Chief Sponsor: Joel Ferry

Senate Sponsor: Scott D. Sandall


8     General Description:
9          This bill modifies provisions related to railroads.
10     Highlighted Provisions:
11          This bill:
12          ▸     repeals the state sales and use tax exemption for sales of fuel to a rail carrier for use
13     in a locomotive engine and deposits the resulting revenue into the General Fund;
14          ▸     creates the Rail Transportation Restricted Account;
15          ▸     provides the purposes for which the Department of Transportation may use money
16     in the account; and
17          ▸     addresses the permissible uses of funds in the account.
18     Money Appropriated in this Bill:
19          This bill appropriates in fiscal year 2021:
20          ▸     to the Transit Transportation Investment Fund -- Rail Transportation Restricted
21     Account, as an ongoing appropriation:
22               •     from the General Fund, $3,660,000;
23          ▸     to the Transit Transportation Investment Fund -- Rail Transportation Restricted
24     Account, as a one-time appropriation:
25               •     from the General Fund, ($2,135,000);
26          ▸     to Transportation -- Railroad Crossing Safety Grants, as an ongoing appropriation:
27               •     from Rail Transportation Restricted Account, $366,000; and

28          ▸     to Transportation -- Railroad Crossing Safety Grants, as a one-time appropriation:
29               •     from Rail Transportation Restricted Account, ($213,500).
30     Other Special Clauses:
31          This bill provides a special effective date.
32     Utah Code Sections Affected:
33     ENACTS:
34          59-12-103.3, Utah Code Annotated 1953
35          72-2-131, Utah Code Annotated 1953

37     Be it enacted by the Legislature of the state of Utah:
38          Section 1. Section 59-12-103.3 is enacted to read:
39          59-12-103.3. Sales and use tax base -- Rate for locomotive fuel.
40          (1) (a) Notwithstanding Section 59-12-104 and except as provided in Subsection
41     59-12-103(2)(d) or (e), a state tax at a rate of 4.85% is imposed on amounts paid or charged for
42     fuel to a common carrier that is a railroad for use in a locomotive engine.
43          (b) The state tax imposed by Subsection (1)(a) shall be deposited into the General
44     Fund.
45          (2) Except for the tax imposed by Subsection (1), in accordance with Section
46     59-12-104, sales of fuel to a common carrier that is a railroad for use in a locomotive engine
47     are exempt from the taxes imposed by this chapter.
48          (3) For purposes of Subsection 11-41-102(5), "sales and use tax" does not include a tax
49     imposed under Subsection (1).
50          (4) For purposes of Subsection 59-12-102(7), "agreement sales and use tax" includes a
51     tax imposed under Subsection (1).
52          Section 2. Section 72-2-131 is enacted to read:
53          72-2-131. Rail Transportation Restricted Account -- Railroad Crossing Safety
54     Grant Program.
55          (1) There is created in the Transit Transportation Investment Fund, created in Section
56     72-2-124, the Rail Transportation Restricted Account.
57          (2) The account shall be funded by:
58          (a) appropriations to the account by the Legislature;

59          (b) private contributions;
60          (c) donations or grants from public or private entities; and
61          (d) interest earned on money in the account.
62          (3) Upon appropriation, the department shall:
63          (a) use an amount equal to 10% of the money deposited into the account to provide
64     grants in accordance with Subsection (4);
65          (b) use an amount equal to 10% of the money deposited into the account to pay the
66     costs of performing environmental impact studies in connection with construction,
67     reconstruction, or renovation projects related to railroad crossings on class B or class C roads;
68     or
69          (c) use the remaining money deposited into the account to pay:
70          (i) the costs of construction, reconstruction, or renovation projects related to railroad
71     crossings on class B or class C roads; or
72          (ii) debt service related to a project described in Subsection (3)(b).
73          (4) (a) The department may award grants to persons for the purpose of improving
74     safety at railroad crossings on class B or class C roads.
75          (b) A person may use grant money for any expense related to improving safety at
76     railroad crossings on class B or class C roads, including:
77          (i) signage;
78          (ii) safety enhancements to a railroad crossing; and
79          (iii) promotional material.
80          (c) The department shall prioritize, in the following order, grants to applicants that
81     propose projects impacting railroad crossings that:
82          (i) have demonstrated safety concerns; and
83          (ii) have high levels of vehicular and pedestrian traffic.
84          Section 3. Appropriation.
85          The following sums of money are appropriated for the fiscal year beginning July 1,
86     2020, and ending June 30, 2021. These are additions to amounts previously appropriated for
87     fiscal year 2021. The Legislature authorizes the State Division of Finance to transfer the
88     following amounts between the following funds or accounts as indicated. Expenditures and
89     outlays from the funds or accounts to which the money is transferred must be authorized by an

90     appropriation.
91     ITEM 1
92          To Transit Transportation Investment Fund - Rail Transportation Restricted Account
93               From General Fund

94               From General Fund, One-time

95               Schedule of Programs:
96                    Rail Transportation Restricted Account     $1,525,000
97     ITEM 2
98          To Transportation -- Railroad Crossing Safety Grants
99               From Rail Transportation Restricted Account

100               From Rail Transportation Restricted Account, One-Time

101                    Schedule of Programs:
102                    Railroad Crossing Safety Grants          $152,500
103          Section 4. Effective date.
104          This bill takes effect on January 1, 2021.