This document includes House Floor Amendments incorporated into the bill on Fri, Mar 3, 2023 at 8:32 PM by pflowers.
Representative Val L. Peterson proposes the following substitute bill:


1     
TRANSPORTATION FUNDING REQUIREMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Kirk A. Cullimore

5     
House Sponsor: Val L. Peterson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to allowed uses for a certain local option sales and
10     use tax for transportation.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     amends provisions related to the allowed uses for a certain local option sales and
15     use taxes;
16          ▸     allows a certain portion of a local option sales and use tax within a county of the
17     first class to be used to fund or provide loans for public transit projects in a county
18     of the first class;
19          ▸     amends the distribution for a certain local option sales and use tax;
20          ▸     specifies the allowed uses and conditions for a county, city, or town to expend the
21     sales and use tax revenue based on allocations;
22          ▸     provides requirements for a county to meet if the county elects to change
23     distribution allocations;
24          ▸     requires a city to comply with the moderate income housing plan requirements to
25     receive a sales and use tax distribution;

26          ▸     eliminates the deadline for a county to impose the local option sales and use tax;
27     and
28          ▸     makes technical changes.
29     Money Appropriated in this Bill:
30          None
31     Other Special Clauses:
32          None
33     Utah Code Sections Affected:
34     AMENDS:
35          10-9a-408, as last amended by Laws of Utah 2022, Chapter 406
36          17-27a-408, as last amended by Laws of Utah 2022, Chapter 406
37          59-12-2202, as last amended by Laws of Utah 2019, Chapter 479
38          59-12-2219, as last amended by Laws of Utah 2019, Chapter 479
39          59-12-2220, as last amended by Laws of Utah 2022, Chapter 259
40          72-2-121, as last amended by Laws of Utah 2022, Chapter 259
41          72-2-124, as last amended by Laws of Utah 2022, Chapters 69, 259 and 406
42     

43     Be it enacted by the Legislature of the state of Utah:
44          Section 1. Section 10-9a-408 is amended to read:
45          10-9a-408. Moderate income housing report -- Contents -- Prioritization for
46     funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
47          (1) As used in this section:
48          (a) "Division" means the Housing and Community Development Division within the
49     Department of Workforce Services.
50          (b) "Implementation plan" means the implementation plan adopted as part of the
51     moderate income housing element of a specified municipality's general plan as provided in
52     Subsection 10-9a-403(2)(c).
53          (c) "Moderate income housing report" or "report" means the report described in
54     Subsection (2)(a).
55          (d) "Moderate income housing strategy" means a strategy described in Subsection
56     10-9a-403(2)(b)(iii).

57          (e) "Specified municipality" means:
58          (i) a city of the first, second, third, or fourth class;
59          (ii) a city of the fifth class with a population of 5,000 or more, if the city is located
60     within a county of the first, second, or third class; or
61          (iii) a metro township with a population of 5,000 or more.
62          (2) (a) Beginning in 2022, on or before October 1 of each calendar year, the legislative
63     body of a specified municipality shall annually submit a written moderate income housing
64     report to the division.
65          (b) The moderate income housing report submitted in 2022 shall include:
66          (i) a description of each moderate income housing strategy selected by the specified
67     municipality for implementation; and
68          (ii) an implementation plan.
69          (c) The moderate income housing report submitted in each calendar year after 2022
70     shall include:
71          (i) the information required under Subsection (2)(b);
72          (ii) a description of each action, whether one-time or ongoing, taken by the specified
73     municipality during the previous fiscal year to implement the moderate income housing
74     strategies selected by the specified municipality for implementation;
75          (iii) a description of each land use regulation or land use decision made by the
76     specified municipality during the previous fiscal year to implement the moderate income
77     housing strategies, including an explanation of how the land use regulation or land use decision
78     supports the specified municipality's efforts to implement the moderate income housing
79     strategies;
80          (iv) a description of any barriers encountered by the specified municipality in the
81     previous fiscal year in implementing the moderate income housing strategies;
82          (v) information regarding the number of internal and external or detached accessory
83     dwelling units located within the specified municipality for which the specified municipality:
84          (A) issued a building permit to construct; or
85          (B) issued a business license to rent;
86          (vi) a description of how the market has responded to the selected moderate income
87     housing strategies, including the number of entitled moderate income housing units or other

88     relevant data; and
89          (vii) any recommendations on how the state can support the specified municipality in
90     implementing the moderate income housing strategies.
91          (d) The moderate income housing report shall be in a form:
92          (i) approved by the division; and
93          (ii) made available by the division on or before July 1 of the year in which the report is
94     required.
95          (3) Within 90 days after the day on which the division receives a specified
96     municipality's moderate income housing report, the division shall:
97          (a) post the report on the division's website;
98          (b) send a copy of the report to the Department of Transportation, the Governor's
99     Office of Planning and Budget, the association of governments in which the specified
100     municipality is located, and, if the specified municipality is located within the boundaries of a
101     metropolitan planning organization, the appropriate metropolitan planning organization; and
102          (c) subject to Subsection (4), review the report to determine compliance with
103     Subsection (2).
104          (4) (a) The report described in Subsection (2)(b) complies with Subsection (2) if the
105     report:
106          (i) includes the information required under Subsection (2)(b);
107          (ii) demonstrates to the division that the specified municipality made plans to
108     implement:
109          (A) three or more moderate income housing strategies if the specified municipality
110     does not have a fixed guideway public transit station; or
111          (B) subject to Subsection 10-9a-403(2)(b)(iv), five or more moderate income housing
112     strategies if the specified municipality has a fixed guideway public transit station; and
113          (iii) is in a form approved by the division.
114          (b) The report described in Subsection (2)(c) complies with Subsection (2) if the
115     report:
116          (i) includes the information required under Subsection (2)(c);
117          (ii) demonstrates to the division that the specified municipality made plans to
118     implement:

119          (A) three or more moderate income housing strategies if the specified municipality
120     does not have a fixed guideway public transit station; or
121          (B) four or more moderate income housing strategies if the specified municipality has a
122     fixed guideway public transit station;
123          (iii) is in a form approved by the division; and
124          (iv) provides sufficient information for the division to:
125          (A) assess the specified municipality's progress in implementing the moderate income
126     housing strategies;
127          (B) monitor compliance with the specified municipality's implementation plan;
128          (C) identify a clear correlation between the specified municipality's land use
129     regulations and land use decisions and the specified municipality's efforts to implement the
130     moderate income housing strategies; and
131          (D) identify how the market has responded to the specified municipality's selected
132     moderate income housing strategies.
133          (5) (a) A specified municipality qualifies for priority consideration under this
134     Subsection (5) if the specified municipality's moderate income housing report:
135          (i) complies with Subsection (2); and
136          (ii) demonstrates to the division that the specified municipality made plans to
137     implement:
138          (A) five or more moderate income housing strategies if the specified municipality does
139     not have a fixed guideway public transit station; or
140          (B) six or more moderate income housing strategies if the specified municipality has a
141     fixed guideway public transit station.
142          (b) The following apply to a specified municipality described in Subsection (5)(a)
143     during the fiscal year immediately following the fiscal year in which the report is required:
144          (i) the Transportation Commission may give priority consideration to transportation
145     projects located within the boundaries of the specified municipality in accordance with
146     Subsection 72-1-304(3)(c); and
147          (ii) the Governor's Office of Planning and Budget may give priority consideration for
148     awarding financial grants to the specified municipality under the COVID-19 Local Assistance
149     Matching Grant Program in accordance with Subsection 63J-4-802(6).

150          (c) Upon determining that a specified municipality qualifies for priority consideration
151     under this Subsection (5), the division shall send a notice of prioritization to the legislative
152     body of the specified municipality, the Department of Transportation, and the Governor's
153     Office of Planning and Budget.
154          (d) The notice described in Subsection (5)(c) shall:
155          (i) name the specified municipality that qualifies for priority consideration;
156          (ii) describe the funds or projects for which the specified municipality qualifies to
157     receive priority consideration;
158          (iii) specify the fiscal year during which the specified municipality qualifies for priority
159     consideration; and
160          (iv) state the basis for the division's determination that the specified municipality
161     qualifies for priority consideration.
162          (6) (a) If the division, after reviewing a specified municipality's moderate income
163     housing report, determines that the report does not comply with Subsection (2), the division
164     shall send a notice of noncompliance to the legislative body of the specified municipality.
165          (b) The notice described in Subsection (6)(a) shall:
166          (i) describe each deficiency in the report and the actions needed to cure each
167     deficiency;
168          (ii) state that the specified municipality has an opportunity to cure the deficiencies
169     within 90 days after the day on which the notice is sent; and
170          (iii) state that failure to cure the deficiencies within 90 days after the day on which the
171     notice is sent will result in ineligibility for funds under Subsection (7).
172          (7) (a) A specified municipality is ineligible for funds under this Subsection (7) if the
173     specified municipality:
174          (i) fails to submit a moderate income housing report to the division; or
175          (ii) fails to cure the deficiencies in the specified municipality's moderate income
176     housing report within 90 days after the day on which the division sent to the specified
177     municipality a notice of noncompliance under Subsection (6).
178          (b) The following apply to a specified municipality described in Subsection (7)(a)
179     during the fiscal year immediately following the fiscal year in which the report is required:
180          (i) the executive director of the Department of Transportation may not program funds

181     from the Transportation Investment Fund of 2005, including the Transit Transportation
182     Investment Fund, to projects located within the boundaries of the specified municipality in
183     accordance with Subsection 72-2-124(5); and
184          (ii) the Governor's Office of Planning and Budget may not award financial grants to the
185     specified municipality under the COVID-19 Local Assistance Matching Grant Program in
186     accordance with Subsection 63J-4-802(7).
187          (c) Upon determining that a specified municipality is ineligible for funds under this
188     Subsection (7), the division shall send a notice of ineligibility to the legislative body of the
189     specified municipality, the Department of Transportation, the State Tax Commission, and the
190     Governor's Office of Planning and Budget.
191          (d) The notice described in Subsection (7)(c) shall:
192          (i) name the specified municipality that is ineligible for funds;
193          (ii) describe the funds for which the specified municipality is ineligible to receive;
194          (iii) specify the fiscal year during which the specified municipality is ineligible for
195     funds; and
196          (iv) state the basis for the division's determination that the specified municipality is
197     ineligible for funds.
198          (8) In a civil action seeking enforcement or claiming a violation of this section or of
199     Subsection 10-9a-404(4)(c), a plaintiff may not recover damages but may be awarded only
200     injunctive or other equitable relief.
201          Section 2. Section 17-27a-408 is amended to read:
202          17-27a-408. Moderate income housing report -- Contents -- Prioritization for
203     funds or projects -- Ineligibility for funds after noncompliance -- Civil actions.
204          (1) As used in this section:
205          (a) "Division" means the Housing and Community Development Division within the
206     Department of Workforce Services.
207          (b) "Implementation plan" means the implementation plan adopted as part of the
208     moderate income housing element of a specified county's general plan as provided in
209     Subsection 10-9a-403(2)(c).
210          (c) "Moderate income housing report" or "report" means the report described in
211     Subsection (2)(a).

212          (d) "Moderate income housing strategy" means a strategy described in Subsection
213     17-27a-403(2)(b)(ii).
214          (e) "Specified county" means a county of the first, second, or third class, which has a
215     population of more than 5,000 in the county's unincorporated areas.
216          (2) (a) Beginning in 2022, on or before October 1 of each calendar year, the legislative
217     body of a specified county shall annually submit a written moderate income housing report to
218     the division.
219          (b) The moderate income housing report submitted in 2022 shall include:
220          (i) a description of each moderate income housing strategy selected by the specified
221     county for implementation; and
222          (ii) an implementation plan.
223          (c) The moderate income housing report submitted in each calendar year after 2022
224     shall include:
225          (i) the information required under Subsection (2)(b);
226          (ii) a description of each action, whether one-time or ongoing, taken by the specified
227     county during the previous fiscal year to implement the moderate income housing strategies
228     selected by the specified county for implementation;
229          (iii) a description of each land use regulation or land use decision made by the
230     specified county during the previous fiscal year to implement the moderate income housing
231     strategies, including an explanation of how the land use regulation or land use decision
232     supports the specified county's efforts to implement the moderate income housing strategies;
233          (iv) a description of any barriers encountered by the specified county in the previous
234     fiscal year in implementing the moderate income housing strategies; and
235          (v) information regarding the number of internal and external or detached accessory
236     dwelling units located within the specified county for which the specified county:
237          (A) issued a building permit to construct; or
238          (B) issued a business license to rent;
239          (vi) a description of how the market has responded to the selected moderate income
240     housing strategies, including the number of entitled moderate income housing units or other
241     relevant data; and
242          (vii) any recommendations on how the state can support the specified county in

243     implementing the moderate income housing strategies.
244          (d) The moderate income housing report shall be in a form:
245          (i) approved by the division; and
246          (ii) made available by the division on or before July 1 of the year in which the report is
247     required.
248          (3) Within 90 days after the day on which the division receives a specified county's
249     moderate income housing report, the division shall:
250          (a) post the report on the division's website;
251          (b) send a copy of the report to the Department of Transportation, the Governor's
252     Office of Planning and Budget, the association of governments in which the specified county is
253     located, and, if the unincorporated area of the specified county is located within the boundaries
254     of a metropolitan planning organization, the appropriate metropolitan planning organization;
255     and
256          (c) subject to Subsection (4), review the report to determine compliance with
257     Subsection (2).
258          (4) (a) The report described in Subsection (2)(b) complies with Subsection (2) if the
259     report:
260          (i) includes the information required under Subsection (2)(b);
261          (ii) demonstrates to the division that the specified county made plans to implement
262     three or more moderate income housing strategies; and
263          (iii) is in a form approved by the division.
264          (b) The report described in Subsection (2)(c) complies with Subsection (2) if the
265     report:
266          (i) includes the information required under Subsection (2)(c);
267          (ii) demonstrates to the division that the specified county made plans to implement
268     three or more moderate income housing strategies;
269          (iii) is in a form approved by the division; and
270          (iv) provides sufficient information for the division to:
271          (A) assess the specified county's progress in implementing the moderate income
272     housing strategies;
273          (B) monitor compliance with the specified county's implementation plan;

274          (C) identify a clear correlation between the specified county's land use decisions and
275     efforts to implement the moderate income housing strategies; and
276          (D) identify how the market has responded to the specified county's selected moderate
277     income housing strategies.
278          (5) (a) A specified county qualifies for priority consideration under this Subsection (5)
279     if the specified county's moderate income housing report:
280          (i) complies with Subsection (2); and
281          (ii) demonstrates to the division that the specified county made plans to implement five
282     or more moderate income housing strategies.
283          (b) The following apply to a specified county described in Subsection (5)(a) during the
284     fiscal year immediately following the fiscal year in which the report is required:
285          (i) the Transportation Commission may give priority consideration to transportation
286     projects located within the unincorporated areas of the specified county in accordance with
287     Subsection 72-1-304(3)(c); and
288          (ii) the Governor's Office of Planning and Budget may give priority consideration for
289     awarding financial grants to the specified county under the COVID-19 Local Assistance
290     Matching Grant Program in accordance with Subsection 63J-4-802(6).
291          (c) Upon determining that a specified county qualifies for priority consideration under
292     this Subsection (5), the division shall send a notice of prioritization to the legislative body of
293     the specified county, the Department of Transportation, and the Governor's Office of Planning
294     and Budget.
295          (d) The notice described in Subsection (5)(c) shall:
296          (i) name the specified county that qualifies for priority consideration;
297          (ii) describe the funds or projects for which the specified county qualifies to receive
298     priority consideration;
299          (iii) specify the fiscal year during which the specified county qualifies for priority
300     consideration; and
301          (iv) state the basis for the division's determination that the specified county qualifies
302     for priority consideration.
303          (6) (a) If the division, after reviewing a specified county's moderate income housing
304     report, determines that the report does not comply with Subsection (2), the division shall send a

305     notice of noncompliance to the legislative body of the specified county.
306          (b) The notice described in Subsection (6)(a) shall:
307          (i) describe each deficiency in the report and the actions needed to cure each
308     deficiency;
309          (ii) state that the specified county has an opportunity to cure the deficiencies within 90
310     days after the day on which the notice is sent; and
311          (iii) state that failure to cure the deficiencies within 90 days after the day on which the
312     notice is sent will result in ineligibility for funds under Subsection (7).
313          (7) (a) A specified county is ineligible for funds under this Subsection (7) if the
314     specified county:
315          (i) fails to submit a moderate income housing report to the division; or
316          (ii) fails to cure the deficiencies in the specified county's moderate income housing
317     report within 90 days after the day on which the division sent to the specified county a notice of
318     noncompliance under Subsection (6).
319          (b) The following apply to a specified county described in Subsection (7)(a) during the
320     fiscal year immediately following the fiscal year in which the report is required:
321          (i) the executive director of the Department of Transportation may not program funds
322     from the Transportation Investment Fund of 2005, including the Transit Transportation
323     Investment Fund, to projects located within the unincorporated areas of the specified county in
324     accordance with Subsection 72-2-124(6); and
325          (ii) the Governor's Office of Planning and Budget may not award financial grants to the
326     specified county under the COVID-19 Local Assistance Matching Grant Program in
327     accordance with Subsection 63J-4-802(7).
328          (c) Upon determining that a specified county is ineligible for funds under this
329     Subsection (7), the division shall send a notice of ineligibility to the legislative body of the
330     specified county, the Department of Transportation, the State Tax Commission, and the
331     Governor's Office of Planning and Budget.
332          (d) The notice described in Subsection (7)(c) shall:
333          (i) name the specified county that is ineligible for funds;
334          (ii) describe the funds for which the specified county is ineligible to receive;
335          (iii) specify the fiscal year during which the specified county is ineligible for funds;

336     and
337          (iv) state the basis for the division's determination that the specified county is ineligible
338     for funds.
339          (8) In a civil action seeking enforcement or claiming a violation of this section or of
340     Subsection 17-27a-404(5)(c), a plaintiff may not recover damages but may be awarded only
341     injunctive or other equitable relief.
342          Section 3. Section 59-12-2202 is amended to read:
343          59-12-2202. Definitions.
344          As used in this part:
345          (1) "Airline" means the same as that term is defined in Section 59-2-102.
346          (2) "Airport facility" means the same as that term is defined in Section 59-12-602.
347          (3) "Airport of regional significance" means an airport identified by the Federal
348     Aviation Administration in the most current National Plan of Integrated Airport Systems or an
349     update to the National Plan of Integrated Airport Systems.
350          (4) "Annexation" means an annexation to:
351          (a) a county under Title 17, Chapter 2, County Consolidations and Annexations; or
352          (b) a city or town under Title 10, Chapter 2, Part 4, Annexation.
353          (5) "Annexing area" means an area that is annexed into a county, city, or town.
354          (6) "Class A road" means the same as that term is described in Section 72-3-102.
355          (7) "Class B road" means the same as that term is described in Section 72-3-103.
356          (8) "Class C road" means the same as that term is described in Section 72-3-104.
357          (9) "Class D road" means the same as that term is described in Section 72-3-105.
358          (10) "Council of governments" means the same as that term is defined in Section
359     72-2-117.5.
360          (11) "Eligible political subdivision" means a political subdivision that:
361          (a) provides public transit services;
362          (b) is not a public transit district; and
363          (c) is not annexed into a public transit district.
364          [(11)] (12) "Fixed guideway" means the same as that term is defined in Section
365     59-12-102.
366          [(12)] (13) "Large public transit district" means the same as that term is defined in

367     Section 17B-2a-802.
368          [(13)] (14) "Major collector highway" means the same as that term is defined in
369     Section 72-4-102.5.
370          [(14)] (15) "Metropolitan planning organization" means the same as that term is
371     defined in Section 72-1-208.5.
372          [(15)] (16) "Minor arterial highway" means the same as that term is defined in Section
373     72-4-102.5.
374          [(16)] (17) "Minor collector road" means the same as that term is defined in Section
375     72-4-102.5.
376          [(17)] (18) "Principal arterial highway" means the same as that term is defined in
377     Section 72-4-102.5.
378          (19) "Public transit" means the same as that term is defined in Section 17B-2a-802.
379          (20) "Public transit district" means the same as that term is defined in Section
380     17B-2a-802.
381          (21) "Public transit provider" means a public transit district or an eligible political
382     subdivision.
383          (22) "Public transit service" means a service provided as part of public transit.
384          [(18)] (23) "Regionally significant transportation facility" means:
385          (a) in a county of the first or second class:
386          (i) a principal arterial highway;
387          (ii) a minor arterial highway;
388          (iii) a fixed guideway that:
389          (A) extends across two or more cities or unincorporated areas; or
390          (B) is an extension to an existing fixed guideway; or
391          (iv) an airport of regional significance; or
392          (b) in a county of the second class that is not part of a large public transit district, or in
393     a county of the third, fourth, fifth, or sixth class:
394          (i) a principal arterial highway;
395          (ii) a minor arterial highway;
396          (iii) a major collector highway;
397          (iv) a minor collector road; or

398          (v) an airport of regional significance.
399          [(19)] (24) "State highway" means a highway designated as a state highway under Title
400     72, Chapter 4, Designation of State Highways Act.
401          [(20)] (25) (a) Subject to Subsection [(20)(b)] (25)(b), "system for public transit"
402     means the same as the term "public transit" is defined in Section 17B-2a-802.
403          (b) "System for public transit" includes:
404          (i) the following costs related to public transit:
405          (A) maintenance costs; or
406          (B) operating costs;
407          (ii) a fixed guideway;
408          (iii) a park and ride facility;
409          (iv) a passenger station or passenger terminal;
410          (v) a right-of-way for public transit; or
411          (vi) the following that serve a public transit facility:
412          (A) a maintenance facility;
413          (B) a platform;
414          (C) a repair facility;
415          (D) a roadway;
416          (E) a storage facility;
417          (F) a utility line; or
418          (G) a facility or item similar to those described in Subsections [(20)(b)(vi)(A)]
419     (25)(b)(vi)(A) through (F).
420          Section 4. Section 59-12-2219 is amended to read:
421          59-12-2219. County option sales and use tax for highways and public transit --
422     Base -- Rate -- Distribution and expenditure of revenue -- Revenue may not supplant
423     existing budgeted transportation revenue.
424          [(1) As used in this section:]
425          [(a) "Eligible political subdivision" means a political subdivision that:]
426          [(i) (A) on May 12, 2015, provides public transit services; or]
427          [(B) after May 12, 2015, provides written notice to the commission in accordance with
428     Subsection (9)(b) that it intends to provide public transit service within a county;]

429          [(ii) is not a public transit district; and]
430          [(iii) is not annexed into a public transit district.]
431          [(b) "Public transit district" means a public transit district organized under Title 17B,
432     Chapter 2a, Part 8, Public Transit District Act.]
433          [(2)] (1) Subject to the other provisions of this part, and subject to Subsection [(14)]
434     (13), a county legislative body may impose a sales and use tax of .25% on the transactions
435     described in Subsection 59-12-103(1) within the county, including the cities and towns within
436     the county.
437          [(3)] (2) Subject to Subsection [(10)] (9), the commission shall distribute sales and use
438     tax revenue collected under this section as provided in Subsections [(4) through (9)] (3)
439     through (8).
440          [(4)] (3) If the entire boundary of a county that imposes a sales and use tax under this
441     section is annexed into a single public transit district, the commission shall distribute the sales
442     and use tax revenue collected within the county as follows:
443          (a) .10% shall be transferred to the public transit district in accordance with Section
444     59-12-2206;
445          (b) .10% shall be distributed as provided in Subsection [(7)] (6); and
446          (c) .05% shall be distributed to the county legislative body.
447          [(5)] (4) If the entire boundary of a county that imposes a sales and use tax under this
448     section is not annexed into a single public transit district, but a city or town within the county is
449     annexed into a single large public transit district, the commission shall distribute the sales and
450     use tax revenue collected within the county as follows:
451          (a) for a city or town within the county that is annexed into a single public transit
452     district, the commission shall distribute the sales and use tax revenue collected within that city
453     or town as follows:
454          (i) .10% shall be transferred to the public transit district in accordance with Section
455     59-12-2206;
456          (ii) .10% shall be distributed as provided in Subsection [(7)] (6); and
457          (iii) .05% shall be distributed to the county legislative body;
458          (b) for an eligible political subdivision within the county, the commission shall
459     distribute the sales and use tax revenue collected within that eligible political subdivision as

460     follows:
461          (i) .10% shall be transferred to the eligible political subdivision in accordance with
462     Section 59-12-2206;
463          (ii) .10% shall be distributed as provided in Subsection [(7)] (6); and
464          (iii) .05% shall be distributed to the county legislative body; and
465          (c) the commission shall distribute the sales and use tax revenue, except for the sales
466     and use tax revenue described in Subsections [(5)(a)] (4)(a) and (b), as follows:
467          (i) .10% shall be distributed as provided in Subsection [(7)] (6); and
468          (ii) .15% shall be distributed to the county legislative body.
469          [(6)] (5) For a county not described in Subsection [(4) or (5)] (3) or (4), if a county of
470     the second, third, fourth, fifth, or sixth class imposes a sales and use tax under this section, the
471     commission shall distribute the sales and use tax revenue collected within the county as
472     follows:
473          (a) for a city or town within the county that is annexed into a single public transit
474     district, the commission shall distribute the sales and use tax revenue collected within that city
475     or town as follows:
476          (i) .10% shall be distributed as provided in Subsection [(7)] (6);
477          (ii) .10% shall be distributed as provided in Subsection [(8)] (7); and
478          (iii) .05% shall be distributed to the county legislative body;
479          (b) for an eligible political subdivision within the county, the commission shall
480     distribute the sales and use tax revenue collected within that eligible political subdivision as
481     follows:
482          (i) .10% shall be distributed as provided in Subsection [(7)] (6);
483          (ii) .10% shall be distributed as provided in Subsection [(8)] (7); and
484          (iii) .05% shall be distributed to the county legislative body; and
485          (c) the commission shall distribute the sales and use tax revenue, except for the sales
486     and use tax revenue described in Subsections [(6)(a)] (5)(a) and (b), as follows:
487          (i) .10% shall be distributed as provided in Subsection [(7)] (6); and
488          (ii) .15% shall be distributed to the county legislative body.
489          [(7)] (6) (a) Subject to Subsection [(7)(b)] (6)(b), the commission shall make the
490     distributions required by Subsections [(4)(b), (5)(a)(ii), (5)(b)(ii), (5)(c)(i), (6)(a)(i), (6)(b)(i),

491     (6)(c)(i), and (8)(d)(ii)(A)] (3)(b), (4)(a)(ii), (4)(b)(ii), (4)(c)(i), (5)(a)(i), (5)(b)(i), (5)(c)(i), and
492     (7)(d)(ii)(A) as follows:
493          (i) 50% of the total revenue collected under Subsections [(4)(b), (5)(a)(ii), (5)(b)(ii),
494     (5)(c)(i), (6)(a)(i), (6)(b)(i), (6)(c)(i), and (8)(d)(ii)(A)] (3)(b), (4)(a)(ii), (4)(b)(ii), (4)(c)(i),
495     (5)(a)(i), (5)(b)(i), (5)(c)(i), and (7)(d)(ii)(A) within the counties and cities that impose a tax
496     under this section shall be distributed to the unincorporated areas, cities, and towns within
497     those counties and cities on the basis of the percentage that the population of each
498     unincorporated area, city, or town bears to the total population of all of the counties and cities
499     that impose a tax under this section; and
500          (ii) 50% of the total revenue collected under Subsections [(4)(b), (5)(a)(ii), (5)(b)(ii),
501     (5)(c)(i), (6)(a)(i), (6)(b)(i), (6)(c)(i), and (8)(d)(ii)(A)] (3)(b), (4)(a)(ii), (4)(b)(ii), (4)(c)(i),
502     (5)(a)(i), (5)(b)(i), (5)(c)(i), and (7)(d)(ii)(A) within the counties and cities that impose a tax
503     under this section shall be distributed to the unincorporated areas, cities, and towns within
504     those counties and cities on the basis of the location of the transaction as determined under
505     Sections 59-12-211 through 59-12-215.
506          (b) (i) Population for purposes of this Subsection [(7)] (6) shall be determined on the
507     basis of the most recent official census or census estimate of the United States Bureau of the
508     Census.
509          (ii) If a needed population estimate is not available from the United States Bureau of
510     the Census, population figures shall be derived from an estimate from the Utah Population
511     Committee.
512          [(8)] (7) (a) (i) Subject to the requirements in Subsections [(8)(b)] (7)(b) and (c), a
513     county legislative body:
514          (A) for a county that obtained approval from a majority of the county's registered
515     voters voting on the imposition of a sales and use tax under this section prior to May 10, 2016,
516     may, in consultation with any cities, towns, or eligible political subdivisions within the county,
517     and in compliance with the requirements for changing an allocation under Subsection [(8)(e)]
518     (7)(e), allocate the revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) by
519     adopting a resolution specifying the percentage of revenue under Subsection [(6)(a)(ii) or
520     (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) that will be allocated to a public transit district or an eligible
521     political subdivision; or

522          (B) for a county that imposes a sales and use tax under this section on or after May 10,
523     2016, shall, in consultation with any cities, towns, or eligible political subdivisions within the
524     county, allocate the revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) by
525     adopting a resolution specifying the percentage of revenue under Subsection [(6)(a)(ii) or
526     (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) that will be allocated to a public transit district or an eligible
527     political subdivision.
528          (ii) If a county described in Subsection [(8)(a)(i)(A)] (7)(a)(i)(A) does not allocate the
529     revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) in accordance with
530     Subsection [(8)(a)(i)(A)] (7)(a)(i)(A), the commission shall distribute 100% of the revenue
531     under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) to:
532          (A) a public transit district for a city or town within the county that is annexed into a
533     single public transit district; or
534          (B) an eligible political subdivision within the county.
535          (b) If a county legislative body allocates the revenue as described in Subsection
536     [(8)(a)(i)] (7)(a)(i), the county legislative body shall allocate not less than 25% of the revenue
537     under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) to:
538          (i) a public transit district for a city or town within the county that is annexed into a
539     single public transit district; or
540          (ii) an eligible political subdivision within the county.
541          (c) Notwithstanding Section 59-12-2208, the opinion question described in Section
542     59-12-2208 shall state the allocations the county legislative body makes in accordance with this
543     Subsection [(8)] (7).
544          (d) The commission shall make the distributions required by Subsection [(6)(a)(ii) or
545     (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) as follows:
546          (i) the percentage specified by a county legislative body shall be distributed in
547     accordance with a resolution adopted by a county legislative body under Subsection [(8)(a)]
548     (7)(a) to an eligible political subdivision or a public transit district within the county; and
549          (ii) except as provided in Subsection [(8)(a)(ii)] (7)(a)(ii), if a county legislative body
550     allocates less than 100% of the revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or
551     (5)(b)(ii) to a public transit district or an eligible political subdivision, the remainder of the
552     revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) not allocated by a

553     county legislative body through a resolution under Subsection [(8)(a)] (7)(a) shall be
554     distributed as follows:
555          (A) 50% of the revenue as provided in Subsection [(7)] (6); and
556          (B) 50% of the revenue to the county legislative body.
557          (e) If a county legislative body seeks to change an allocation specified in a resolution
558     under Subsection [(8)(a)] (7)(a), the county legislative body may change the allocation by:
559          (i) adopting a resolution in accordance with Subsection [(8)(a)] (7)(a) specifying the
560     percentage of revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or (5)(b)(ii) that will
561     be allocated to a public transit district or an eligible political subdivision;
562          (ii) obtaining approval to change the allocation of the sales and use tax by a majority of
563     all the members of the county legislative body; and
564          (iii) subject to Subsection [(8)(f)] (7)(f):
565          (A) in accordance with Section 59-12-2208, submitting an opinion question to the
566     county's registered voters voting on changing the allocation so that each registered voter has the
567     opportunity to express the registered voter's opinion on whether the allocation should be
568     changed; and
569          (B) in accordance with Section 59-12-2208, obtaining approval to change the
570     allocation from a majority of the county's registered voters voting on changing the allocation.
571          (f) Notwithstanding Section 59-12-2208, the opinion question required by Subsection
572     [(8)(e)(iii)(A)] (7)(e)(iii)(A) shall state the allocations specified in the resolution adopted in
573     accordance with Subsection [(8)(e)] (7)(e) and approved by the county legislative body in
574     accordance with Subsection [(8)(e)(ii)] (7)(e)(ii).
575          (g) (i) If a county makes an allocation by adopting a resolution under Subsection
576     [(8)(a)] (7)(a) or changes an allocation by adopting a resolution under Subsection [(8)(e)]
577     (7)(e), the allocation shall take effect on the first distribution the commission makes under this
578     section after a 90-day period that begins on the date the commission receives written notice
579     meeting the requirements of Subsection [(8)(g)(ii)] (7)(g)(ii) from the county.
580          (ii) The notice described in Subsection [(8)(g)(i)] (7)(g)(i) shall state:
581          (A) that the county will make or change the percentage of an allocation under
582     Subsection [(8)(a)] (7)(a) or (e); and
583          (B) the percentage of revenue under Subsection [(6)(a)(ii) or (6)(b)(ii)] (5)(a)(ii) or

584     (5)(b)(ii) that will be allocated to a public transit district or an eligible political subdivision.
585          [(9)] (8) (a) If a public transit district is organized after the date a county legislative
586     body first imposes a tax under this section, a change in a distribution required by this section
587     may not take effect until the first distribution the commission makes under this section after a
588     90-day period that begins on the date the commission receives written notice from the public
589     transit district of the organization of the public transit district.
590          (b) If an eligible political subdivision intends to provide public transit service within a
591     county after the date a county legislative body first imposes a tax under this section, a change
592     in a distribution required by this section may not take effect until the first distribution the
593     commission makes under this section after a 90-day period that begins on the date the
594     commission receives written notice from the eligible political subdivision stating that the
595     eligible political subdivision intends to provide public transit service within the county.
596          [(10)] (9) (a) (i) Notwithstanding Subsections [(4) through (9)] (3) through (8), for a
597     county that has not imposed a sales and use tax under this section before May 8, 2018, and if
598     the county imposes a sales and use tax under this section before June 30, 2019, the commission
599     shall distribute all of the sales and use tax revenue collected by the county before June 30,
600     2019, to the county for the purposes described in Subsection [(10)(a)(ii)] (9)(a)(ii).
601          (ii) For any revenue collected by a county pursuant to Subsection [(10)(a)(i)] (9)(a)(ii)
602     before June 30, 2019, the county may expend that revenue for:
603          (A) reducing transportation related debt;
604          (B) a regionally significant transportation facility; or
605          (C) a public transit project of regional significance.
606          (b) For a county that has not imposed a sales and use tax under this section before May
607     8, 2018, and if the county imposes a sales and use tax under this section before June 30, 2019,
608     the commission shall distribute the sales and use tax revenue collected by the county on or after
609     July 1, 2019, as described in Subsections [(4) through (9).] (3) through (8).
610          (c) For a county that has not imposed a sales and use tax under this section before June
611     30, 2019, if the entire boundary of that county is annexed into a large public transit district, and
612     if the county imposes a sales and use tax under this section on or after July 1, 2019, the
613     commission shall distribute the sales and use tax revenue collected by the county as described
614     in Subsections [(4) through (9).] (3) through (8).

615          [(11)] (10) A county, city, or town may expend revenue collected from a tax under this
616     section, except for revenue the commission distributes in accordance with Subsection [(4)(a),
617     (5)(a)(i), (5)(b)(i), or (8)(d)(i)] (3)(a), (4)(a)(i), (4)(b)(i), or (7)(d)(i), for a purpose described in
618     Section 59-12-2212.2.
619          [(12)] (11) A public transit district or an eligible political subdivision may expend
620     revenue the commission distributes in accordance with Subsection [(4)(a), (5)(a)(i), (5)(b)(i), or
621     (8)(d)(i)] (3)(a), (4)(a)(i), (4)(b)(i), or (7)(d)(i) for capital expenses and service delivery
622     expenses of the public transit district or eligible political subdivision.
623          [(13)] (12) Notwithstanding Section 59-12-2208, a county, city, or town legislative
624     body may, but is not required to, submit an opinion question to the county's, city's, or town's
625     registered voters in accordance with Section 59-12-2208 to impose a sales and use tax under
626     this section.
627          [(14)] (13) (a) (i) Notwithstanding any other provision in this section, if the entire
628     boundary of a county is annexed into a large public transit district, if the county legislative
629     body wishes to impose a sales and use tax under this section, the county legislative body shall
630     pass the ordinance to impose a sales and use tax under this section on or before June 30, 2022.
631          (ii) If the entire boundary of a county is annexed into a large public transit district, the
632     county legislative body may not pass an ordinance to impose a sales and use tax under this
633     section on or after July 1, 2022.
634          (b) Notwithstanding the deadline described in Subsection [(14)(a)] (13)(a), any sales
635     and use tax imposed under this section by passage of a county ordinance on or before June 30,
636     2022, may remain in effect.
637          [(15)] (14) (a) Beginning on July 1, 2020, and subject to Subsection [(16)] (15), if a
638     county has not imposed a sales and use tax under this section, subject to the provisions of this
639     part, the legislative body of a city or town described in Subsection [(15)(b)] (14)(b) may
640     impose a .25% sales and use tax on the transactions described in Subsection 59-12-103(1)
641     within the city or town.
642          (b) The following cities or towns may impose a sales and use tax described in
643     Subsection [(15)(a)] (14)(a):
644          (i) a city or town that has been annexed into a public transit district; or
645          (ii) an eligible political subdivision.

646          (c) If a city or town imposes a sales and use tax as provided in this section, the
647     commission shall distribute the sales and use tax revenue collected by the city or town as
648     follows:
649          (i) .125% to the city or town that imposed the sales and use tax, to be distributed as
650     provided in Subsection [(7)] (6); and
651          (ii) .125%, as applicable, to:
652          (A) the public transit district in which the city or town is annexed; or
653          (B) the eligible political subdivision for public transit services.
654          (d) If a city or town imposes a sales and use tax under this section and the county
655     subsequently imposes a sales and use tax under this section, the commission shall distribute the
656     sales and use tax revenue collected within the city or town as described in Subsection [(15)(c)]
657     (14)(c).
658          [(16)] (15) (a) (i) Notwithstanding any other provision in this section, if a city or town
659     legislative body wishes to impose a sales and use tax under this section, the city or town
660     legislative body shall pass the ordinance to impose a sales and use tax under this section on or
661     before June 30, 2022.
662          (ii) A city or town legislative body may not pass an ordinance to impose a sales and use
663     tax under this section on or after July 1, 2022.
664          (b) Notwithstanding the deadline described in Subsection [(16)(a)] (15)(a), any sales
665     and use tax imposed under this section by passage of an ordinance by a city or town legislative
666     body on or before June 30, 2022, may remain in effect.
667          Section 5. Section 59-12-2220 is amended to read:
668          59-12-2220. County option sales and use tax to fund highways or a system for
669     public transit -- Base -- Rate.
670          (1) Subject to the other provisions of this part and subject to the requirements of this
671     section, [beginning on July 1, 2019,] the following counties may impose a sales and use tax
672     under this section:
673          (a) a county legislative body may impose the sales and use tax on the transactions
674     described in Subsection 59-12-103(1) located within the county, including the cities and towns
675     within the county if:
676          (i) the entire boundary of a county is annexed into a large public transit district; and

677          (ii) the maximum amount of sales and use tax authorizations allowed pursuant to
678     Section 59-12-2203 and authorized under the following sections has been imposed:
679          (A) Section 59-12-2213;
680          (B) Section 59-12-2214;
681          (C) Section 59-12-2215;
682          (D) Section 59-12-2216;
683          (E) Section 59-12-2217;
684          (F) Section 59-12-2218; and
685          (G) Section 59-12-2219;
686          (b) if the county is not annexed into a large public transit district, the county legislative
687     body may impose the sales and use tax on the transactions described in Subsection
688     59-12-103(1) located within the county, including the cities and towns within the county if:
689          (i) the county is an eligible political subdivision [as defined in Section 59-12-2219]; or
690          (ii) a city or town within the boundary of the county is an eligible political subdivision[
691     as defined in Section 59-12-2219]; or
692          (c) a county legislative body of a county not described in Subsection (1)(a) may impose
693     the sales and use tax on the transactions described in Subsection 59-12-103(1) located within
694     the county, including the cities and towns within the county[, if there is a public transit district
695     within the boundary of the county].
696          (2) For purposes of Subsection (1) and subject to the other provisions of this section, a
697     county legislative body that imposes a sales and use tax under this section may impose the tax
698     at a rate of .2%.
699          [(3) A county imposing a sales and use tax under this section shall expend the revenues
700     collected from the sales and use tax for capital expenses and service delivery expenses of:]
701          [(a) a public transit district;]
702          [(b) an eligible political subdivision, as that term is defined in Section 59-12-2219; or]
703          [(c) another entity providing a service for public transit or a transit facility within the
704     county as those terms are defined in Section 17B-2a-802.]
705          (3) (a) The commission shall distribute sales and use tax revenue collected under this
706     section as determined by a county legislative body as described in Subsection (3)(b).
707          (b) If a county legislative body imposes a sales and use tax as described in this section,

708     the county legislative body may elect to impose a sales and use tax revenue distribution as
709     described in Subsection (4), (5), (6), or (7), depending on the class of county, and presence and
710     type of a public transit provider in the county.
711          (4) If a county legislative body imposes a sales and use tax as described in this section,
712     and the entire boundary of the county is annexed into a large public transit district, and the
713     county is a county of the first class, the commission shall distribute the sales and use tax
714     revenue as follows:
715          (a) .10% to a public transit district as described in Subsection (11);
716          (b) .05% to the cities and towns as provided in Subsection (8); and
717          (c) .05% to the county legislative body.
718          (5) If a county legislative body imposes a sales and use tax as described in this section
719     and the entire boundary of the county is annexed into a large public transit district, and the
720     county is a county not described in Subsection (4), the commission shall distribute the sales
721     and use tax revenue as follows:
722          (a) .10% to a public transit district as described in Subsection (11);
723          (b) .05% to the cities and towns as provided in Subsection (8); and
724          (c) .05% to the county legislative body.
725          (6) (a) Except as provided in Subsection (12)(d), if the entire boundary of a county that
726     imposes a sales and use tax as described in this section is not annexed into a single public
727     transit district, but a city or town within the county is annexed into a single public transit
728     district, or if the city or town is an eligible political subdivision, the commission shall distribute
729     the sales and use tax revenue collected within the county as provided in Subsection (6)(b) or
730     (c).
731          (b) For a city, town, or portion of the county described in Subsection (6)(a) that is
732     annexed into the single public transit district, or an eligible political subdivision, the
733     commission shall distribute the sales and use tax revenue collected within the portion of the
734     county that is within a public transit district or eligible political subdivision as follows:
735          (i) .05% to a public transit provider as described in Subsection (11);
736          (ii) .075% to the cities and towns as provided in Subsection (8); and
737          (iii) .075% to the county legislative body.
738          (c) Except as provided in Subsection (12)(d), for a city, town, or portion of the county

739     described in Subsection (6)(a) that is not annexed into a single public transit district or eligible
740     political subdivision in the county, the commission shall distribute the sales and use tax
741     revenue collected within that portion of the county as follows:
742          (i) .08% to the cities and towns as provided in Subsection (8); and
743          (ii) .12% to the county legislative body.
744          (7) For a county without a public transit service that imposes a sales and use tax as
745     described in this section, the commission shall distribute the sales and use tax revenue
746     collected within the county as follows:
747          (a) .08% to the cities and towns as provided in Subsection (8); and
748          (b) .12% to the county legislative body.
749          (8) (a) Subject to Subsections (8)(b) and (c), the commission shall make the
750     distributions required by Subsections (4)(b), (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) as follows:
751          (i) 50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii),
752     (6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4) through (7)
753     shall be distributed to the unincorporated areas, cities, and towns within those counties on the
754     basis of the percentage that the population of each unincorporated area, city, or town bears to
755     the total population of all of the counties that impose a tax under this section; and
756          (ii) 50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii),
757     (6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4) through (7)
758     shall be distributed to the unincorporated areas, cities, and towns within those counties on the
759     basis of the location of the transaction as determined under Sections 59-12-211 through
760     59-12-215.
761          (b) (i) Population for purposes of this Subsection (8) shall be determined on the basis
762     of the most recent official census or census estimate of the United States Census Bureau.
763          (ii) If a needed population estimate is not available from the United States Census
764     Bureau, population figures shall be derived from an estimate from the Utah Population
765     Estimates Committee created by executive order of the governor.
766          (c) (i) Beginning on January 1, 2024, if the Housing and Community Development
767     Division within the Department of Workforce Services determines that a city, town, or metro
768     township is ineligible for funds in accordance with Subsection 10-9a-408(7), beginning the
769     first day of the calendar quarter after receiving 90 days' notice, the commission shall distribute

770     the distribution that city, town, or metro township would have received under Subsection (8)(a)
771     to cities, towns, or metro townships to which Subsection 10-9a-408(7) does not apply.
772          (ii) Beginning on January 1, 2024, if the Housing and Community Development
773     Division within the Department of Workforce Services determines that a county is ineligible
774     for funds in accordance with Subsection 17-27a-408(7), beginning the first day of the calendar
775     quarter after receiving 90 days' notice, the commission shall distribute the distribution that
776     county would have received under Subsection (8)(a) to counties to which Subsection
777     17-27a-408(7) does not apply.
778          (9) If a public transit service is organized after the date a county legislative body first
779     imposes a tax under this section, a change in a distribution required by this section may not
780     take effect until the first distribution the commission makes under this section after a 90-day
781     period that begins on the date the commission receives written notice from the public transit
782     provider that the public transit service has been organized.
783          (10) A county, city, or town that received distributions described in Subsections (4)(b),
784     (4)(c), (5)(b), (5)(c), (6)(b)(ii), (6)(b)(iii), (6)(c), and (7) may only expend those funds for a
785     purpose described in Section 59-12-2212.2.
786          (11) (a) Subject to Subsections (11)(b), (c), and (d), revenue designated for public
787     transit as described in this section may be used for capital expenses and service delivery
788     expenses of:
789          (i) a public transit district;
790          (ii) an eligible political subdivision; or
791          (iii) another entity providing a service for public transit or a transit facility within the
792     relevant county, as those terms are defined in Section 17B-2a-802.
793          (b) (i) If a county of the first class imposes a sales and use tax described in this section,
794     for a three-year period following the date on which the county imposes the sales and use tax
795     under this section, revenue designated for public transit within a county of the first class as
796     described in Subsection (4)(a) shall be transferred to the County of the First Class Highway
797     Projects Fund created in Section 72-2-121.
798          (ii) If a county of the first class imposes a sales and use tax described in this section,
799     beginning on the day three years after the date on which the county imposed the tax as
800     described in Subsection (11)(b)(i), for revenue designated for public transit as described in

801     Subsection (4)(a):
802          (A) 50% of the revenue from a sales and use tax imposed under this section in a county
803     of the first class shall be transferred to the County of the First Class Highway Projects Fund
804     created in Section 72-2-121; and
805          (B) 50% of the revenue from a sales and use tax imposed under this section in a county
806     of the first class shall be transferred to the Transit Transportation Investment Fund created in
807     Subsection 72-2-124(9).
808          (c) (i) If a county that is not a county of the first class for which the entire boundary of
809     the county is annexed into a large public transit district imposes a sales and use tax described in
810     this section, for a three-year period following the date on which the county imposes the sales
811     and use tax under this section, revenue designated for public transit as described in Subsection
812     (5)(a) shall be transferred to the relevant county legislative body to be used for a purpose
813     described in Subsection (11)(a).
814          (ii) If a county that is not a county of the first class for which the entire boundary of the
815     county is annexed into a large public transit district imposes a sales and use tax described in
816     this section, beginning on the day three years after the date on which the county imposed the
817     tax as described in Subsection (11)(c)(i), for the revenue that is designated for public transit in
818     Subsection (5)(a):
819          (A) 50% shall be transferred to the Transit Transportation Investment Fund created in
820     Subsection 72-2-124(9); and
821          (B) 50% shall be transferred to the relevant county legislative body to be used for a
822     purpose described in Subsection (11)(a).
823          (d) Except as provided in Subsection (12)(d), for a county that imposes a sales and use
824     tax under this section, for revenue designated for public transit as described in Subsection
825     (6)(b)(i), the revenue shall be transferred to the relevant county legislative body to be used for a
826     purpose described in Subsection (11)(a).
827          [(4)] (12) (a) Notwithstanding Section 59-12-2208, a county legislative body may, but
828     is not required to, submit an opinion question to the county's registered voters in accordance
829     with Section 59-12-2208 to impose a sales and use tax under this section.
830          Ĥ→ [
(b) Notwithstanding Section 59-12-2208 and subject to Subsection (12)(c), if a county
831     legislative body described in Subsection (4), (5), or (6) seeks to make an allocation or change
] ←Ĥ


832     Ĥ→ [
the distribution of sales and use tax revenue as described in Subsection (4), (5), or (6), the
833     county legislative body may make or change the allocation by adopting a resolution specifying
834     the new allocation or change in allocation.
835          (c) (i) If a county legislative body seeks to make or change the distribution as described
836     in Subsection (12)(b), the allocation shall take effect on the first day of a calendar quarter after
837     a 90-day period that begins on the date the commission receives written notice from the county
838     that meets the requirements of Subsection (12)(c)(ii).
839          (ii) The notice described in Subsection (12)(c)(i) shall state:
840          (A) that the county will make or change the percentage of an allocation under
841     Subsection (12)(b); and
842          (B) the percentage of revenue that will be allocated to the cities and towns, the county
843     legislative body, and, when applicable, the public transit provider.
]

843a          (b) If a county passes an ordinance to impose a sales and use tax as described in this
843b     section, the sales and use tax shall take effect on the first day of the calendar quarter after a
843c     90-day period that begins on the date the commission receives written notice from the county
843d     of the passage of the ordinance. ←Ĥ
844          Ĥ→ [
(d)] (c) ←Ĥ A county that imposed the local option sales and use tax described in this
844a     section
845     before January 1, 2023, may maintain that county's distribution allocation in place as of
846     January 1, 2023.
847          [(5) (a) Notwithstanding any other provision in this section, if a county wishes to
848     impose a sales and use tax under this section, the county legislative body shall pass the
849     ordinance to impose a sales and use tax under this section on or before June 30, 2023.]
850          [(b) The county legislative body may not pass an ordinance to impose a sales and use
851     tax under this section on or after July 1, 2023.]
852          [(c) Notwithstanding the deadline described in Subsection (5)(a), any sales and use tax
853     imposed under this section on or before June 30, 2023, may remain in effect.]
854          [(6)] (13) (a) Revenue collected from a sales and use tax under this section may not be
855     used to supplant existing General Fund appropriations that a county, city, or town [has]
856     budgeted for transportation or public transit as of the date the tax becomes effective for a
857     county, city, or town.
858          (b) The limitation under Subsection [(6)(a)] (13)(a) does not apply to a designated
859     transportation or public transit capital or reserve account a county [may have established prior
860     to], city, or town established before the date the tax becomes effective.
861          Section 6. Section 72-2-121 is amended to read:
862          72-2-121. County of the First Class Highway Projects Fund.

863          (1) There is created a special revenue fund within the Transportation Fund known as
864     the "County of the First Class Highway Projects Fund."
865          (2) The fund consists of money generated from the following revenue sources:
866          (a) any voluntary contributions received for new construction, major renovations, and
867     improvements to highways within a county of the first class;
868          (b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
869     deposited into or transferred to the fund;
870          (c) the portion of the sales and use tax described in Section 59-12-2217 deposited into
871     or transferred to the fund; [and]
872          (d) a portion of the local option highway construction and transportation corridor
873     preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited into
874     or transferred to the fund[.]; and
875          (e) the portion of the sales and use tax transferred into the fund as described in
876     Subsections 59-12-2220(4)(a) and 59-12-2220(11)(b).
877          (3) (a) The fund shall earn interest.
878          (b) All interest earned on fund money shall be deposited into the fund.
879          (4) [The] Subject to Subsection (9), the executive director shall use the fund money
880     only:
881          (a) to pay debt service and bond issuance costs for bonds issued under Sections
882     63B-16-102, 63B-18-402, and 63B-27-102;
883          (b) for right-of-way acquisition, new construction, major renovations, and
884     improvements to highways within a county of the first class and to pay any debt service and
885     bond issuance costs related to those projects, including improvements to a highway located
886     within a municipality in a county of the first class where the municipality is located within the
887     boundaries of more than a single county;
888          (c) for the construction, acquisition, use, maintenance, or operation of:
889          (i) an active transportation facility for nonmotorized vehicles;
890          (ii) multimodal transportation that connects an origin with a destination; or
891          (iii) a facility that may include a:
892          (A) pedestrian or nonmotorized vehicle trail;
893          (B) nonmotorized vehicle storage facility;

894          (C) pedestrian or vehicle bridge; or
895          (D) vehicle parking lot or parking structure;
896          (d) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
897     Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the amounts
898     transferred in accordance with Subsection 72-2-124(4)(a)(iv);
899          (e) for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
900     issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the projects
901     described in Subsection 63B-18-401(4)(a);
902          (f) for a fiscal year beginning on or after July 1, 2013, and after the department has
903     verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund, to
904     transfer an amount equal to 50% of the revenue generated by the local option highway
905     construction and transportation corridor preservation fee imposed under Section 41-1a-1222 in
906     a county of the first class:
907          (i) to the legislative body of a county of the first class; and
908          (ii) to be used by a county of the first class for:
909          (A) highway construction, reconstruction, or maintenance projects; or
910          (B) the enforcement of state motor vehicle and traffic laws;
911          (g) for a fiscal year beginning on or after July 1, 2015, after the department has verified
912     that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the
913     transfer under Subsection (4)(e) has been made, to annually transfer an amount of the sales and
914     use tax revenue imposed in a county of the first class and deposited into the fund in accordance
915     with Subsection 59-12-2214(3)(b) equal to an amount needed to cover the debt to:
916          (i) the appropriate debt service or sinking fund for the repayment of bonds issued under
917     Section 63B-27-102; and
918          (ii) the appropriate debt service or sinking fund for the repayment of bonds issued
919     under Sections 63B-31-102 and 63B-31-103;
920          (h) after the department has verified that the amount required under Subsection
921     72-2-121.3(4)(c) is available in the fund and after the transfer under Subsection (4)(d), the
922     payment under Subsection (4)(e), and the transfer under Subsection (4)(g)(i) has been made, to
923     annually transfer $2,000,000 to a public transit district in a county of the first class to fund a
924     system for public transit;

925          (i) for a fiscal year beginning on or after July 1, 2018, after the department has verified
926     that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and after
927     the transfer under Subsection (4)(d), the payment under Subsection (4)(e), and the transfer
928     under Subsection (4)(g)(i) has been made, to annually transfer 20% of the amount deposited
929     into the fund under Subsection (2)(b):
930          (i) to the legislative body of a county of the first class; and
931          (ii) to fund parking facilities in a county of the first class that facilitate significant
932     economic development and recreation and tourism within the state;
933          (j) for the 2018-19 fiscal year only, after the department has verified that the amount
934     required under Subsection 72-2-121.3(4)(c) is available in the fund and after the transfer under
935     Subsection (4)(d), the payment under Subsection (4)(e), and the transfers under Subsections
936     (4)(g), (h), and (i) have been made, to transfer $12,000,000 to the department to distribute for
937     the following projects:
938          (i) $2,000,000 to West Valley City for highway improvement to 4100 South;
939          (ii) $1,000,000 to Herriman for highway improvements to Herriman Boulevard from
940     6800 West to 7300 West;
941          (iii) $1,100,000 to South Jordan for highway improvements to Grandville Avenue;
942          (iv) $1,800,000 to Riverton for highway improvements to Old Liberty Way from 13400
943     South to 13200 South;
944          (v) $1,000,000 to Murray City for highway improvements to 5600 South from State
945     Street to Van Winkle;
946          (vi) $1,000,000 to Draper for highway improvements to Lone Peak Parkway from
947     11400 South to 12300 South;
948          (vii) $1,000,000 to Sandy City for right-of-way acquisition for Monroe Street;
949          (viii) $900,000 to South Jordan City for right-of-way acquisition and improvements to
950     10200 South from 2700 West to 3200 West;
951          (ix) $1,000,000 to West Jordan for highway improvements to 8600 South near
952     Mountain View Corridor;
953          (x) $700,000 to South Jordan right-of-way improvements to 10550 South; and
954          (xi) $500,000 to Salt Lake County for highway improvements to 2650 South from
955     7200 West to 8000 West; and

956          (k) subject to Subsection (5), for a fiscal year beginning on or after July 1, 2021, and
957     for 15 years thereafter, to annually transfer the following amounts to the following cities, metro
958     townships, and the county of the first class for priority projects to mitigate congestion and
959     improve transportation safety:
960          (i) $2,000,000 to Sandy;
961          (ii) $2,000,000 to Taylorsville;
962          (iii) $1,100,000 to Salt Lake City;
963          (iv) $1,100,000 to West Jordan;
964          (v) $1,100,000 to West Valley City;
965          (vi) $800,000 to Herriman;
966          (vii) $700,000 to Draper;
967          (viii) $700,000 to Riverton;
968          (ix) $700,000 to South Jordan;
969          (x) $500,000 to Bluffdale;
970          (xi) $500,000 to Midvale;
971          (xii) $500,000 to Millcreek;
972          (xiii) $500,000 to Murray;
973          (xiv) $400,000 to Cottonwood Heights; and
974          (xv) $300,000 to Holladay.
975          (5) (a) If revenue in the fund is insufficient to satisfy all of the transfers described in
976     Subsection (4)(k), the executive director shall proportionately reduce the amounts transferred
977     as described in Subsection (4)(k).
978          (b) A local government entity, as that term is defined in Section 63J-1-220, is exempt
979     from entering into an agreement as described in Section 63J-1-220 pertaining to the receipt or
980     expenditure of any funding described in Subsection (4)(k).
981          (c) A local government may not use revenue described in Subsection (4)(k) to supplant
982     existing class B or class C road funds that a local government has budgeted for transportation
983     projects.
984          (d) (i) A municipality or county that received a transfer of funds described in
985     Subsection (4)(j) shall submit to the department a statement of cash flow and progress
986     pertaining to the municipality's or county's respective project described in Subsection (4)(j).

987          (ii) After the department is satisfied that the municipality or county described in
988     Subsection (4)(j) has made substantial progress and the expenditure of funds is programmed
989     and imminent, the department may transfer to the same municipality or county the respective
990     amounts described in Subsection (4)(k).
991          (6) The revenues described in Subsections (2)(b), (c), and (d) that are deposited into the
992     fund and bond proceeds from bonds issued under Sections 63B-16-102, 63B-18-402, and
993     63B-27-102 are considered a local matching contribution for the purposes described under
994     Section 72-2-123.
995          (7) The additional administrative costs of the department to administer this fund shall
996     be paid from money in the fund.
997          (8) [Notwithstanding] Subject to Subsection (9), and notwithstanding any statutory or
998     other restrictions on the use or expenditure of the revenue sources deposited into this fund, the
999     Department of Transportation may use the money in this fund for any of the purposes detailed
1000     in Subsection (4).
1001          [(9) As resources allow, the department shall study in 2020 transportation connectivity
1002     in the southwest valley of Salt Lake County, including the feasibility of connecting major
1003     east-west corridors to U-111.]
1004          (9) Any revenue deposited into the fund as described in Subsection (2)(e) shall be used
1005     to provide funding or loans for public transit projects, operations, and supporting infrastructure
1006     in the county of the first class.
1007          Section 7. Section 72-2-124 is amended to read:
1008          72-2-124. Transportation Investment Fund of 2005.
1009          (1) There is created a capital projects fund entitled the Transportation Investment Fund
1010     of 2005.
1011          (2) The fund consists of money generated from the following sources:
1012          (a) any voluntary contributions received for the maintenance, construction,
1013     reconstruction, or renovation of state and federal highways;
1014          (b) appropriations made to the fund by the Legislature;
1015          (c) registration fees designated under Section 41-1a-1201;
1016          (d) the sales and use tax revenues deposited into the fund in accordance with Section
1017     59-12-103; and

1018          (e) revenues transferred to the fund in accordance with Section 72-2-106.
1019          (3) (a) The fund shall earn interest.
1020          (b) All interest earned on fund money shall be deposited into the fund.
1021          (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
1022     fund money to pay:
1023          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
1024     federal highways prioritized by the Transportation Commission through the prioritization
1025     process for new transportation capacity projects adopted under Section 72-1-304;
1026          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
1027     projects described in Subsections 63B-18-401(2), (3), and (4);
1028          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
1029     minus the costs paid from the County of the First Class Highway Projects Fund in accordance
1030     with Subsection 72-2-121(4)(e);
1031          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
1032     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
1033     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
1034     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
1035          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
1036     for projects prioritized in accordance with Section 72-2-125;
1037          (vi) all highway general obligation bonds that are intended to be paid from revenues in
1038     the Centennial Highway Fund created by Section 72-2-118;
1039          (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
1040     Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
1041     in Section 72-2-121;
1042          (viii) if a political subdivision provides a contribution equal to or greater than 40% of
1043     the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
1044     nonmotorized transportation for projects that:
1045          (A) mitigate traffic congestion on the state highway system;
1046          (B) are part of an active transportation plan approved by the department; and
1047          (C) are prioritized by the commission through the prioritization process for new
1048     transportation capacity projects adopted under Section 72-1-304;

1049          (ix) $705,000,000 for the costs of right-of-way acquisition, construction,
1050     reconstruction, or renovation of or improvement to the following projects:
1051          (A) the connector road between Main Street and 1600 North in the city of Vineyard;
1052          (B) Geneva Road from University Parkway to 1800 South;
1053          (C) the SR-97 interchange at 5600 South on I-15;
1054          (D) two lanes on U-111 from Herriman Parkway to 11800 South;
1055          (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
1056          (F) improvements to 1600 North in Orem from 1200 West to State Street;
1057          (G) widening I-15 between mileposts 6 and 8;
1058          (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
1059          (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197 in
1060     Spanish Fork Canyon;
1061          (J) I-15 northbound between mileposts 43 and 56;
1062          (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts 43
1063     and 45.1;
1064          (L) east Zion SR-9 improvements;
1065          (M) Toquerville Parkway;
1066          (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
1067          (O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds, for
1068     construction of an interchange on Bangerter Highway at 13400 South; and
1069          (P) an environmental impact study for Kimball Junction in Summit County; and
1070          (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
1071     costs based upon a statement of cash flow that the local jurisdiction where the project is located
1072     provides to the department demonstrating the need for money for the project, for the following
1073     projects in the following amounts:
1074          (A) $5,000,000 for Payson Main Street repair and replacement;
1075          (B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
1076          (C) $5,000,000 for improvements to 4700 South in Taylorsville; and
1077          (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S. 40
1078     between mile markers 7 and 10.
1079          (b) The executive director may use fund money to exchange for an equal or greater

1080     amount of federal transportation funds to be used as provided in Subsection (4)(a).
1081          (5) (a) Except as provided in Subsection (5)(b), if the department receives a notice of
1082     ineligibility for a municipality as described in Subsection 10-9a-408(7), the executive director
1083     may not program fund money to a project prioritized by the commission under Section
1084     72-1-304, including fund money from the Transit Transportation Investment Fund, within the
1085     boundaries of the municipality during the fiscal year specified in the notice.
1086          (b) Within the boundaries of a municipality described in Subsection (5)(a), the
1087     executive director:
1088          (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
1089     facility or interchange connecting limited-access facilities;
1090          (ii) may not program fund money for the construction, reconstruction, or renovation of
1091     an interchange on a limited-access facility;
1092          (iii) may program Transit Transportation Investment Fund money for a
1093     multi-community fixed guideway public transportation project; and
1094          (iv) may not program Transit Transportation Investment Fund money for the
1095     construction, reconstruction, or renovation of a station that is part of a fixed guideway public
1096     transportation project.
1097          (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
1098     director before July 1, 2022, for projects prioritized by the commission under Section
1099     72-1-304.
1100          (6) (a) Except as provided in Subsection (6)(b), if the department receives a notice of
1101     ineligibility for a county as described in Subsection 17-27a-408(7), the executive director may
1102     not program fund money to a project prioritized by the commission under Section 72-1-304,
1103     including fund money from the Transit Transportation Investment Fund, within the boundaries
1104     of the unincorporated area of the county during the fiscal year specified in the notice.
1105          (b) Within the boundaries of the unincorporated area of a county described in
1106     Subsection (6)(a), the executive director:
1107          (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
1108     facility to a project prioritized by the commission under Section 72-1-304;
1109          (ii) may not program fund money for the construction, reconstruction, or renovation of
1110     an interchange on a limited-access facility;

1111          (iii) may program Transit Transportation Investment Fund money for a
1112     multi-community fixed guideway public transportation project; and
1113          (iv) may not program Transit Transportation Investment Fund money for the
1114     construction, reconstruction, or renovation of a station that is part of a fixed guideway public
1115     transportation project.
1116          (c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive
1117     director before July 1, 2022, for projects prioritized by the commission under Section
1118     72-1-304.
1119          (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
1120     in any fiscal year, the department and the commission shall appear before the Executive
1121     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
1122     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
1123     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
1124          (b) The Executive Appropriations Committee of the Legislature shall review and
1125     comment on the amount of bond proceeds needed to fund the projects.
1126          (8) The Division of Finance shall, from money deposited into the fund, transfer the
1127     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
1128     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
1129     sinking fund.
1130          (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
1131     Transportation Investment Fund.
1132          (b) The fund shall be funded by:
1133          (i) contributions deposited into the fund in accordance with Section 59-12-103;
1134          (ii) appropriations into the account by the Legislature;
1135          (iii) deposits of sales and use tax increment related to a housing and transit
1136     reinvestment zone as described in Section 63N-3-610;
1137          (iv) transfers of local option sales and use tax revenue as described in Subsection
1138     59-12-2220(11)(b) or (c);
1139          [(iv)] (v) private contributions; and
1140          [(v)] (vi) donations or grants from public or private entities.
1141          (c) (i) The fund shall earn interest.

1142          (ii) All interest earned on fund money shall be deposited into the fund.
1143          (d) Subject to Subsection (9)(e), the Legislature may appropriate money from the fund:
1144          (i) for public transit capital development of new capacity projects and fixed guideway
1145     capital development projects to be used as prioritized by the commission through the
1146     prioritization process adopted under Section 72-1-304;
1147          (ii) for development of the oversight plan described in Section 72-1-202(5); or
1148          (iii) to the department for oversight of a fixed guideway capital development project
1149     for which the department has responsibility.
1150          (e) (i) [The] Subject to Subsections (9)(g) and (h), the Legislature may only appropriate
1151     money from the fund for a public transit capital development project or pedestrian or
1152     nonmotorized transportation project that provides connection to the public transit system if the
1153     public transit district or political subdivision provides funds of equal to or greater than 40% of
1154     the costs needed for the project.
1155          (ii) A public transit district or political subdivision may use money derived from a loan
1156     granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
1157     part of the 40% requirement described in Subsection (9)(e)(i) if:
1158          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
1159     State Infrastructure Bank Fund; and
1160          (B) the proposed capital project has been prioritized by the commission pursuant to
1161     Section 72-1-303.
1162          (f) Before July 1, 2022, the department and a large public transit district shall enter into
1163     an agreement for a large public transit district to pay the department $5,000,000 per year for 15
1164     years to be used to facilitate the purchase of zero emissions or low emissions rail engines and
1165     trainsets for regional public transit rail systems.
1166          (g) For any revenue transferred into the fund pursuant to Subsection
1167     59-12-2220(11)(b):
1168          (i) the commission may prioritize money from the fund for public transit projects,
1169     operations, or maintenance within the county of the first class; and
1170          (ii) Subsection (9)(e) does not apply.
1171          (h) For any revenue transferred into the fund pursuant to Subsection
1172     59-12-2220(11)(c):

1173          (i) the commission may prioritize public transit projects, operations, or maintenance in
1174     the county from which the revenue was generated; and
1175          (ii) Subsection (9)(e) does not apply.
1176          (10) (a) There is created in the Transportation Investment Fund of 2005 the
1177     Cottonwood Canyons Transportation Investment Fund.
1178          (b) The fund shall be funded by:
1179          (i) money deposited into the fund in accordance with Section 59-12-103;
1180          (ii) appropriations into the account by the Legislature;
1181          (iii) private contributions; and
1182          (iv) donations or grants from public or private entities.
1183          (c) (i) The fund shall earn interest.
1184          (ii) All interest earned on fund money shall be deposited into the fund.
1185          (d) The Legislature may appropriate money from the fund for public transit or
1186     transportation projects in the Cottonwood Canyons of Salt Lake County.