Senator Kirk A. Cullimore 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 and modifies 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 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     Uncodified Material Affected:
38     ENACTS UNCODIFIED MATERIAL
39     

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

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

88     property are exempt from a tax under this chapter;
89          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
90     assisted cleaning or washing of tangible personal property;
91          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
92     accommodations and services that are regularly rented for less than 30 consecutive days;
93          (j) amounts paid or charged for laundry or dry cleaning services;
94          (k) amounts paid or charged for leases or rentals of tangible personal property if within
95     this state the tangible personal property is:
96          (i) stored;
97          (ii) used; or
98          (iii) otherwise consumed;
99          (l) amounts paid or charged for tangible personal property if within this state the
100     tangible personal property is:
101          (i) stored;
102          (ii) used; or
103          (iii) consumed; and
104          (m) amounts paid or charged for a sale:
105          (i) (A) of a product transferred electronically; or
106          (B) of a repair or renovation of a product transferred electronically; and
107          (ii) regardless of whether the sale provides:
108          (A) a right of permanent use of the product; or
109          (B) a right to use the product that is less than a permanent use, including a right:
110          (I) for a definite or specified length of time; and
111          (II) that terminates upon the occurrence of a condition.
112          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
113     are imposed on a transaction described in Subsection (1) equal to the sum of:
114          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
115          (A) (I) through March 31, 2019, 4.70%; and
116          (II) beginning on April 1, 2019, 4.70% plus the rate specified in Subsection (13)(a);
117     and
118          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales

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

150     Sales and Use Tax Act, if the location of the transaction as determined under Sections
151     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
152     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
153          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
154     described in Subsection (2)(a)(ii).
155          (ii) If an optional computer software maintenance contract is a bundled transaction that
156     consists of taxable and nontaxable products that are not separately itemized on an invoice or
157     similar billing document, the purchase of the optional computer software maintenance contract
158     is 40% taxable under this chapter and 60% nontaxable under this chapter.
159          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
160     transaction described in Subsection (2)(d)(i) or (ii):
161          (A) if the sales price of the bundled transaction is attributable to tangible personal
162     property, a product, or a service that is subject to taxation under this chapter and tangible
163     personal property, a product, or service that is not subject to taxation under this chapter, the
164     entire bundled transaction is subject to taxation under this chapter unless:
165          (I) the seller is able to identify by reasonable and verifiable standards the tangible
166     personal property, product, or service that is not subject to taxation under this chapter from the
167     books and records the seller keeps in the seller's regular course of business; or
168          (II) state or federal law provides otherwise; or
169          (B) if the sales price of a bundled transaction is attributable to two or more items of
170     tangible personal property, products, or services that are subject to taxation under this chapter
171     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
172     higher tax rate unless:
173          (I) the seller is able to identify by reasonable and verifiable standards the tangible
174     personal property, product, or service that is subject to taxation under this chapter at the lower
175     tax rate from the books and records the seller keeps in the seller's regular course of business; or
176          (II) state or federal law provides otherwise.
177          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
178     seller's regular course of business includes books and records the seller keeps in the regular
179     course of business for nontax purposes.
180          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)

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

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

243          (D) Subsection (2)(d)(i)(A)(I).
244          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
245     the commission may by rule define the term "catalogue sale."
246          (j) (i) For a location described in Subsection (2)(j)(ii), the commission shall determine
247     the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
248     predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
249          (ii) Subsection (2)(j)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
250     or other fuel is furnished through a single meter for two or more of the following uses:
251          (A) a commercial use;
252          (B) an industrial use; or
253          (C) a residential use.
254          (3) (a) The following state taxes shall be deposited into the General Fund:
255          (i) the tax imposed by Subsection (2)(a)(i)(A);
256          (ii) the tax imposed by Subsection (2)(b)(i);
257          (iii) the tax imposed by Subsection (2)(c)(i); or
258          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
259          (b) The following local taxes shall be distributed to a county, city, or town as provided
260     in this chapter:
261          (i) the tax imposed by Subsection (2)(a)(ii);
262          (ii) the tax imposed by Subsection (2)(b)(ii);
263          (iii) the tax imposed by Subsection (2)(c)(ii); and
264          (iv) the tax imposed by Subsection (2)(d)(i)(B).
265          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
266     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
267     through (g):
268          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
269          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
270          (B) for the fiscal year; or
271          (ii) $17,500,000.
272          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
273     described in Subsection (4)(a) shall be transferred each year as dedicated credits to the

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

305          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
306     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
307     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
308          (ii) In addition to the uses allowed of the Water Resources Conservation and
309     Development Fund under Section 73-10-24, the Water Resources Conservation and
310     Development Fund may also be used to:
311          (A) conduct hydrologic and geotechnical investigations by the Division of Water
312     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
313     quantifying surface and ground water resources and describing the hydrologic systems of an
314     area in sufficient detail so as to enable local and state resource managers to plan for and
315     accommodate growth in water use without jeopardizing the resource;
316          (B) fund state required dam safety improvements; and
317          (C) protect the state's interest in interstate water compact allocations, including the
318     hiring of technical and legal staff.
319          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
320     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
321     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
322          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
323     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
324     created in Section 73-10c-5 for use by the Division of Drinking Water to:
325          (i) provide for the installation and repair of collection, treatment, storage, and
326     distribution facilities for any public water system, as defined in Section 19-4-102;
327          (ii) develop underground sources of water, including springs and wells; and
328          (iii) develop surface water sources.
329          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
330     2006, the difference between the following amounts shall be expended as provided in this
331     Subsection (5), if that difference is greater than $1:
332          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
333     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
334          (ii) $17,500,000.
335          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:

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

367          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
368     Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be
369     transferred each year as dedicated credits to the Division of Water Rights to cover the costs
370     incurred for employing additional technical staff for the administration of water rights.
371          (f) At the end of each fiscal year, any unexpended dedicated credits described in
372     Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
373     Fund created in Section 73-10-24.
374          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
375     amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
376     (1) for the fiscal year shall be deposited as follows:
377          (a) for fiscal year 2016-17 only, 100% of the revenue described in this Subsection (6)
378     shall be deposited into the Transportation Investment Fund of 2005 created by Section
379     72-2-124;
380          (b) for fiscal year 2017-18 only:
381          (i) 80% of the revenue described in this Subsection (6) shall be deposited into the
382     Transportation Investment Fund of 2005 created by Section 72-2-124; and
383          (ii) 20% of the revenue described in this Subsection (6) shall be deposited into the
384     Water Infrastructure Restricted Account created by Section 73-10g-103;
385          (c) for fiscal year 2018-19 only:
386          (i) 60% of the revenue described in this Subsection (6) shall be deposited into the
387     Transportation Investment Fund of 2005 created by Section 72-2-124; and
388          (ii) 40% of the revenue described in this Subsection (6) shall be deposited into the
389     Water Infrastructure Restricted Account created by Section 73-10g-103;
390          (d) for fiscal year 2019-20 only:
391          (i) 40% of the revenue described in this Subsection (6) shall be deposited into the
392     Transportation Investment Fund of 2005 created by Section 72-2-124; and
393          (ii) 60% of the revenue described in this Subsection (6) shall be deposited into the
394     Water Infrastructure Restricted Account created by Section 73-10g-103;
395          (e) for fiscal year 2020-21 only:
396          (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
397     Transportation Investment Fund of 2005 created by Section 72-2-124; and

398          (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
399     Water Infrastructure Restricted Account created by Section 73-10g-103; and
400          (f) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
401     in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
402     created by Section 73-10g-103.
403          (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
404     Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
405     2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
406     created by Section 72-2-124:
407          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
408     the revenues collected from the following taxes, which represents a portion of the
409     approximately 17% of sales and use tax revenues generated annually by the sales and use tax
410     on vehicles and vehicle-related products:
411          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
412          (B) the tax imposed by Subsection (2)(b)(i);
413          (C) the tax imposed by Subsection (2)(c)(i); and
414          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
415          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
416     current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
417     (D) that exceeds the amount collected from the sales and use taxes described in Subsections
418     (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
419          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
420     the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
421     lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
422     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
423     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
424     (7)(a) equal to the product of:
425          (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
426     previous fiscal year; and
427          (B) the total sales and use tax revenue generated by the taxes described in Subsections
428     (7)(a)(i)(A) through (D) in the current fiscal year.

429          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
430     Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
431     described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
432     Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
433     Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
434          (iii) [In] Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year
435     in which 17% of the revenues collected from the sales and use taxes described in Subsections
436     (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
437     annually deposit 17% of the revenues collected from the sales and use taxes described in
438     Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
439          (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
440     amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
441     the relevant revenue collected in the previous fiscal year.
442          (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
443     total amount of money deposited into the Cottonwood Canyons fund under Subsections
444     (7)(b)(iv)(F) and (8)(c)(iv)(F) in any single fiscal year.
445          (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
446     Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
447          (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
448     listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
449     Subsections (7)(a)(i)(A) through (D).
450          (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
451     reduce the deposit under Subsection (7)(c)(iii) into the Transportation Investment Fund of 2005
452     by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
453     Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
454     subject to the limit in Subsection (7)(b)(iv)(F).
455          (F) The commission shall annually deposit the amount described in Subsection
456     (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
457     amount for any single fiscal year of $20,000,000.
458          (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
459     fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood

460     Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
461     revenue.
462          (8) (a) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited
463     under Subsections (6) and (7), for the 2016-17 fiscal year only, the Division of Finance shall
464     deposit $64,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into
465     the Transportation Investment Fund of 2005 created by Section 72-2-124.
466          (b) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
467     Subsections (6) and (7), for the 2017-18 fiscal year only, the Division of Finance shall deposit
468     $63,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
469     Transportation Investment Fund of 2005 created by Section 72-2-124.
470          (c) (i) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
471     Subsections (6) and (7), and subject to [Subsection] Subsections (8)(c)(ii) and (iv)(E), for a
472     fiscal year beginning on or after July 1, 2018, the commission shall annually deposit into the
473     Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
474     listed under Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the
475     following taxes:
476          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
477          (B) the tax imposed by Subsection (2)(b)(i);
478          (C) the tax imposed by Subsection (2)(c)(i); and
479          (D) the tax imposed by Subsection (2)(d)(i)(A)(I).
480          (ii) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
481     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(c)(i)
482     by an amount that is equal to 35% of the amount of revenue generated in the current fiscal year
483     by the portion of the tax imposed on motor and special fuel that is sold, used, or received for
484     sale or use in this state that exceeds 29.4 cents per gallon.
485          (iii) The commission shall annually deposit the amount described in Subsection
486     (8)(c)(ii) into the Transit and Transportation Investment Fund created in Section 72-2-124.
487          (iv) (A) As used in this Subsection (8)(c)(iv), "additional growth revenue" means the
488     amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
489     the relevant revenue collected in the previous fiscal year.
490          (B) As used in this Subsection (8)(c)(iv), "combined amount" means the combined

491     total amount of money deposited into the Cottonwood Canyons fund under Subsections
492     (7)(b)(iv)(F) and (8)(c)(iv)(F) in any single fiscal year.
493          (C) As used in this Subsection (8)(c)(iv), "Cottonwood Canyons fund" means the
494     Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
495          (D) As used in this Subsection (8)(c)(iv), "relevant revenue" means the portion of taxes
496     listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
497     in Subsections (8)(c)(i)(A) through (D).
498          (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
499     reduce the deposit under Subsection (8)(c)(i) into the Transportation Investment Fund of 2005
500     by an amount equal to the amount of the deposit under this Subsection (8)(c)(iv) to the
501     Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
502     subject to the limit in Subsection (8)(c)(iv)(F).
503          (F) The commission shall annually deposit the amount described in Subsection
504     (8)(c)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
505     amount for any single fiscal year of $20,000,000.
506          (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
507     fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
508     Canyons fund under this Subsection (8)(c)(iv) in the same proportion as the decline in relevant
509     revenue.
510          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
511     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
512     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
513          (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c),
514     in addition to any amounts deposited under Subsections (6), (7), and (8), and for the 2016-17
515     fiscal year only, the Division of Finance shall deposit into the Transportation Investment Fund
516     of 2005 created by Section 72-2-124 the amount of tax revenue generated by a .05% tax rate on
517     the transactions described in Subsection (1).
518          (b) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(c), and in
519     addition to any amounts deposited under Subsections (6), (7), and (8), the Division of Finance
520     shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
521     amount of revenue described as follows:

522          (i) for fiscal year 2017-18 only, 83.33% of the amount of revenue generated by a .05%
523     tax rate on the transactions described in Subsection (1);
524          (ii) for fiscal year 2018-19 only, 66.67% of the amount of revenue generated by a .05%
525     tax rate on the transactions described in Subsection (1);
526          (iii) for fiscal year 2019-20 only, 50% of the amount of revenue generated by a .05%
527     tax rate on the transactions described in Subsection (1);
528          (iv) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a
529     .05% tax rate on the transactions described in Subsection (1); and
530          (v) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
531     tax rate on the transactions described in Subsection (1).
532          (c) For purposes of Subsections (10)(a) and (b), the Division of Finance may not
533     deposit into the Transportation Investment Fund of 2005 any tax revenue generated by amounts
534     paid or charged for food and food ingredients, except for tax revenue generated by a bundled
535     transaction attributable to food and food ingredients and tangible personal property other than
536     food and food ingredients described in Subsection (2)(d).
537          (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
538     fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
539     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
540     Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
541     generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
542     created in Section 63N-2-512.
543          (12) (a) Notwithstanding Subsection (3)(a), for the 2016-17 fiscal year only, the
544     Division of Finance shall deposit $26,000,000 of the revenues generated by the taxes listed
545     under Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
546          (b) Notwithstanding Subsection (3)(a), for the 2017-18 fiscal year only, the Division of
547     Finance shall deposit $27,000,000 of the revenues generated by the taxes listed under
548     Subsection (3)(a) into the Throughput Infrastructure Fund created by Section 35A-8-308.
549          (13) (a) The rate specified in this subsection is 0.15%.
550          (b) Notwithstanding Subsection (3)(a), the Division of Finance shall:
551          (i) on or before September 30, 2019, transfer the amount of revenue collected from the
552     rate described in Subsection (13)(a) beginning on April 1, 2019, and ending on June 30, 2019,

553     on the transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(A) into
554     the Medicaid Expansion Fund created in Section 26-36b-208; and
555          (ii) for a fiscal year beginning on or after July 1, 2019, annually transfer the amount of
556     revenue collected from the rate described in Subsection (13)(a) on the transactions that are
557     subject to the sales and use tax under Subsection (2)(a)(i)(A) into the Medicaid Expansion
558     Fund created in Section 26-36b-208.
559          (14) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
560     2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
561     credit solely for use of the Search and Rescue Financial Assistance Program created in, and
562     expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
563          (15) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
564     Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
565     Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
566          (b) If the total revenue deposited into the Transportation Investment Fund of 2005
567     under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
568     Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
569     2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
570          Section 2. Section 63B-31-101 is enacted to read:
571     
CHAPTER 31. 2021 BONDING AND FINANCING AUTHORIZATIONS

572     
Part 1. General Provisions

573          63B-31-101. General obligation bonds -- Maximum amount -- Use of proceeds for
574     projects.
575          (1) (a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
576     under this section may not exceed $264,000,000 for acquisition and construction proceeds, plus
577     additional amounts as provided in Subsection (1)(b).
578          (b) When the Department of Transportation certifies to the commission the amount of
579     bond proceeds needed to provide funding for the projects described in this section, the
580     commission may issue and sell general obligation bonds in an amount equal to the certified
581     amount, plus additional amounts necessary to pay costs of issuance, to pay capitalized interest,
582     and to fund any existing debt service reserve requirements, not to exceed 1% of the certified
583     amount.

584          (c) The commission may not issue general obligation bonds authorized under this
585     section if the issuance of the general obligation bonds would result in the total current
586     outstanding general obligation debt of the state exceeding 50% of the limitation described in
587     the Utah Constitution, Article XIV, Section 1.
588          (2) Proceeds from the bonds issued under this section shall be provided to the
589     Department of Transportation to pay for, or to provide funds in accordance with this section to
590     pay for, the costs of right-of-way acquisition, construction, reconstruction, renovations, or
591     improvements with respect to projects described in this section.
592          (3) It is the intent of the Legislature that as transportation projects are prioritized under
593     Section 72-2-124, the Transportation Commission give consideration to projects beyond the
594     normal programming horizon.
595          (4) (a) Two hundred thirty-two million dollars of the proceeds of bonds issued under
596     this section shall be used to pay for the following transit projects, to be repaid from the Transit
597     Transportation Investment Fund under Subsection 72-2-124(9):
598          (i) subject to Subsection (4)(b), $200,000,000 to double track strategic sections of the
599     FrontRunner commuter rail system;
600          (ii) $12,000,000 to pay for construction and improvements to the S-line streetcar
601     facilities in Salt Lake City;
602          (iii) $11,000,000 for bus rapid transit in the Salt Lake midvalley area;
603          (iv) $5,000,000 for an environmental study at the point of the mountain area; and
604          (v) $4,000,000 for a Utah Transit Authority and Sharp-Tintic railroad consolidation
605     project.
606          (b) The issuance of the $200,000,000 of bonds for the purpose described in Subsection
607     (4)(a)(i) is contingent upon the establishment of an agreement between the Department of
608     Transportation and the Utah Transit Authority whereby the Utah Transit Authority agrees to
609     pay $5,000,000 per year for 15 years toward repayment of the bonds.
610          (5) (a) Twenty-nine million dollars of the proceeds of bonds issued under this section
611     shall be provided to the Department of Transportation to pass through to Brigham City to be
612     used for a Forest Street rail bridge project in Brigham City.
613          (b) Payments shall be made from the Rail Transportation Restricted Account created in
614     Section 72-2-131, from the amount designated under Subsection 72-2-131(4)(c), in the amount

615     per year of the principal and interest payments due under the bonds issued under Subsection
616     (5)(a) until those bonds have been repaid in full.
617          (6) (a) Three million dollars of the proceeds of bonds issued under this section shall be
618     provided to the Department of Transportation to pass through to the city of North Salt Lake for
619     an environmental study for a grade separation at 1100 North in North Salt Lake.
620          (b) Payments shall be made from the Rail Transportation Restricted Account created in
621     Section 72-2-131, from the amount designated under Subsection 72-2-131(4)(b), in the amount
622     per year of the principal and interest payments due under the bonds issued under Subsection
623     (6)(a) until those bonds have been repaid in full.
624          (7) The costs under Subsection (2) may include the costs of studies necessary to make
625     transportation infrastructure improvements, the costs of acquiring land, interests in land, and
626     easements and rights-of-way, the costs of improving sites and making all improvements
627     necessary, incidental, or convenient to the facilities, and the costs of interest estimated to
628     accrue on these bonds during the period to be covered by construction of the projects plus a
629     period of six months after the end of the construction period, interest estimated to accrue on
630     any bond anticipation notes issued under the authority of this title, and all related engineering,
631     architectural, and legal fees.
632          (8) The commission or the state treasurer may make any statement of intent relating to
633     a reimbursement that is necessary or desirable to comply with federal tax law.
634          (9) The Department of Transportation may enter into agreements related to the projects
635     described in Subsection (4) before the receipt of proceeds of bonds issued under this section.
636          Section 3. Section 72-2-124 is amended to read:
637          72-2-124. Transportation Investment Fund of 2005.
638          (1) There is created a capital projects fund entitled the Transportation Investment Fund
639     of 2005.
640          (2) The fund consists of money generated from the following sources:
641          (a) any voluntary contributions received for the maintenance, construction,
642     reconstruction, or renovation of state and federal highways;
643          (b) appropriations made to the fund by the Legislature;
644          (c) registration fees designated under Section 41-1a-1201;
645          (d) the sales and use tax revenues deposited into the fund in accordance with Section

646     59-12-103; and
647          (e) revenues transferred to the fund in accordance with Section 72-2-106.
648          (3) (a) The fund shall earn interest.
649          (b) All interest earned on fund money shall be deposited into the fund.
650          (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
651     fund money to pay:
652          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
653     federal highways prioritized by the Transportation Commission through the prioritization
654     process for new transportation capacity projects adopted under Section 72-1-304;
655          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
656     projects described in Subsections 63B-18-401(2), (3), and (4);
657          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
658     minus the costs paid from the County of the First Class Highway Projects Fund in accordance
659     with Subsection 72-2-121(4)(e);
660          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
661     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
662     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
663     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
664          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
665     for projects prioritized in accordance with Section 72-2-125;
666          (vi) all highway general obligation bonds that are intended to be paid from revenues in
667     the Centennial Highway Fund created by Section 72-2-118;
668          (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
669     Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
670     in Section 72-2-121; [and]
671          (viii) if a political subdivision provides a contribution equal to or greater than 40% of
672     the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
673     nonmotorized transportation for projects that:
674          (A) mitigate traffic congestion on the state highway system;
675          (B) are part of an active transportation plan approved by the department; and
676          (C) are prioritized by the commission through the prioritization process for new

677     transportation capacity projects adopted under Section 72-1-304[.];
678          (ix) $705,000,000 for the costs of right-of-way acquisition, construction,
679     reconstruction, or renovation of or improvement to the following projects:
680          (A) the connector road between Main Street and 1600 North in the city of Vineyard;
681          (B) Geneva Road from University Parkway to 1800 South;
682          (C) the SR-97 interchange at 5600 South on I-15;
683          (D) two lanes on U-111 from Herriman Parkway to 11800 South;
684          (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
685          (F) improvements to 1600 North in Orem from 1200 West to State Street;
686          (G) widening I-15 between mileposts 6 and 8;
687          (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
688          (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197 in
689     Spanish Fork Canyon;
690          (J) I-15 northbound between mileposts 43 and 56;
691          (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts 43
692     and 45.1;
693          (L) east Zion SR-9 improvements;
694          (M) Toquerville Parkway;
695          (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
696          (O) for construction of an interchange on Bangerter Highway at 13400 South; and
697          (P) an environmental impact study for Kimball Junction in Summit County; and
698          (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
699     costs based upon a statement of cash flow that the local jurisdiction where the project is located
700     provides to the department demonstrating the need for money for the project, for the following
701     projects in the following amounts:
702          (A) $5,000,000 for Payson Main Street repair and replacement;
703          (B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
704          (C) $5,000,000 for improvements to 4700 South in Taylorsville; and
705          (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S. 40
706     between mile markers 7 and 10.
707          (b) The executive director may use fund money to exchange for an equal or greater

708     amount of federal transportation funds to be used as provided in Subsection (4)(a).
709          (5) (a) Except as provided in Subsection (5)(b), the executive director may not program
710     fund money to a project prioritized by the commission under Section 72-1-304, including fund
711     money from the Transit Transportation Investment Fund, within the boundaries of a
712     municipality that is required to adopt a moderate income housing plan element as part of the
713     municipality's general plan as described in Subsection 10-9a-401(3), if the municipality has
714     failed to adopt a moderate income housing plan element as part of the municipality's general
715     plan or has failed to implement the requirements of the moderate income housing plan as
716     determined by the results of the Department of Workforce Service's review of the annual
717     moderate income housing report described in Subsection 35A-8-803(1)(a)(vii).
718          (b) Within the boundaries of a municipality that is required under Subsection
719     10-9a-401(3) to plan for moderate income housing growth but has failed to adopt a moderate
720     income housing plan element as part of the municipality's general plan or has failed to
721     implement the requirements of the moderate income housing plan as determined by the results
722     of the Department of Workforce Service's review of the annual moderate income housing
723     report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
724          (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
725     facility or interchange connecting limited-access facilities;
726          (ii) may not program fund money for the construction, reconstruction, or renovation of
727     an interchange on a limited-access facility;
728          (iii) may program Transit Transportation Investment Fund money for a
729     multi-community fixed guideway public transportation project; and
730          (iv) may not program Transit Transportation Investment Fund money for the
731     construction, reconstruction, or renovation of a station that is part of a fixed guideway public
732     transportation project.
733          (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
734     director before May 1, 2020, for projects prioritized by the commission under Section
735     72-1-304.
736          (6) (a) Except as provided in Subsection (6)(b), the executive director may not program
737     fund money to a project prioritized by the commission under Section 72-1-304, including fund
738     money from the Transit Transportation Investment Fund, within the boundaries of the

739     unincorporated area of a county, if the county is required to adopt a moderate income housing
740     plan element as part of the county's general plan as described in Subsection 17-27a-401(3) and
741     if the county has failed to adopt a moderate income housing plan element as part of the county's
742     general plan or has failed to implement the requirements of the moderate income housing plan
743     as determined by the results of the Department of Workforce Service's review of the annual
744     moderate income housing report described in Subsection 35A-8-803(1)(a)(vii).
745          (b) Within the boundaries of the unincorporated area of a county where the county is
746     required under Subsection 17-27a-401(3) to plan for moderate income housing growth but has
747     failed to adopt a moderate income housing plan element as part of the county's general plan or
748     has failed to implement the requirements of the moderate income housing plan as determined
749     by the results of the Department of Workforce Service's review of the annual moderate income
750     housing report described in Subsection 35A-8-803(1)(a)(vii), the executive director:
751          (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
752     facility to a project prioritized by the commission under Section 72-1-304;
753          (ii) may not program fund money for the construction, reconstruction, or renovation of
754     an interchange on a limited-access facility;
755          (iii) may program Transit Transportation Investment Fund money for a
756     multi-community fixed guideway public transportation project; and
757          (iv) may not program Transit Transportation Investment Fund money for the
758     construction, reconstruction, or renovation of a station that is part of a fixed guideway public
759     transportation project.
760          (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
761     director before July 1, 2020, for projects prioritized by the commission under Section
762     72-1-304.
763          (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
764     in any fiscal year, the department and the commission shall appear before the Executive
765     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
766     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
767     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
768          (b) The Executive Appropriations Committee of the Legislature shall review and
769     comment on the amount of bond proceeds needed to fund the projects.

770          (8) The Division of Finance shall, from money deposited into the fund, transfer the
771     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
772     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
773     sinking fund.
774          (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
775     Transportation Investment Fund.
776          (b) The fund shall be funded by:
777          (i) contributions deposited into the fund in accordance with Section 59-12-103;
778          (ii) appropriations into the account by the Legislature;
779          (iii) private contributions; and
780          (iv) donations or grants from public or private entities.
781          (c) (i) The fund shall earn interest.
782          (ii) All interest earned on fund money shall be deposited into the fund.
783          (d) Subject to Subsection (9)(e), the Legislature may appropriate money from the fund
784     for public transit capital development of new capacity projects to be used as prioritized by the
785     commission.
786          (e) (i) The Legislature may only appropriate money from the fund for a public transit
787     capital development project or pedestrian or nonmotorized transportation project that provides
788     connection to the public transit system if the public transit district or political subdivision
789     provides funds of equal to or greater than 40% of the costs needed for the project.
790          (ii) A public transit district or political subdivision may use money derived from a loan
791     granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
792     part of the 40% requirement described in Subsection (9)(e)(i) if:
793          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
794     State Infrastructure Bank Fund; and
795          (B) the proposed capital project has been prioritized by the commission pursuant to
796     Section 72-1-303.
797          (10) (a) There is created in the Transportation Investment Fund of 2005 the
798     Cottonwood Canyons Transportation Investment Fund.
799          (b) The fund shall be funded by:
800          (i) money deposited into the fund in accordance with Section 59-12-103;

801          (ii) appropriations into the account by the Legislature;
802          (iii) private contributions; and
803          (iv) donations or grants from public or private entities.
804          (c) (i) The fund shall earn interest.
805          (ii) All interest earned on fund money shall be deposited into the fund.
806          (d) The Legislature may appropriate money from the fund for public transit or
807     transportation projects in the Cottonwood Canyons of Salt Lake County.
808          Section 4. Section 72-2-131 is amended to read:
809          72-2-131. Rail Transportation Restricted Account -- Grants for railroad crossing
810     safety.
811          (1) As used in this section, "eligible entity" means:
812          (a) a public entity; or
813          (b) a private entity that is exempt from federal income taxation under Section
814     501(c)(3), Internal Revenue Code.
815          (2) There is created in the Transit Transportation Investment Fund, created in Section
816     72-2-124, the Rail Transportation Restricted Account.
817          (3) The account shall be funded by:
818          (a) appropriations to the account by the Legislature;
819          (b) private contributions;
820          (c) donations or grants from public or private entities; and
821          (d) interest earned on money in the account.
822          (4) Upon appropriation, the department shall:
823          (a) use an amount equal to 10% of the money deposited into the account to provide
824     grants in accordance with Subsection (5);
825          (b) use an amount equal to 10% of the money deposited into the account to pay:
826          (i) the costs of performing environmental impact studies in connection with
827     construction, reconstruction, or renovation projects related to railroad crossings on class A,
828     class B, or class C roads; or
829          (ii) the appropriate debt service or sinking fund for the repayment of bonds issued
830     under Subsection 63B-31-101(6); and
831          (c) use the remaining money deposited into the account to pay:

832          (i) the costs of construction, reconstruction, or renovation projects related to railroad
833     crossings on class A, class B, or class C roads; [or]
834          (ii) debt service related to a project described in Subsection (4)(b)[.]; or
835          (iii) the appropriate debt service or sinking fund for the repayment of bonds issued
836     under Subsection 63B-31-101(5).
837          (5) (a) The department may award grants to one or more eligible entities to be used for
838     the purpose of improving safety at railroad crossings on class A, class B, or class C roads.
839          (b) An eligible entity may use grant money for any expense related to improving safety
840     at railroad crossings on class A, class B, or class C roads, including:
841          (i) signage; and
842          (ii) safety enhancements to a railroad crossing.
843          (c) The department shall prioritize, in the following order, grants to applicants that
844     propose projects impacting railroad crossings that:
845          (i) have demonstrated safety concerns, including emergency services access; and
846          (ii) have high levels of vehicular and pedestrian traffic.
847          Section 5. Intent language.
848          The Legislature recognizes the tremendous employment opportunities that this bill will
849     bring to Utah's skilled work force and to Utah's business community. The Legislature
850     encourages the employment of Utah workers and the proliferation of Utah business in carrying
851     out the projects made possible by the funding provided in this bill.
852          Section 6. Appropriation.
853          The following sums of money are appropriated for the fiscal year beginning July 1,
854     2021 and ending June 30, 2022. These are additions to amounts otherwise appropriated for
855     fiscal year 2022.
856          Subsection 4(a). Operating and Capital Budgets.
857          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
858     Legislature appropriates the following sums of money from the funds or accounts indicated for
859     the use and support of the government of the state of Utah.
860     ITEM 1
861          To Transportation - Transportation Investment Fund Capacity Program
862               From Transportation Investment Fund of 2005, One-time
$733,000,000


863               Schedule of Programs:
864                    Transportation Investment Fund Capacity Program     $733,000,000
865          The Legislature intends that the department use money from this appropriation for the
866     projects listed in Subsections 72-2-124(4)(a)(ix) and (x).
867     ITEM 2
868          To Transportation - Transit Transportation Investment
869               From Transit Transportation Investment Fund, One-time
$101,600,000

870               Schedule of Programs:
871                    Transit Transportation Investment               $101,600,000
872          The Legislature intends that the department use money from this appropriation as
873     follows: $100,000,000 to pay to double track strategic sections of the FrontRunner commuter
874     rail system; and $1,600,000 to pay for a rail station in the city of Vineyard.
875          Subsection 4(b). Capital Project Funds.
876          The Legislature has reviewed the following capital project funds. The Legislature
877     authorizes the Division of Finance to transfer amounts between funds and accounts as
878     indicated.
879     ITEM 3
880          To Transportation - Transportation Investment Fund of 2005
881               From General Fund, One-time
$733,000,000

882               Schedule of Programs:
883                    Transportation Investment Fund               $733,000,000
884     ITEM 4
885          To Transportation - Transit Transportation Investment Fund
886               From General Fund, One-time
$101,600,000

887               Schedule of Programs:
888                    Transit Transportation Investment Fund          $101,600,000