Representative Mike Schultz proposes the following substitute bill:


1     
AMENDMENTS RELATED TO INFRASTRUCTURE FUNDING

2     
2021 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Mike Schultz

5     
Senate Sponsor: Kirk A. Cullimore

6     

7     LONG TITLE
8     General Description:
9          This bill enacts provisions relating to funding for infrastructure projects.
10     Highlighted Provisions:
11          This bill:
12          ▸     authorizes the issuance of $264,000,000 in bonds for specified transportation and
13     transit projects;
14          ▸     provides for uses of the bond proceeds;
15          ▸     limits the issuance of bonds;
16          ▸     enacts other provisions relating to the issuance of the bonds;
17          ▸     provides for certain sales tax revenue to be deposited into a specified transportation
18     investment fund; and
19          ▸     allocates and appropriates money for infrastructure and other projects.
20     Money Appropriated in this Bill:
21          This bill appropriates in fiscal year 2022:
22          ▸     to Transportation - Transportation Investment Fund of 2005, as a one-time
23     appropriation:
24               •     from the General Fund, $733,000,000; and
25          ▸     to Transportation - Transit Transportation Investment Fund, as a one-time

26     appropriation:
27               •     from the General Fund, $101,600,000.
28     Other Special Clauses:
29          None
30     Utah Code Sections Affected:
31     AMENDS:
32          59-12-103, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 20
33          72-2-124, as last amended by Laws of Utah 2020, Chapters 366 and 377
34          72-2-131, as enacted by Laws of Utah 2020, Fourth Special Session, Chapter 2
35     ENACTS:
36          63B-31-101, Utah Code Annotated 1953
37     

38     Be it enacted by the Legislature of the state of Utah:
39          Section 1. Section 59-12-103 is amended to read:
40          59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
41     tax revenues.
42          (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
43     sales price for amounts paid or charged for the following transactions:
44          (a) retail sales of tangible personal property made within the state;
45          (b) amounts paid for:
46          (i) telecommunications service, other than mobile telecommunications service, that
47     originates and terminates within the boundaries of this state;
48          (ii) mobile telecommunications service that originates and terminates within the
49     boundaries of one state only to the extent permitted by the Mobile Telecommunications
50     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
51          (iii) an ancillary service associated with a:
52          (A) telecommunications service described in Subsection (1)(b)(i); or
53          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
54          (c) sales of the following for commercial use:
55          (i) gas;
56          (ii) electricity;

57          (iii) heat;
58          (iv) coal;
59          (v) fuel oil; or
60          (vi) other fuels;
61          (d) sales of the following for residential use:
62          (i) gas;
63          (ii) electricity;
64          (iii) heat;
65          (iv) coal;
66          (v) fuel oil; or
67          (vi) other fuels;
68          (e) sales of prepared food;
69          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
70     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
71     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
72     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
73     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
74     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
75     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
76     horseback rides, sports activities, or any other amusement, entertainment, recreation,
77     exhibition, cultural, or athletic activity;
78          (g) amounts paid or charged for services for repairs or renovations of tangible personal
79     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
80          (i) the tangible personal property; and
81          (ii) parts used in the repairs or renovations of the tangible personal property described
82     in Subsection (1)(g)(i), regardless of whether:
83          (A) any parts are actually used in the repairs or renovations of that tangible personal
84     property; or
85          (B) the particular parts used in the repairs or renovations of that tangible personal
86     property are exempt from a tax under this chapter;
87          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for

88     assisted cleaning or washing of tangible personal property;
89          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
90     accommodations and services that are regularly rented for less than 30 consecutive days;
91          (j) amounts paid or charged for laundry or dry cleaning services;
92          (k) amounts paid or charged for leases or rentals of tangible personal property if within
93     this state the tangible personal property is:
94          (i) stored;
95          (ii) used; or
96          (iii) otherwise consumed;
97          (l) amounts paid or charged for tangible personal property if within this state the
98     tangible personal property is:
99          (i) stored;
100          (ii) used; or
101          (iii) consumed; and
102          (m) amounts paid or charged for a sale:
103          (i) (A) of a product transferred electronically; or
104          (B) of a repair or renovation of a product transferred electronically; and
105          (ii) regardless of whether the sale provides:
106          (A) a right of permanent use of the product; or
107          (B) a right to use the product that is less than a permanent use, including a right:
108          (I) for a definite or specified length of time; and
109          (II) that terminates upon the occurrence of a condition.
110          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
111     are imposed on a transaction described in Subsection (1) equal to the sum of:
112          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
113          (A) (I) through March 31, 2019, 4.70%; and
114          (II) beginning on April 1, 2019, 4.70% plus the rate specified in Subsection (13)(a);
115     and
116          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
117     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
118     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional

119     State Sales and Use Tax Act; and
120          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
121     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
122     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
123     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
124          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
125     transaction under this chapter other than this part.
126          (b) Except as provided in Subsection (2)(d) or (e) and subject to Subsection (2)(j), a
127     state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
128     the sum of:
129          (i) a state tax imposed on the transaction at a tax rate of 2%; and
130          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
131     transaction under this chapter other than this part.
132          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax are
133     imposed on amounts paid or charged for food and food ingredients equal to the sum of:
134          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
135     a tax rate of 1.75%; and
136          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
137     amounts paid or charged for food and food ingredients under this chapter other than this part.
138          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
139     tangible personal property other than food and food ingredients, a state tax and a local tax is
140     imposed on the entire bundled transaction equal to the sum of:
141          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
142          (I) the tax rate described in Subsection (2)(a)(i)(A); and
143          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
144     Sales and Use Tax Act, if the location of the transaction as determined under Sections
145     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
146     Additional State Sales and Use Tax Act; and
147          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
148     Sales and Use Tax Act, if the location of the transaction as determined under Sections
149     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which

150     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
151          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
152     described in Subsection (2)(a)(ii).
153          (ii) If an optional computer software maintenance contract is a bundled transaction that
154     consists of taxable and nontaxable products that are not separately itemized on an invoice or
155     similar billing document, the purchase of the optional computer software maintenance contract
156     is 40% taxable under this chapter and 60% nontaxable under this chapter.
157          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
158     transaction described in Subsection (2)(d)(i) or (ii):
159          (A) if the sales price of the bundled transaction is attributable to tangible personal
160     property, a product, or a service that is subject to taxation under this chapter and tangible
161     personal property, a product, or service that is not subject to taxation under this chapter, the
162     entire bundled transaction is subject to taxation under this chapter unless:
163          (I) the seller is able to identify by reasonable and verifiable standards the tangible
164     personal property, product, or service that is not subject to taxation under this chapter from the
165     books and records the seller keeps in the seller's regular course of business; or
166          (II) state or federal law provides otherwise; or
167          (B) if the sales price of a bundled transaction is attributable to two or more items of
168     tangible personal property, products, or services that are subject to taxation under this chapter
169     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
170     higher tax rate unless:
171          (I) the seller is able to identify by reasonable and verifiable standards the tangible
172     personal property, product, or service that is subject to taxation under this chapter at the lower
173     tax rate from the books and records the seller keeps in the seller's regular course of business; or
174          (II) state or federal law provides otherwise.
175          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
176     seller's regular course of business includes books and records the seller keeps in the regular
177     course of business for nontax purposes.
178          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
179     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
180     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental

181     of tangible personal property, other property, a product, or a service that is not subject to
182     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
183     the seller, at the time of the transaction:
184          (A) separately states the portion of the transaction that is not subject to taxation under
185     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
186          (B) is able to identify by reasonable and verifiable standards, from the books and
187     records the seller keeps in the seller's regular course of business, the portion of the transaction
188     that is not subject to taxation under this chapter.
189          (ii) A purchaser and a seller may correct the taxability of a transaction if:
190          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
191     the transaction that is not subject to taxation under this chapter was not separately stated on an
192     invoice, bill of sale, or similar document provided to the purchaser because of an error or
193     ignorance of the law; and
194          (B) the seller is able to identify by reasonable and verifiable standards, from the books
195     and records the seller keeps in the seller's regular course of business, the portion of the
196     transaction that is not subject to taxation under this chapter.
197          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
198     in the seller's regular course of business includes books and records the seller keeps in the
199     regular course of business for nontax purposes.
200          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
201     personal property, products, or services that are subject to taxation under this chapter at
202     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
203     unless the seller, at the time of the transaction:
204          (A) separately states the items subject to taxation under this chapter at each of the
205     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
206          (B) is able to identify by reasonable and verifiable standards the tangible personal
207     property, product, or service that is subject to taxation under this chapter at the lower tax rate
208     from the books and records the seller keeps in the seller's regular course of business.
209          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
210     seller's regular course of business includes books and records the seller keeps in the regular
211     course of business for nontax purposes.

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

243     the commission may by rule define the term "catalogue sale."
244          (j) (i) For a location described in Subsection (2)(j)(ii), the commission shall determine
245     the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
246     predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
247          (ii) Subsection (2)(j)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
248     or other fuel is furnished through a single meter for two or more of the following uses:
249          (A) a commercial use;
250          (B) an industrial use; or
251          (C) a residential use.
252          (3) (a) The following state taxes shall be deposited into the General Fund:
253          (i) the tax imposed by Subsection (2)(a)(i)(A);
254          (ii) the tax imposed by Subsection (2)(b)(i);
255          (iii) the tax imposed by Subsection (2)(c)(i); or
256          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
257          (b) The following local taxes shall be distributed to a county, city, or town as provided
258     in this chapter:
259          (i) the tax imposed by Subsection (2)(a)(ii);
260          (ii) the tax imposed by Subsection (2)(b)(ii);
261          (iii) the tax imposed by Subsection (2)(c)(ii); and
262          (iv) the tax imposed by Subsection (2)(d)(i)(B).
263          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
264     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
265     through (g):
266          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
267          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
268          (B) for the fiscal year; or
269          (ii) $17,500,000.
270          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
271     described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
272     Department of Natural Resources to:
273          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to

274     protect sensitive plant and animal species; or
275          (B) award grants, up to the amount authorized by the Legislature in an appropriations
276     act, to political subdivisions of the state to implement the measures described in Subsections
277     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
278          (ii) Money transferred to the Department of Natural Resources under Subsection
279     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
280     person to list or attempt to have listed a species as threatened or endangered under the
281     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
282          (iii) At the end of each fiscal year:
283          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
284     Conservation and Development Fund created in Section 73-10-24;
285          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
286     Program Subaccount created in Section 73-10c-5; and
287          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
288     Program Subaccount created in Section 73-10c-5.
289          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
290     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
291     created in Section 4-18-106.
292          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
293     in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
294     Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
295     water rights.
296          (ii) At the end of each fiscal year:
297          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
298     Conservation and Development Fund created in Section 73-10-24;
299          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
300     Program Subaccount created in Section 73-10c-5; and
301          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
302     Program Subaccount created in Section 73-10c-5.
303          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
304     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and

305     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
306          (ii) In addition to the uses allowed of the Water Resources Conservation and
307     Development Fund under Section 73-10-24, the Water Resources Conservation and
308     Development Fund may also be used to:
309          (A) conduct hydrologic and geotechnical investigations by the Division of Water
310     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
311     quantifying surface and ground water resources and describing the hydrologic systems of an
312     area in sufficient detail so as to enable local and state resource managers to plan for and
313     accommodate growth in water use without jeopardizing the resource;
314          (B) fund state required dam safety improvements; and
315          (C) protect the state's interest in interstate water compact allocations, including the
316     hiring of technical and legal staff.
317          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
318     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
319     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
320          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
321     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
322     created in Section 73-10c-5 for use by the Division of Drinking Water to:
323          (i) provide for the installation and repair of collection, treatment, storage, and
324     distribution facilities for any public water system, as defined in Section 19-4-102;
325          (ii) develop underground sources of water, including springs and wells; and
326          (iii) develop surface water sources.
327          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
328     2006, the difference between the following amounts shall be expended as provided in this
329     Subsection (5), if that difference is greater than $1:
330          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
331     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
332          (ii) $17,500,000.
333          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
334          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
335     credits; and

336          (B) expended by the Department of Natural Resources for watershed rehabilitation or
337     restoration.
338          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
339     in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
340     created in Section 73-10-24.
341          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
342     remaining difference described in Subsection (5)(a) shall be:
343          (A) transferred each fiscal year to the Division of Water Resources as dedicated
344     credits; and
345          (B) expended by the Division of Water Resources for cloud-seeding projects
346     authorized by Title 73, Chapter 15, Modification of Weather.
347          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
348     in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
349     created in Section 73-10-24.
350          (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
351     remaining difference described in Subsection (5)(a) shall be deposited into the Water
352     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
353     Division of Water Resources for:
354          (i) preconstruction costs:
355          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
356     26, Bear River Development Act; and
357          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
358     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
359          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
360     Chapter 26, Bear River Development Act;
361          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
362     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
363          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
364     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
365          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
366     Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be

367     transferred each year as dedicated credits to the Division of Water Rights to cover the costs
368     incurred for employing additional technical staff for the administration of water rights.
369          (f) At the end of each fiscal year, any unexpended dedicated credits described in
370     Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
371     Fund created in Section 73-10-24.
372          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
373     amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
374     (1) for the fiscal year shall be deposited as follows:
375          (a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
376     shall be deposited into the Transportation Investment Fund of 2005 created by Section
377     72-2-124;
378          (b) for fiscal year 2017-18 only:
379          (i) 80% of the revenue described in this Subsection (6) shall be deposited into the
380     Transportation Investment Fund of 2005 created by Section 72-2-124; and
381          (ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
382     Water Infrastructure Restricted Account created by Section 73-10g-103;
383          (c) for fiscal year 2018-19 only:
384          (i) 60% of the revenue described in this Subsection (6) shall be deposited into the
385     Transportation Investment Fund of 2005 created by Section 72-2-124; and
386          (ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
387     Water Infrastructure Restricted Account created by Section 73-10g-103;
388          (d) for fiscal year 2019-20 only:
389          (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
390     Transportation Investment Fund of 2005 created by Section 72-2-124; and
391          (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
392     Water Infrastructure Restricted Account created by Section 73-10g-103;
393          (e) for fiscal year 2020-21 only:
394          (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
395     Transportation Investment Fund of 2005 created by Section 72-2-124; and
396          (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
397     Water Infrastructure Restricted Account created by Section 73-10g-103; and

398          (f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
399     in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
400     created by Section 73-10g-103.
401          (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
402     Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
403     2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
404     created by Section 72-2-124:
405          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
406     the revenues collected from the following taxes, which represents a portion of the
407     approximately 17% of sales and use tax revenues generated annually by the sales and use tax
408     on vehicles and vehicle-related products:
409          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
410          (B) the tax imposed by Subsection (2)(b)(i);
411          (C) the tax imposed by Subsection (2)(c)(i); and
412          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
413          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
414     current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
415     (D) that exceeds the amount collected from the sales and use taxes described in Subsections
416     (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
417          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
418     the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
419     lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
420     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
421     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
422     (7)(a) equal to the product of:
423          (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
424     previous fiscal year; and
425          (B) the total sales and use tax revenue generated by the taxes described in Subsections
426     (7)(a)(i)(A) through (D) in the current fiscal year.
427          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
428     Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes

429     described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
430     Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
431     Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
432          (iii) (A) [In] Subject to Subsection (7)(a)(iii)(B), in all subsequent fiscal years after a
433     year in which 17% of the revenues collected from the sales and use taxes described in
434     Subsections (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of
435     Finance shall annually deposit 17% of the revenues collected from the sales and use taxes
436     described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection
437     (7)(a).
438          (B) Beginning fiscal year 2021, if 17% of the revenue collected from the sales and use
439     taxes described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year is more than
440     3% more than 17% of the revenue collected from the sales and use taxes described in
441     Subsections (7)(a)(i)(A) through (D) in the previous fiscal year, the Division of Finance shall
442     annually deposit into the Cottonwood Canyons Transportation Investment Fund, created in
443     Subsection 72-2-124(10), 25% of that additional revenue over the 3% growth, subject to a
444     maximum, when combined with revenue deposited into the Cottonwood Canyons
445     Transportation Investment Fund under Subsection (8)(c)(iv), of $20,000,000.
446          (8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
447     under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
448     deposit $64,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into
449     the Transportation Investment Fund of 2005 created by Section 72-2-124.
450          (b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
451     Subsections (6) and (7), for the 2017-18 fiscal year only, the Division of Finance shall deposit
452     $63,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
453     Transportation Investment Fund of 2005 created by Section 72-2-124.
454          (c) (i) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
455     Subsections (6) and (7), and subject to [Subsection] Subsections (8)(c)(ii) and (iv), for a fiscal
456     year beginning on or after July 1, 2018, the commission shall annually deposit into the
457     Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
458     listed under Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the
459     following taxes:

460          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
461          (B) the tax imposed by Subsection (2)(b)(i);
462          (C) the tax imposed by Subsection (2)(c)(i); and
463          (D) the tax imposed by Subsection (2)(d)(i)(A)(I).
464          (ii) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
465     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(c)(i)
466     by an amount that is equal to 35% of the amount of revenue generated in the current fiscal year
467     by the portion of the tax imposed on motor and special fuel that is sold, used, or received for
468     sale or use in this state that exceeds 29.4 cents per gallon.
469          (iii) The commission shall annually deposit the amount described in Subsection
470     (8)(c)(ii) into the Transit and Transportation Investment Fund created in Section 72-2-124.
471          (iv) Beginning fiscal year 2021, if 3.68% of the revenue collected from the taxes
472     described in Subsections (8)(c)(i)(A) through (D) in the current fiscal year is more than 3%
473     more than 3.68% of the revenue collected from the sales and use taxes described in Subsections
474     (8)(c)(i)(A) through (D) in the previous fiscal year, the Division of Finance shall annually
475     deposit into the Cottonwood Canyons Transportation Investment Fund, created in Subsection
476     72-2-124(10), 25% of that additional revenue over the 3% growth, subject to a maximum,
477     when combined with revenue deposited into the Cottonwood Canyons Transportation
478     Investment Fund under Subsection (7)(b)(iii)(B), of $20,000,000.
479          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
480     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
481     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
482          (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
483     in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
484     fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
485     of 2005 created by Section 72-2-124 the amount of tax revenue generated by a .05% tax rate on
486     the transactions described in Subsection (1).
487          (b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
488     addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
489     shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
490     amount of revenue described as follows:

491          (i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
492     tax rate on the transactions described in Subsection (1);
493          (ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
494     tax rate on the transactions described in Subsection (1);
495          (iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
496     tax rate on the transactions described in Subsection (1);
497          (iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
498     .05% tax rate on the transactions described in Subsection (1); and
499          (v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
500     tax rate on the transactions described in Subsection (1).
501          (c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
502     deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts
503     paid or charged for food and food ingredients, except for tax revenue generated by a bundled
504     transaction attributable to food and food ingredients and tangible personal property other than
505     food and food ingredients described in Subsection (2)(d).
506          (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
507     fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
508     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
509     Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
510     generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
511     created in Section 63N-2-512.
512          (12) (a) Notwithstanding Subsection (3)(a), for the 2016-17 fiscal year only, the
513     Division of Finance shall deposit $26,000,000 of the revenues generated by the taxes listed
514     under Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
515          (b) Notwithstanding Subsection (3)(a), for the 2017-18 fiscal year only, the Division of
516     Finance shall deposit $27,000,000 of the revenues generated by the taxes listed under
517     Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
518          (13) (a) The rate specified in this subsection is 0.15%.
519          (b) Notwithstanding Subsection (3)(a), the Division of Finance shall:
520          (i) on or before September 30, 2019, transfer the amount of revenue collected from the
521     rate described in Subsection (13)(a) beginning on April 1, 2019, and ending on June 30, 2019,

522     on the transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(A) into
523     the Medicaid Expansion Fund created in Section 26-36b-208; and
524          (ii) for a fiscal year beginning on or after July 1, 2019, annually transfer the amount of
525     revenue collected from the rate described in Subsection (13)(a) on the transactions that are
526     subject to the sales and use tax under Subsection (2)(a)(i)(A) into the Medicaid Expansion
527     Fund created in Section 26-36b-208.
528          (14) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
529     2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
530     credit solely for use of the Search and Rescue Financial Assistance Program created in, and
531     expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
532          (15) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
533     Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
534     Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
535          (b) If the total revenue deposited into the Transportation Investment Fund of 2005
536     under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
537     Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
538     2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
539          Section 2. Section 63B-31-101 is enacted to read:
540     
CHAPTER 31. 2021 BONDING AND FINANCING AUTHORIZATIONS

541     
Part 1. General Provisions

542          63B-31-101. General obligation bonds -- Maximum amount -- Use of proceeds for
543     projects.
544          (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
545     under this section may not exceed $264,000,000 for acquisition and construction proceeds, plus
546     additional amounts as provided in Subsection (1)(b).
547          (b) When the Department of Transportation certifies to the commission the amount of
548     bond proceeds needed to provide funding for the projects described in this section, the
549     commission may issue and sell general obligation bonds in an amount equal to the certified
550     amount, plus additional amounts necessary to pay costs of issuance, to pay capitalized interest,
551     and to fund any existing debt service reserve requirements, not to exceed 1% of the certified
552     amount.

553          (c) The commission may not issue general obligation bonds authorized under this
554     section if the issuance of the general obligation bonds would result in the total current
555     outstanding general obligation debt of the state exceeding 50% of the limitation described in
556     the Utah Constitution, Article XIV, Section 1.
557          (2) Proceeds from the bonds issued under this section shall be provided to the
558     Department of Transportation to pay for, or to provide funds in accordance with this section to
559     pay for, the costs of right-of-way acquisition, construction, reconstruction, renovations, or
560     improvements with respect to projects described in this section.
561          (3) It is the intent of the Legislature that as transportation projects are prioritized under
562     Section 72-2-124, the Transportation Commission give consideration to projects beyond the
563     normal programming horizon.
564          (4) (a) Two hundred thirty-two million dollars of the proceeds of bonds issued under
565     this section shall be used to pay for the following transit projects, to be repaid from the Transit
566     Transportation Investment Fund under Subsection 72-2-124(9):
567          (i) subject to Subsection (4)(b), $200,000,000 to double track strategic sections of the
568     FrontRunner commuter rail system;
569          (ii) $12,000,000 to pay for construction and improvements to the S-line streetcar
570     facilities in Salt Lake City;
571          (iii) $11,000,000 for bus rapid transit in the Salt Lake midvalley area;
572          (iv) $5,000,000 for an environmental study at the point of the mountain area; and
573          (v) $4,000,000 for a Utah Transit Authority and Sharp-Tintic railroad consolidation
574     project.
575          (b) The issuance of the $200,000,000 of bonds for the purpose described in Subsection
576     (4)(a)(i) is contingent upon the establishment of an agreement between the Department of
577     Transportation and the Utah Transit Authority whereby the Utah Transit Authority agrees to
578     pay $5,000,000 per year for 15 years toward repayment of the bonds.
579          (5) (a) Twenty-nine million dollars of the proceeds of bonds issued under this section
580     shall be provided to the Department of Transportation to pass through to Brigham City to be
581     used for a Forest Street rail bridge project in Brigham City.
582          (b) Payments shall be made from the Rail Transportation Restricted Account created in
583     Section 72-2-131, from the amount designated under Subsection 72-2-131(4)(c), in the amount

584     per year of the principal and interest payments due under the bonds issued under Subsection
585     (5)(a) until those bonds have been repaid in full.
586          (6) (a) Three million dollars of the proceeds of bonds issued under this section shall be
587     provided to the Department of Transportation to pass through to the city of North Salt Lake for
588     an environmental study for a grade separation at 1100 North in North Salt Lake.
589          (b) Payments shall be made from the Rail Transportation Restricted Account created in
590     Section 72-2-131, from the amount designated under Subsection 72-2-131(4)(b), in the amount
591     per year of the principal and interest payments due under the bonds issued under Subsection
592     (6)(a) until those bonds have been repaid in full.
593          (7) The costs under Subsection (2) may include the costs of studies necessary to make
594     transportation infrastructure improvements, the costs of acquiring land, interests in land, and
595     easements and rights-of-way, the costs of improving sites and making all improvements
596     necessary, incidental, or convenient to the facilities, and the costs of interest estimated to
597     accrue on these bonds during the period to be covered by construction of the projects plus a
598     period of six months after the end of the construction period, interest estimated to accrue on
599     any bond anticipation notes issued under the authority of this title, and all related engineering,
600     architectural, and legal fees.
601          (8) The commission or the state treasurer may make any statement of intent relating to
602     a reimbursement that is necessary or desirable to comply with federal tax law.
603          (9) The Department of Transportation may enter into agreements related to the projects
604     described in Subsection (4) before the receipt of proceeds of bonds issued under this section.
605          Section 3. Section 72-2-124 is amended to read:
606          72-2-124. Transportation Investment Fund of 2005.
607          (1) There is created a capital projects fund entitled the Transportation Investment Fund
608     of 2005.
609          (2) The fund consists of money generated from the following sources:
610          (a) any voluntary contributions received for the maintenance, construction,
611     reconstruction, or renovation of state and federal highways;
612          (b) appropriations made to the fund by the Legislature;
613          (c) registration fees designated under Section 41-1a-1201;
614          (d) the sales and use tax revenues deposited into the fund in accordance with Section

615     59-12-103; and
616          (e) revenues transferred to the fund in accordance with Section 72-2-106.
617          (3) (a) The fund shall earn interest.
618          (b) All interest earned on fund money shall be deposited into the fund.
619          (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
620     fund money to pay:
621          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
622     federal highways prioritized by the Transportation Commission through the prioritization
623     process for new transportation capacity projects adopted under Section 72-1-304;
624          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
625     projects described in Subsections 63B-18-401(2), (3), and (4);
626          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
627     minus the costs paid from the County of the First Class Highway Projects Fund in accordance
628     with Subsection 72-2-121(4)(e);
629          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
630     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
631     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
632     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
633          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
634     for projects prioritized in accordance with Section 72-2-125;
635          (vi) all highway general obligation bonds that are intended to be paid from revenues in
636     the Centennial Highway Fund created by Section 72-2-118;
637          (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
638     Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
639     in Section 72-2-121; [and]
640          (viii) if a political subdivision provides a contribution equal to or greater than 40% of
641     the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
642     nonmotorized transportation for projects that:
643          (A) mitigate traffic congestion on the state highway system;
644          (B) are part of an active transportation plan approved by the department; and
645          (C) are prioritized by the commission through the prioritization process for new

646     transportation capacity projects adopted under Section 72-1-304[.];
647          (ix) $705,000,000 for the costs of right-of-way acquisition, construction,
648     reconstruction, or renovation of or improvement to the following projects:
649          (A) the connector road between Main Street and 1600 North in the city of Vineyard;
650          (B) Geneva Road from University Parkway to 1800 South;
651          (C) the SR-97 interchange at 5600 South on I-15;
652          (D) two lanes on U-111 from Herriman Parkway to 11800 South;
653          (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
654          (F) improvements to 1600 North in Orem from 1200 West to State Street;
655          (G) widening I-15 between mileposts 6 and 8;
656          (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
657          (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197 in
658     Spanish Fork Canyon;
659          (J) I-15 northbound between mileposts 43 and 56;
660          (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts 43
661     and 45.1;
662          (L) east Zion SR-9 improvements;
663          (M) Toquerville Parkway;
664          (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
665          (O) for construction of an interchange on Bangerter Highway at 13400 South; and
666          (P) an environmental impact study for Kimball Junction in Summit County; and
667          (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
668     costs based upon a statement of cash flow that the local jurisdiction where the project is located
669     provides to the department demonstrating the need for money for the project, for the following
670     projects in the following amounts:
671          (A) $5,000,000 for Payson Main Street repair and replacement;
672          (B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
673          (C) $5,000,000 for improvements to 4700 South in Taylorsville; and
674          (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S. 40
675     between mile markers 7 and 10.
676          (b) The executive director may use fund money to exchange for an equal or greater

677     amount of federal transportation funds to be used as provided in Subsection (4)(a).
678          (5) (a) Except as provided in Subsection (5)(b), the executive director may not program
679     fund money to a project prioritized by the commission under Section 72-1-304, including fund
680     money from the Transit Transportation Investment Fund, within the boundaries of a
681     municipality that is required to adopt a moderate income housing plan element as part of the
682     municipality's general plan as described in Subsection 10-9a-401(3), if the municipality has
683     failed to adopt a moderate income housing plan element as part of the municipality's general
684     plan or has failed to implement the requirements of the moderate income housing plan as
685     determined by the results of the Department of Workforce Service's review of the annual
686     moderate income housing report described in Subsection 35A-8-803(1)(a)(vii).
687          (b) Within the boundaries of a municipality that is required under Subsection
688     10-9a-401(3) to plan for moderate income housing growth but has failed to adopt a moderate
689     income housing plan element as part of the municipality's general plan or has failed to
690     implement the requirements of the moderate income housing plan as determined by the results
691     of the Department of Workforce Service's review of the annual moderate income housing
692     report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
693          (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
694     facility or interchange connecting limited-access facilities;
695          (ii) may not program fund money for the construction, reconstruction, or renovation of
696     an interchange on a limited-access facility;
697          (iii) may program Transit Transportation Investment Fund money for a
698     multi-community fixed guideway public transportation project; and
699          (iv) may not program Transit Transportation Investment Fund money for the
700     construction, reconstruction, or renovation of a station that is part of a fixed guideway public
701     transportation project.
702          (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
703     director before May 1, 2020, for projects prioritized by the commission under Section
704     72-1-304.
705          (6) (a) Except as provided in Subsection (6)(b), the executive director may not program
706     fund money to a project prioritized by the commission under Section 72-1-304, including fund
707     money from the Transit Transportation Investment Fund, within the boundaries of the

708     unincorporated area of a county, if the county is required to adopt a moderate income housing
709     plan element as part of the county's general plan as described in Subsection 17-27a-401(3) and
710     if the county has failed to adopt a moderate income housing plan element as part of the county's
711     general plan or has failed to implement the requirements of the moderate income housing plan
712     as determined by the results of the Department of Workforce Service's review of the annual
713     moderate income housing report described in Subsection 35A-8-803(1)(a)(vii).
714          (b) Within the boundaries of the unincorporated area of a county where the county is
715     required under Subsection 17-27a-401(3) to plan for moderate income housing growth but has
716     failed to adopt a moderate income housing plan element as part of the county's general plan or
717     has failed to implement the requirements of the moderate income housing plan as determined
718     by the results of the Department of Workforce Service's review of the annual moderate income
719     housing report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
720          (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
721     facility to a project prioritized by the commission under Section 72-1-304;
722          (ii) may not program fund money for the construction, reconstruction, or renovation of
723     an interchange on a limited-access facility;
724          (iii) may program Transit Transportation Investment Fund money for a
725     multi-community fixed guideway public transportation project; and
726          (iv) may not program Transit Transportation Investment Fund money for the
727     construction, reconstruction, or renovation of a station that is part of a fixed guideway public
728     transportation project.
729          (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
730     director before July 1, 2020, for projects prioritized by the commission under Section
731     72-1-304.
732          (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
733     in any fiscal year, the department and the commission shall appear before the Executive
734     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
735     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
736     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
737          (b) The Executive Appropriations Committee of the Legislature shall review and
738     comment on the amount of bond proceeds needed to fund the projects.

739          (8) The Division of Finance shall, from money deposited into the fund, transfer the
740     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
741     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
742     sinking fund.
743          (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
744     Transportation Investment Fund.
745          (b) The fund shall be funded by:
746          (i) contributions deposited into the fund in accordance with Section 59-12-103;
747          (ii) appropriations into the account by the Legislature;
748          (iii) private contributions; and
749          (iv) donations or grants from public or private entities.
750          (c) (i) The fund shall earn interest.
751          (ii) All interest earned on fund money shall be deposited into the fund.
752          (d) Subject to Subsection (9)(e), the Legislature may appropriate money from the fund
753     for public transit capital development of new capacity projects to be used as prioritized by the
754     commission.
755          (e) (i) The Legislature may only appropriate money from the fund for a public transit
756     capital development project or pedestrian or nonmotorized transportation project that provides
757     connection to the public transit system if the public transit district or political subdivision
758     provides funds of equal to or greater than 40% of the costs needed for the project.
759          (ii) A public transit district or political subdivision may use money derived from a loan
760     granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
761     part of the 40% requirement described in Subsection (9)(e)(i) if:
762          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
763     State Infrastructure Bank Fund; and
764          (B) the proposed capital project has been prioritized by the commission pursuant to
765     Section 72-1-303.
766          (10) (a) There is created in the Transportation Investment Fund of 2005 the
767     Cottonwood Canyons Transportation Investment Fund.
768          (b) The fund shall be funded by:
769          (i) contributions deposited into the fund in accordance with Section 59-12-103;

770          (ii) appropriations into the account by the Legislature;
771          (iii) private contributions; and
772          (iv) donations or grants from public or private entities.
773          (c) (i) The fund shall earn interest.
774          (ii) All interest earned on fund money shall be deposited into the fund.
775          (d) The Legislature may appropriate money from the fund for public transit or
776     transportation projects in the Cottonwood Canyons of Salt Lake County.
777          Section 4. Section 72-2-131 is amended to read:
778          72-2-131. Rail Transportation Restricted Account -- Grants for railroad crossing
779     safety.
780          (1) As used in this section, "eligible entity" means:
781          (a) a public entity; or
782          (b) a private entity that is exempt from federal income taxation under Section
783     501(c)(3), Internal Revenue Code.
784          (2) There is created in the Transit Transportation Investment Fund, created in Section
785     72-2-124, the Rail Transportation Restricted Account.
786          (3) The account shall be funded by:
787          (a) appropriations to the account by the Legislature;
788          (b) private contributions;
789          (c) donations or grants from public or private entities; and
790          (d) interest earned on money in the account.
791          (4) Upon appropriation, the department shall:
792          (a) use an amount equal to 10% of the money deposited into the account to provide
793     grants in accordance with Subsection (5);
794          (b) use an amount equal to 10% of the money deposited into the account to pay the
795     costs of performing environmental impact studies in connection with construction,
796     reconstruction, or renovation projects related to railroad crossings on class A, class B, or class
797     C roads; and
798          (c) use the remaining money deposited into the account to pay:
799          (i) the costs of construction, reconstruction, or renovation projects related to railroad
800     crossings on class A, class B, or class C roads; [or]

801          (ii) debt service related to a project described in Subsection (4)(b)[.]; or
802          (iii) the appropriate debt service or sinking fund for the repayment of bonds issued
803     under Subsections 63B-31-101(5) and (6).
804          (5) (a) The department may award grants to one or more eligible entities to be used for
805     the purpose of improving safety at railroad crossings on class A, class B, or class C roads.
806          (b) An eligible entity may use grant money for any expense related to improving safety
807     at railroad crossings on class A, class B, or class C roads, including:
808          (i) signage; and
809          (ii) safety enhancements to a railroad crossing.
810          (c) The department shall prioritize, in the following order, grants to applicants that
811     propose projects impacting railroad crossings that:
812          (i) have demonstrated safety concerns, including emergency services access; and
813          (ii) have high levels of vehicular and pedestrian traffic.
814          Section 5. Appropriation.
815          The following sums of money are appropriated for the fiscal year beginning July 1,
816     2021 and ending June 30, 2022. These are additions to amounts otherwise appropriated for
817     fiscal year 2022.
818          Subsection 4(a). Operating and Capital Budgets.
819          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
820     Legislature appropriates the following sums of money from the funds or accounts indicated for
821     the use and support of the government of the state of Utah.
822     ITEM 1
823          To Transportation - Transportation Investment Fund Capacity Program
824               From Transportation Investment Fund of 2005, One-time
$733,000,000

825               Schedule of Programs:
826                    Transportation Investment Fund Capacity Program     $733,000,000
827          The Legislature intends that the department use money from this appropriation for the
828     projects listed in Subsections 72-2-124(4)(a)(ix) and (x).
829     ITEM 2
830          To Transportation - Transit Transportation Investment
831               From Transit Transportation Investment Fund, One-time
$101,600,000


832               Schedule of Programs:
833                    Transit Transportation Investment               $101,600,000
834          The Legislature intends that the department use money from this appropriation as
835     follows: $100,000,000 to pay to double track strategic sections of the FrontRunner commuter
836     rail system; and $1,600,000 to pay for a rail station in the city of Vineyard.
837          Subsection 4(b). Capital Project Funds.
838          The Legislature has reviewed the following capital project funds. The Legislature
839     authorizes the Division of Finance to transfer amounts between funds and accounts as
840     indicated.
841     ITEM 3
842          To Transportation - Transportation Investment Fund of 2005
843               From General Fund, One-time
$733,000,000

844               Schedule of Programs:
845                    Transportation Investment Fund               $733,000,000
846     ITEM 4
847          To Transportation - Transit Transportation Investment Fund
848               From General Fund, One-time
$101,600,000

849               Schedule of Programs:
850                    Transit Transportation Investment Fund          $101,600,000