issued under this section shall be provided to the Department of
3089     Transportation.
3090          (6) The costs under Subsection (2) may include the costs of studies necessary to make
3091     transportation infrastructure improvements, the costs of acquiring land, interests in land, and
3092     easements and rights-of-way, the costs of improving sites, and making all improvements
3093     necessary, incidental, or convenient to the facilities, and the costs of interest estimated to
3094     accrue on these bonds during the period to be covered by construction of the projects plus a
3095     period of six months after the end of the construction period, interest estimated to accrue on
3096     any bond anticipation notes issued under the authority of this title, and all related engineering,
3097     architectural, and legal fees.
3098          (7) The commission or the state treasurer may make any statement of intent relating to
3099     a reimbursement that is necessary or desirable to comply with federal tax law.
3100          (8) The Department of Transportation may enter into agreements related to the projects
3101     described in Subsection (2) before the receipt of proceeds of bonds issued under this section.
3102          Section 30. Section 63I-1-259 is amended to read:
3103          63I-1-259. Repeal dates, Title 59.
3104          (1) Section 59-1-213.1 is repealed on May 9, 2019.
3105          (2) Section 59-1-213.2 is repealed on May 9, 2019.
3106          (3) Subsection 59-1-405(1)(g) is repealed on May 9, 2019.
3107          (4) Subsection 59-1-405(2)(b) is repealed on May 9, 2019.
3108          (5) Section 59-7-618 is repealed July 1, 2020.
3109          (6) Section 59-9-102.5 is repealed December 31, 2020.

3110          (7) Section 59-10-1033 is repealed July 1, 2020.
3111          (8) Subsection 59-12-2219(13), which addresses new revenue supplanting existing
3112     allocations, is repealed on June 30, 2020.
3113          (9) Title 59, Chapter 28, State Transient Room Tax Act, is repealed on January 1,
3114     2023.
3115          Section 31. Section 72-1-102 is amended to read:
3116          72-1-102. Definitions.
3117          As used in this title:
3118          (1) "Commission" means the Transportation Commission created under Section
3119     72-1-301.
3120          (2) "Construction" means the construction, reconstruction, replacement, and
3121     improvement of the highways, including the acquisition of rights-of-way and material sites.
3122          (3) "Department" means the Department of Transportation created in Section 72-1-201.
3123          (4) "Executive director" means the executive director of the department appointed
3124     under Section 72-1-202.
3125          (5) "Farm tractor" has the meaning set forth in Section 41-1a-102.
3126          (6) "Federal aid primary highway" means that portion of connected main highways
3127     located within this state officially designated by the department and approved by the United
3128     States Secretary of Transportation under Title 23, Highways, U.S.C.
3129          (7) "Highway" means any public road, street, alley, lane, court, place, viaduct, tunnel,
3130     culvert, bridge, or structure laid out or erected for public use, or dedicated or abandoned to the
3131     public, or made public in an action for the partition of real property, including the entire area
3132     within the right-of-way.
3133          (8) "Highway authority" means the department or the legislative, executive, or
3134     governing body of a county or municipality.
3135          (9) "Implement of husbandry" has the meaning set forth in Section 41-1a-102.
3136          (10) "Interstate system" means any highway officially designated by the department
3137     and included as part of the national interstate and defense highways, as provided in the Federal

3138     Aid Highway Act of 1956 and any supplemental acts or amendments.
3139          (11) "Limited-access facility" means a highway especially designated for through
3140     traffic, and over, from, or to which neither owners nor occupants of abutting lands nor other
3141     persons have any right or easement, or have only a limited right or easement of access, light,
3142     air, or view.
3143          (12) "Motor vehicle" has the same meaning set forth in Section 41-1a-102.
3144          (13) "Municipality" has the same meaning set forth in Section 10-1-104.
3145          (14) "National highway systems highways" means that portion of connected main
3146     highways located within this state officially designated by the department and approved by the
3147     United States Secretary of Transportation under Title 23, Highways, U.S.C.
3148          (15) (a) "Port-of-entry" means a fixed or temporary facility constructed, operated, and
3149     maintained by the department where drivers, vehicles, and vehicle loads are checked or
3150     inspected for compliance with state and federal laws as specified in Section 72-9-501.
3151          (b) "Port-of-entry" includes inspection and checking stations and weigh stations.
3152          (16) "Port-of-entry agent" means a person employed at a port-of-entry to perform the
3153     duties specified in Section 72-9-501.
3154          (17) "Public transit" means the same as that term is defined in Section 17B-2a-802.
3155          [(17)] (18) "Public transit facility" means a transit vehicle, transit station, depot,
3156     passenger loading or unloading zone, parking lot, or other facility:
3157          (a) leased by or operated by or on behalf of a public transit district; and
3158          (b) related to the public transit services provided by the district, including:
3159          (i) railway or other right-of-way;
3160          (ii) railway line; and
3161          (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by
3162     a transit vehicle.
3163          [(18)] (19) "Right-of-way" means real property or an interest in real property, usually
3164     in a strip, acquired for or devoted to a highway.
3165          [(19)] (20) "Sealed" does not preclude acceptance of electronically sealed and

3166     submitted bids or proposals in addition to bids or proposals manually sealed and submitted.
3167          [(20)] (21) "Semitrailer" has the meaning set forth in Section 41-1a-102.
3168          [(21)] (22) "SR" means state route and has the same meaning as state highway as
3169     defined in this section.
3170          [(22)] (23) "State highway" means those highways designated as state highways in
3171     Title 72, Chapter 4, Designation of State Highways Act.
3172          [(23)] (24) "State [highway] transportation purposes" has the meaning set forth in
3173     Section 72-5-102.
3174          [(24)] (25) "State transportation systems" means all streets, alleys, roads, highways,
3175     and thoroughfares of any kind, including connected structures, airports, spaceports, public
3176     transit facilities, and all other modes and forms of conveyance used by the public.
3177          [(25)] (26) "Trailer" has the meaning set forth in Section 41-1a-102.
3178          [(26)] (27) "Truck tractor" has the meaning set forth in Section 41-1a-102.
3179          [(27)] (28) "UDOT" means the Utah Department of Transportation.
3180          [(28)] (29) "Vehicle" has the same meaning set forth in Section 41-1a-102.
3181          Section 32. Section 72-1-202 is amended to read:
3182          72-1-202. Executive director of department -- Appointment -- Qualifications --
3183     Term -- Responsibility -- Power to bring suits -- Salary.
3184          (1) (a) The governor, [after consultation with the commission and] with the consent of
3185     the Senate, shall appoint an executive director to be the chief executive officer of the
3186     department.
3187          (b) The executive director shall be a registered professional engineer and qualified
3188     executive with technical and administrative experience and training appropriate for the
3189     position.
3190          (c) The executive director shall remain in office until a successor is appointed.
3191          (d) The executive director may be removed by the governor.
3192          (2) In addition to the other functions, powers, duties, rights, and responsibilities
3193     prescribed in this chapter, the executive director shall:

3194          (a) have responsibility for the administrative supervision of the state transportation
3195     systems and the various operations of the department;
3196          (b) have the responsibility for the implementation of rules, priorities, and policies
3197     established by the department and the commission;
3198          (c) have the responsibility for the oversight and supervision of any transportation
3199     project for which state funds are expended;
3200          (d) have full power to bring suit in courts of competent jurisdiction in the name of the
3201     department as the executive director considers reasonable and necessary for the proper
3202     attainment of the goals of this chapter;
3203          (e) receive a salary, to be established by the governor within the salary range fixed by
3204     the Legislature in Title 67, Chapter 22, State Officer Compensation, together with actual
3205     traveling expenses while away from the executive director's office on official business; [and]
3206          (f) purchase all necessary equipment and supplies for the department[.];
3207          (g) have responsibility for administrative supervision of the Comptroller Division, the
3208     Internal Audit Division, and the Communications Division; and
3209          (h) appoint assistants, to serve at the discretion of the executive director, to administer
3210     the divisions of the department.
3211          (3) The executive director may employ other assistants and advisers as the executive
3212     director finds necessary and fix salaries in accordance with the salary standards adopted by the
3213     Department of Human Resource Management.
3214          Section 33. Section 72-1-203 is amended to read:
3215          72-1-203. Deputy director -- Appointment -- Qualifications -- Other assistants
3216     and advisers -- Salaries.
3217          (1) The executive director shall appoint two deputy directors, who shall serve at the
3218     discretion of the executive director.
3219          (2) (a) The deputy director of engineering and operations shall be a registered
3220     professional engineer in the state and is the chief engineer of the department.
3221          (b) The deputy director of engineering and operations shall assist the executive director

3222     with areas of responsibility [including] that may include:
3223          (i) project development, including statewide standards for project design and
3224     construction, right-of-way, materials, testing, structures, and construction;
3225          (ii) oversight of the management of the region offices described in Section 72-1-205;
3226          (iii) [management of operations; and] operations and traffic management;
3227          (iv) oversight of operations of motor carriers and ports[.];
3228          (v) transportation systems safety;
3229          (vi) aeronautical operations; and
3230          (vii) equipment for department engineering and maintenance functions.
3231          [(b)] (c) The deputy director of planning and investment shall assist the executive
3232     director with areas of responsibility [including] that may include:
3233          (i) oversight and coordination of planning, including:
3234          (A) development of statewide strategic initiatives for planning across all modes of
3235     transportation;
3236          (B) coordination with metropolitan planning organizations and local governments; and
3237          (C) corridor and area planning;
3238          (ii) asset management;
3239          (iii) programming and prioritization of transportation projects;
3240          (iv) fulfilling requirements for environmental studies and impact statements; [and]
3241          (v) resource investment, including identification [and development], development, and
3242     oversight of public-private partnership opportunities[.];
3243          (vi) data analytics services to the department;
3244          (vii) corridor preservation;
3245          (viii) employee development;
3246          (ix) maintenance planning; and
3247          (x) oversight and facilitation of the negotiations and integration of public transit
3248     providers described in Section 17B-2a-827.
3249          [(3) The executive director may also appoint assistants to administer the divisions of

3250     the department. These assistants shall serve at the discretion of the executive director.]
3251          [(4) In addition, the executive director may employ other assistants and advisers as the
3252     executive director finds necessary and fix salaries in accordance with the salary standards
3253     adopted by the Department of Human Resource Management.]
3254          Section 34. Section 72-1-204 is amended to read:
3255          72-1-204. Divisions enumerated -- Duties.
3256          [The] In addition to divisions created by the department necessary to administer the
3257     areas of responsibility of the deputy directors as described in Section 72-1-203, the divisions of
3258     the department are:
3259          (1) the Comptroller Division responsible for:
3260          (a) all financial aspects of the department, including budgeting, accounting, and
3261     contracting;
3262          (b) providing all material data and documentation necessary for effective fiscal
3263     planning and programming; and
3264          (c) procuring administrative supplies;
3265          (2) the Internal Audit Division responsible for:
3266          (a) conducting and verifying all internal audits and reviews within the department;
3267          (b) performing financial and compliance audits to determine the allowability and
3268     reasonableness of proposals, accounting records, and final costs of consultants, contractors,
3269     utility companies, and other entities used by the department; and
3270          (c) implementing audit procedures that meet or exceed generally accepted auditing
3271     standards relating to revenues, expenditures, and funding; and
3272          (3) the Communications Division responsible for:
3273          (a) developing, managing, and implementing the department's public hearing processes
3274     and programs;
3275          (b) responding to public complaints, requests, and input;
3276          (c) assisting the divisions and regions in the department's public involvement
3277     programs;

3278          (d) developing and managing internal department communications; and
3279          (e) managing and overseeing department media relations[;].
3280          [(4) the Program Development Division responsible for:]
3281          [(a) developing transportation plans for state transportation systems;]
3282          [(b) collecting, processing, and storing transportation data to support department's
3283     engineering functions;]
3284          [(c) maintaining and operating the asset management systems;]
3285          [(d) designating state transportation systems qualifications;]
3286          [(e) developing a statewide transportation improvement program for approval by the
3287     commission;]
3288          [(f) providing cartographic services to the department;]
3289          [(g) assisting local governments in participating in federal-aid transportation programs;
3290     and]
3291          [(h) providing research services associated with transportation programs;]
3292          [(5) the Project Development Division responsible for:]
3293          [(a) developing statewide standards for project design and construction;]
3294          [(b) providing support for project development in the areas of design environment,
3295     right-of-way, materials testing, structures, value engineering, and construction; and]
3296          [(c) designing specialty projects;]
3297          [(6) the Operations Division responsible for:]
3298          [(a) maintaining the state transportation systems;]
3299          [(b) state transportation systems safety;]
3300          [(c) operating state ports-of-entry;]
3301          [(d) operating state motor carrier safety programs in accordance with this title and
3302     federal law;]
3303          [(e) aeronautical operations;]
3304          [(f) providing equipment for department engineering and maintenance functions; and]
3305          [(g) risk management; and]

3306          [(7) the Planning and Investment Division responsible for:]
3307          [(a) creating and managing an intermodal terminal facility to promote economic
3308     development and investment;]
3309          [(b) promoting strategies to synergize development of an intermodal inland port; and]
3310          [(c) overseeing and coordinating public-private partnerships.]
3311          Section 35. Section 72-1-205 is amended to read:
3312          72-1-205. Region offices -- Region directors -- Qualifications -- Responsibilities.
3313          (1) The department shall maintain region offices throughout the state as the executive
3314     director finds reasonable and necessary for the efficient carrying out of the duties of the
3315     department.
3316          (2) (a) The executive director shall appoint a region director for each region.
3317          (b) Each region director shall be a qualified executive with technical and
3318     administrative experience and training.
3319          [(3) The region director is responsible for:]
3320          [(a) executing department policy within the region;]
3321          [(b) supervising project development and operations of the state transportation systems
3322     within the region; and]
3323          [(c) promoting the department's public involvement and information programs.]
3324          (3) The executive director shall establish the responsibilities of each region director.
3325          (4) The executive director may also establish district offices within a region to
3326     implement maintenance, encroachment, safety, community involvement, and loss management
3327     functions of the region.
3328          Section 36. Section 72-1-213 is amended to read:
3329          72-1-213. Road usage charge study -- Recommendations.
3330          (1) (a) The department shall study a road usage charge mileage-based revenue system,
3331     including a demonstration program, as an alternative to the motor and special tax.
3332          (b) The demonstration program may consider:
3333          (i) the necessity of protecting all personally identifiable information used in reporting

3334     highway use;
3335          (ii) alternatives to recording and reporting highway use;
3336          (iii) alternatives to administration of a road usage charge program; and
3337          (iv) other factors as determined by the department.
3338          (2) (a) The department shall create a Road Usage Charge Advisory Committee to assist
3339     the department to conduct a road usage charge demonstration program.
3340          (b) The executive director shall appoint members of the committee, considering
3341     individuals with experience and expertise in the following areas:
3342          (i) telecommunications;
3343          (ii) data security and privacy;
3344          (iii) privacy rights advocacy organizations;
3345          (iv) transportation agencies with technical expertise;
3346          (v) national research;
3347          (vi) members of the Legislature;
3348          (vii) representatives from the State Tax Commission; and
3349          (viii) other relevant stakeholders as determined by the executive director.
3350          (c) The executive director or the executive director's designee shall serve as chair of the
3351     committee.
3352          (d) A member of the committee may not receive compensation or benefits for the
3353     member's service, but may receive per diem and travel expenses in accordance with:
3354          (i) Section 63A-3-106;
3355          (ii) Section 63A-3-107; and
3356          (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
3357     63A-3-107.
3358          (e) The department shall provide staff support to the committee.
3359          (3) (a) Beginning in 2019, and no later than September 30 of each year, the department
3360     shall prepare and submit a report of its findings based on the results of the road usage charge
3361     demonstration program to the:

3362          (i) Road Usage Charge Advisory Committee created under Subsection (2);
3363          (ii) Transportation Commission;
3364          (iii) Transportation Interim Committee of the Legislature; and
3365          (iv) Revenue and Taxation Interim Committee of the Legislature.
3366          (b) The report shall review the following issues:
3367          (i) cost;
3368          (ii) privacy, including recommendations regarding public and private access, including
3369     by law enforcement, to data collected and stored for purposes of the road usage charge to
3370     ensure individual privacy rights are protected;
3371          (iii) jurisdictional issues;
3372          (iv) feasibility;
3373          (v) complexity;
3374          (vi) acceptance;
3375          (vii) use of revenues;
3376          (viii) security and compliance, including a discussion of processes and security
3377     measures necessary to minimize fraud and tax evasion rates;
3378          (ix) data collection technology, including a discussion of the advantages and
3379     disadvantages of various types of data collection equipment and the privacy implications and
3380     considerations of the equipment;
3381          (x) potential for additional driver services; and
3382          (xi) implementation issues.
3383          (c) The report may make recommendations to the Legislature and other policymaking
3384     bodies on the potential use and future implementation of a road usage charge within the state.
3385          (4) Upon full implementation of a road user charge program for alternative fuel
3386     vehicles, which shall occur no later than January 1, 2020, as set forth in Section 72-1-213.1, the
3387     department, in coordination with the Motor Vehicle Division, shall offer the option to an owner
3388     of an alternative fuel vehicle as defined in Section 41-1a-102 to:
3389          (a) pay an increased motor vehicle registration fee required in Subsection

3390     41-1a-1206(1)(h) or (2)(b); or
3391          (b) participate in a road user charge program.
3392          Section 37. Section 72-1-213.1 is enacted to read:
3393          72-1-213.1. Road usage charge program.
3394          (1) As used in this section:
3395          (a) "Account manager" means an entity under contract with the department to
3396     administer and manage the road usage charge program.
3397          (b) "Alternative fuel vehicle" means the same as that term is defined in Section
3398     41-1a-102.
3399          (c) "Payment period" means the interval during which an owner is required to report
3400     mileage and pay the appropriate road usage charge according to the terms of the program.
3401          (d) "Program" means the road usage charge program established and described in this
3402     section.
3403          (2) There is established a road usage charge program as described in this section.
3404          (3) (a) The department shall implement and oversee the administration of the program,
3405     which shall begin on January 1, 2020.
3406          (b) To implement and administer the program, the department may contract with an
3407     account manager.
3408          (4) (a) The owner or lessee of an alternative fuel vehicle may apply for enrollment of
3409     the alternative fuel vehicle in the program.
3410          (b) If an application for enrollment into the program is approved by the department, the
3411     owner or lessee of an alternative fuel vehicle may participate in the program in lieu of paying
3412     the fee described in Subsection 41-1a-1206(1)(h) or (2)(b).
3413          (5) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3414     and consistent with this section, the department:
3415          (i) shall make rules to establish:
3416          (A) processes and terms for enrollment into and withdrawal or removal from the
3417     program;

3418          (B) payment periods and other payment methods and procedures for the program;
3419          (C) standards for mileage reporting mechanisms for an owner or lessee of an
3420     alternative fuel vehicle to report mileage as part of participation in the program;
3421          (D) standards for program functions for mileage recording, payment processing,
3422     account management, and other similar aspects of the program;
3423          (E) contractual terms between an owner or lessee of an alternative fuel vehicle owner
3424     and an account manager for participation in the program;
3425          (F) contractual terms between the department and an account manager, including
3426     authority for an account manager to enforce the terms of the program;
3427          (G) procedures to provide security and protection of personal information and data
3428     connected to the program, and penalties for account managers for violating privacy protection
3429     rules;
3430          (H) penalty procedures for a program participant's failure to pay a road usage charge or
3431     tampering with a device necessary for the program; and
3432          (I) department oversight of an account manager, including privacy protection of
3433     personal information and access and auditing capability of financial and other records related to
3434     administration of the program; and
3435          (ii) may make rules to establish:
3436          (A) an enrollment cap for certain alternative fuel vehicle types to participate in the
3437     program;
3438          (B) a process for collection of an unpaid road usage charge or penalty; or
3439          (C) integration of the program with other similar programs, such as tolling.
3440          (b) The department shall make recommendations to and consult with the commission
3441     regarding road usage mileage rates for each type of alternative fuel vehicle.
3442          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
3443     consistent with this section, the commission shall, after consultation with the department, make
3444     rules to establish the road usage charge mileage rate for each type of alternative fuel vehicle.
3445          (7) (a) Revenue generated by the road usage charge program and relevant penalties

3446     shall be deposited into the Transportation Fund.
3447          (b) The department may use revenue generated by the program to cover the costs of
3448     administering the program.
3449          (8) (a) The department may:
3450          (i) (A) impose a penalty for failure to timely pay a road usage charge according to the
3451     terms of the program or tampering with a device necessary for the program; and
3452          (B) request that the Division of Motor Vehicles place a hold on the registration of the
3453     owner's or lessee's alternative fuel vehicle for failure to pay a road usage charge according to
3454     the terms of the program;
3455          (ii) send correspondence to the owner of an alternative fuel vehicle to inform the owner
3456     or lessee of:
3457          (A) the road usage charge program, implementation, and procedures;
3458          (B) an unpaid road usage charge and the amount of the road usage charge to be paid to
3459     the department;
3460          (C) the penalty for failure to pay a road usage charge within the time period described
3461     in Subsection (8)(a)(iii); and
3462          (D) a hold being placed on the owner's or lessee's registration for the alternative fuel
3463     vehicle, if the road usage charge and penalty are not paid within the time period described in
3464     Subsection (8)(a)(iii), which would prevent the renewal of the alternative fuel vehicle's
3465     registration; and
3466          (iii) require that the owner or lessee of the alternative fuel vehicle pay the road usage
3467     charge to the department within 30 days of the date when the department sends written notice
3468     of the road usage charge to the owner or lessee.
3469          (b) The department shall send the correspondence and notice described in Subsection
3470     (8)(a) to the owner of the alternative fuel vehicle according to the terms of the program.
3471          (9) (a) The Division of Motor Vehicles and the department shall share and provide
3472     access to information pertaining to an alternative fuel vehicle and participation in the program
3473     including:

3474          (i) registration and ownership information pertaining to an alternative fuel vehicle;
3475          (ii) information regarding the failure of an alternative fuel vehicle owner or lessee to
3476     pay a road usage charge or penalty imposed under this section within the time period described
3477     in Subsection (8)(a)(iii); and
3478          (iii) the status of a request for a hold on the registration of an alternative fuel vehicle.
3479          (b) If the department requests a hold on the registration in accordance with this section,
3480     the Division of Motor Vehicles may not renew the registration of a motor vehicle under Title
3481     41, Chapter 1a, Part 2, Registration, until the department withdraws the hold request.
3482          (10) The owner of an alternative fuel vehicle may apply for enrollment in the program
3483     or withdraw from the program according to the terms established by the department pursuant to
3484     rules made under Subsection (5).
3485          (11) If enrolled in the program, the owner or lessee of an alternative fuel vehicle shall:
3486          (a) report mileage driven as required by the department pursuant to Subsection (5);
3487          (b) pay the road usage fee for each payment period as set by the department and the
3488     commission pursuant to Subsections (5) and (6); and
3489          (c) comply with all other provisions of this section and other requirements of the
3490     program.
3491          Section 38. Section 72-1-301 is amended to read:
3492          72-1-301. Transportation Commission created -- Members, appointment, terms --
3493     Qualifications -- Pay and expenses -- Chair -- Quorum.
3494          (1) (a) There is created the Transportation Commission which shall consist of seven
3495     members.
3496          (b) The members of the commission shall be residents of Utah.
3497          (c) The members of the commission shall be selected on a nonpartisan basis.
3498          (d) (i) The commissioners shall be appointed by the governor, with the consent of the
3499     Senate, for a term of six years, beginning on April 1 of odd-numbered years, except as provided
3500     under Subsection (1)(d)(ii).
3501          (ii) The first two additional commissioners serving on the seven member commission

3502     shall be appointed for terms of two years nine months and four years nine months, respectively,
3503     initially commencing on July 1, 1996, and subsequently commencing as specified under
3504     Subsection (1)(d)(i).
3505          (e) The commissioners serve on a part-time basis.
3506          (f) Each commissioner shall remain in office until a successor is appointed and
3507     qualified.
3508          (2) (a) Except as provided in Subsection (2)(b), the selection of the commissioners
3509     shall be as follows:
3510          (i) one commissioner from Box Elder, Cache, or Rich county;
3511          (ii) one commissioner from Salt Lake or Tooele county;
3512          (iii) one commissioner from Carbon, Emery, Grand, or San Juan county;
3513          (iv) one commissioner from Beaver, Garfield, Iron, Kane, Millard, Piute, Sanpete,
3514     Sevier, Washington, or Wayne county;
3515          (v) one commissioner from Weber, Davis, or Morgan county;
3516          (vi) one commissioner from Juab, Utah, Wasatch, Duchesne, Summit, Uintah, or
3517     Daggett county; and
3518          (vii) one commissioner selected from the state at large.
3519          (b) Beginning with the appointment of commissioners on or after July 1, 2009 and
3520     subject to the restriction in Subsection (2)(d), the selection of commissioners shall be as
3521     follows:
3522          (i) four commissioners with one commissioner selected from each of the four regions
3523     established by the department; and
3524          (ii) subject to the restriction in Subsection (2)(c), three commissioners selected from
3525     the state at large.
3526          (c) (i) At least one of the three commissioners appointed under Subsection (2)(b)(ii)
3527     shall be selected from a rural county.
3528          (ii) For purposes of this Subsection (2)(c), a rural county includes a county of the third,
3529     fourth, fifth, or sixth class.

3530          (d) No more than two commissioners appointed under Subsection (2)(b) may be
3531     selected from any one of the four regions established by the department.
3532          (3) A member may not receive compensation or benefits for the member's service, but
3533     may receive per diem and travel expenses in accordance with:
3534          (a) Section 63A-3-106;
3535          (b) Section 63A-3-107; and
3536          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
3537     63A-3-107.
3538          (4) (a) One member of the commission shall be designated by the governor as chair.
3539          (b) The commission shall select one member as vice chair to act in the chair's absence.
3540          (5) Any four commissioners constitute a quorum.
3541          (6) Each member of the commission shall qualify by taking the constitutional oath of
3542     office.
3543          (7) For the purposes of Section 63J-1-504, the commission is not considered an
3544     agency.
3545          Section 39. Section 72-1-304 is amended to read:
3546          72-1-304. Written project prioritization process for new transportation capacity
3547     projects -- Rulemaking.
3548          (1) (a) The Transportation Commission, in consultation with the department and the
3549     metropolitan planning organizations as defined in Section 72-1-208.5, shall develop a written
3550     prioritization process for the prioritization of:
3551          (i) new transportation capacity projects that are or will be part of the state highway
3552     system under Chapter 4, Part 1, State Highways[, or];
3553          (ii) paved pedestrian or paved nonmotorized transportation projects that:
3554          (A) mitigate traffic congestion on the state highway system; and
3555          (B) are part of an active transportation plan approved by the department;
3556          (iii) public transit projects that add capacity to the public transit systems within the
3557     state[.]; and

3558          (iv) pedestrian or nonmotorized transportation projects that provide connection to a
3559     public transit system.
3560          (b) (i) A local government or district may nominate a project for prioritization in
3561     accordance with the process established by the commission in rule.
3562          (ii) If a local government or district nominates a project for prioritization by the
3563     commission, the local government or district shall provide data and evidence to show that:
3564          (A) the project will advance the purposes and goals described in Section 72-1-211;
3565          (B) for a public transit project, the local government or district has an ongoing funding
3566     source for operations and maintenance of the proposed development; and
3567          (C) the local government or district will provide 40% of the [funds] costs for the
3568     project as required by Subsection 72-2-124(4)(a)(viii) or 72-2-124(7)(e).
3569          (2) The following shall be included in the written prioritization process under
3570     Subsection (1):
3571          (a) a description of how the strategic initiatives of the department adopted under
3572     Section 72-1-211 are advanced by the written prioritization process;
3573          (b) a definition of the type of projects to which the written prioritization process
3574     applies;
3575          (c) specification of a weighted criteria system that is used to rank proposed projects
3576     and how it will be used to determine which projects will be prioritized;
3577          (d) specification of the data that is necessary to apply the weighted ranking criteria; and
3578          (e) any other provisions the commission considers appropriate, which may include
3579     consideration of:
3580          (i) regional and statewide economic development impacts, including improved local
3581     access to:
3582          (A) employment;
3583          (B) recreation;
3584          (C) commerce; and
3585          (D) residential areas;

3586          (ii) the extent to which local land use plans relevant to a project support and
3587     accomplish the strategic initiatives adopted under Section 72-1-211; and
3588          (iii) any matching funds provided by a political subdivision or public transit district in
3589     addition to the 40% required by [Subsection 72-2-124(7)(e).] Subsections 72-2-124(4)(a)(viii)
3590     and 72-2-124(7)(e).
3591          (3) In developing the written prioritization process, the commission:
3592          (a) shall seek and consider public comment by holding public meetings at locations
3593     throughout the state; and
3594          (b) may not consider local matching dollars as provided under Section 72-2-123 unless
3595     the state provides an equal opportunity to raise local matching dollars for state highway
3596     improvements within each county.
3597          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3598     Transportation Commission, in consultation with the department, shall make rules establishing
3599     the written prioritization process under Subsection (1).
3600          (5) The commission shall submit the proposed rules under this section to a committee
3601     or task force designated by the Legislative Management Committee for review prior to taking
3602     final action on the proposed rules or any proposed amendment to the rules described in
3603     Subsection (4).
3604          Section 40. Section 72-2-107 is amended to read:
3605          72-2-107. Appropriation from Transportation Fund -- Apportionment for class B
3606     and class C roads.
3607          (1) There is appropriated to the department from the Transportation Fund annually an
3608     amount equal to 30% of an amount which the director of finance shall compute in the
3609     following manner: The total revenue deposited into the Transportation Fund during the fiscal
3610     year from state highway-user taxes and fees, minus those amounts appropriated or transferred
3611     from the Transportation Fund during the same fiscal year to:
3612          (a) the Department of Public Safety;
3613          (b) the State Tax Commission;

3614          (c) the Division of Finance;
3615          (d) the Utah Travel Council; [and]
3616          (e) the road usage charge program created in Section 72-1-213.1; and
3617          [(e)] (f) any other amounts appropriated or transferred for any other state agencies not a
3618     part of the department.
3619          (2) (a) Except as provided in Subsection (2)(b), all of the money appropriated in
3620     Subsection (1) shall be apportioned among counties and municipalities for class B and class C
3621     roads as provided in this title.
3622          (b) The department shall annually transfer $500,000 of the amount calculated under
3623     Subsection (1) to the State Park Access Highways Improvement Program created in Section
3624     72-3-207.
3625          (3) Each quarter of every year the department shall make the necessary accounting
3626     entries to transfer the money appropriated under this section for class B and class C roads.
3627          (4) The funds appropriated for class B and class C roads shall be expended under the
3628     direction of the department as the Legislature shall provide.
3629          Section 41. Section 72-2-117.5 is amended to read:
3630          72-2-117.5. Definitions -- Local Highway and Transportation Corridor
3631     Preservation Fund -- Disposition of fund money.
3632          (1) As used in this section:
3633          (a) "Council of governments" means a decision-making body in each county composed
3634     of membership including the county governing body and the mayors of each municipality in the
3635     county.
3636          (b) "Metropolitan planning organization" has the same meaning as defined in Section
3637     72-1-208.5.
3638          (2) There is created the Local Highway and Transportation Corridor Preservation Fund
3639     within the Transportation Fund.
3640          (3) The fund shall be funded from the following sources:
3641          (a) a local option highway construction and transportation corridor preservation fee

3642     imposed under Section 41-1a-1222;
3643          (b) appropriations made to the fund by the Legislature;
3644          (c) contributions from other public and private sources for deposit into the fund;
3645          (d) all money collected from rents and sales of real property acquired with fund money;
3646          (e) proceeds from general obligation bonds, revenue bonds, or other obligations issued
3647     as authorized by Title 63B, Bonds; and
3648          [(f) the portion of the sales and use tax described in Section 59-12-2217 deposited into
3649     the fund; and]
3650          [(g)] (f) sales and use tax revenues deposited into the fund in accordance with [Section
3651     59-12-2218] Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for
3652     Transportation Act.
3653          (4) (a) The fund shall earn interest.
3654          (b) All interest earned on fund money shall be deposited into the fund.
3655          (c) The State Tax Commission shall allocate the revenues:
3656          (i) provided under Subsection (3)(a) to each county imposing a local option highway
3657     construction and transportation corridor preservation fee under Section 41-1a-1222;
3658          (ii) provided under Subsection 59-12-2217(2)[(b)] to each county imposing a county
3659     option sales and use tax for transportation; and
3660          (iii) provided under Subsection (3)[(g)](f) to each county of the second class or city or
3661     town within a county of the second class that imposes the sales and use tax authorized by
3662     Section 59-12-2218.
3663          (d) The department shall distribute the funds allocated to each county, city, or town
3664     under Subsection (4)(c) to each county, city, or town.
3665          (e) The money allocated and distributed under this Subsection (4):
3666          (i) shall be used for the purposes provided in this section for each county, city, or town;
3667          (ii) is allocated to each county, city, or town as provided in this section with the
3668     condition that the state will not be charged for any asset purchased with the money allocated
3669     and distributed under this Subsection (4), unless there is a written agreement in place with the

3670     department prior to the purchase of the asset stipulating a reimbursement by the state to the
3671     county, city, or town of no more than the original purchase price paid by the county, city, or
3672     town; and
3673          (iii) is considered a local matching contribution for the purposes described under
3674     Section 72-2-123 if used on a state highway.
3675          (f) Administrative costs of the department to implement this section shall be paid from
3676     the fund.
3677          (5) (a) A highway authority may acquire real property or any interests in real property
3678     for state, county, and municipal highway or public transit corridors subject to:
3679          (i) money available in the fund to each county under Subsection (4); and
3680          (ii) the provisions of this section.
3681          (b) Fund money may be used to pay interest on debts incurred in accordance with this
3682     section.
3683          (c) (i) (A) Fund money may be used to pay maintenance costs of properties acquired
3684     under this section but limited to a total of 5% of the purchase price of the property.
3685          (B) Any additional maintenance cost shall be paid from funds other than under this
3686     section.
3687          (C) Revenue generated by any property acquired under this section is excluded from
3688     the limitations under this Subsection (5)(c)(i).
3689          (ii) Fund money may be used to pay direct costs of acquisition of properties acquired
3690     under this section.
3691          (d) Fund money allocated and distributed under Subsection (4) may be used by a
3692     county highway authority for countywide transportation or public transit planning if:
3693          (i) the county's planning focus area is outside the boundaries of a metropolitan
3694     planning organization;
3695          (ii) the transportation planning is part of the county's continuing, cooperative, and
3696     comprehensive process for transportation or public transit planning, corridor preservation,
3697     right-of-way acquisition, and project programming;

3698          (iii) no more than four years allocation every 20 years to each county is used for
3699     transportation planning under this Subsection (5)(d); and
3700          (iv) the county otherwise qualifies to use the fund money as provided under this
3701     section.
3702          (e) (i) Subject to Subsection (11), fund money allocated and distributed under
3703     Subsection (4) may be used by a county highway authority for transportation or public transit
3704     corridor planning that is part of the corridor elements of an ongoing work program of
3705     transportation or public transit projects.
3706          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
3707     direction of:
3708          (A) the metropolitan planning organization if the county is within the boundaries of a
3709     metropolitan planning organization; or
3710          (B) the department if the county is not within the boundaries of a metropolitan
3711     planning organization.
3712          (f) (i) A county, city, or town that imposes a local option highway construction and
3713     transportation corridor preservation fee under Section 41-1a-1222 may elect to administer the
3714     funds allocated and distributed to that county, city, or town under Subsection (4) as a revolving
3715     loan fund.
3716          (ii) If a county, city, or town elects to administer the funds allocated and distributed to
3717     that county, city, or town under Subsection (4) as a revolving loan fund, a local highway
3718     authority shall repay the fund money authorized for the project to the fund.
3719          (iii) A county, city, or town that elects to administer the funds allocated and distributed
3720     to that county, city, or town under Subsection (4) as a revolving loan fund shall establish
3721     repayment conditions of the money to the fund from the specified project funds.
3722          (g) (i) Subject to the restrictions in Subsections (5)(g)(ii) and (iii), fund money may be
3723     used by a county of the third, fourth, fifth, or sixth class or by a city or town within a county of
3724     the third, fourth, fifth, or sixth class for:
3725          (A) the construction, operation, or maintenance of a class B road or class C road; or

3726          (B) the restoration or repair of survey monuments associated with transportation
3727     infrastructure.
3728          (ii) A county, city, or town may not use more than 50% of the current balance of fund
3729     money allocated to the county, city, or town for the purposes described in Subsection (5)(g)(i).
3730          (iii) A county, city, or town may not use more than 50% of the fund revenue collections
3731     allocated to a county, city, or town in the current fiscal year for the purposes described in
3732     Subsection (5)(g)(i).
3733          (6) (a) (i) The Local Highway and Transportation Corridor Preservation Fund shall be
3734     used to preserve highway and public transit corridors, promote long-term statewide
3735     transportation planning, save on acquisition costs, and promote the best interests of the state in
3736     a manner which minimizes impact on prime agricultural land.
3737          (ii) The Local Highway and Transportation Corridor Preservation Fund shall only be
3738     used to preserve a highway or public transit corridor that is right-of-way:
3739          (A) in a county of the first or second class for:
3740          (I) a state highway;
3741          (II) a principal arterial highway as defined in Section 72-4-102.5;
3742          (III) a minor arterial highway as defined in Section 72-4-102.5;
3743          (IV) a collector highway in an urban area as defined in Section 72-4-102.5; or
3744          (V) a transit facility as defined in Section 17B-2a-802; or
3745          (B) in a county of the third, fourth, fifth, or sixth class for:
3746          (I) a state highway;
3747          (II) a principal arterial highway as defined in Section 72-4-102.5;
3748          (III) a minor arterial highway as defined in Section 72-4-102.5;
3749          (IV) a major collector highway as defined in Section 72-4-102.5;
3750          (V) a minor collector road as defined in Section 72-4-102.5; or
3751          (VI) a transit facility as defined in Section 17B-2a-802.
3752          (iii) The Local Highway and Transportation Corridor Preservation Fund may not be
3753     used for a highway corridor that is primarily a recreational trail as defined under Section

3754     79-5-102.
3755          (b) A highway authority shall authorize the expenditure of fund money after
3756     determining that the expenditure is being made in accordance with this section from
3757     applications that are:
3758          (i) endorsed by the council of governments; and
3759          (ii) for a right-of-way purchase for a highway or public transit corridor authorized
3760     under Subsection (6)(a)(ii).
3761          (7) (a) (i) A council of governments shall establish a council of governments
3762     endorsement process which includes prioritization and application procedures for use of the
3763     money allocated to each county under this section.
3764          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
3765     endorsement of the preservation project by:
3766          (A) the metropolitan planning organization if the county is within the boundaries of a
3767     metropolitan planning organization; or
3768          (B) the department if the county is not within the boundaries of a metropolitan
3769     planning organization.
3770          (b) All fund money shall be prioritized by each highway authority and council of
3771     governments based on considerations, including:
3772          (i) areas with rapidly expanding population;
3773          (ii) the willingness of local governments to complete studies and impact statements
3774     that meet department standards;
3775          (iii) the preservation of corridors by the use of local planning and zoning processes;
3776          (iv) the availability of other public and private matching funds for a project;
3777          (v) the cost-effectiveness of the preservation projects;
3778          (vi) long and short-term maintenance costs for property acquired; and
3779          (vii) whether the transportation or public transit corridor is included as part of:
3780          (A) the county and municipal master plan; and
3781          (B) (I) the statewide long range plan; or

3782          (II) the regional transportation plan of the area metropolitan planning organization if
3783     one exists for the area.
3784          (c) The council of governments shall:
3785          (i) establish a priority list of highway and public transit corridor preservation projects
3786     within the county;
3787          (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
3788     approval; and
3789          (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the
3790     members of the county legislative body.
3791          (d) A county's council of governments may only submit one priority list described in
3792     Subsection (7)(c)(i) per calendar year.
3793          (e) A county legislative body may only consider and approve one priority list described
3794     in Subsection (7)(c)(i) per calendar year.
3795          (8) (a) Unless otherwise provided by written agreement with another highway authority
3796     or public transit district, the highway authority that holds the deed to the property is responsible
3797     for maintenance of the property.
3798          (b) The transfer of ownership for property acquired under this section from one
3799     highway authority to another shall include a recorded deed for the property and a written
3800     agreement between the highway authorities or public transit district.
3801          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
3802     Local Highway and Transportation Corridor Preservation Fund shall be used for the purposes
3803     authorized for funds under this section.
3804          (b) The highway authority shall pledge the necessary part of the revenues of the Local
3805     Highway and Transportation Corridor Preservation Fund to the payment of principal and
3806     interest on the bonds or other obligations.
3807          (10) (a) A highway authority may not expend money under this section to purchase a
3808     right-of-way for a state highway unless the highway authority has:
3809          (i) a transportation corridor property acquisition policy or ordinance in effect that

3810     meets department requirements for the acquisition of real property or any interests in real
3811     property under this section; and
3812          (ii) an access management policy or ordinance in effect that meets the requirements
3813     under Subsection 72-2-117(8).
3814          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
3815     written agreement with the department for the department to acquire real property or any
3816     interests in real property on behalf of the local highway authority under this section.
3817          (11) The county shall ensure, to the extent possible, that the fund money allocated and
3818     distributed to a city or town in accordance with Subsection (4) is expended:
3819          (a) to fund a project or service as allowed by this section within the city or town to
3820     which the fund money is allocated;
3821          (b) to pay debt service, principal, or interest on a bond or other obligation as allowed
3822     by this section if that bond or other obligation is:
3823          (i) secured by money allocated to the city or town; and
3824          (ii) issued to finance a project or service as allowed by this section within the city or
3825     town to which the fund money is allocated;
3826          (c) to fund transportation planning as allowed by this section within the city or town to
3827     which the fund money is allocated; or
3828          (d) for another purpose allowed by this section within the city or town to which the
3829     fund money is allocated.
3830          (12) Notwithstanding any other provision in this section, any amounts within the fund
3831     allocated to a public transit district or for a public transit corridor may only be derived from the
3832     portion of the fund that does not include constitutionally restricted sources related to the
3833     operation of a motor vehicle on a public highway or proceeds from an excise tax on liquid
3834     motor fuel to propel a motor vehicle.
3835          Section 42. Section 72-2-121 is amended to read:
3836          72-2-121. County of the First Class Highway Projects Fund.
3837          (1) There is created a special revenue fund within the Transportation Fund known as

3838     the "County of the First Class Highway Projects Fund."
3839          (2) The fund consists of money generated from the following revenue sources:
3840          (a) any voluntary contributions received for new construction, major renovations, and
3841     improvements to highways within a county of the first class;
3842          (b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
3843     deposited in or transferred to the fund;
3844          (c) the portion of the sales and use tax described in Section 59-12-2217 deposited in or
3845     transferred to the fund; and
3846          (d) a portion of the local option highway construction and transportation corridor
3847     preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited in or
3848     transferred to the fund.
3849          (3) (a) The fund shall earn interest.
3850          (b) All interest earned on fund money shall be deposited into the fund.
3851          (4) The executive director shall use the fund money only:
3852          (a) to pay debt service and bond issuance costs for bonds issued under Sections
3853     63B-16-102, 63B-18-402, and 63B-27-102;
3854          (b) for right-of-way acquisition, new construction, major renovations, and
3855     improvements to highways within a county of the first class and to pay any debt service and
3856     bond issuance costs related to those projects, including improvements to a highway located
3857     within a municipality in a county of the first class where the municipality is located within the
3858     boundaries of more than a single county;
3859          (c) for the construction, acquisition, use, maintenance, or operation of:
3860          (i) an active transportation facility for nonmotorized vehicles;
3861          (ii) multimodal transportation that connects an origin with a destination; or
3862          (iii) a facility that may include a:
3863          (A) pedestrian or nonmotorized vehicle trail;
3864          (B) nonmotorized vehicle storage facility;
3865          (C) pedestrian or vehicle bridge; or

3866          (D) vehicle parking lot or parking structure;
3867          (d) for fiscal year 2012-13 only, to pay for or to provide funds to a municipality or
3868     county to pay for a portion of right-of-way acquisition, construction, reconstruction,
3869     renovations, and improvements to highways described in Subsections 72-2-121.4(7), (8), and
3870     (9);
3871          (e) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
3872     Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the amounts
3873     transferred in accordance with Subsection 72-2-124(4)(a)(iv);
3874          (f) for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
3875     issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the projects
3876     described in Subsection 63B-18-401(4)(a);
3877          (g) for a fiscal year beginning on or after July 1, 2013, and after the department has
3878     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund, to
3879     transfer an amount equal to 50% of the revenue generated by the local option highway
3880     construction and transportation corridor preservation fee imposed under Section 41-1a-1222 in
3881     a county of the first class:
3882          (i) to the legislative body of a county of the first class; and
3883          (ii) to be used by a county of the first class for:
3884          (A) highway construction, reconstruction, or maintenance projects; or
3885          (B) the enforcement of state motor vehicle and traffic laws;
3886          (h) for fiscal year 2015 only, and after the department has verified that the amount
3887     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
3888     Subsection (4)(f) has been made, to transfer an amount equal to the remainder of the revenue
3889     available in the fund for the 2015 fiscal year:
3890          (i) to the legislative body of a county of the first class; and
3891          (ii) to be used by a county of the first class for:
3892          (A) highway construction, reconstruction, or maintenance projects; or
3893          (B) the enforcement of state motor vehicle and traffic laws;

3894          (i) for fiscal year 2015-16 only, and after the department has verified that the amount
3895     required under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under
3896     Subsection (4)(f) has been made, to transfer an amount equal to $25,000,000:
3897          (i) to the legislative body of a county of the first class; and
3898          (ii) to be used by the county for the purposes described in this section;
3899          (j) for a fiscal year beginning on or after July 1, 2015, after the department has verified
3900     that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the
3901     transfer under Subsection (4)(f) has been made, to annually transfer an amount equal to up to
3902     42.5% of the sales and use tax revenue imposed in a county of the first class and deposited into
3903     the fund in accordance with Subsection 59-12-2214(3)(b) to:
3904          (i) the appropriate debt service or sinking fund for the repayment of bonds issued under
3905     Section 63B-27-102; and
3906          (ii) the Transportation Fund created in Section 72-2-102 until $28,079,000 has been
3907     deposited into the Transportation Fund;
3908          (k) for a fiscal year beginning on or after July 1, 2018, after the department has verified
3909     that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and after
3910     the transfer under Subsection (4)(e), the payment under Subsection (4)(f), and the transfers
3911     under Subsections (4)(j)(i) and (ii) have been made, to annually transfer 20% of the amount
3912     deposited into the fund under Subsection (2)(b) to a public transit district in a county of the
3913     first class to fund a system for public transit;
3914          (l) for a fiscal year beginning on or after July 1, 2018, after the department has verified
3915     that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and after
3916     the transfer under Subsection (4)(e), the payment under Subsection (4)(f), and the transfers
3917     under Subsections (4)(j)(i) and (ii) have been made, to annually transfer 20% of the amount
3918     deposited into the fund under Subsection (2)(b):
3919          (i) to the legislative body of a county of the first class; and
3920          (ii) to fund parking facilities in a county of the first class that facilitate significant
3921     economic development and recreation and tourism within the state; and

3922          (m) for a fiscal year beginning after the amount described in Subsection (4)(j) has been
3923     repaid to the Transportation Fund until fiscal year 2030, or sooner if the amount described in
3924     Subsection (4)(j)(ii) has been repaid, after the department has verified that the amount required
3925     under Subsection 72-2-121.3(4)(c) is available in the fund and the transfer under Subsection
3926     (4)(f) has been made, and after the bonds under Section 63B-27-102 have been repaid, to
3927     annually transfer an amount equal to up to 42.5% of the sales and use tax revenue imposed in a
3928     county of the first class and deposited into the fund in accordance with Subsection
3929     59-12-2214(3)(b):
3930          (i) to the legislative body of a county of the first class; and
3931          (ii) to be used by the county for the purposes described in this section.
3932          (5) The revenues described in Subsections (2)(b), (c), and (d) that are deposited in the
3933     fund and bond proceeds from bonds issued under Sections 63B-16-102, 63B-18-402, and
3934     63B-27-102 are considered a local matching contribution for the purposes described under
3935     Section 72-2-123.
3936          (6) The additional administrative costs of the department to administer this fund shall
3937     be paid from money in the fund.
3938          (7) Notwithstanding any statutory or other restrictions on the use or expenditure of the
3939     revenue sources deposited into this fund, the Department of Transportation may use the money
3940     in this fund for any of the purposes detailed in Subsection (4).
3941          (8) (a) For a fiscal year beginning on or after July 1, 2018, at the end of each fiscal
3942     year, after all programmed payments and transfers authorized or required under this section
3943     have been made, on July 30 the department shall transfer the remainder of the money in the
3944     fund to the Transportation Fund to reduce the amount owed to the Transportation Fund under
3945     Subsection (4)(j)(ii).
3946          (b) The department shall provide notice to a county of the first class of the amount
3947     transferred in accordance with this Subsection (8).
3948          (9) (a) Any revenue in the fund that is not specifically allocated and obligated under this
3949     section is subject to the review process described in this Subsection (9).

3950          (b) A county of the first class shall create a county transportation advisory committee
3951     as described in Subsection (9)(c) to review proposed transportation and, as applicable, public
3952     transit projects and rank projects for allocation of funds.
3953          (c) The county transportation advisory committee described in Subsection (9)(b) shall
3954     be composed of the following 13 members:
3955          (i) six members who are residents of the county, nominated by the county executive
3956     and confirmed by the county legislative body who are:
3957          (A) members of a local advisory [board] council of a large public transit district as
3958     defined in Section 17B-2a-802;
3959          (B) county council members; or
3960          (C) other residents with expertise in transportation planning and funding; and
3961          (ii) seven members nominated by the county executive, and confirmed by the county
3962     legislative body, chosen from mayors or managers of cities or towns within the county.
3963          (d) (i) A majority of the members of the county transportation advisory committee
3964     constitutes a quorum.
3965          (ii) The action by a quorum of the county transportation advisory committee constitutes
3966     an action by the county transportation advisory committee.
3967          (e) The county body shall determine:
3968          (i) the length of a term of a member of the county transportation advisory committee;
3969          (ii) procedures and requirements for removing a member of the county transportation
3970     advisory committee;
3971          (iii) voting requirements of the county transportation advisory committee;
3972          (iv) chairs or other officers of the county transportation advisory committee;
3973          (v) how meetings are to be called and the frequency of meetings, but not less than once
3974     annually; and
3975          (vi) the compensation, if any, of members of the county transportation advisory
3976     committee.
3977          (f) The county shall establish by ordinance criteria for prioritization and ranking of

3978     projects, which may include consideration of regional and countywide economic development
3979     impacts, including improved local access to:
3980          (i) employment;
3981          (ii) recreation;
3982          (iii) commerce; and
3983          (iv) residential areas.
3984          (g) The county transportation advisory committee shall evaluate and rank each
3985     proposed public transit project and regionally significant transportation facility according to
3986     criteria developed pursuant to Subsection (9)(f).
3987          (h) (i) After the review and ranking of each project as described in this section, the
3988     county transportation advisory committee shall provide a report and recommend the ranked list
3989     of projects to the county legislative body and county executive.
3990          (ii) After review of the recommended list of projects, as part of the county budgetary
3991     process, the county executive shall review the list of projects and may include in the proposed
3992     budget the proposed projects for allocation, as funds are available.
3993          (i) The county executive of the county of the first class, with information provided by
3994     the county and relevant state entities, shall provide a report annually to the county
3995     transportation advisory committee, and to the mayor or manager of each city, town, or metro
3996     township in the county, including the following:
3997          (i) the amount of revenue received into the fund during the past year;
3998          (ii) any funds available for allocation;
3999          (iii) funds obligated for debt service; and
4000          (iv) the outstanding balance of transportation-related debt.
4001          Section 43. Section 72-2-121.1 is amended to read:
4002          72-2-121.1. Highway Projects Within Counties Fund -- Accounting for revenues
4003     -- Interest -- Expenditure of revenues.
4004          (1) There is created a special revenue fund within the Transportation Fund known as
4005     the "Highway Projects Within Counties Fund."

4006          (2) The Highway Projects Within Counties Fund shall be funded by revenues generated
4007     by a tax imposed by a county under Section 59-12-2216, if those revenues are allocated:
4008          (a) for a [purpose described in Subsection 59-12-2216(2)(c)] state highway within the
4009     county; and
4010          (b) in accordance with Section 59-12-2216.
4011          (3) The department shall make a separate accounting for:
4012          (a) the revenues described in Subsection (2); and
4013          (b) each county for which revenues are deposited into the Highway Projects Within
4014     Counties Fund.
4015          (4) (a) The Highway Projects Within Counties Fund shall earn interest.
4016          (b) The department shall allocate the interest earned on the Highway Projects Within
4017     Counties Fund:
4018          (i) proportionately;
4019          (ii) to each county's balance in the Highway Projects Within Counties Fund; and
4020          (iii) on the basis of each county's balance in the Highway Projects Within Counties
4021     Fund.
4022          (5) The department shall expend the revenues and interest deposited into the Highway
4023     Projects Within Counties Fund to pay:
4024          (a) for a state highway project within the county[: (i) described in Subsection
4025     59-12-2216(2)(c)(i); and (ii)] for which the requirements of Subsection 59-12-2216(6) are met;
4026          (b) debt service on a project described in Subsection (5)(a); or
4027          (c) bond issuance costs related to a project described in Subsection (5)(a).
4028          Section 44. Section 72-2-121.2 is amended to read:
4029          72-2-121.2. Definition -- County of the Second Class State Highway Projects
4030     Fund -- Use of fund money.
4031          (1) As used in this section, "fund" means the County of the Second Class State
4032     Highway Projects Fund created by this section.
4033          (2) There is created within the Transportation Fund a special revenue fund known as

4034     the County of the Second Class State Highway Projects Fund.
4035          (3) The fund shall be funded by money collected from:
4036          (a) any voluntary contributions the department receives for new construction, major
4037     renovations, and improvements to state highways within a county of the second class; and
4038          (b) sales and use taxes deposited into the fund in accordance with [Section
4039     59-12-2218] Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for
4040     Transportation Act.
4041          (4) The department shall make a separate accounting for:
4042          (a) the revenues described in Subsection (3); and
4043          (b) each county of the second class or city or town within a county of the second class
4044     for which revenues are deposited into the fund.
4045          (5) (a) The fund shall earn interest.
4046          (b) Interest earned on fund money shall be deposited into the fund.
4047          (6) Subject to Subsection (9), the executive director may use fund money only:
4048          (a) for right-of-way acquisition, new construction, major renovations, and
4049     improvements to state highways within a county of the second class or a city or town within a
4050     county of the second class in an amount that does not exceed the amounts deposited for or
4051     allocated to that county of the second class or city or town within a county of the second class
4052     in accordance with this section;
4053          (b) to pay any debt service and bond issuance costs related to a purpose described in
4054     Subsection (6)(a) in an amount that does not exceed the amounts deposited for or allocated to
4055     that county of the second class or city or town within a county of the second class described in
4056     Subsection (6)(a) in accordance with this section; and
4057          (c) to pay the costs of the department to administer the fund in an amount not to exceed
4058     interest earned by the fund money.
4059          (7) If interest remains in the fund after the executive director pays the costs of the
4060     department to administer the fund, the interest shall be:
4061          (a) allocated to each county of the second class or city or town within a county of the

4062     second class for which revenues are deposited into the fund in proportion to the deposits made
4063     into the fund for that county of the second class or city or town within a county of the second
4064     class; and
4065          (b) expended for the purposes described in Subsection (6).
4066          (8) Revenues described in Subsection (3)(b) that are deposited into the fund are
4067     considered to be a local matching contribution for the purposes described in Section 72-2-123.
4068          (9) (a) The executive director shall, in using fund money, ensure to the extent possible
4069     that the fund money deposited for or allocated to a city or town is used:
4070          (i) for a purpose described in Subsection (6)(a) within the city or town to which the
4071     fund money is allocated;
4072          (ii) to pay debt service and bond issuance costs described in Subsection (6)(b) if the
4073     debt service and bond issuance costs are:
4074          (A) secured by money deposited for or allocated to the city or town; and
4075          (B) related to a project described in Subsection (6)(a) within the city or town to which
4076     the fund money is allocated; or
4077          (iii) for a purpose described in Subsection (6)(c).
4078          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4079     department may make rules to implement the requirements of Subsection (9)(a).
4080          Section 45. Section 72-2-124 is amended to read:
4081          72-2-124. Transportation Investment Fund of 2005.
4082          (1) There is created a capital projects fund entitled the Transportation Investment Fund
4083     of 2005.
4084          (2) The fund consists of money generated from the following sources:
4085          (a) any voluntary contributions received for the maintenance, construction,
4086     reconstruction, or renovation of state and federal highways;
4087          (b) appropriations made to the fund by the Legislature;
4088          (c) registration fees designated under Section 41-1a-1201;
4089          (d) the sales and use tax revenues deposited into the fund in accordance with Section

4090     59-12-103; and
4091          (e) revenues transferred to the fund in accordance with Section 72-2-106.
4092          (3) (a) The fund shall earn interest.
4093          (b) All interest earned on fund money shall be deposited into the fund.
4094          (4) (a) Except as provided in Subsection (4)(b), the executive director may use fund
4095     money only to pay:
4096          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
4097     federal highways prioritized by the Transportation Commission through the prioritization
4098     process for new transportation capacity projects adopted under Section 72-1-304;
4099          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
4100     projects described in Subsections 63B-18-401(2), (3), and (4);
4101          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
4102     minus the costs paid from the County of the First Class Highway Projects Fund in accordance
4103     with Subsection 72-2-121(4)(f);
4104          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
4105     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
4106     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
4107     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
4108          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
4109     for projects prioritized in accordance with Section 72-2-125;
4110          (vi) all highway general obligation bonds that are intended to be paid from revenues in
4111     the Centennial Highway Fund created by Section 72-2-118; [and]
4112          (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
4113     Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
4114     in Section 72-2-121[.]; and
4115          (viii) if a political subdivision provides a contribution equal to or greater than 40% of
4116     the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
4117     nonmotorized transportation for projects that:

4118          (A) mitigate traffic congestion on the state highway system;
4119          (B) are part of an active transportation plan approved by the department; and
4120          (C) are prioritized by the commission through the prioritization process for new
4121     transportation capacity projects adopted under Section 72-1-304.
4122          (b) The executive director may use fund money to exchange for an equal or greater
4123     amount of federal transportation funds to be used as provided in Subsection (4)(a).
4124          (5) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
4125     in any fiscal year, the department and the commission shall appear before the Executive
4126     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
4127     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
4128     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
4129          (b) The Executive Appropriations Committee of the Legislature shall review and
4130     comment on the amount of bond proceeds needed to fund the projects.
4131          (6) The Division of Finance shall, from money deposited into the fund, transfer the
4132     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
4133     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
4134     sinking fund.
4135          (7) (a) There is created in the Transportation Investment Fund of 2005 the Transit
4136     Transportation Investment Fund.
4137          (b) The fund shall be funded by:
4138          (i) contributions deposited into the fund in accordance with Section 59-12-103;
4139          (ii) appropriations into the account by the Legislature;
4140          (iii) private contributions; and
4141          (iv) donations or grants from public or private entities.
4142          (c) (i) The fund shall earn interest.
4143          (ii) All interest earned on fund money shall be deposited into the fund.
4144          (d) Subject to Subsection (7)(e), the Legislature may appropriate money from the fund
4145     for public transit capital development of new capacity projects to be used as prioritized by the

4146     commission.
4147          (e) (i) The Legislature may only appropriate money from the fund for a public transit
4148     capital development project or pedestrian or nonmotorized transportation project that provides
4149     connection to the public transit system if the public transit district or political subdivision
4150     provides funds of equal to or greater than 40% of the [funds] costs needed for the project.
4151          (ii) A public transit district or political subdivision may use money derived from a loan
4152     granted pursuant to Title 72, Chapter 2, Part 2, [Transportation Infrastructure Loan] State
4153     Infrastructure Bank Fund, to provide all or part of the 40% requirement described in Subsection
4154     (7)(e)(i) if:
4155          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
4156     [Transportation Infrastructure Loan] State Infrastructure Bank Fund; and
4157          (B) the proposed capital project has been prioritized by the commission pursuant to
4158     Section 72-1-303.
4159          Section 46. Section 72-2-201 is amended to read:
4160          72-2-201. Definitions.
4161          As used in this part:
4162          (1) "Fund" means the [Transportation Infrastructure Loan] State Infrastructure Bank
4163     Fund created under Section 72-2-202.
4164          (2) "Infrastructure assistance" means any use of fund money, except an infrastructure
4165     loan, to provide financial assistance for transportation projects, including:
4166          (a) capital reserves and other security for bond or debt instrument financing; or
4167          (b) any letters of credit, lines of credit, bond insurance, or loan guarantees obtained by
4168     a public entity to finance transportation projects.
4169          (3) "Infrastructure loan" means a loan of fund money to finance a transportation
4170     project.
4171          (4) "Public entity" means a state agency, county, municipality, local district, special
4172     service district, an intergovernmental entity organized under state law, or the military
4173     installation development authority created in Section 63H-1-201.

4174          (5) "Transportation project":
4175          (a) means a project:
4176          (i) to improve a state or local highway; [and]
4177          (ii) to improve a public transportation facility or nonmotorized transportation facility;
4178          (iii) to improve parking facilities that support an intermodal regional transportation
4179     purpose; or
4180          (iv) that is subject to a transportation reinvestment zone agreement pursuant to Section
4181     11-13-227 if the state is party to the agreement;
4182          (b) includes the costs of acquisition, construction, reconstruction, rehabilitation,
4183     equipping, and fixturing[.]; and
4184          (c) may only include a project if the project is part of:
4185          (i) the statewide long range plan;
4186          (ii) a regional transportation plan of the area metropolitan planning organization if a
4187     metropolitan planning organization exists for the area; or
4188          (iii) a local government general plan.
4189          Section 47. Section 72-2-202 is amended to read:
4190          72-2-202. State Infrastructure Bank Fund -- Creation -- Use of money.
4191          (1) There is created a revolving loan fund entitled the [Transportation Infrastructure
4192     Loan] State Infrastructure Bank Fund.
4193          (2) (a) The fund consists of money generated from the following revenue sources:
4194          [(a)] (i) appropriations made to the fund by the Legislature;
4195          [(b)] (ii) federal money and grants that are deposited in the fund;
4196          [(c)] (iii) money transferred to the fund by the commission from other money available
4197     to the department;
4198          [(d)] (iv) state grants that are deposited in the fund;
4199          [(e)] (v) contributions or grants from any other private or public sources for deposit
4200     into the fund; and
4201          [(f)] (vi) subject to Subsection (2)(b), all money collected from repayments of fund

4202     money used for infrastructure loans or infrastructure assistance.
4203          (b) When a loan from the fund is repaid, the department may request and the
4204     Legislature may transfer from the fund to the source from which the money originated an
4205     amount equal to the repaid loan.
4206          (3) (a) The fund shall earn interest.
4207          (b) All interest earned on fund money shall be deposited into the fund.
4208          (4) Money in the fund shall be used by the department, as prioritized by the
4209     commission, only to:
4210          (a) provide infrastructure loans or infrastructure assistance; and
4211          (b) pay the department for the costs of administering the fund, providing infrastructure
4212     loans or infrastructure assistance, monitoring transportation projects, and obtaining repayments
4213     of infrastructure loans or infrastructure assistance.
4214          (5) (a) The department may establish separate accounts in the fund for infrastructure
4215     loans, infrastructure assistance, administrative and operating expenses, or any other purpose to
4216     implement this part.
4217          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4218     department may make rules governing how the fund and its accounts may be held by an escrow
4219     agent.
4220          (6) Fund money shall be invested by the state treasurer as provided in Title 51, Chapter
4221     7, State Money Management Act, and the earnings from the investments shall be credited to the
4222     fund.
4223          Section 48. Section 72-2-203 is amended to read:
4224          72-2-203. Loans and assistance -- Authority -- Rulemaking.
4225          (1) Money in the fund may be used by the department, as prioritized by the commission
4226     or as directed by the Legislature, to make infrastructure loans or to provide infrastructure
4227     assistance to any public entity for any purpose consistent with any applicable constitutional
4228     limitation.
4229          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

4230     commission shall make rules providing procedures and standards for making infrastructure
4231     loans and providing infrastructure assistance[.] and a process for prioritization of requests for
4232     loans and assistance.
4233          (3) The prioritization process, procedures, and standards for making an infrastructure
4234     loan or providing infrastructure assistance may include consideration of the following:
4235          (a) availability of money in the fund;
4236          (b) credit worthiness of the project;
4237          (c) demonstration that the project will encourage, enhance, or create economic benefits
4238     to the state;
4239          (d) likelihood that assistance would enable the project to proceed at an earlier date than
4240     would otherwise be possible;
4241          (e) the extent to which assistance would foster innovative public-private partnerships
4242     and attract private debt or equity investment;
4243          (f) demonstration that the project provides a benefit to the state highway system,
4244     including safety or mobility improvements;
4245          (g) the amount of proposed assistance as a percentage of the overall project costs with
4246     emphasis on local and private participation;
4247          (h) demonstration that the project provides intermodal connectivity with public
4248     transportation, pedestrian, or nonmotorized transportation facilities; and
4249          (i) other provisions the commission considers appropriate.
4250          Section 49. Section 72-2-204 is amended to read:
4251          72-2-204. Loan program procedures -- Repayment.
4252          (1) A public entity may obtain an infrastructure loan from the department, upon
4253     approval by the commission, by entering into a loan contract with the department secured by
4254     legally issued bonds, notes, or other evidence of indebtedness validly issued under state law,
4255     including pledging all or any portion of a revenue source controlled by the public entity to the
4256     repayment of the loan.
4257          (2) A loan or assistance from the fund shall bear interest at or above bond market

4258     interest rates available to the state.
4259          (3) A loan shall be repaid no later than 10 years from the date the department issues the
4260     loan to the borrower, with repayment commencing no later than:
4261          (a) when the project is completed; or
4262          (b) in the case of a highway project, when the facility has opened to traffic.
4263          [(2)] (4) The public entity shall repay the infrastructure loan in accordance with the
4264     loan contract from any of the following sources:
4265          (a) transportation project revenues, including special assessment revenues;
4266          (b) general funds of the public entity;
4267          (c) money withheld under Subsection [(5)] (7); or
4268          (d) any other legally available revenues.
4269          [(3)] (5) An infrastructure loan contract with a public entity may provide that a portion
4270     of the proceeds of the loan may be applied to fund a reserve fund to secure the repayment of the
4271     loan.
4272          [(4)] (6) Before obtaining an infrastructure loan, a county or municipality shall:
4273          (a) publish its intention to obtain an infrastructure loan at least once in accordance with
4274     the publication of notice requirements under Section 11-14-316; and
4275          (b) adopt an ordinance or resolution authorizing the infrastructure loan.
4276          [(5)] (7) (a) If a public entity fails to comply with the terms of its infrastructure loan
4277     contract, the department may seek any legal or equitable remedy to obtain compliance or
4278     payment of damages.
4279          (b) If a public entity fails to make infrastructure loan payments when due, the state
4280     shall, at the request of the department, withhold an amount of money due to the public entity
4281     and deposit the withheld money in the fund to pay the amounts due under the contract.
4282          (c) The department may elect when to request the withholding of money under this
4283     Subsection [(5)] (7).
4284          [(6)] (8) All loan contracts, bonds, notes, or other evidence of indebtedness securing
4285     the loan contracts shall be held, collected, and accounted for in accordance with Section

4286     63B-1b-202.
4287          Section 50. Section 72-5-111 is amended to read:
4288          72-5-111. Disposal of real property.
4289          (1) (a) If the department determines that any real property or interest in real property,
4290     acquired for a highway purpose, is no longer necessary for the purpose, the department may
4291     lease, sell, exchange, or otherwise dispose of the real property or interest in the real property.
4292          (b) (i) Real property may be sold at private or public sale.
4293          (ii) Except as provided in Subsection (1)(c) related to exchanges and Subsection (1)(d)
4294     related to the proceeds of any sale of real property from a maintenance facility, proceeds of any
4295     sale shall be deposited with the state treasurer and credited to the Transportation Fund.
4296          (c) (i) [If] Except as provided in Subsection (1)(c)(ii), if approved by the commission,
4297     real property or an interest in real property may be exchanged by the department for other real
4298     property or interest in real property, including improvements, for highway purposes.
4299          (ii) The department may exchange an interest in real property for another interest in
4300     real property for a project that is part of a statewide transportation improvement program
4301     approved by the commission.
4302          (d) Proceeds from the sale of real property or an interest in real property from a
4303     maintenance facility may be used by the department for the purchase or improvement of
4304     another maintenance facility, including real property.
4305          (2) (a) In the disposition of real property at any private sale, first consideration shall be
4306     given to the original grantor.
4307          (b) Notwithstanding the provisions of Section 78B-6-521, if no portion of a parcel of
4308     real property acquired by the department is used for transportation purposes, then the original
4309     grantor shall be given the opportunity to repurchase the parcel of real property at the
4310     department's original purchase price from the grantor.
4311          (c) In accordance with Section 72-5-404, this Subsection (2) does not apply to property
4312     rights acquired in proposed transportation corridors using funds from the Marda Dillree
4313     Corridor Preservation Fund created in Section 72-2-117.

4314          (d) (i) The right of first consideration described in Subsection (2)(a) is subject to the
4315     same terms and may be assigned by the original grantor in the manner described in Subsection
4316     78B-6-521(2).
4317          (ii) The original grantor or the assignee shall notify the department of an assignment by
4318     certified mail to the current office address of the executive director of the department.
4319          (iii) An exchange of real property as provided in Subsection (1)(c) or Section 72-5-113
4320     does not entitle the original grantor to exercise the right of first consideration described in
4321     Subsection (2)(a).
4322          (iv) The right of first consideration described in Subsection (2)(a) terminates upon an
4323     exchange of the acquired real property as provided in Subsection (1)(c) or Section 72-5-113.
4324          (3) (a) Any sale, exchange, or disposal of real property or interest in real property made
4325     by the department under this section, is exempt from the mineral reservation provisions of Title
4326     65A, Chapter 6, Mineral Leases.
4327          (b) Any deed made and delivered by the department under this section without specific
4328     reservations in the deed is a conveyance of all the state's right, title, and interest in the real
4329     property or interest in the real property.
4330          Section 51. Section 72-6-403 is amended to read:
4331          72-6-403. Highway sponsorship program -- Sponsorship advertisement
4332     restrictions -- Rulemaking.
4333          (1) The department may establish a sponsorship program to allow for private
4334     sponsorship of the following department operational activities or other highway-related
4335     services or programs:
4336          (a) traveler information; [and]
4337          (b) rest areas[.]; and
4338          (c) courtesy patrol services.
4339          (2) All revenue generated from a sponsorship authorized by this section shall be
4340     deposited into the Transportation Fund created by Section 72-2-102 to be used to:
4341          (a) offset costs associated with providing the service being sponsored; and

4342          (b) support costs associated with operation and maintenance of the state highway
4343     system.
4344          (3) (a) The department shall adopt a policy on sponsorship agreements that is
4345     applicable to all department operational activities or other highway-related services within the
4346     state described in Subsection (1).
4347          (b) The policy described in Subsection (3)(a) shall:
4348          (i) include language requiring the department to terminate a sponsorship agreement if it
4349     determines the sponsorship agreement or acknowledgment sign:
4350          (A) presents a safety concern;
4351          (B) interferes with the free and safe flow of traffic; or
4352          (C) is not in the public interest; and
4353          (ii) describe the sponsors and sponsorship agreements that are acceptable and
4354     consistent with applicable state and federal laws.
4355          (4) A sponsorship authorized by this section:
4356          (a) may not contain:
4357          (i) promotion of any substance or activity that is illegal for minors, such as alcohol,
4358     tobacco, drugs, or gambling;
4359          (ii) promotion of any political party, candidate, or issue; or
4360          (iii) sexual material;
4361          (b) may not resemble a traffic-control device as defined in Section 41-6a-102; and
4362          (c) shall comply with federal outdoor advertising regulations in accordance with 23
4363     U.S.C. Sec. 131.
4364          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4365     department shall make and enforce rules governing:
4366          (a) the placement and size restrictions for acknowledgment signs at rest areas; and
4367          (b) other size, placement, and content restrictions that the department determines are
4368     necessary.
4369          (6) A commercial advertiser that enters a sponsorship agreement with the department

4370     for the use of space for a sponsorship shall pay:
4371          (a) the cost of placing the sponsorship advertisement on a sign; and
4372          (b) for the removal of the sponsorship advertisement after the term of the sponsorship
4373     agreement has expired.
4374          Section 52. Section 72-10-102 is amended to read:
4375          72-10-102. Definitions.
4376          As used in this chapter:
4377          (1) "Acrobatics" means the intentional maneuvers of an aircraft not necessary to air
4378     navigation.
4379          (2) "Aeronautics" means transportation by aircraft, air instruction, the operation, repair,
4380     or maintenance of aircraft, and the design, operation, repair, or maintenance of airports, or
4381     other air navigation facilities.
4382          (3) "Aeronautics instructor" means any individual engaged in giving or offering to give
4383     instruction in aeronautics, flying, or ground subjects, either with or without:
4384          (a) compensation or other reward;
4385          (b) advertising the occupation;
4386          (c) calling his facilities an air school, or any equivalent term; or
4387          (d) employing or using other instructors.
4388          (4) "Aircraft" means any contrivance now known or in the future invented, used, or
4389     designed for navigation of or flight in the air.
4390          (5) "Air instruction" means the imparting of aeronautical information by any aviation
4391     instructor or in any air school or flying club.
4392          (6) "Airport" means any area of land, water, or both, that:
4393          (a) is used or is made available for landing and takeoff;
4394          (b) provides facilities for the shelter, supply, and repair of aircraft, and handling of
4395     passengers and cargo;
4396          (c) meets the minimum requirements established by the division as to size and design,
4397     surface, marking, equipment, and operation; and

4398          (d) includes all areas shown as part of the airport in the current airport layout plan as
4399     approved by the Federal Aviation Administration.
4400          (7) "Airport authority" means a political subdivision of the state, other than a county or
4401     municipality, that is authorized by statute to operate an airport.
4402          (8) "Airport operator" means a municipality, county, or airport authority that owns or
4403     operates a commercial airport.
4404          (9) (a) "Airport revenue" means:
4405          (i) all fees, charges, rents, or other payments received by or accruing to an airport
4406     operator for any of the following reasons:
4407          (A) revenue from air carriers, tenants, lessees, purchasers of airport properties, airport
4408     permittees making use of airport property and services, and other parties;
4409          (B) revenue received from the activities of others or the transfer of rights to others
4410     relating to the airport, including revenue received:
4411          (I) for the right to conduct an activity on the airport or to use or occupy airport
4412     property;
4413          (II) for the sale, transfer, or disposition of airport real or personal property, or any
4414     interest in that property, including transfer through a condemnation proceeding;
4415          (III) for the sale of, or the sale or lease of rights in, mineral, natural, or agricultural
4416     products or water owned by the airport operator to be taken from the airport; and
4417          (IV) for the right to conduct an activity on, or for the use or disposition of, real or
4418     personal property or any interest in real or personal property owned or controlled by the airport
4419     operator and used for an airport-related purpose but not located on the airport; or
4420          (C) revenue received from activities conducted by the airport operator whether on or
4421     off the airport, which is directly connected to the airport operator's ownership or operation of
4422     the airport; and
4423          (ii) state and local taxes on aviation fuel.
4424          (b) "Airport revenue" does not include amounts received by an airport operator as
4425     passenger facility fees pursuant to 49 U.S.C. Sec. 40117.

4426          (10) "Air school" means any person engaged in giving, offering to give, or advertising,
4427     representing, or holding himself out as giving, with or without compensation or other reward,
4428     instruction in aeronautics, flying, or ground subjects, or in more than one of these subjects.
4429          (11) "Airworthiness" means conformity with requirements prescribed by the Federal
4430     Aviation Administration regarding the structure or functioning of aircraft, engine, parts, or
4431     accessories.
4432          (12) "Civil aircraft" means any aircraft other than a public aircraft.
4433          (13) "Commercial aircraft" means aircraft used for commercial purposes.
4434          (14) "Commercial airport" means a landing area, landing strip, or airport that may be
4435     used for commercial operations.
4436          (15) "Commercial flight operator" means a person who conducts commercial
4437     operations.
4438          (16) "Commercial operations" means:
4439          (a) any operations of an aircraft for compensation or hire or any services performed
4440     incidental to the operation of any aircraft for which a fee is charged or compensation is
4441     received, including the servicing, maintaining, and repairing of aircraft, the rental or charter of
4442     aircraft, the operation of flight or ground schools, the operation of aircraft for the application or
4443     distribution of chemicals or other substances, and the operation of aircraft for hunting and
4444     fishing; or
4445          (b) the brokering or selling of any of these services; but
4446          (c) does not include any operations of aircraft as common carriers certificated by the
4447     federal government or the services incidental to those operations.
4448          (17) "Dealer" means any person who is actively engaged in the business of flying for
4449     demonstration purposes, or selling or exchanging aircraft, and who has an established place of
4450     business.
4451          [(18) "Division" means the Operations Division in the Department of Transportation,
4452     created in Section 72-1-204.]
4453          [(19)] (18) "Experimental aircraft" means:

4454          (a) any aircraft designated by the Federal Aviation Administration or the military as
4455     experimental and used solely for the purpose of experiments, or tests regarding the structure or
4456     functioning of aircraft, engines, or their accessories; and
4457          (b) any aircraft designated by the Federal Aviation Administration as:
4458          (i) being custom or amateur built; and
4459          (ii) used for recreational, educational, or display purposes.
4460          [(20)] (19) "Flight" means any kind of locomotion by aircraft while in the air.
4461          [(21)] (20) "Flying club" means five or more persons who for neither profit nor reward
4462     own, lease, or use one or more aircraft for the purpose of instruction, pleasure, or both.
4463          [(22)] (21) "Glider" means an aircraft heavier than air, similar to an airplane, but
4464     without a power plant.
4465          [(23)] (22) "Mechanic" means a person who constructs, repairs, adjusts, inspects, or
4466     overhauls aircraft, engines, or accessories.
4467          [(24)] (23) "Parachute jumper" means any person who has passed the required test for
4468     jumping with a parachute from an aircraft, and has passed an examination showing that he
4469     possesses the required physical and mental qualifications for the jumping.
4470          [(25)] (24) "Parachute rigger" means any person who has passed the required test for
4471     packing, repairing, and maintaining parachutes.
4472          [(26)] (25) "Passenger aircraft" means aircraft used for transporting persons, in
4473     addition to the pilot or crew, with or without their necessary personal belongings.
4474          [(27)] (26) "Person" means any individual, corporation, limited liability company, or
4475     association of individuals.
4476          [(28)] (27) "Pilot" means any person who operates the controls of an aircraft while
4477     in-flight.
4478          [(29)] (28) "Primary glider" means any glider that has a gliding angle of less than 10 to
4479     one.
4480          [(30)] (29) "Public aircraft" means an aircraft used exclusively in the service of any
4481     government or of any political subdivision, including the government of the United States, of

4482     the District of Columbia, and of any state, territory, or insular possession of the United States,
4483     but not including any government-owned aircraft engaged in carrying persons or goods for
4484     commercial purposes.
4485          [(31)] (30) "Reckless flying" means the operation or piloting of any aircraft recklessly,
4486     or in a manner as to endanger the property, life, or body of any person, due regard being given
4487     to the prevailing weather conditions, field conditions, and to the territory being flown over.
4488          [(32)] (31) "Registration number" means the number assigned by the Federal Aviation
4489     Administration to any aircraft, whether or not the number includes a letter or letters.
4490          [(33)] (32) "Secondary glider" means any glider that has a gliding angle between 10 to
4491     one and 16 to one, inclusive.
4492          [(34)] (33) "Soaring glider" means any glider that has a gliding angle of more than 16
4493     to one.
4494          Section 53. Section 77-23c-101 is amended to read:
4495          77-23c-101. Definitions.
4496          As used in this chapter:
4497          (1) "Connected vehicle" means a vehicle that is equipped with a wireless
4498     communication device which can, for the purpose of improving vehicle safety or traffic
4499     mobility:
4500          (a) broadcast, according to industry-defined standards and without operator
4501     intervention, specific information about the vehicle movement and activity; and
4502          (b) receive related information from other vehicles, roadside transportation
4503     infrastructure, and others.
4504          [(1)] (2) "Electronic communication service" means a service that provides to users of
4505     the service the ability to send or receive wire or electronic communications.
4506          [(2)] (3) "Electronic device" means a device that enables access to or use of an
4507     electronic communication service, remote computing service, or location information service.
4508          [(3)] (4) "Government entity" means the state, a county, a municipality, a higher
4509     education institution, a local district, a special service district, or any other political subdivision

4510     of the state or an administrative subunit of any political subdivision, including a law
4511     enforcement entity or any other investigative entity, agency, department, division, bureau,
4512     board, or commission, or an individual acting or purporting to act for or on behalf of a state or
4513     local agency.
4514          [(4)] (5) "Location information" means information concerning the location of an
4515     electronic device that, in whole or in part, is generated or derived from or obtained by the
4516     operation of an electronic device.
4517          [(5)] (6) "Location information service" means the provision of a global positioning
4518     service or other mapping, location, or directional information service.
4519          [(6)] (7) "Remote computing service" means the provision of computer storage or
4520     processing services by means of an electronic communications system.
4521          Section 54. Section 77-23c-102 is amended to read:
4522          77-23c-102. Location information privacy -- Warrant required for disclosure.
4523          (1) (a) Except as provided in Subsection (2), a government entity may not obtain the
4524     location information, stored data, or transmitted data of an electronic device without a search
4525     warrant issued by a court upon probable cause.
4526          (b) Except as provided in Subsection (1)(c), a government entity may not use, copy, or
4527     disclose, for any purpose, the location information, stored data, or transmitted data of an
4528     electronic device that is not the subject of the warrant that is collected as part of an effort to
4529     obtain the location information, stored data, or transmitted data of the electronic device that is
4530     the subject of the warrant in Subsection (1)(a).
4531          (c) A government entity may use, copy, or disclose the transmitted data of an electronic
4532     device used to communicate with the electronic device that is the subject of the warrant if the
4533     government entity reasonably believes that the transmitted data is necessary to achieve the
4534     objective of the warrant.
4535          (d) The data described in Subsection (1)(b) shall be destroyed in an unrecoverable
4536     manner by the government entity as soon as reasonably possible after the data is collected.
4537          (2) (a) A government entity may obtain location information without a warrant for an

4538     electronic device:
4539          (i) in accordance with Section 53-10-104.5;
4540          (ii) if the device is reported stolen by the owner;
4541          (iii) with the informed, affirmative consent of the owner or user of the electronic
4542     device;
4543          (iv) in accordance with judicially recognized exceptions to warrant requirements; or
4544          (v) if the owner has voluntarily and publicly disclosed the location information.
4545          (b) A prosecutor may obtain a judicial order as defined in Section 77-22-2.5 for the
4546     purposes enumerated in Section 77-22-2.5.
4547          (3) An electronic communication service provider, its officers, employees, agents, or
4548     other specified persons may not be held liable for providing information, facilities, or
4549     assistance in accordance with the terms of the warrant issued under this section or without a
4550     warrant pursuant to Subsection (2).
4551          (4) (a) (i) Notwithstanding Subsections (1) through (3), a government entity may
4552     receive and utilize electronic data containing the location information of an electronic device
4553     from a non-government entity as long as the electronic data contains no information that
4554     includes, or may reveal, the identity of an individual.
4555          (ii) Notwithstanding Subsections (1) through (3), for roadway operation purposes, the
4556     Department of Transportation may obtain, collect, and utilize electronic data containing the
4557     location information of an electronic device that is placed in a motor vehicle by the vehicle
4558     manufacturer or the vehicle owner to make the vehicle a connected vehicle as long as the
4559     electronic data contains no information that includes or may reveal the:
4560          (A) identity of an individual; or
4561          (B) vehicle make, model, registration information, or manufacturer-issued vehicle
4562     identification number.
4563          (b) Electronic data collected in accordance with this subsection may not be used for
4564     investigative purposes by a law enforcement agency.
4565          Section 55. Repealer.

4566          This bill repeals:
4567          Section 17B-2a-803.1, Authority to name a large public transit district.
4568          Section 56. Effective date.
4569          (1) Except as provided in Subsection (2), this bill takes effect on May 14, 2019.
4570          (2) The amendments to the following sections in this bill take effect on July 1, 2019:
4571          (a) Section 59-12-2202;
4572          (b) Section 59-12-2203;
4573          (c) Section 59-12-2212.2;
4574          (d) Section 59-12-2214;
4575          (e) Section 59-12-2215;
4576          (f) Section 59-12-2216;
4577          (g) Section 59-12-2217;
4578          (h) Section 59-12-2218;
4579          (i) Section 59-12-2219;
4580          (j) Section 59-12-2220;
4581          (k) Section 59-13-301; and
4582          (l) Section 72-2-201.
4583          Section 57. Coordinating S.B. 72 with H.B. 57 -- Substantive amendments.
4584          If this S.B. 72 and H.B. 57, Electronic Information or Data Privacy, both pass and
4585     become law, it is the intent of the Legislature that the amendments to Sections 77-23c-101 and
4586     77-23c-102 in H.B. 57 supersede the amendments to Sections 77-23c-101 and 77-23c-102 in
4587     this bill, when the Office of Legislative Research and General Counsel prepares the Utah Code
4588     database for publication.