Representative Kay J. Christofferson proposes the following substitute bill:


1     
TRANSPORTATION AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Wayne A. Harper

5     
House Sponsor: Kay J. Christofferson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to active transportation, local option sales taxes, the
10     Department of Transportation, and other transportation items.
11     Highlighted Provisions:
12          This bill:
13          ▸     creates the Active Transportation Investment Fund within the Transportation
14     Investment Fund of 2005 to be used to develop active transportation infrastructure;
15          ▸     amends provisions related to the responsibilities of the executive director and
16     deputy directors of the Department of Transportation;
17          ▸     amends provisions related to the account for the road usage charge;
18          ▸     requires a report from the Department of Transportation to the Transportation
19     Commission regarding the status of certain transportation construction projects;
20          ▸     makes various technical amendments to clarify duties of the Department of
21     Transportation related to public transit capital development;
22          ▸     requires the Department of Transportation to create an account within the State
23     Infrastructure Bank for loans for certain types of development;
24          ▸     amends preemption provisions related to permitting of vertiports; and
25          ▸     makes technical changes.

26     Money Appropriated in this Bill:
27          None
28     Other Special Clauses:
29          This bill provides a special effective date.
30          This bill provides a coordination clause.
31     Utah Code Sections Affected:
32     AMENDS:
33          17B-2a-806, as last amended by Laws of Utah 2022, Chapter 69
34          41-1a-226, as last amended by Laws of Utah 2022, Chapter 259
35          41-1a-401, as last amended by Laws of Utah 2022, Chapter 259
36          41-1a-422, as last amended by Laws of Utah 2022, Chapters 19, 48, 68, 255, 259, 335,
37     451, and 456
38          41-1a-1206, as last amended by Laws of Utah 2022, Chapters 56, 259
39          41-6a-1642, as last amended by Laws of Utah 2022, Chapters 160, 259
40          41-21-1, as last amended by Laws of Utah 2022, Chapter 259
41          59-12-103, as last amended by Laws of Utah 2022, Chapters 77, 106 and 433
42          72-1-102, as last amended by Laws of Utah 2022, Chapter 69
43          72-1-202, as last amended by Laws of Utah 2022, Chapter 69
44          72-1-203, as last amended by Laws of Utah 2019, Chapter 479
45          72-1-213.2, as last amended by Laws of Utah 2022, Chapter 259
46          72-1-304, as last amended by Laws of Utah 2022, Chapter 406
47          72-1-305, as last amended by Laws of Utah 2018, Chapter 424
48          72-2-106, as last amended by Laws of Utah 2017, Chapters 144, 234
49          72-2-107, as last amended by Laws of Utah 2020, Chapter 377
50          72-2-123, as last amended by Laws of Utah 2008, Chapter 382
51          72-2-124, as last amended by Laws of Utah 2022, Chapters 69, 259 and 406
52          72-2-202, as last amended by Laws of Utah 2022, Chapter 463
53          72-5-102, as last amended by Laws of Utah 2021, Chapter 222
54          72-5-114, as renumbered and amended by Laws of Utah 1998, Chapter 270
55          72-6-112.5, as last amended by Laws of Utah 2019, Chapter 43
56          72-14-103, as last amended by Laws of Utah 2022, Chapter 99

57          72-16-102, as last amended by Laws of Utah 2020, Chapter 423
58     Utah Code Sections Affected by Coordination Clause:
59          72-14-103, as last amended by Laws of Utah 2022, Chapter 99
60     

61     Be it enacted by the Legislature of the state of Utah:
62          Section 1. Section 17B-2a-806 is amended to read:
63          17B-2a-806. Authority of the state or an agency of the state with respect to a
64     public transit district -- Counties and municipalities authorized to provide funds to
65     public transit district -- Equitable allocation of resources within the public transit
66     district.
67          (1) The state or an agency of the state may:
68          (a) make public contributions to a public transit district as in the judgment of the
69     Legislature or governing board of the agency are necessary or proper; [or]
70          (b) authorize a public transit district to perform, or aid and assist a public transit district
71     in performing, an activity that the state or agency is authorized by law to perform[.]; or
72          (c) perform any action that the state agency is authorized by law to perform for the
73     benefit of a public transit district.
74          (2) (a) A county or municipality involved in the establishment and operation of a
75     public transit district may provide funds necessary for the operation and maintenance of the
76     district.
77          (b) A county's use of property tax funds to establish and operate a public transit district
78     within any part of the county is a county purpose under Section 17-53-220.
79          (3) (a) To allocate resources and funds for development and operation of a public
80     transit district, whether received under this section or from other sources, and subject to
81     Section 72-1-202 pertaining to fixed guideway capital development within a large public transit
82     district, a public transit district may:
83          (i) give priority to public transit services that feed rail fixed guideway services; and
84          (ii) allocate funds according to population distribution within the public transit district.
85          (b) The comptroller of a public transit district shall report the criteria and data
86     supporting the allocation of resources and funds in the statement required in Section
87     17B-2a-812.

88          Section 2. Section 41-1a-226 is amended to read:
89          41-1a-226. Vintage vehicle -- Signed statement -- Registration.
90          (1) The owner of a vintage vehicle who applies for registration under this part shall
91     provide a signed statement that the vintage vehicle:
92          (a) is owned and operated for the purposes described in Section 41-21-1; and
93          (b) is safe to operate on the highways of this state as described in Section 41-21-4.
94          (2) For a vintage vehicle with a model year of [1980] 1982 or older, the signed
95     statement described in Subsection (1) is in lieu of an emissions inspection, from which a
96     vintage vehicle is exempt under Subsection 41-6a-1642(4).
97          (3) Before registration of a vintage vehicle that has a model year of [1981] 1983 or
98     newer, an owner shall:
99          (a) obtain a certificate of emissions inspection as provided in Section 41-6a-1642; or
100          (b) provide proof of vehicle insurance coverage for the vintage vehicle that is a type
101     specific to a vehicle collector.
102          Section 3. Section 41-1a-401 is amended to read:
103          41-1a-401. License plates -- Number of plates -- Reflectorization -- Indicia of
104     registration in lieu of or used with plates.
105          (1) (a) Except as provided in Subsection (1)(c), the division upon registering a vehicle
106     shall issue to the owner:
107          (i) one license plate for a motorcycle, trailer, or semitrailer;
108          (ii) one decal for a park model recreational vehicle, in lieu of a license plate, which
109     shall be attached in plain sight to the rear of the park model recreational vehicle;
110          (iii) one decal for a camper, in lieu of a license plate, which shall be attached in plain
111     sight to the rear of the camper; and
112          (iv) two identical license plates for every other vehicle.
113          (b) The license plate or decal issued under Subsection (1)(a) is for the particular
114     vehicle registered and may not be removed during the term for which the license plate or decal
115     is issued or used upon any other vehicle than the registered vehicle.
116          (c) (i) Notwithstanding Subsections (1)(a) and (b) and except as provided in Subsection
117     (1)(c)(ii), the division, upon registering a motor vehicle that has been sold, traded, or the
118     ownership of which has been otherwise released, shall transfer the license plate issued to the

119     person applying to register the vehicle if:
120          (A) the previous registered owner has included the license plate as part of the sale,
121     trade, or ownership release; and
122          (B) the person applying to register the vehicle applies to transfer the license plate to the
123     new registered owner of the vehicle.
124          (ii) The division may not transfer a personalized or special group license plate to a new
125     registered owner under this Subsection (1)(c) if the new registered owner does not meet the
126     qualification or eligibility requirements for that personalized or special group license plate
127     under Sections 41-1a-410 through 41-1a-422.
128          (2) The division may receive applications for registration renewal, renew registration,
129     and issue new license plates or decals at any time prior to the expiration of registration.
130          (3) (a) (i) Except as provided in Subsection (3)(a)(iii), all license plates to be
131     manufactured and issued by the division shall be treated with a fully reflective material on the
132     plate face that provides effective and dependable reflective brightness during the service period
133     of the license plate.
134          (ii) Except as provided in Subsection (3)(a)(iii), for a historical support special group
135     license plate created under this part, the division shall procure reflective material to satisfy the
136     requirement under Subsection (3)(a)(i) as soon as such material is available at a reasonable
137     cost.
138          (iii) Notwithstanding the reflectivity requirement described in Subsection (3)(a)(i), the
139     division may manufacture and issue a historical support special group license plate without a
140     fully reflective plate face if:
141          (A) the historical special group license plate is requested for a vintage vehicle that has
142     a model year of [1980] 1982 or older; and
143          (B) the division has manufacturing equipment and technology available to produce the
144     plate in small quantities.
145          (b) The division shall prescribe all license plate material specifications and establish
146     and implement procedures for conforming to the specifications.
147          (c) The specifications for the materials used such as the aluminum plate substrate, the
148     reflective sheeting, and glue shall be drawn in a manner so that at least two manufacturers may
149     qualify as suppliers.

150          (d) The granting of contracts for the materials shall be by public bid.
151          (4) (a) The commission may issue, adopt, and require the use of indicia of registration
152     it considers advisable in lieu of or in conjunction with license plates as provided in this part.
153          (b) All provisions of this part relative to license plates apply to these indicia of
154     registration, so far as the provisions are applicable.
155          (5) A violation of this section is an infraction.
156          Section 4. Section 41-1a-422 is amended to read:
157          41-1a-422. Support special group license plates -- Contributor -- Voluntary
158     contribution collection procedures.
159          (1) As used in this section:
160          (a) (i) except as provided in Subsection (1)(a)(ii), "contributor" means a person who
161     has donated or in whose name at least $25 has been donated to:
162          (A) a scholastic scholarship fund of a single named institution;
163          (B) the Department of Veterans and Military Affairs for veterans programs;
164          (C) the Division of Wildlife Resources for the Wildlife Resources Account created in
165     Section 23-14-13, for conservation of wildlife and the enhancement, preservation, protection,
166     access, and management of wildlife habitat;
167          (D) the Department of Agriculture and Food for the benefit of conservation districts;
168          (E) the Division of Outdoor Recreation for the benefit of snowmobile programs;
169          (F) the Guardian Ad Litem Services Account and the Children's Museum of Utah, with
170     the donation evenly divided between the two;
171          (G) the Boy Scouts of America for the benefit of a Utah Boy Scouts of America
172     council as specified by the contributor;
173          (H) No More Homeless Pets in Utah for distribution to organizations or individuals
174     that provide spay and neuter programs that subsidize the sterilization of domestic animals;
175          (I) the Utah Alliance of Boys and Girls Clubs, Inc. to provide and enhance youth
176     development programs;
177          (J) the Utah Association of Public School Foundations to support public education;
178          (K) the Utah Housing Opportunity Restricted Account created in Section 61-2-204 to
179     assist people who have severe housing needs;
180          (L) the Public Safety Honoring Heroes Restricted Account created in Section 53-1-118

181     to support the families of fallen Utah Highway Patrol troopers and other Department of Public
182     Safety employees;
183          (M) the Division of Outdoor Recreation for distribution to organizations that provide
184     support for Zion National Park;
185          (N) the Firefighter Support Restricted Account created in Section 53-7-109 to support
186     firefighter organizations;
187          (O) the Share the Road Bicycle Support Restricted Account created in Section
188     72-2-127 to support bicycle operation and safety awareness programs;
189          (P) the Cancer Research Restricted Account created in Section 26-21a-302 to support
190     cancer research programs;
191          (Q) Autism Awareness Restricted Account created in Section 53F-9-401 to support
192     autism awareness programs;
193          (R) Humanitarian Service and Educational and Cultural Exchange Restricted Account
194     created in Section 9-17-102 to support humanitarian service and educational and cultural
195     programs;
196          (S) Upon renewal of a prostate cancer support special group license plate, to the
197     Cancer Research Restricted Account created in Section 26-21a-302 to support cancer research
198     programs;
199          (T) the Choose Life Adoption Support Restricted Account created in Section 80-2-502
200     to support programs that promote adoption;
201          (U) the National Professional Men's Basketball Team Support of Women and Children
202     Issues Restricted Account created in Section 26B-1-302;
203          (V) the Utah Law Enforcement Memorial Support Restricted Account created in
204     Section 53-1-120;
205          (W) the Children with Cancer Support Restricted Account created in Section
206     26-21a-304 for programs that provide assistance to children with cancer;
207          (X) the National Professional Men's Soccer Team Support of Building Communities
208     Restricted Account created in Section 9-19-102;
209          (Y) the Children with Heart Disease Support Restricted Account created in Section
210     26-58-102;
211          (Z) the Utah Intracurricular Student Organization Support for Agricultural Education

212     and Leadership Restricted Account created in Section 4-42-102;
213          (AA) the Division of Wildlife Resources for the Support for State-Owned Shooting
214     Ranges Restricted Account created in Section 23-14-13.5, for the creation of new, and
215     operation and maintenance of existing, state-owned firearm shooting ranges;
216          (BB) the Utah State Historical Society to further the mission and purpose of the Utah
217     State Historical Society;
218          (CC) the Motorcycle Safety Awareness Support Restricted Account created in Section
219     72-2-130;
220          (DD) clean air support causes, with half of the donation deposited into the Clean Air
221     Support Restricted Account created in Section 19-1-109, and half of the donation deposited
222     into the Clean Air Fund created in Section 59-10-1319;
223          (EE) the Latino Community Support Restricted Account created in Section 13-1-16;
224          (FF) the Allyson Gamble Organ Donation Contribution Fund created in Section
225     26-18b-101;
226          (GG) public education on behalf of the Kiwanis International clubs, with the amount of
227     the donation required to cover the costs of issuing, ordering, or reordering Kiwanis support
228     special group plates, as determined by the State Tax Commission, deposited into the Kiwanis
229     Education Support Fund created in Section 53F-9-403, and all remaining donation amounts
230     deposited into the Uniform School Fund;
231          (HH) the Governor's Suicide Prevention Fund created in Section 62A-15-1103 to
232     support the Live On suicide prevention campaign administered by the Division of Integrated
233     Healthcare; or
234          (II) the State Park Fees Restricted Account created in Section 79-4-402 to support the
235     Division of State Parks' dark sky initiative.
236          (ii) (A) For a veterans special group license plate described in Subsection (4) or
237     41-1a-421(1)(a)(v), "contributor" means a person who has donated or in whose name at least a
238     $25 donation at the time of application and $10 annual donation thereafter has been made.
239          (B) For a Utah Housing Opportunity special group license plate, "contributor" means a
240     person who:
241          (I) has donated or in whose name at least $30 has been donated at the time of
242     application and annually after the time of application; and

243          (II) is a member of a trade organization for real estate licensees that has more than
244     15,000 Utah members.
245          (C) For an Honoring Heroes special group license plate, "contributor" means a person
246     who has donated or in whose name at least $35 has been donated at the time of application and
247     annually thereafter.
248          (D) For a firefighter support special group license plate, "contributor" means a person
249     who:
250          (I) has donated or in whose name at least $15 has been donated at the time of
251     application and annually after the time of application; and
252          (II) is a currently employed, volunteer, or retired firefighter.
253          (E) For a cancer research special group license plate, "contributor" means a person who
254     has donated or in whose name at least $35 has been donated at the time of application and
255     annually after the time of application.
256          (F) For a Utah Law Enforcement Memorial Support special group license plate,
257     "contributor" means a person who has donated or in whose name at least $35 has been donated
258     at the time of application and annually thereafter.
259          (b) "Institution" means a state institution of higher education as defined under Section
260     53B-3-102 or a private institution of higher education in the state accredited by a regional or
261     national accrediting agency recognized by the United States Department of Education.
262          (2) (a) An applicant for original or renewal collegiate special group license plates under
263     Subsection (1)(a)(i) must be a contributor to the institution named in the application and
264     present the original contribution verification form under Subsection (2)(b) or make a
265     contribution to the division at the time of application under Subsection (3).
266          (b) An institution with a support special group license plate shall issue to a contributor
267     a verification form designed by the commission containing:
268          (i) the name of the contributor;
269          (ii) the institution to which a donation was made;
270          (iii) the date of the donation; and
271          (iv) an attestation that the donation was for a scholastic scholarship.
272          (c) The state auditor may audit each institution to verify that the money collected by the
273     institutions from contributors is used for scholastic scholarships.

274          (d) After an applicant has been issued collegiate license plates or renewal decals, the
275     commission shall charge the institution whose plate was issued, a fee determined in accordance
276     with Section 63J-1-504 for management and administrative expenses incurred in issuing and
277     renewing the collegiate license plates.
278          (e) If the contribution is made at the time of application, the contribution shall be
279     collected, treated, and deposited as provided under Subsection (3).
280          (3) (a) (i) Except as provided in Subsection (3)(a)(ii), an applicant for original or
281     renewal support special group license plates under this section must be a contributor to the
282     sponsoring organization associated with the license plate.
283          (ii) An applicant for a historical special group license plate is not required to make a
284     donation to the Utah State Historical Society if the historical special group license plate is for a
285     vintage vehicle that has a model year of [1980] 1982 or older.
286          (b) This contribution shall be:
287          (i) unless collected by the named institution under Subsection (2), collected by the
288     division;
289          (ii) considered a voluntary contribution for the funding of the activities specified under
290     this section and not a motor vehicle registration fee;
291          (iii) deposited into the appropriate account less actual administrative costs associated
292     with issuing the license plates; and
293          (iv) for a firefighter special group license plate, deposited into the appropriate account
294     less:
295          (A) the costs of reordering firefighter special group license plate decals; and
296          (B) the costs of replacing recognition special group license plates with new license
297     plates under Subsection 41-1a-1211(13).
298          (c) The donation described in Subsection (1)(a) must be made in the 12 months before
299     registration or renewal of registration.
300          (d) The donation described in Subsection (1)(a) shall be a one-time donation made to
301     the division when issuing original:
302          (i) snowmobile license plates; or
303          (ii) conservation license plates.
304          (4) Veterans license plates shall display one of the symbols representing the Army,

305     Navy, Air Force, Marines, Coast Guard, or American Legion.
306          Section 5. Section 41-1a-1206 is amended to read:
307          41-1a-1206. Registration fees -- Fees by gross laden weight.
308          (1) Except as provided in Subsections (2) and (3), at the time application is made for
309     registration or renewal of registration of a vehicle or combination of vehicles under this
310     chapter, a registration fee shall be paid to the division as follows:
311          (a) $46.00 for each motorcycle;
312          (b) $44 for each motor vehicle of 12,000 pounds or less gross laden weight, excluding
313     motorcycles;
314          (c) unless the semitrailer or trailer is exempt from registration under Section 41-1a-202
315     or is registered under Section 41-1a-301:
316          (i) $31 for each trailer or semitrailer over 750 pounds gross unladen weight; or
317          (ii) $28.50 for each commercial trailer or commercial semitrailer of 750 pounds or less
318     gross unladen weight;
319          (d) (i) $53 for each farm truck over 12,000 pounds, but not exceeding 14,000 pounds
320     gross laden weight; plus
321          (ii) $9 for each 2,000 pounds over 14,000 pounds gross laden weight;
322          (e) (i) $69.50 for each motor vehicle or combination of motor vehicles, excluding farm
323     trucks, over 12,000 pounds, but not exceeding 14,000 pounds gross laden weight; plus
324          (ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
325          (f) (i) $69.50 for each park model recreational vehicle over 12,000 pounds, but not
326     exceeding 14,000 pounds gross laden weight; plus
327          (ii) $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
328          (g) $45 for each vintage vehicle that has a model year of [1981] 1983 or newer;
329          (h) in addition to the fee described in Subsection (1)(b):
330          (i) an amount equal to the road usage charge cap described in Section 72-1-213.1 for:
331          (A) each electric motor vehicle; and
332          (B) Each motor vehicle not described in this Subsection (1)(h) that is fueled
333     exclusively by a source other than motor fuel, diesel fuel, natural gas, or propane;
334          (ii) $21.75 for each hybrid electric motor vehicle; and
335          (iii) $56.50 for each plug-in hybrid electric motor vehicle; and

336          (i) in addition to the fee described in Subsection (1)(g), for a vintage vehicle that has a
337     model year of [1981] 1983 or newer, 50 cents.
338          (2) (a) At the time application is made for registration or renewal of registration of a
339     vehicle under this chapter for a six-month registration period under Section 41-1a-215.5, a
340     registration fee shall be paid to the division as follows:
341          (i) $34.50 for each motorcycle; and
342          (ii) $33.50 for each motor vehicle of 12,000 pounds or less gross laden weight,
343     excluding motorcycles.
344          (b) In addition to the fee described in Subsection (2)(a)(ii), for registration or renewal
345     of registration of a vehicle under this chapter for a six-month registration period under Section
346     41-1a-215.5 a registration fee shall be paid to the division as follows:
347          (i) an amount equal to the road usage charge cap described in Section 72-1-213.1 for:
348          (A) each electric motor vehicle; and
349          (B) each motor vehicle not described in this Subsection (2)(b) that is fueled exclusively
350     by a source other than motor fuel, diesel fuel, natural gas, or propane;
351          (ii) $16.50 for each hybrid electric motor vehicle; and
352          (iii) $43.50 for each plug-in hybrid electric motor vehicle.
353          (3) (a) (i) Beginning on January 1, 2019, the commission shall, on January 1, annually
354     adjust the registration fees described in Subsections (1)(a), (1)(b), (1)(c)(i), (1)(c)(ii), (1)(d)(i),
355     (1)(e)(i), (1)(f)(i), (1)(g), (2)(a), (4)(a), and (7), by taking the registration fee rate for the
356     previous year and adding an amount equal to the greater of:
357          (A) an amount calculated by multiplying the registration fee of the previous year by the
358     actual percentage change during the previous fiscal year in the Consumer Price Index; and
359          (B) 0.
360          (ii) Beginning on January 1, 2024, the commission shall, on January 1, annually adjust
361     the registration fees described in Subsections (1)(h)(ii) and (iii) and (2)(b)(ii) and (iii) by taking
362     the registration fee rate for the previous year and adding an amount equal to the greater of:
363          (A) an amount calculated by multiplying the registration fee of the previous year by the
364     actual percentage change during the previous fiscal year in the Consumer Price Index; and
365          (B) 0.
366          (b) The amounts calculated as described in Subsection (3)(a) shall be rounded up to the

367     nearest 25 cents.
368          (4) (a) The initial registration fee for a vintage vehicle that has a model year of [1980]
369     1982 or older is $40.
370          (b) A vintage vehicle that has a model year of [1980] 1982 or older is exempt from the
371     renewal of registration fees under Subsection (1).
372          (c) A vehicle with a Purple Heart special group license plate issued in accordance with
373     Section 41-1a-421 is exempt from the registration fees under Subsection (1).
374          (d) A camper is exempt from the registration fees under Subsection (1).
375          (5) If a motor vehicle is operated in combination with a semitrailer or trailer, each
376     motor vehicle shall register for the total gross laden weight of all units of the combination if the
377     total gross laden weight of the combination exceeds 12,000 pounds.
378          (6) (a) Registration fee categories under this section are based on the gross laden
379     weight declared in the licensee's application for registration.
380          (b) Gross laden weight shall be computed in units of 2,000 pounds. A fractional part
381     of 2,000 pounds is a full unit.
382          (7) The owner of a commercial trailer or commercial semitrailer may, as an alternative
383     to registering under Subsection (1)(c), apply for and obtain a special registration and license
384     plate for a fee of $130.
385          (8) Except as provided in Section 41-6a-1642, a truck may not be registered as a farm
386     truck unless:
387          (a) the truck meets the definition of a farm truck under Section 41-1a-102; and
388          (b) (i) the truck has a gross vehicle weight rating of more than 12,000 pounds; or
389          (ii) the truck has a gross vehicle weight rating of 12,000 pounds or less and the owner
390     submits to the division a certificate of emissions inspection or a waiver in compliance with
391     Section 41-6a-1642.
392          (9) A violation of Subsection (8) is an infraction that shall be punished by a fine of not
393     less than $200.
394          (10) Trucks used exclusively to pump cement, bore wells, or perform crane services
395     with a crane lift capacity of five or more tons, are exempt from 50% of the amount of the fees
396     required for those vehicles under this section.
397          Section 6. Section 41-6a-1642 is amended to read:

398          41-6a-1642. Emissions inspection -- County program.
399          (1) The legislative body of each county required under federal law to utilize a motor
400     vehicle emissions inspection and maintenance program or in which an emissions inspection
401     and maintenance program is necessary to attain or maintain any national ambient air quality
402     standard shall require:
403          (a) a certificate of emissions inspection, a waiver, or other evidence the motor vehicle
404     is exempt from emissions inspection and maintenance program requirements be presented:
405          (i) as a condition of registration or renewal of registration; and
406          (ii) at other times as the county legislative body may require to enforce inspection
407     requirements for individual motor vehicles, except that the county legislative body may not
408     routinely require a certificate of emissions inspection, or waiver of the certificate, more often
409     than required under Subsection (9); and
410          (b) compliance with this section for a motor vehicle registered or principally operated
411     in the county and owned by or being used by a department, division, instrumentality, agency, or
412     employee of:
413          (i) the federal government;
414          (ii) the state and any of its agencies; or
415          (iii) a political subdivision of the state, including school districts.
416          (2) A vehicle owner subject to Subsection (1) shall obtain a motor vehicle emissions
417     inspection and maintenance program certificate of emissions inspection as described in
418     Subsection (1), but the program may not deny vehicle registration based solely on the presence
419     of a defeat device covered in the Volkswagen partial consent decrees or a United States
420     Environmental Protection Agency-approved vehicle modification in the following vehicles:
421          (a) a 2.0-liter diesel engine motor vehicle in which its lifetime nitrogen oxide
422     emissions are mitigated in the state pursuant to a partial consent decree, including:
423          (i) Volkswagen Jetta, model years 2009, 2010, 2011, 2012, 2013, 2014, and 2015;
424          (ii) Volkswagen Jetta Sportwagen, model years 2009, 2010, 2011, 2012, 2013, and
425     2014;
426          (iii) Volkswagen Golf, model years 2010, 2011, 2012, 2013, 2014, and 2015;
427          (iv) Volkswagen Golf Sportwagen, model year 2015;
428          (v) Volkswagen Passat, model years 2012, 2013, 2014, and 2015;

429          (vi) Volkswagen Beetle, model years 2013, 2014, and 2015;
430          (vii) Volkswagen Beetle Convertible, model years 2013, 2014, and 2015; and
431          (viii) Audi A3, model years 2010, 2011, 2012, 2013, and 2015; and
432          (b) a 3.0-liter diesel engine motor vehicle in which its lifetime nitrogen oxide
433     emissions are mitigated in the state to a settlement, including:
434          (i) Volkswagen Touareg, model years 2009, 2010, 2011, 2012, 2013, 2014, 2015, and
435     2016;
436          (ii) Audi Q7, model years 2009, 2010, 2011, 2012, 2013, 2014, 2015, and 2016;
437          (iii) Audi A6 Quattro, model years 2014, 2015, and 2016;
438          (iv) Audi A7 Quattro, model years 2014, 2015, and 2016;
439          (v) Audi A8, model years 2014, 2015, and 2016;
440          (vi) Audi A8L, model years 2014, 2015, and 2016;
441          (vii) Audi Q5, model years 2014, 2015, and 2016; and
442          (viii) Porsche Cayenne Diesel, model years 2013, 2014, 2015, and 2016.
443          (3) (a) The legislative body of a county identified in Subsection (1), in consultation
444     with the Air Quality Board created under Section 19-1-106, shall make regulations or
445     ordinances regarding:
446          (i) emissions standards;
447          (ii) test procedures;
448          (iii) inspections stations;
449          (iv) repair requirements and dollar limits for correction of deficiencies; and
450          (v) certificates of emissions inspections.
451          (b) In accordance with Subsection (3)(a), a county legislative body:
452          (i) shall make regulations or ordinances to attain or maintain ambient air quality
453     standards in the county, consistent with the state implementation plan and federal
454     requirements;
455          (ii) may allow for a phase-in of the program by geographical area; and
456          (iii) shall comply with the analyzer design and certification requirements contained in
457     the state implementation plan prepared under Title 19, Chapter 2, Air Conservation Act.
458          (c) The county legislative body and the Air Quality Board shall give preference to an
459     inspection and maintenance program that:

460          (i) is decentralized, to the extent the decentralized program will attain and maintain
461     ambient air quality standards and meet federal requirements;
462          (ii) is the most cost effective means to achieve and maintain the maximum benefit with
463     regard to ambient air quality standards and to meet federal air quality requirements as related to
464     vehicle emissions; and
465          (iii) provides a reasonable phase-out period for replacement of air pollution emission
466     testing equipment made obsolete by the program.
467          (d) The provisions of Subsection (3)(c)(iii) apply only to the extent the phase-out:
468          (i) may be accomplished in accordance with applicable federal requirements; and
469          (ii) does not otherwise interfere with the attainment and maintenance of ambient air
470     quality standards.
471          (4) The following vehicles are exempt from an emissions inspection program and the
472     provisions of this section:
473          (a) an implement of husbandry as defined in Section 41-1a-102;
474          (b) a motor vehicle that:
475          (i) meets the definition of a farm truck under Section 41-1a-102; and
476          (ii) has a gross vehicle weight rating of 12,001 pounds or more;
477          (c) a vintage vehicle as defined in Section 41-21-1:
478          (i) if the vintage vehicle has a model year of [1980] 1982 or older; or
479          (ii) for a vintage vehicle that has a model year of [1981] 1983 or newer, if the owner
480     provides proof of vehicle insurance that is a type specific to a vehicle collector;
481          (d) a custom vehicle as defined in Section 41-6a-1507;
482          (e) to the extent allowed under the current federally approved state implementation
483     plan, in accordance with the federal Clean Air Act, 42 U.S.C. Sec. 7401, et seq., a motor
484     vehicle that is less than two years old on January 1 based on the age of the vehicle as
485     determined by the model year identified by the manufacturer;
486          (f) a pickup truck, as defined in Section 41-1a-102, with a gross vehicle weight rating
487     of 12,000 pounds or less, if the registered owner of the pickup truck provides a signed
488     statement to the legislative body stating the truck is used:
489          (i) by the owner or operator of a farm located on property that qualifies as land in
490     agricultural use under Sections 59-2-502 and 59-2-503; and

491          (ii) exclusively for the following purposes in operating the farm:
492          (A) for the transportation of farm products, including livestock and its products,
493     poultry and its products, floricultural and horticultural products; and
494          (B) in the transportation of farm supplies, including tile, fence, and every other thing or
495     commodity used in agricultural, floricultural, horticultural, livestock, and poultry production
496     and maintenance;
497          (g) a motorcycle as defined in Section 41-1a-102;
498          (h) an electric motor vehicle as defined in Section 41-1a-102; and
499          (i) a motor vehicle with a model year of 1967 or older.
500          (5) The county shall issue to the registered owner who signs and submits a signed
501     statement under Subsection (4)(f) a certificate of exemption from emissions inspection
502     requirements for purposes of registering the exempt vehicle.
503          (6) A legislative body of a county described in Subsection (1) may exempt from an
504     emissions inspection program a diesel-powered motor vehicle with a:
505          (a) gross vehicle weight rating of more than 14,000 pounds; or
506          (b) model year of 1997 or older.
507          (7) The legislative body of a county required under federal law to utilize a motor
508     vehicle emissions inspection program shall require:
509          (a) a computerized emissions inspection for a diesel-powered motor vehicle that has:
510          (i) a model year of 2007 or newer;
511          (ii) a gross vehicle weight rating of 14,000 pounds or less; and
512          (iii) a model year that is five years old or older; and
513          (b) a visual inspection of emissions equipment for a diesel-powered motor vehicle:
514          (i) with a gross vehicle weight rating of 14,000 pounds or less;
515          (ii) that has a model year of 1998 or newer; and
516          (iii) that has a model year that is five years old or older.
517          (8) (a) Subject to Subsection (8)(c), the legislative body of each county required under
518     federal law to utilize a motor vehicle emissions inspection and maintenance program or in
519     which an emissions inspection and maintenance program is necessary to attain or maintain any
520     national ambient air quality standard may require each college or university located in a county
521     subject to this section to require its students and employees who park a motor vehicle not

522     registered in a county subject to this section to provide proof of compliance with an emissions
523     inspection accepted by the county legislative body if the motor vehicle is parked on the college
524     or university campus or property.
525          (b) College or university parking areas that are metered or for which payment is
526     required per use are not subject to the requirements of this Subsection (8).
527          (c) The legislative body of a county shall make the reasons for implementing the
528     provisions of this Subsection (8) part of the record at the time that the county legislative body
529     takes its official action to implement the provisions of this Subsection (8).
530          (9) (a) An emissions inspection station shall issue a certificate of emissions inspection
531     for each motor vehicle that meets the inspection and maintenance program requirements
532     established in regulations or ordinances made under Subsection (3).
533          (b) The frequency of the emissions inspection shall be determined based on the age of
534     the vehicle as determined by model year and shall be required annually subject to the
535     provisions of Subsection (9)(c).
536          (c) (i) To the extent allowed under the current federally approved state implementation
537     plan, in accordance with the federal Clean Air Act, 42 U.S.C. Sec. 7401 et seq., the legislative
538     body of a county identified in Subsection (1) shall only require the emissions inspection every
539     two years for each vehicle.
540          (ii) The provisions of Subsection (9)(c)(i) apply only to a vehicle that is less than six
541     years old on January 1.
542          (iii) For a county required to implement a new vehicle emissions inspection and
543     maintenance program on or after December 1, 2012, under Subsection (1), but for which no
544     current federally approved state implementation plan exists, a vehicle shall be tested at a
545     frequency determined by the county legislative body, in consultation with the Air Quality
546     Board created under Section 19-1-106, that is necessary to comply with federal law or attain or
547     maintain any national ambient air quality standard.
548          (iv) If a county legislative body establishes or changes the frequency of a vehicle
549     emissions inspection and maintenance program under Subsection (9)(c)(iii), the establishment
550     or change shall take effect on January 1 if the State Tax Commission receives notice meeting
551     the requirements of Subsection (9)(c)(v) from the county before October 1.
552          (v) The notice described in Subsection (9)(c)(iv) shall:

553          (A) state that the county will establish or change the frequency of the vehicle emissions
554     inspection and maintenance program under this section;
555          (B) include a copy of the ordinance establishing or changing the frequency; and
556          (C) if the county establishes or changes the frequency under this section, state how
557     frequently the emissions testing will be required.
558          (d) If an emissions inspection is only required every two years for a vehicle under
559     Subsection (9)(c), the inspection shall be required for the vehicle in:
560          (i) odd-numbered years for vehicles with odd-numbered model years; or
561          (ii) in even-numbered years for vehicles with even-numbered model years.
562          (10) (a) Except as provided in Subsections (9)(b), (c), and (d), the emissions inspection
563     required under this section may be made no more than two months before the renewal of
564     registration.
565          (b) (i) If the title of a used motor vehicle is being transferred, the owner may use an
566     emissions inspection certificate issued for the motor vehicle during the previous 11 months to
567     satisfy the requirement under this section.
568          (ii) If the transferor is a licensed and bonded used motor vehicle dealer, the owner may
569     use an emissions inspection certificate issued for the motor vehicle in a licensed and bonded
570     motor vehicle dealer's name during the previous 11 months to satisfy the requirement under
571     this section.
572          (c) If the title of a leased vehicle is being transferred to the lessee of the vehicle, the
573     lessee may use an emissions inspection certificate issued during the previous 11 months to
574     satisfy the requirement under this section.
575          (d) If the motor vehicle is part of a fleet of 101 or more vehicles, the owner may not
576     use an emissions inspection made more than 11 months before the renewal of registration to
577     satisfy the requirement under this section.
578          (e) If the application for renewal of registration is for a six-month registration period
579     under Section 41-1a-215.5, the owner may use an emissions inspection certificate issued during
580     the previous eight months to satisfy the requirement under this section.
581          (11) (a) A county identified in Subsection (1) shall collect information about and
582     monitor the program.
583          (b) A county identified in Subsection (1) shall supply this information to an appropriate

584     legislative committee, as designated by the Legislative Management Committee, at times
585     determined by the designated committee to identify program needs, including funding needs.
586          (12) If approved by the county legislative body, a county that had an established
587     emissions inspection fee as of January 1, 2002, may increase the established fee that an
588     emissions inspection station may charge by $2.50 for each year that is exempted from
589     emissions inspections under Subsection (9)(c) up to a $7.50 increase.
590          (13) (a) Except as provided in Subsection 41-1a-1223(1)(c), a county identified in
591     Subsection (1) may impose a local emissions compliance fee on each motor vehicle registration
592     within the county in accordance with the procedures and requirements of Section 41-1a-1223.
593          (b) A county that imposes a local emissions compliance fee may use revenues
594     generated from the fee for the establishment and enforcement of an emissions inspection and
595     maintenance program in accordance with the requirements of this section.
596          (c) A county that imposes a local emissions compliance fee may use revenues
597     generated from the fee to promote programs to maintain a local, state, or national ambient air
598     quality standard.
599          (14) (a) If a county has reason to believe that a vehicle owner has provided an address
600     as required in Section 41-1a-209 to register or attempt to register a motor vehicle in a county
601     other than the county of the bona fide residence of the owner in order to avoid an emissions
602     inspection required under this section, the county may investigate and gather evidence to
603     determine whether the vehicle owner has used a false address or an address other than the
604     vehicle owner's bona fide residence or place of business.
605          (b) If a county conducts an investigation as described in Subsection (14)(a) and
606     determines that the vehicle owner has used a false or improper address in an effort to avoid an
607     emissions inspection as required in this section, the county may impose a civil penalty of
608     $1,000.
609          Section 7. Section 41-21-1 is amended to read:
610          41-21-1. Definitions.
611          (1) "Autocycle" means the same as that term is defined in Section 53-3-102.
612          (2) "Motorcycle" means:
613          (a) a motor vehicle having a saddle for the use of the rider and designed to travel on not
614     more than three wheels in contact with the ground; or

615          (b) an autocycle.
616          (3) (a) "Street rod" means a motor vehicle or motorcycle that:
617          (i) (A) was manufactured in 1948 or before; or
618          (B) (I) was manufactured after 1948 to resemble a vehicle that was manufactured in
619     1948 or before; and
620          (II) (Aa) has been altered from the manufacturer's original design; or
621          (Bb) has a body constructed from non-original materials; and
622          (ii) is primarily a collector's item that is used for:
623          (A) club activities;
624          (B) exhibitions;
625          (C) tours;
626          (D) parades;
627          (E) occasional transportation; and
628          (F) other similar uses.
629          (b) "Street rod" does not include a motor vehicle or motorcycle that is used for general,
630     daily transportation.
631          (4) (a) "Vintage travel trailer" means a travel trailer, camping trailer, or fifth wheel
632     trailer that is:
633          (i) 30 years old or older, from the current year; and
634          (ii) primarily a collector's item that is used for:
635          (A) participation in club activities;
636          (B) exhibitions;
637          (C) tours;
638          (D) parades;
639          (E) occasional recreational or vacation use; and
640          (F) other similar uses.
641          (b) "Vintage travel trailer" does not include a travel trailer, camping trailer, or fifth
642     wheel trailer that is used for the general, daily transportation of persons or property.
643          (5) (a) "Vintage vehicle" means a motor vehicle or motorcycle that:
644          (i) is 30 years old or older from the current year;
645          (ii) displays:

646          (A) a unique vehicle type special group license plate issued in accordance with Section
647     41-1a-418; or
648          (B) for a vehicle that has a model year of [1980] 1982 or older, a historical support
649     special group plate; and
650          (iii) is primarily a collector's item that is used for:
651          (A) participation in club activities;
652          (B) exhibitions;
653          (C) tours;
654          (D) parades;
655          (E) occasional transportation; and
656          (F) other similar uses.
657          (b) "Vintage vehicle" does not include a motor vehicle or motorcycle that is used for
658     general, daily transportation.
659          (c) "Vintage vehicle" includes a:
660          (i) street rod; and
661          (ii) vintage travel trailer.
662          Section 8. Section 59-12-103 is amended to read:
663          59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
664     tax revenues.
665          (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
666     sales price for amounts paid or charged for the following transactions:
667          (a) retail sales of tangible personal property made within the state;
668          (b) amounts paid for:
669          (i) telecommunications service, other than mobile telecommunications service, that
670     originates and terminates within the boundaries of this state;
671          (ii) mobile telecommunications service that originates and terminates within the
672     boundaries of one state only to the extent permitted by the Mobile Telecommunications
673     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
674          (iii) an ancillary service associated with a:
675          (A) telecommunications service described in Subsection (1)(b)(i); or
676          (B) mobile telecommunications service described in Subsection (1)(b)(ii);

677          (c) sales of the following for commercial use:
678          (i) gas;
679          (ii) electricity;
680          (iii) heat;
681          (iv) coal;
682          (v) fuel oil; or
683          (vi) other fuels;
684          (d) sales of the following for residential use:
685          (i) gas;
686          (ii) electricity;
687          (iii) heat;
688          (iv) coal;
689          (v) fuel oil; or
690          (vi) other fuels;
691          (e) sales of prepared food;
692          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
693     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
694     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
695     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
696     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
697     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
698     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
699     horseback rides, sports activities, or any other amusement, entertainment, recreation,
700     exhibition, cultural, or athletic activity;
701          (g) amounts paid or charged for services for repairs or renovations of tangible personal
702     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
703          (i) the tangible personal property; and
704          (ii) parts used in the repairs or renovations of the tangible personal property described
705     in Subsection (1)(g)(i), regardless of whether:
706          (A) any parts are actually used in the repairs or renovations of that tangible personal
707     property; or

708          (B) the particular parts used in the repairs or renovations of that tangible personal
709     property are exempt from a tax under this chapter;
710          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
711     assisted cleaning or washing of tangible personal property;
712          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
713     accommodations and services that are regularly rented for less than 30 consecutive days;
714          (j) amounts paid or charged for laundry or dry cleaning services;
715          (k) amounts paid or charged for leases or rentals of tangible personal property if within
716     this state the tangible personal property is:
717          (i) stored;
718          (ii) used; or
719          (iii) otherwise consumed;
720          (l) amounts paid or charged for tangible personal property if within this state the
721     tangible personal property is:
722          (i) stored;
723          (ii) used; or
724          (iii) consumed; and
725          (m) amounts paid or charged for a sale:
726          (i) (A) of a product transferred electronically; or
727          (B) of a repair or renovation of a product transferred electronically; and
728          (ii) regardless of whether the sale provides:
729          (A) a right of permanent use of the product; or
730          (B) a right to use the product that is less than a permanent use, including a right:
731          (I) for a definite or specified length of time; and
732          (II) that terminates upon the occurrence of a condition.
733          (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
734     are imposed on a transaction described in Subsection (1) equal to the sum of:
735          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
736          (A) 4.70% plus the rate specified in Subsection (12)(a); and
737          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
738     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211

739     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
740     State Sales and Use Tax Act; and
741          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
742     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
743     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
744     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
745          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
746     transaction under this chapter other than this part.
747          (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
748     state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
749     the sum of:
750          (i) a state tax imposed on the transaction at a tax rate of 2%; and
751          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
752     transaction under this chapter other than this part.
753          (c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
754     imposed on amounts paid or charged for food and food ingredients equal to the sum of:
755          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
756     a tax rate of 1.75%; and
757          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
758     amounts paid or charged for food and food ingredients under this chapter other than this part.
759          (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
760     paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
761     a rate of 4.85%.
762          (e) (i) For a bundled transaction that is attributable to food and food ingredients and
763     tangible personal property other than food and food ingredients, a state tax and a local tax is
764     imposed on the entire bundled transaction equal to the sum of:
765          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
766          (I) the tax rate described in Subsection (2)(a)(i)(A); and
767          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
768     Sales and Use Tax Act, if the location of the transaction as determined under Sections
769     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,

770     Additional State Sales and Use Tax Act; and
771          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
772     Sales and Use Tax Act, if the location of the transaction as determined under Sections
773     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
774     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
775          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
776     described in Subsection (2)(a)(ii).
777          (ii) If an optional computer software maintenance contract is a bundled transaction that
778     consists of taxable and nontaxable products that are not separately itemized on an invoice or
779     similar billing document, the purchase of the optional computer software maintenance contract
780     is 40% taxable under this chapter and 60% nontaxable under this chapter.
781          (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
782     transaction described in Subsection (2)(e)(i) or (ii):
783          (A) if the sales price of the bundled transaction is attributable to tangible personal
784     property, a product, or a service that is subject to taxation under this chapter and tangible
785     personal property, a product, or service that is not subject to taxation under this chapter, the
786     entire bundled transaction is subject to taxation under this chapter unless:
787          (I) the seller is able to identify by reasonable and verifiable standards the tangible
788     personal property, product, or service that is not subject to taxation under this chapter from the
789     books and records the seller keeps in the seller's regular course of business; or
790          (II) state or federal law provides otherwise; or
791          (B) if the sales price of a bundled transaction is attributable to two or more items of
792     tangible personal property, products, or services that are subject to taxation under this chapter
793     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
794     higher tax rate unless:
795          (I) the seller is able to identify by reasonable and verifiable standards the tangible
796     personal property, product, or service that is subject to taxation under this chapter at the lower
797     tax rate from the books and records the seller keeps in the seller's regular course of business; or
798          (II) state or federal law provides otherwise.
799          (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
800     seller's regular course of business includes books and records the seller keeps in the regular

801     course of business for nontax purposes.
802          (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
803     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
804     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
805     of tangible personal property, other property, a product, or a service that is not subject to
806     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
807     the seller, at the time of the transaction:
808          (A) separately states the portion of the transaction that is not subject to taxation under
809     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
810          (B) is able to identify by reasonable and verifiable standards, from the books and
811     records the seller keeps in the seller's regular course of business, the portion of the transaction
812     that is not subject to taxation under this chapter.
813          (ii) A purchaser and a seller may correct the taxability of a transaction if:
814          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
815     the transaction that is not subject to taxation under this chapter was not separately stated on an
816     invoice, bill of sale, or similar document provided to the purchaser because of an error or
817     ignorance of the law; and
818          (B) the seller is able to identify by reasonable and verifiable standards, from the books
819     and records the seller keeps in the seller's regular course of business, the portion of the
820     transaction that is not subject to taxation under this chapter.
821          (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
822     in the seller's regular course of business includes books and records the seller keeps in the
823     regular course of business for nontax purposes.
824          (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
825     personal property, products, or services that are subject to taxation under this chapter at
826     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
827     unless the seller, at the time of the transaction:
828          (A) separately states the items subject to taxation under this chapter at each of the
829     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
830          (B) is able to identify by reasonable and verifiable standards the tangible personal
831     property, product, or service that is subject to taxation under this chapter at the lower tax rate

832     from the books and records the seller keeps in the seller's regular course of business.
833          (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
834     seller's regular course of business includes books and records the seller keeps in the regular
835     course of business for nontax purposes.
836          (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
837     rate imposed under the following shall take effect on the first day of a calendar quarter:
838          (i) Subsection (2)(a)(i)(A);
839          (ii) Subsection (2)(b)(i);
840          (iii) Subsection (2)(c)(i); or
841          (iv) Subsection (2)(e)(i)(A)(I).
842          (i) (i) A tax rate increase takes effect on the first day of the first billing period that
843     begins on or after the effective date of the tax rate increase if the billing period for the
844     transaction begins before the effective date of a tax rate increase imposed under:
845          (A) Subsection (2)(a)(i)(A);
846          (B) Subsection (2)(b)(i);
847          (C) Subsection (2)(c)(i); or
848          (D) Subsection (2)(e)(i)(A)(I).
849          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
850     statement for the billing period is rendered on or after the effective date of the repeal of the tax
851     or the tax rate decrease imposed under:
852          (A) Subsection (2)(a)(i)(A);
853          (B) Subsection (2)(b)(i);
854          (C) Subsection (2)(c)(i); or
855          (D) Subsection (2)(e)(i)(A)(I).
856          (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is
857     computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
858     change in a tax rate takes effect:
859          (A) on the first day of a calendar quarter; and
860          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
861          (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
862          (A) Subsection (2)(a)(i)(A);

863          (B) Subsection (2)(b)(i);
864          (C) Subsection (2)(c)(i); or
865          (D) Subsection (2)(e)(i)(A)(I).
866          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
867     the commission may by rule define the term "catalogue sale."
868          (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
869     the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
870     predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
871          (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
872     or other fuel is furnished through a single meter for two or more of the following uses:
873          (A) a commercial use;
874          (B) an industrial use; or
875          (C) a residential use.
876          (3) (a) The following state taxes shall be deposited into the General Fund:
877          (i) the tax imposed by Subsection (2)(a)(i)(A);
878          (ii) the tax imposed by Subsection (2)(b)(i);
879          (iii) the tax imposed by Subsection (2)(c)(i); and
880          (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
881          (b) The following local taxes shall be distributed to a county, city, or town as provided
882     in this chapter:
883          (i) the tax imposed by Subsection (2)(a)(ii);
884          (ii) the tax imposed by Subsection (2)(b)(ii);
885          (iii) the tax imposed by Subsection (2)(c)(ii); and
886          (iv) the tax imposed by Subsection (2)(e)(i)(B).
887          (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General
888     Fund.
889          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
890     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
891     through (g):
892          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
893          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and

894          (B) for the fiscal year; or
895          (ii) $17,500,000.
896          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
897     described in Subsection (4)(a) shall be transferred each year as designated sales and use tax
898     revenue to the Department of Natural Resources to:
899          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
900     protect sensitive plant and animal species; or
901          (B) award grants, up to the amount authorized by the Legislature in an appropriations
902     act, to political subdivisions of the state to implement the measures described in Subsections
903     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
904          (ii) Money transferred to the Department of Natural Resources under Subsection
905     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
906     person to list or attempt to have listed a species as threatened or endangered under the
907     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
908          (iii) At the end of each fiscal year:
909          (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
910     Water Resources Conservation and Development Fund created in Section 73-10-24;
911          (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
912     Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
913          (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
914     Drinking Water Loan Program Subaccount created in Section 73-10c-5.
915          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
916     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
917     created in Section 4-18-106.
918          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
919     in Subsection (4)(a) shall be transferred each year as designated sales and use tax revenue to
920     the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for
921     the adjudication of water rights.
922          (ii) At the end of each fiscal year:
923          (A) 50% of any unexpended designated sales and use tax revenue shall lapse to the
924     Water Resources Conservation and Development Fund created in Section 73-10-24;

925          (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the
926     Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and
927          (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the
928     Drinking Water Loan Program Subaccount created in Section 73-10c-5.
929          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
930     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
931     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
932          (ii) In addition to the uses allowed of the Water Resources Conservation and
933     Development Fund under Section 73-10-24, the Water Resources Conservation and
934     Development Fund may also be used to:
935          (A) conduct hydrologic and geotechnical investigations by the Division of Water
936     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
937     quantifying surface and ground water resources and describing the hydrologic systems of an
938     area in sufficient detail so as to enable local and state resource managers to plan for and
939     accommodate growth in water use without jeopardizing the resource;
940          (B) fund state required dam safety improvements; and
941          (C) protect the state's interest in interstate water compact allocations, including the
942     hiring of technical and legal staff.
943          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
944     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
945     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
946          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
947     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
948     created in Section 73-10c-5 for use by the Division of Drinking Water to:
949          (i) provide for the installation and repair of collection, treatment, storage, and
950     distribution facilities for any public water system, as defined in Section 19-4-102;
951          (ii) develop underground sources of water, including springs and wells; and
952          (iii) develop surface water sources.
953          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
954     2006, the difference between the following amounts shall be expended as provided in this
955     Subsection (5), if that difference is greater than $1:

956          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
957     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
958          (ii) $17,500,000.
959          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
960          (A) transferred each fiscal year to the Department of Natural Resources as designated
961     sales and use tax revenue; and
962          (B) expended by the Department of Natural Resources for watershed rehabilitation or
963     restoration.
964          (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
965     tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation
966     and Development Fund created in Section 73-10-24.
967          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
968     remaining difference described in Subsection (5)(a) shall be:
969          (A) transferred each fiscal year to the Division of Water Resources as designated sales
970     and use tax revenue; and
971          (B) expended by the Division of Water Resources for cloud-seeding projects
972     authorized by Title 73, Chapter 15, Modification of Weather.
973          (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use
974     tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation
975     and Development Fund created in Section 73-10-24.
976          (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
977     remaining difference described in Subsection (5)(a) shall be deposited into the Water
978     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
979     Division of Water Resources for:
980          (i) preconstruction costs:
981          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
982     26, Bear River Development Act; and
983          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
984     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
985          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
986     Chapter 26, Bear River Development Act;

987          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
988     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
989          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
990     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
991          (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the
992     remaining difference described in Subsection (5)(a) shall be deposited each year into the Water
993     Rights Restricted Account created by Section 73-2-1.6.
994          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
995     amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
996     (1) for the fiscal year shall be deposited as follows:
997          (a) for fiscal year 2020-21 only:
998          (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
999     Transportation Investment Fund of 2005 created by Section 72-2-124; and
1000          (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
1001     Water Infrastructure Restricted Account created by Section 73-10g-103; and
1002          (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
1003     in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
1004     created by Section 73-10g-103.
1005          (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
1006     Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
1007     2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
1008     created by Section 72-2-124:
1009          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
1010     the revenues collected from the following taxes, which represents a portion of the
1011     approximately 17% of sales and use tax revenues generated annually by the sales and use tax
1012     on vehicles and vehicle-related products:
1013          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1014          (B) the tax imposed by Subsection (2)(b)(i);
1015          (C) the tax imposed by Subsection (2)(c)(i); and
1016          (D) the tax imposed by Subsection (2)(e)(i)(A)(I); plus
1017          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the

1018     current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
1019     (D) that exceeds the amount collected from the sales and use taxes described in Subsections
1020     (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
1021          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
1022     the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
1023     lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
1024     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
1025     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
1026     (7)(a) equal to the product of:
1027          (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
1028     previous fiscal year; and
1029          (B) the total sales and use tax revenue generated by the taxes described in Subsections
1030     (7)(a)(i)(A) through (D) in the current fiscal year.
1031          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
1032     Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
1033     described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
1034     Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
1035     Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
1036          (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
1037     which 17% of the revenues collected from the sales and use taxes described in Subsections
1038     (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall
1039     annually deposit 17% of the revenues collected from the sales and use taxes described in
1040     Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
1041          (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
1042     amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
1043     the relevant revenue collected in the previous fiscal year.
1044          (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
1045     total amount of money deposited into the Cottonwood Canyons fund under Subsections
1046     (7)(b)(iv)(F) and (8)(d)(vi) in any single fiscal year.
1047          (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
1048     Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).

1049          (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
1050     listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
1051     Subsections (7)(a)(i)(A) through (D).
1052          (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
1053     reduce the deposit under Subsection (7)(b)(iii) into the Transportation Investment Fund of 2005
1054     by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv) to the
1055     Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth revenue,
1056     subject to the limit in Subsection (7)(b)(iv)(F).
1057          (F) The commission shall annually deposit the amount described in Subsection
1058     (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
1059     amount for any single fiscal year of $20,000,000.
1060          (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
1061     fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
1062     Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
1063     revenue.
1064          (c) (i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1,
1065     2023, the commission shall annually reduce the deposit into the Transportation Investment
1066     Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is equal to 5% of:
1067          (A) the amount of revenue generated in the current fiscal year by the portion of taxes
1068     listed under Subsection (3)(a) that equals 20.68% of the revenue collected from taxes described
1069     in Subsections (7)(a)(i)(A) through (D);
1070          (B) the amount of revenue generated in the current fiscal year by registration fees
1071     designated under Section 41-1a-1201 to be deposited into the Transportation Investment Fund
1072     of 2005; and
1073          (C) revenues transferred by the Division of Finance to the Transportation Investment
1074     Fund of 2005 in accordance with Section 72-2-106 in the current fiscal year.
1075          (ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a
1076     given fiscal year.
1077          (iii) The commission shall annually deposit the amount described in Subsection
1078     (7)(c)(i) into the Active Transportation Investment Fund created in Subsection 72-2-124(11).
1079          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under

1080     Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
1081     on or after July 1, 2018, the commission shall annually deposit into the Transportation
1082     Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
1083     Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
1084     taxes:
1085          (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1086          (ii) the tax imposed by Subsection (2)(b)(i);
1087          (iii) the tax imposed by Subsection (2)(c)(i); and
1088          (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
1089          (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
1090     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
1091     an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
1092     the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
1093     or use in this state that exceeds 29.4 cents per gallon.
1094          (c) The commission shall annually deposit the amount described in Subsection (8)(b)
1095     into the Transit Transportation Investment Fund created in Section 72-2-124.
1096          (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
1097     amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
1098     the relevant revenue collected in the previous fiscal year.
1099          (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
1100     amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
1101     and (8)(d)(vi) in any single fiscal year.
1102          (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
1103     Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
1104          (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
1105     listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
1106     in Subsections (8)(a)(i) through (iv).
1107          (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
1108     reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
1109     an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
1110     Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the

1111     limit in Subsection (8)(d)(vi).
1112          (vi) The commission shall annually deposit the amount described in Subsection
1113     (8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
1114     for any single fiscal year of $20,000,000.
1115          (vii) If the amount of relevant revenue declines in a fiscal year compared to the
1116     previous fiscal year, the commission shall decrease the amount of the contribution to the
1117     Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
1118     relevant revenue.
1119          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
1120     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
1121     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
1122          (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
1123     and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
1124     Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
1125     72-2-124 the amount of revenue described as follows:
1126          (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
1127     tax rate on the transactions described in Subsection (1); and
1128          (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
1129     tax rate on the transactions described in Subsection (1).
1130          (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
1131     the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
1132     charged for food and food ingredients, except for tax revenue generated by a bundled
1133     transaction attributable to food and food ingredients and tangible personal property other than
1134     food and food ingredients described in Subsection (2)(e).
1135          (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
1136     fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
1137     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
1138     Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
1139     generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
1140     created in Section 63N-2-512.
1141          (12) (a) The rate specified in this subsection is 0.15%.

1142          (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
1143     beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
1144     rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
1145     under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
1146     26-36b-208.
1147          (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
1148     2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
1149     credit solely for use of the Search and Rescue Financial Assistance Program created in, and
1150     expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
1151          (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
1152     Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
1153     Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
1154          (b) If the total revenue deposited into the Transportation Investment Fund of 2005
1155     under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
1156     Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
1157     2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
1158          (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
1159     beginning the first day of the calendar quarter one year after the sales and use tax boundary for
1160     a housing and transit reinvestment zone is established, the commission, at least annually, shall
1161     transfer an amount equal to 15% of the sales and use tax increment within an established sales
1162     and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation
1163     Investment Fund created in Section 72-2-124.
1164          (16) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
1165     beginning on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure
1166     Restricted Account, created in Section 51-9-902, a portion of the taxes listed under Subsection
1167     (3)(a) equal to 1% of the revenues collected from the following sales and use taxes:
1168          (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
1169          (b) the tax imposed by Subsection (2)(b)(i);
1170          (c) the tax imposed by Subsection (2)(c)(i); and
1171          (d) the tax imposed by Subsection (2)(e)(i)(A)(I).
1172          Section 9. Section 72-1-102 is amended to read:

1173          72-1-102. Definitions.
1174          As used in this title:
1175          (1) "Circulator alley" means a publicly owned passageway:
1176          (a) with a right-of-way width of 20 feet or greater;
1177          (b) located within a master planned community;
1178          (c) established by the city having jurisdictional authority as part of the street network
1179     for traffic circulation that may also be used for:
1180          (i) garbage collection;
1181          (ii) access to residential garages; or
1182          (iii) access rear entrances to a commercial establishment; and
1183          (d) constructed with a bituminous or concrete pavement surface.
1184          (2) "Commission" means the Transportation Commission created under Section
1185     72-1-301.
1186          (3) "Construction" means the construction, reconstruction, replacement, and
1187     improvement of the highways, including the acquisition of rights-of-way and material sites.
1188          (4) "Department" means the Department of Transportation created in Section 72-1-201.
1189          (5) "Executive director" means the executive director of the department appointed
1190     under Section 72-1-202.
1191          (6) "Farm tractor" has the meaning set forth in Section 41-1a-102.
1192          (7) "Federal aid primary highway" means that portion of connected main highways
1193     located within this state officially designated by the department and approved by the United
1194     States Secretary of Transportation under Title 23, Highways, U.S.C.
1195          (8) "Fixed guideway" means the same as that term is defined in Section 59-12-102.
1196          (9) (a) "Fixed guideway capital development" means a project to construct or
1197     reconstruct a public transit fixed guideway facility that will add capacity to a fixed guideway
1198     public transit facility.
1199          (b) "Fixed guideway capital development" includes:
1200          (i) a project to strategically double track commuter rail lines; and
1201          (ii) a project to develop and construct public transit facilities and related infrastructure
1202     pertaining to the Point of the Mountain State Land Authority created in Section 11-59-201.
1203          (10) "Greenfield" means the same as that term is defined in Section 17C-1-102.

1204          [(10)] (11) "Highway" means any public road, street, alley, lane, court, place, viaduct,
1205     tunnel, culvert, bridge, or structure laid out or erected for public use, or dedicated or abandoned
1206     to the public, or made public in an action for the partition of real property, including the entire
1207     area within the right-of-way.
1208          [(11)] (12) "Highway authority" means the department or the legislative, executive, or
1209     governing body of a county or municipality.
1210          [(12)] (13) "Housing and transit reinvestment zone" means the same as that term is
1211     defined in Section 63N-3-602.
1212          [(13)] (14) "Implement of husbandry" has the meaning set forth in Section 41-1a-102.
1213          [(14)] (15) "Interstate system" means any highway officially designated by the
1214     department and included as part of the national interstate and defense highways, as provided in
1215     the Federal Aid Highway Act of 1956 and any supplemental acts or amendments.
1216          [(15)] (16) "Large public transit district" means the same as that term is defined in
1217     Section 17B-2a-802.
1218          [(16)] (17) "Limited-access facility" means a highway especially designated for
1219     through traffic, and over, from, or to which neither owners nor occupants of abutting lands nor
1220     other persons have any right or easement, or have only a limited right or easement of access,
1221     light, air, or view.
1222          [(17)] (18) "Master planned community" means a land use development:
1223          (a) designated by the city as a master planned community; and
1224          (b) comprised of a single development agreement for a development larger than 500
1225     acres.
1226          [(18)] (19) "Motor vehicle" has the same meaning set forth in Section 41-1a-102.
1227          [(19)] (20) "Municipality" has the same meaning set forth in Section 10-1-104.
1228          [(20)] (21) "National highway systems highways" means that portion of connected
1229     main highways located within this state officially designated by the department and approved
1230     by the United States Secretary of Transportation under Title 23, Highways, U.S.C.
1231          [(21)] (22) (a) "Port-of-entry" means a fixed or temporary facility constructed,
1232     operated, and maintained by the department where drivers, vehicles, and vehicle loads are
1233     checked or inspected for compliance with state and federal laws as specified in Section
1234     72-9-501.

1235          (b) "Port-of-entry" includes inspection and checking stations and weigh stations.
1236          [(22)] (23) "Port-of-entry agent" means a person employed at a port-of-entry to perform
1237     the duties specified in Section 72-9-501.
1238          [(23)] (24) "Public transit" means the same as that term is defined in Section
1239     17B-2a-802.
1240          [(24)] (25) "Public transit facility" means a fixed guideway, transit vehicle, transit
1241     station, depot, passenger loading or unloading zone, parking lot, or other facility:
1242          (a) leased by or operated by or on behalf of a public transit district; and
1243          (b) related to the public transit services provided by the district, including:
1244          (i) railway or other right-of-way;
1245          (ii) railway line; and
1246          (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by
1247     a transit vehicle.
1248          [(25)] (26) "Right-of-way" means real property or an interest in real property, usually
1249     in a strip, acquired for or devoted to [a highway] state transportation purposes.
1250          [(26)] (27) "Sealed" does not preclude acceptance of electronically sealed and
1251     submitted bids or proposals in addition to bids or proposals manually sealed and submitted.
1252          [(27)] (28) "Semitrailer" has the meaning set forth in Section 41-1a-102.
1253          [(28)] (29) "SR" means state route and has the same meaning as state highway as
1254     defined in this section.
1255          [(29)] (30) "State highway" means those highways designated as state highways in
1256     Title 72, Chapter 4, Designation of State Highways Act.
1257          [(30)] (31) "State transportation purposes" has the meaning set forth in Section
1258     72-5-102.
1259          [(31)] (32) "State transportation systems" means all streets, alleys, roads, highways,
1260     pathways, and thoroughfares of any kind, including connected structures, airports, aerial
1261     corridor infrastructure, spaceports, public transit facilities, and all other modes and forms of
1262     conveyance used by the public.
1263          [(32)] (33) "Trailer" has the meaning set forth in Section 41-1a-102.
1264          [(33)] (34) "Transportation reinvestment zone" means a transportation reinvestment
1265     zone created pursuant to Section 11-13-227.

1266          [(34)] (35) "Truck tractor" has the meaning set forth in Section 41-1a-102.
1267          [(35)] (36) "UDOT" means the Utah Department of Transportation.
1268          [(36)] (37) "Vehicle" has the same meaning set forth in Section 41-1a-102.
1269          Section 10. Section 72-1-202 is amended to read:
1270          72-1-202. Executive director of department -- Appointment -- Qualifications --
1271     Term -- Responsibility -- Power to bring suits -- Salary.
1272          (1) (a) The governor, with the advice and consent of the Senate, shall appoint an
1273     executive director to be the chief executive officer of the department.
1274          (b) The executive director shall be a registered professional engineer and qualified
1275     executive with technical and administrative experience and training appropriate for the
1276     position.
1277          (c) The executive director shall remain in office until a successor is appointed.
1278          (d) The executive director may be removed by the governor.
1279          (2) In addition to the other functions, powers, duties, rights, and responsibilities
1280     prescribed in this chapter, the executive director shall:
1281          (a) have responsibility for the administrative supervision of the state transportation
1282     systems and the various operations of the department;
1283          (b) have the responsibility for the implementation of rules, priorities, and policies
1284     established by the department and the commission;
1285          (c) have the responsibility for the oversight and supervision of[:]
1286          [(i)] any transportation project for which state funds are expended; [and]
1287          [(ii) any fixed guideway capital development project within the boundaries of a large
1288     public transit district for which any state funds are expended;]
1289          (d) have full power to bring suit in courts of competent jurisdiction in the name of the
1290     department as the executive director considers reasonable and necessary for the proper
1291     attainment of the goals of this chapter;
1292          (e) receive a salary, to be established by the governor within the salary range fixed by
1293     the Legislature in Title 67, Chapter 22, State Officer Compensation, together with actual
1294     traveling expenses while away from the executive director's office on official business;
1295          (f) purchase all equipment, services, and supplies necessary to achieve the department's
1296     functions, powers, duties, rights, and responsibilities delegated under Section 72-1-201;

1297          (g) have the responsibility to determine whether a purchase from, contribution to, or
1298     other participation with a public entity or association of public entities in a pooled fund
1299     program to acquire, develop, or share information, data, reports, or other services related to the
1300     department's mission are procurement items under Title 63G, Chapter 6a, Utah Procurement
1301     Code;
1302          (h) have responsibility for administrative supervision of the Comptroller Division, the
1303     Internal Audit Division, and the Communications Division; and
1304          (i) appoint assistants, to serve at the discretion of the executive director, to administer
1305     the divisions of the department.
1306          (3) The executive director may employ other assistants and advisers as the executive
1307     director finds necessary and fix salaries in accordance with the salary standards adopted by the
1308     Division of Human Resource Management.
1309          [(4) (a) For a fixed guideway capital development project within the boundaries of a
1310     large public transit district for which state funds are expended, responsibilities of the executive
1311     director include:]
1312          [(i) project development for a fixed guideway capital development project in a large
1313     public transit district;]
1314          [(ii) oversight and coordination of planning, including:]
1315          [(A) development of statewide strategic initiatives for planning across all modes of
1316     transportation;]
1317          [(B) coordination with metropolitan planning organizations;]
1318          [(C) coordination with a large public transit district, including planning, project
1319     development, outreach, programming, environmental studies and impact statements,
1320     construction, and impacts on public transit operations; and]
1321          [(D) corridor and area planning;]
1322          [(iii) programming and prioritization of fixed guideway capital development projects;]
1323          [(iv) fulfilling requirements for environmental studies and impact statements; and]
1324          [(v) resource investment, including identification, development, and oversight of
1325     public-private partnership opportunities.]
1326          [(5) (a) Before October 31, 2022, the department shall submit to the Transportation
1327     Interim Committee a written plan for the department to assume management of all fixed

1328     guideway capital development projects within a large public transit district for which state
1329     funds are expended.]
1330          [(b) The department shall consult with a large public transit district and relevant
1331     metropolitan planning organizations in developing the plan described in Subsection (5)(a).]
1332          [(c) The Transportation Interim Committee shall consider the plan submitted by the
1333     department as described in Subsection (5)(a) and make recommendations to the Legislature
1334     before December 1, 2022.]
1335          Section 11. Section 72-1-203 is amended to read:
1336          72-1-203. Deputy director -- Appointment -- Qualifications -- Other assistants
1337     and advisers -- Salaries.
1338          (1) The executive director shall appoint [two] the following deputy directors, who shall
1339     serve at the discretion of the executive director[.]:
1340          (a) the deputy director of engineering and operation, who shall be a registered
1341     professional engineer in the state, and who shall be the chief engineer of the department; and
1342          (b) the deputy director of planning and investment.
1343          [(2) (a) The deputy director of engineering and operations shall be a registered
1344     professional engineer in the state and is the chief engineer of the department.]
1345          [(b) The deputy director of engineering and operations shall assist the executive
1346     director with areas of responsibility that may include:]
1347          [(i) project development, including statewide standards for project design and
1348     construction, right-of-way, materials, testing, structures, and construction;]
1349          [(ii) oversight of the management of the region offices described in Section 72-1-205;]
1350          [(iii) operations and traffic management;]
1351          [(iv) oversight of operations of motor carriers and ports;]
1352          [(v) transportation systems safety;]
1353          [(vi) aeronautical operations; and]
1354          [(vii) equipment for department engineering and maintenance functions.]
1355          [(c) The deputy director of planning and investment shall assist the executive director
1356     with areas of responsibility that may include:]
1357          [(i) oversight and coordination of planning, including:]
1358          [(A) development of statewide strategic initiatives for planning across all modes of

1359     transportation;]
1360          [(B) coordination with metropolitan planning organizations and local governments;
1361     and]
1362          [(C) corridor and area planning;]
1363          [(ii) asset management;]
1364          [(iii) programming and prioritization of transportation projects;]
1365          [(iv) fulfilling requirements for environmental studies and impact statements;]
1366          [(v) resource investment, including identification, development, and oversight of
1367     public-private partnership opportunities;]
1368          [(vi) data analytics services to the department;]
1369          [(vii) corridor preservation;]
1370          [(viii) employee development;]
1371          [(ix) maintenance planning; and]
1372          [(x) oversight and facilitation of the negotiations and integration of public transit
1373     providers described in Section 17B-2a-827.]
1374          (2) As assigned by the executive director, the deputy directors described in Subsection
1375     (1) may assist the executive director with the following departmental responsibilities:
1376          (a) project development, including statewide standards for project design and
1377     construction, right-of-way, materials, testing, structures, and construction;
1378          (b) oversight of the management of the region offices described in Section 72-1-205;
1379          (c) operations and traffic management;
1380          (d) oversight of operations of motor carriers and ports;
1381          (e) transportation systems safety;
1382          (f) aeronautical operations;
1383          (g) equipment for department engineering and maintenance functions;
1384          (h) oversight and coordination of planning, including:
1385          (i) development of statewide strategic initiatives for planning across all modes of
1386     transportation;
1387          (ii) coordination with metropolitan planning organizations and local governments;
1388          (iii) coordination with a large public transit district, including planning, project
1389     development, outreach, programming, environmental studies and impact statements,

1390     construction, and impacts on public transit operations; and
1391          (iv) corridor and area planning;
1392          (i) asset management;
1393          (j) programming and prioritization of transportation projects;
1394          (k) fulfilling requirements for environmental studies and impact statements;
1395          (l) resource investment, including identification, development, and oversight of
1396     public-private partnership opportunities;
1397          (m) data analytics services to the department;
1398          (n) corridor preservation;
1399          (o) employee development;
1400          (p) maintenance planning;
1401          (q) oversight and facilitation of the negotiations and integration of public transit
1402     providers described in Section 17B-2a-827;
1403          (r) oversight and supervision of any fixed guideway capital development project within
1404     the boundaries of a large public transit district for which any state funds are expended,
1405     including those responsibilities described in Subsections (2)(a), (h), (j), (k), and (l); and
1406          (s) other departmental responsibilities as determined by the executive director.
1407          (3) The executive director shall ensure that the same deputy director does not oversee
1408     or supervise both the fixed guideway capital development responsibilities described in
1409     Subsection (2)(r) and the department's fixed guideway rail safety responsibilities, including the
1410     responsibilities described in Section 72-1-214.
1411          Section 12. Section 72-1-213.2 is amended to read:
1412          72-1-213.2. Road Usage Charge Program Special Revenue Fund -- Revenue.
1413          (1) There is created [a] an expendable special revenue fund within the Transportation
1414     Fund known as the "Road Usage Charge Program Special Revenue Fund."
1415          (2) (a) The fund shall be funded from the following sources:
1416          (i) revenue collected by the department under Section 72-1-213.1;
1417          (ii) appropriations made to the fund by the Legislature;
1418          (iii) contributions from other public and private sources for deposit into the fund;
1419          (iv) interest earnings on cash balances; and
1420          (v) money collected for repayments and interest on fund money.

1421          (b) If the revenue derived from the sources described in Subsection (2)(a) is
1422     insufficient to cover the costs of administering the road usage charge program, subject to
1423     Subsection 72-2-107(1), the department may transfer into the fund revenue deposited into the
1424     Transportation Fund from the fee described in Subsections 41-1a-1206(1)(h) and (2)(b) in an
1425     amount sufficient to enable the department to administer the road usage charge program.
1426          (3) (a) Revenue generated by the road usage charge program and relevant penalties
1427     shall be deposited into the Road Usage Charge Program Special Revenue Fund.
1428          (b) Revenue in the Road Usage Charge Program Special Revenue Fund is nonlapsing.
1429          (4) [Upon appropriation by the Legislature, the] The department may use revenue
1430     deposited into the Road Usage Charge Program Special Revenue Fund:
1431          (a) to cover the costs of administering the program; and
1432          (b) for [state transportation purposes] the purposes described in Subsection (5).
1433          (5) If revenue collected by the department under Section 72-1-213.1 in a fiscal year is
1434     sufficient to cover all costs related to administering the road usage charge program in that fiscal
1435     year, the department shall deposit any excess revenue collected by the department under
1436     Section 72-1-213.1 from the Road Usage Charge Program Special Revenue Fund into the
1437     Transportation Fund for appropriation and apportionment in accordance with Section 72-2-107.
1438          Section 13. Section 72-1-304 is amended to read:
1439          72-1-304. Written project prioritization process for new transportation capacity
1440     projects -- Rulemaking.
1441          (1) (a) The Transportation Commission, in consultation with the department and the
1442     metropolitan planning organizations as defined in Section 72-1-208.5, shall develop a written
1443     prioritization process for the prioritization of:
1444          (i) new transportation capacity projects that are or will be part of the state highway
1445     system under Chapter 4, Part 1, State Highways;
1446          (ii) paved pedestrian or paved nonmotorized transportation projects [that:] described in
1447     Section 72-2-124;
1448          [(A) mitigate traffic congestion on the state highway system; and]
1449          [(B) are part of an active transportation plan approved by the department;]
1450          (iii) public transit projects that directly add capacity to the public transit systems within
1451     the state, not including facilities ancillary to the public transit system; and

1452          (iv) pedestrian or nonmotorized transportation projects that provide connection to a
1453     public transit system.
1454          (b) (i) A local government or district may nominate a project for prioritization in
1455     accordance with the process established by the commission in rule.
1456          (ii) If a local government or district nominates a project for prioritization by the
1457     commission, the local government or district shall provide data and evidence to show that:
1458          (A) the project will advance the purposes and goals described in Section 72-1-211;
1459          (B) for a public transit project, the local government or district has an ongoing funding
1460     source for operations and maintenance of the proposed development; and
1461          (C) the local government or district will provide 40% of the costs for the project as
1462     required by Subsection 72-2-124(4)(a)(viii) or 72-2-124(9)(e).
1463          (2) The following shall be included in the written prioritization process under
1464     Subsection (1):
1465          (a) a description of how the strategic initiatives of the department adopted under
1466     Section 72-1-211 are advanced by the written prioritization process;
1467          (b) a definition of the type of projects to which the written prioritization process
1468     applies;
1469          (c) specification of a weighted criteria system that is used to rank proposed projects
1470     and how it will be used to determine which projects will be prioritized;
1471          (d) specification of the data that is necessary to apply the weighted ranking criteria; and
1472          (e) any other provisions the commission considers appropriate, which may include
1473     consideration of:
1474          (i) regional and statewide economic development impacts, including improved local
1475     access to:
1476          (A) employment;
1477          (B) educational facilities;
1478          (C) recreation;
1479          (D) commerce; and
1480          (E) residential areas, including moderate income housing as demonstrated in the local
1481     government's or district's general plan pursuant to Section 10-9a-403 or 17-27a-403;
1482          (ii) the extent to which local land use plans relevant to a project support and

1483     accomplish the strategic initiatives adopted under Section 72-1-211; and
1484          (iii) any matching funds provided by a political subdivision or public transit district in
1485     addition to the 40% required by Subsections 72-2-124(4)(a)(viii) and 72-2-124(9)(e).
1486          (3) (a) When prioritizing a public transit project that increases capacity, the
1487     commission:
1488          (i) may give priority consideration to projects that are part of a transit-oriented
1489     development or transit-supportive development as defined in Section 17B-2a-802; and
1490          (ii) shall give priority consideration to projects that are within the boundaries of a
1491     housing and transit reinvestment zone created pursuant to Title 63N, Chapter 3, Part 6,
1492     Housing and Transit Reinvestment Zone Act.
1493          (b) When prioritizing a transportation project that increases capacity, the commission
1494     may give priority consideration to projects that are:
1495          (i) part of a transportation reinvestment zone created under Section 11-13-227 if:
1496          (A) the state is a participant in the transportation reinvestment zone; or
1497          (B) the commission finds that the transportation reinvestment zone provides a benefit
1498     to the state transportation system; or
1499          (ii) within the boundaries of a housing and transit reinvestment zone created pursuant
1500     to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
1501          (c) If the department receives a notice of prioritization for a municipality as described
1502     in Subsection 10-9a-408(5), or a notice of prioritization for a county as described in Subsection
1503     17-27a-408(5), the commission may, during the fiscal year specified in the notice, give priority
1504     consideration to transportation projects that are within the boundaries of the municipality or the
1505     unincorporated areas of the county.
1506          (4) In developing the written prioritization process, the commission:
1507          (a) shall seek and consider public comment by holding public meetings at locations
1508     throughout the state; and
1509          (b) may not consider local matching dollars as provided under Section 72-2-123 unless
1510     the state provides an equal opportunity to raise local matching dollars for state highway
1511     improvements within each county.
1512          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1513     Transportation Commission, in consultation with the department, shall make rules establishing

1514     the written prioritization process under Subsection (1).
1515          (6) The commission shall submit the proposed rules under this section to a committee
1516     or task force designated by the Legislative Management Committee for review prior to taking
1517     final action on the proposed rules or any proposed amendment to the rules described in
1518     Subsection (5).
1519          Section 14. Section 72-1-305 is amended to read:
1520          72-1-305. Project selection using the written prioritization process -- Public
1521     comment -- Report.
1522          (1) Except as provided in Subsection (4), in determining priorities and funding levels
1523     of projects in the state transportation system under Subsection 72-1-303(1)(a) that are new
1524     transportation capacity projects, the commission shall use the weighted criteria system adopted
1525     in the written prioritization process under Section 72-1-304.
1526          (2) Prior to finalizing priorities and funding levels of projects in the state transportation
1527     system, the commission shall conduct public hearings at locations around the state and accept
1528     public comments on:
1529          (a) the written prioritization process;
1530          (b) the merits of new transportation capacity projects that will be prioritized under this
1531     section; and
1532          (c) the merits of new transportation capacity projects as recommended by a consensus
1533     of local elected officials participating in a metropolitan planning organization as defined in
1534     Section 72-1-208.5.
1535          (3) The commission shall make the weighted criteria system ranking for each project
1536     publicly available prior to the public hearings held under Subsection (2).
1537          (4) (a) If the commission prioritizes a project over another project with a higher rank
1538     under the weighted criteria system, the commission shall identify the change and accept public
1539     comment at a hearing held under this section on the merits of prioritizing the project above
1540     higher ranked projects.
1541          (b) The commission shall make the reasons for the prioritization under Subsection
1542     (4)(a) publicly available.
1543          (5) (a) The executive director or the executive director's designee shall report annually
1544     to the governor and a committee designated by the Legislative Management Committee no later

1545     than the last day of October:
1546          (i) the projects prioritized under this section during the year prior to the report; and
1547          (ii) the status and progress of all projects prioritized under this section.
1548          (b) Annually, before any funds are programmed and allocated from the Transit
1549     Transportation Investment Fund created in Section 72-2-124 for each fiscal year, the executive
1550     director or the executive director's designee, along with the executive director of a large public
1551     transit district as described in Section 17B-2a-802, shall report to the governor and a committee
1552     designated by the Legislative Management Committee no later than the last day of October:
1553          (i) the public transit projects prioritized under this section during the year prior to the
1554     report; and
1555          (ii) the status and progress of all public transit projects prioritized under this section.
1556          (6) The department shall annually report to the Transportation Commission on the
1557     status of new capacity transportation projects, including projects that were funded by the
1558     Legislature in an appropriations act.
1559          [(6) (a) The department may not delay a new transportation capacity project that was
1560     funded by the Legislature in an appropriations act to a different fiscal year than programmed by
1561     the commission due to an unavoidable shortfall in revenues unless the project delays are
1562     prioritized and approved by the Transportation Commission.]
1563          [(b) The Transportation Commission shall prioritize and approve any new
1564     transportation capacity project delays for projects that were funded by the Legislature in an
1565     appropriations act due to an unavoidable shortfall in revenues.]
1566          Section 15. Section 72-2-106 is amended to read:
1567          72-2-106. Appropriation and transfers from Transportation Fund.
1568          (1) On and after July 1, 1981, there is appropriated from the Transportation Fund to the
1569     use of the department an amount equal to two-elevenths of the taxes collected from the motor
1570     fuel tax and the special fuel tax, exclusive of the formula amount appropriated for class B and
1571     class C roads, to be used for highway rehabilitation.
1572          (2) For a fiscal year beginning on or after July 1, 2016, the Division of Finance shall
1573     annually transfer an amount equal to the amount of revenue generated by a tax imposed on
1574     motor and special fuel that is sold, used, or received for sale or used in this state at a rate of 1.8
1575     cents per gallon to the Transportation Investment Fund of 2005 created by Section 72-2-124.

1576          (3) For a fiscal year beginning on or after July 1, 2019, the Division of Finance shall
1577     annually transfer to the Transportation Investment Fund of 2005 created by Section 72-2-124
1578     an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
1579     the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
1580     or use in this state that exceeds 29.4 cents per gallon.
1581          (4) For purposes of the calculation described in Subsection 59-12-103(7)(c), the
1582     Division of Finance shall notify the State Tax Commission of the amount of any transfer made
1583     under Subsections (2) and (3).
1584          Section 16. Section 72-2-107 is amended to read:
1585          72-2-107. Appropriation from Transportation Fund -- Apportionment for class B
1586     and class C roads.
1587          (1) There is appropriated to the department from the Transportation Fund annually an
1588     amount equal to 30% of an amount which the director of finance shall compute in the
1589     following manner: The total revenue deposited into the Transportation Fund during the fiscal
1590     year from state highway-user taxes and fees, minus those amounts appropriated or transferred
1591     from the Transportation Fund during the same fiscal year to:
1592          (a) the Department of Public Safety;
1593          (b) the State Tax Commission;
1594          (c) the Division of Finance;
1595          (d) the Utah Travel Council;
1596          (e) except as provided in Section 72-1-213.2, the road usage charge program created in
1597     Section 72-1-213.1; and
1598          (f) any other amounts appropriated or transferred for any other state agencies not a part
1599     of the department.
1600          (2) (a) Except as provided in Subsections (2)(b) and (c), all of the money appropriated
1601     in Subsection (1) shall be apportioned among counties and municipalities for class B and class
1602     C roads as provided in this title.
1603          (b) The department shall annually transfer $500,000 of the amount calculated under
1604     Subsection (1) to the State Park Access Highways Improvement Program created in Section
1605     72-3-207.
1606          (c) Administrative costs of the department to administer class B and class C roads shall

1607     be paid from funds calculated under Subsection (1).
1608          (3) Each quarter of every year the department shall make the necessary accounting
1609     entries to transfer the money appropriated under this section for class B and class C roads.
1610          (4) The funds appropriated for class B and class C roads shall be expended under the
1611     direction of the department as the Legislature shall provide.
1612          Section 17. Section 72-2-123 is amended to read:
1613          72-2-123. Rules adopting guidelines -- Partnering to finance state highway
1614     capacity improvements -- Partnering proposals.
1615          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1616     commission, in consultation with representatives of local government, shall make rules
1617     adopting guidelines for partnering with counties and municipalities for their help to finance
1618     state highway improvement projects through:
1619          (a) local matching dollars; [or]
1620          (b) agreements regarding new revenue a county or municipality expects will be
1621     generated as a result of the construction of a state highway improvement project; or
1622          [(b)] (c) other local participation methods.
1623          (2) The guidelines described in Subsection (1) shall encourage partnering to help
1624     finance state highway improvement projects and provide for:
1625          (a) the consideration of factors relevant to a decision to make a program adjustment
1626     including the potential to:
1627          (i) extend department resources to other needed projects;
1628          (ii) alleviate significant existing or future congestion or hazards to the traveling public;
1629     and
1630          (iii) address a need that is widely recognized by the public, elected officials, and
1631     transportation planners;
1632          (b) a process for submitting, evaluating, and hearing partnering proposals; and
1633          (c) [keeping] the creation of a public record of each proposal from initial submission to
1634     final disposition.
1635          (3) The commission shall submit the proposed rules under this section to a committee
1636     or task force designated by the Legislative Management Committee for review prior to taking
1637     final action on the proposed rules or any proposed amendment to the rules.

1638          Section 18. Section 72-2-124 is amended to read:
1639          72-2-124. Transportation Investment Fund of 2005.
1640          (1) There is created a capital projects fund entitled the Transportation Investment Fund
1641     of 2005.
1642          (2) The fund consists of money generated from the following sources:
1643          (a) any voluntary contributions received for the maintenance, construction,
1644     reconstruction, or renovation of state and federal highways;
1645          (b) appropriations made to the fund by the Legislature;
1646          (c) registration fees designated under Section 41-1a-1201;
1647          (d) the sales and use tax revenues deposited into the fund in accordance with Section
1648     59-12-103; and
1649          (e) revenues transferred to the fund in accordance with Section 72-2-106.
1650          (3) (a) The fund shall earn interest.
1651          (b) All interest earned on fund money shall be deposited into the fund.
1652          (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
1653     fund money to pay:
1654          (i) the costs of maintenance, construction, reconstruction, or renovation to state and
1655     federal highways prioritized by the Transportation Commission through the prioritization
1656     process for new transportation capacity projects adopted under Section 72-1-304;
1657          (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
1658     projects described in Subsections 63B-18-401(2), (3), and (4);
1659          (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
1660     minus the costs paid from the County of the First Class Highway Projects Fund in accordance
1661     with Subsection 72-2-121(4)(e);
1662          (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
1663     Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
1664     by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
1665     debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
1666          (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
1667     for projects prioritized in accordance with Section 72-2-125;
1668          (vi) all highway general obligation bonds that are intended to be paid from revenues in

1669     the Centennial Highway Fund created by Section 72-2-118;
1670          (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
1671     Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
1672     in Section 72-2-121;
1673          (viii) if a political subdivision provides a contribution equal to or greater than 40% of
1674     the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
1675     nonmotorized transportation for projects that:
1676          (A) mitigate traffic congestion on the state highway system;
1677          (B) are part of an active transportation plan approved by the department; and
1678          (C) are prioritized by the commission through the prioritization process for new
1679     transportation capacity projects adopted under Section 72-1-304;
1680          (ix) $705,000,000 for the costs of right-of-way acquisition, construction,
1681     reconstruction, or renovation of or improvement to the following projects:
1682          (A) the connector road between Main Street and 1600 North in the city of Vineyard;
1683          (B) Geneva Road from University Parkway to 1800 South;
1684          (C) the SR-97 interchange at 5600 South on I-15;
1685          (D) two lanes on U-111 from Herriman Parkway to 11800 South;
1686          (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
1687          (F) improvements to 1600 North in Orem from 1200 West to State Street;
1688          (G) widening I-15 between mileposts 6 and 8;
1689          (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
1690          (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197 in
1691     Spanish Fork Canyon;
1692          (J) I-15 northbound between mileposts 43 and 56;
1693          (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts 43
1694     and 45.1;
1695          (L) east Zion SR-9 improvements;
1696          (M) Toquerville Parkway;
1697          (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
1698          (O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds, for
1699     construction of an interchange on Bangerter Highway at 13400 South; and

1700          (P) an environmental impact study for Kimball Junction in Summit County; and
1701          (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
1702     costs based upon a statement of cash flow that the local jurisdiction where the project is located
1703     provides to the department demonstrating the need for money for the project, for the following
1704     projects in the following amounts:
1705          (A) $5,000,000 for Payson Main Street repair and replacement;
1706          (B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
1707          (C) $5,000,000 for improvements to 4700 South in Taylorsville; and
1708          (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S. 40
1709     between mile markers 7 and 10.
1710          (b) The executive director may use fund money to exchange for an equal or greater
1711     amount of federal transportation funds to be used as provided in Subsection (4)(a).
1712          (5) (a) Except as provided in Subsection (5)(b), if the department receives a notice of
1713     ineligibility for a municipality as described in Subsection 10-9a-408(7), the executive director
1714     may not program fund money to a project prioritized by the commission under Section
1715     72-1-304, including fund money from the Transit Transportation Investment Fund, within the
1716     boundaries of the municipality during the fiscal year specified in the notice.
1717          (b) Within the boundaries of a municipality described in Subsection (5)(a), the
1718     executive director:
1719          (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
1720     facility or interchange connecting limited-access facilities;
1721          (ii) may not program fund money for the construction, reconstruction, or renovation of
1722     an interchange on a limited-access facility;
1723          (iii) may program Transit Transportation Investment Fund money for a
1724     multi-community fixed guideway public transportation project; and
1725          (iv) may not program Transit Transportation Investment Fund money for the
1726     construction, reconstruction, or renovation of a station that is part of a fixed guideway public
1727     transportation project.
1728          (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
1729     director before July 1, 2022, for projects prioritized by the commission under Section
1730     72-1-304.

1731          (6) (a) Except as provided in Subsection (6)(b), if the department receives a notice of
1732     ineligibility for a county as described in Subsection 17-27a-408(7), the executive director may
1733     not program fund money to a project prioritized by the commission under Section 72-1-304,
1734     including fund money from the Transit Transportation Investment Fund, within the boundaries
1735     of the unincorporated area of the county during the fiscal year specified in the notice.
1736          (b) Within the boundaries of the unincorporated area of a county described in
1737     Subsection (6)(a), the executive director:
1738          (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
1739     facility to a project prioritized by the commission under Section 72-1-304;
1740          (ii) may not program fund money for the construction, reconstruction, or renovation of
1741     an interchange on a limited-access facility;
1742          (iii) may program Transit Transportation Investment Fund money for a
1743     multi-community fixed guideway public transportation project; and
1744          (iv) may not program Transit Transportation Investment Fund money for the
1745     construction, reconstruction, or renovation of a station that is part of a fixed guideway public
1746     transportation project.
1747          (c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive
1748     director before July 1, 2022, for projects prioritized by the commission under Section
1749     72-1-304.
1750          (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
1751     in any fiscal year, the department and the commission shall appear before the Executive
1752     Appropriations Committee of the Legislature and present the amount of bond proceeds that the
1753     department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
1754     (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
1755          (b) The Executive Appropriations Committee of the Legislature shall review and
1756     comment on the amount of bond proceeds needed to fund the projects.
1757          (8) The Division of Finance shall, from money deposited into the fund, transfer the
1758     amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
1759     Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
1760     sinking fund.
1761          (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit

1762     Transportation Investment Fund.
1763          (b) The fund shall be funded by:
1764          (i) contributions deposited into the fund in accordance with Section 59-12-103;
1765          (ii) appropriations into the account by the Legislature;
1766          (iii) deposits of sales and use tax increment related to a housing and transit
1767     reinvestment zone as described in Section 63N-3-610;
1768          (iv) private contributions; and
1769          (v) donations or grants from public or private entities.
1770          (c) (i) The fund shall earn interest.
1771          (ii) All interest earned on fund money shall be deposited into the fund.
1772          (d) Subject to Subsection (9)(e), the [Legislature may appropriate] commission may
1773     prioritize money from the fund:
1774          (i) for public transit capital development of new capacity projects and fixed guideway
1775     capital development projects to be used as prioritized by the commission through the
1776     prioritization process adopted under Section 72-1-304; or
1777          [(ii) for development of the oversight plan described in Section 72-1-202(5); or]
1778          [(iii)] (ii) to the department for oversight of a fixed guideway capital development
1779     project for which the department has responsibility.
1780          (e) (i) The [Legislature] commission may only [appropriate] prioritize money from the
1781     fund for a public transit capital development project or pedestrian or nonmotorized
1782     transportation project that provides connection to the public transit system if the public transit
1783     district or political subdivision provides funds of equal to or greater than 40% of the costs
1784     needed for the project.
1785          (ii) A public transit district or political subdivision may use money derived from a loan
1786     granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
1787     part of the 40% requirement described in Subsection (9)(e)(i) if:
1788          (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
1789     State Infrastructure Bank Fund; and
1790          (B) the proposed capital project has been prioritized by the commission pursuant to
1791     Section 72-1-303.
1792          (f) Before July 1, 2022, the department and a large public transit district shall enter into

1793     an agreement for a large public transit district to pay the department $5,000,000 per year for 15
1794     years to be used to facilitate the purchase of zero emissions or low emissions rail engines and
1795     trainsets for regional public transit rail systems.
1796          (10) (a) There is created in the Transportation Investment Fund of 2005 the
1797     Cottonwood Canyons Transportation Investment Fund.
1798          (b) The fund shall be funded by:
1799          (i) money deposited into the fund in accordance with Section 59-12-103;
1800          (ii) appropriations into the account by the Legislature;
1801          (iii) private contributions; and
1802          (iv) donations or grants from public or private entities.
1803          (c) (i) The fund shall earn interest.
1804          (ii) All interest earned on fund money shall be deposited into the fund.
1805          (d) The Legislature may appropriate money from the fund for public transit or
1806     transportation projects in the Cottonwood Canyons of Salt Lake County.
1807          (11) (a) There is created in the Transportation Investment Fund of 2005 the Active
1808     Transportation Investment Fund.
1809          (b) The fund shall be funded by:
1810          (i) money deposited into the fund in accordance with Section 59-12-103;
1811          (ii) appropriations into the account by the Legislature; and
1812          (iii) donations or grants from public or private entities.
1813          (c) (i) The fund shall earn interest.
1814          (ii) All interest earned on fund money shall be deposited into the fund.
1815          (d) The executive director may only use fund money to pay the costs needed for:
1816          (i) the planning, design, construction, maintenance, reconstruction, or renovation of
1817     paved pedestrian or paved nonmotorized trail projects that:
1818          (A) are prioritized by the commission through the prioritization process for new
1819     transportation capacity projects adopted under Section 72-1-304;
1820          (B) serve a regional purpose; and
1821          (C) are part of an active transportation plan approved by the department or the plan
1822     described in Subsection (11)(d)(ii);
1823          (ii) the development of a plan for a statewide network of paved pedestrian or paved

1824     nonmotorized trails that serve a regional purpose; and
1825          (iii) the administration of the fund, including staff and overhead costs.
1826          Section 19. Section 72-2-202 is amended to read:
1827          72-2-202. State Infrastructure Bank Fund -- Creation -- Use of money.
1828          (1) There is created a revolving loan fund entitled the State Infrastructure Bank Fund.
1829          (2) (a) The fund consists of money generated from the following revenue sources:
1830          (i) appropriations made to the fund by the Legislature;
1831          (ii) federal money and grants that are deposited [in] into the fund;
1832          (iii) money transferred to the fund by the commission from other money available to
1833     the department;
1834          (iv) state grants that are deposited [in] into the fund;
1835          (v) contributions or grants from any other private or public sources for deposit into the
1836     fund; and
1837          (vi) subject to Subsection (2)(b), all money collected from repayments of fund money
1838     used for infrastructure loans or infrastructure assistance.
1839          (b) When a loan from the fund is repaid, the department may request and the
1840     Legislature may transfer from the fund to the source from which the money originated an
1841     amount equal to the repaid loan.
1842          (3) (a) The fund shall earn interest.
1843          (b) All interest earned on fund money shall be deposited into the fund.
1844          (4) Money in the fund shall be used by the department, as prioritized by the
1845     commission, only to:
1846          (a) provide infrastructure loans or infrastructure assistance; and
1847          (b) pay the department for the costs of administering the fund, providing infrastructure
1848     loans or infrastructure assistance, monitoring transportation projects and publicly owned
1849     infrastructure projects, and obtaining repayments of infrastructure loans or infrastructure
1850     assistance.
1851          (5) (a) The department may establish separate accounts in the fund for infrastructure
1852     loans, infrastructure assistance, administrative and operating expenses, or any other purpose to
1853     implement this part.
1854          (b) The department shall establish a separate account in the fund for infrastructure

1855     loans for publicly owned infrastructure projects in greenfield areas that are located no less than
1856     one mile from an existing municipal or county:
1857          (i) water supply;
1858          (ii) water distribution facility; or
1859          (iii) wastewater facility.
1860          (c) Prioritization of infrastructure loans described in Subsection (5)(b) shall follow the
1861     same process as described in Section 72-2-203.
1862          [(b)] (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
1863     Act, the department may make rules governing how the fund and its accounts may be held by
1864     an escrow agent.
1865          (6) Fund money shall be invested by the state treasurer as provided in Title 51, Chapter
1866     7, State Money Management Act, and the earnings from the investments shall be credited to the
1867     fund.
1868          (7) Before July 1, 2022, the department shall transfer the loan described in Subsection
1869     63B-27-101(3)(a)(i) from the State Infrastructure Bank Fund to the military development
1870     infrastructure revolving loan fund created in Section 63A-3-402.
1871          Section 20. Section 72-5-102 is amended to read:
1872          72-5-102. Definitions.
1873          As used in this part, "state transportation purposes" includes:
1874          (1) highway, public transit facility, and transportation rights-of-way, including those
1875     necessary within cities and towns;
1876          (2) the construction, reconstruction, relocation, improvement, maintenance, and
1877     mitigation from the effects of these activities on state highways and other transportation
1878     facilities, including parking facilities, under the control of the department;
1879          (3) limited access facilities, including rights of access, air, light, and view and frontage
1880     and service roads to highways;
1881          (4) adequate drainage in connection with any highway, cut, fill, or channel change and
1882     the maintenance of any highway, cut, fill, or channel change;
1883          (5) weighing stations, shops, offices, storage buildings and yards, and road
1884     maintenance or construction sites;
1885          (6) road material sites, sites for the manufacture of road materials, and access roads to

1886     the sites;
1887          (7) the maintenance of an unobstructed view of any portion of a highway to promote
1888     the safety of the traveling public;
1889          (8) the placement of traffic signals, directional signs, and other signs, fences, curbs,
1890     barriers, and obstructions for the convenience of the traveling public;
1891          (9) the construction and maintenance of storm sewers, sidewalks, and highway
1892     illumination;
1893          (10) the construction and maintenance of livestock highways;
1894          (11) the construction and maintenance of roadside rest areas adjacent to or near any
1895     highway; and
1896          (12) the mitigation of impacts from transportation projects.
1897          Section 21. Section 72-5-114 is amended to read:
1898          72-5-114. Property acquired in advance of construction -- Lease or rental.
1899          (1) (a) The department may acquire real property or interests or improvements in real
1900     property in advance of the actual construction, reconstruction, or improvement of highways or
1901     public transit facilities in order to save on acquisition costs or avoid the payment of excessive
1902     damages.
1903          (b) The real property or interests or improvements in real property may be leased or
1904     rented by the department in a manner, for a period of time, and for a sum determined by the
1905     department to be in the best interest of the state.
1906          (2) (a) The department may employ private agencies to manage rental properties when
1907     it is more economical and in the best interests of the state.
1908          (b) All money received for leases and rentals, after deducting any portion to which the
1909     federal government may be entitled, shall be deposited with the state treasurer and credited to
1910     the Transportation Fund.
1911          Section 22. Section 72-6-112.5 is amended to read:
1912          72-6-112.5. Definitions -- Nighttime highway construction noise -- Exemptions --
1913     Permits.
1914          (1) As used in this section:
1915          (a) "Commuter rail" means the same as that term is defined in Section 63N-3-602.
1916          [(a)] (b) (i) "Front row receptor" means a noise-sensitive residential receptor that is:

1917          (A) immediately adjacent to a transportation facility; or
1918          (B) within 800 feet of a transportation facility that is within a commercial or
1919     industrialized area.
1920          (ii) "Front row receptor" includes a residence that is contiguous to a property
1921     immediately adjacent to a transportation facility in a residential area.
1922          [(b)] (c) "Nighttime [highway] construction" means highway or public transit facility
1923     construction occurring between the hours of 10:00 p.m. and 7:00 a.m.
1924          [(c)] (d) "Nuisance" means the same as that term is defined in Section 78B-6-1101.
1925          [(d)] (e) (i) "Permitted activities" means activities occurring between the hours of 7:00
1926     p.m. and 7:00 a.m. that are related to and necessary for nighttime [highway] construction,
1927     whether occurring at the construction site or at a gravel pit or other site for production of raw
1928     materials, and includes:
1929          (A) loading and unloading of trucks;
1930          (B) asphalt mixing and hauling; and
1931          (C) concrete mixing and hauling.
1932          (ii) "Permitted activities" does not include:
1933          (A) blasting; or
1934          (B) crushing.
1935          [(2) A state highway construction project conducted on a road where the normal posted
1936     speed limit is 55 miles per hour or greater is exempt from any noise ordinance, regulation, or
1937     standard of a local jurisdictional authority.]
1938          (2) The following projects are exempt from any noise ordinance, regulation, or
1939     standard of a local jurisdictional authority:
1940          (a) a state highway construction project conducted on a road where the normal posted
1941     speed limit is 55 miles per hour or greater; or
1942          (b) a commuter rail construction project.
1943          (3) [A state highway construction project conducted on a road where the normal posted
1944     speed limit is less than 55 miles per hour is] Except for a project described in Subsection (2), a
1945     state highway or a public transit facility construction project is exempt from any noise
1946     ordinance, regulation, or standard of a local jurisdictional authority if the department:
1947          (a) provides reasonable written notice at least 48 hours in advance of any required

1948     nighttime [highway] construction to each residential dwelling located within front row
1949     receptors of the activity;
1950          (b) determines a net community, including traveler community, benefit exists to
1951     conduct nighttime highway construction after considering the following:
1952          (i) public health;
1953          (ii) project completion time;
1954          (iii) air quality;
1955          (iv) traffic;
1956          (v) economics;
1957          (vi) safety; and
1958          (vii) local jurisdiction concerns; and
1959          (c) institutes best management noise reduction practices, as determined by the
1960     department, for front row receptors, in consultation with local government or the local
1961     jurisdictional authority for all nighttime [highway] construction, which may include:
1962          (i) equipment maintenance;
1963          (ii) noise shielding;
1964          (iii) scheduling the most noise intrusive activities during the day; and
1965          (iv) other noise mitigation methods.
1966          (4) (a) Subject to Subsection (2) or (3), a state highway project or public transit facility
1967     construction shall secure required noise permits from the local jurisdictional authority to
1968     conduct nighttime [highway] construction.
1969          (b) To the extent practical, the department shall coordinate with the local jurisdictional
1970     authority during the pre-construction phase of a project to address noise exemption conditions.
1971          (5) A local jurisdictional authority shall issue a nighttime [highway] construction
1972     permit limited to permitted activities if:
1973          (a) the applicant provides evidence that the permitted activities are directly related to
1974     and necessary for a nighttime [highway] construction project for which the department has
1975     obtained a noise permit from a local jurisdictional authority pursuant to Subsection (4); and
1976          (b) the local jurisdictional authority determines that any nuisance that may be caused
1977     by the nighttime [highway] construction may be reasonably mitigated.
1978          (6) A local jurisdictional authority shall issue a nighttime [highway] construction noise

1979     permit without additional requirements to the department at the request of the department or
1980     the department's designated project agent if the requirements of [Subsections (2) and]
1981     Subsection (2) or (3) are met.
1982          (7) (a) A local jurisdictional authority may request adjustments to a nighttime
1983     [highway] construction permit to mitigate unreasonable noise disturbances caused by nighttime
1984     [highway] construction or permitted activities.
1985          (b) If adjustments are requested as described in Subsection (7)(a), the nighttime
1986     [highway] construction permit holder shall use best management noise reduction practices to
1987     mitigate unreasonable noise disturbances.
1988          (8) (a) For the exemption provided in Subsection (3) and in accordance with Title 63G,
1989     Chapter 3, Utah Administrative Rulemaking Act, the department shall make rules establishing
1990     procedures:
1991          (i) for a local jurisdictional authority or local government to appeal the decision of the
1992     department to conduct nighttime [highway] construction [on roads where the normal posted
1993     speed limit is less than 55 miles per hour]; and
1994          (ii) for the local jurisdictional authority to request that the department enforce the terms
1995     of a noise permit.
1996          (b) After review and upon receiving a written notice from a local jurisdictional
1997     authority that the conditions for the noise exemption permit are not met, the department shall
1998     take corrective action to ensure nighttime [highway] construction activities meet requirements
1999     of the local permit.
2000          Section 23. Section 72-14-103 is amended to read:
2001          72-14-103. Preemption of local ordinance.
2002          (1) A political subdivision of the state, or an entity within a political subdivision of the
2003     state, may not enact a law, ordinance, or rule governing the private use of an unmanned aircraft
2004     or the private use of an advanced air mobility system, unless:
2005          (a) authorized by this chapter; or
2006          (b) the political subdivision or entity is an airport operator that enacts the law, rule, or
2007     ordinance to govern:
2008          (i) the operation of an unmanned aircraft or an advanced air mobility system within the
2009     geographic boundaries of the airport over which the airport operator has authority; or

2010          (ii) the takeoff or landing of an unmanned aircraft or an aircraft operated as part of an
2011     advanced air mobility system at the airport over which the airport operator has authority.
2012          (2) (a) A political subdivision may not create a monopoly by entering into an
2013     agreement to grant or permit an exclusive right to one or more vertiport owners as the only
2014     vertiport owners or operators within the boundary of the political subdivision.
2015          (b) Subsection (2)(a) does not preclude a political subdivision from granting a permit
2016     or right to a vertiport owner or operator if only one owner or operator applies for a permit in
2017     that political subdivision.
2018          (3) Notwithstanding Subsection (2), if a political subdivision issues a permit to a
2019     vertiport owner or operator, unless the vertiport owner, operator, or facility receives any public
2020     money, the vertiport owner or operator may exclude other users from using the owner's or
2021     operator's vertiport.
2022          [(2)] (4) This chapter supersedes any law, ordinance, or rule enacted by a political
2023     subdivision of the state before July 1, [2017] 2022.
2024          Section 24. Section 72-16-102 is amended to read:
2025          72-16-102. Definitions.
2026          As used in this chapter:
2027          (1) "Account" means the Amusement Ride Safety Restricted Account created in
2028     Section 72-16-204.
2029          (2) (a) "Amusement park" means a permanent indoor or outdoor facility or park where
2030     one or more amusement rides are available for use by the general public.
2031          (b) "Amusement park" does not include a traveling show, carnival, or public
2032     fairground.
2033          (3) (a) "Amusement ride" means a device or combination of devices or elements that
2034     carries or conveys one or more riders along, around, or over a fixed or restricted route or course
2035     or allows the riders to steer or guide the device within an established area for the purpose of
2036     giving the riders amusement, pleasure, thrills, or excitement.
2037          (b) "Amusement ride" does not include:
2038          (i) a coin-operated ride that:
2039          (A) is manually, mechanically, or electrically operated;
2040          (B) is customarily placed in a public location; and

2041          (C) does not normally require the supervision or services of an operator;
2042          (ii) nonmechanized playground equipment, including a swing, seesaw, stationary
2043     spring-mounted animal feature, rider-propelled merry-go-round, climber, playground slide,
2044     trampoline, or physical fitness device;
2045          (iii) an inflatable device;
2046          (iv) a water-based recreational attraction where complete or partial immersion is
2047     intended, including a water slide, wave pool, or water park;
2048          (v) a challenge, exercise, or obstacle course;
2049          (vi) a passenger ropeway as defined in Section 72-11-102;
2050          (vii) a device or attraction that involves one or more live animals;
2051          (viii) a tractor ride or wagon ride; [or]
2052          (ix) motion seats in a movie theater for which the manufacturer does not require a
2053     restraint[.]; or
2054          (x) a zip line.
2055          (4) "Committee" means the Utah Amusement Ride Safety Committee created in
2056     Section 72-16-201.
2057          (5) "Director" means the director of the committee, hired under Section 72-16-202.
2058          (6) "Mobile amusement ride" means an amusement ride that is:
2059          (a) designed or adapted to be moved from one location to another;
2060          (b) not fixed at a single location; and
2061          (c) relocated at least once each calendar year.
2062          (7) "Operator" means the individual who controls the starting, stopping, or speed of an
2063     amusement ride.
2064          (8) "Owner-operator" means the person who has control over and responsibility for the
2065     maintenance, setup, and operation of an amusement ride.
2066          (9) "Permanent amusement ride" means an amusement ride that is not a mobile
2067     amusement ride.
2068          (10) "Qualified safety inspector" means an individual who holds a valid qualified
2069     safety inspector certification.
2070          (11) "Qualified safety inspector certification" means a certification issued by the
2071     director under Section 72-16-303.

2072          (12) "Reportable serious injury" means an injury to a rider that:
2073          (a) occurs when there is a failure or malfunction of an amusement ride; and
2074          (b) results in death, dismemberment, permanent disfigurement, permanent loss of the
2075     use of a body organ, member, function, or system, or a compound fracture.
2076          (13) "Safety inspection certification" means a written document that:
2077          (a) is signed by a qualified safety inspector certifying that:
2078          (i) the qualified safety inspector performed an in-person inspection of an amusement
2079     ride to check compliance with the safety standards described in Section 72-16-304 and
2080     established by rule; and
2081          (ii) at the time the qualified safety inspector performed the in-person inspection, the
2082     amusement ride:
2083          (A) was set up for use by the general public; and
2084          (B) satisfied the safety standards described in Section 72-16-304 and established by
2085     rule; and
2086          (b) includes the date on which the qualified safety inspector performed the in-person
2087     inspection.
2088          (14) "Serious injury" means an injury to a rider that:
2089          (a) occurs when there is a failure or malfunction of an amusement ride; and
2090          (b) requires immediate admission to a hospital and overnight hospitalization and
2091     observation by a licensed physician.
2092          Section 25. Effective date.
2093          (1) Except as provided in Subsection (2), this bill takes effect on May 3, 2023.
2094          (2) If approved by two-thirds of all the members elected to each house, the
2095     amendments to Section 72-16-102 in this bill take effect upon approval by the governor, or the
2096     day following the constitutional time limit of Utah Constitution, Article VII, Section 8, without
2097     the governor's signature, or in the case of a veto, the date of veto override.
2098          Section 26. Coordinating S.B. 185 with S.B. 24 and S.B. 161 -- Substantive and
2099     technical amendments.
2100          If this S.B. 185 and S.B. 24, Advanced Air Mobility Amendments, and S.B. 161,
2101     Advanced Air Mobility Revisions, all pass and become law, it is the intent of the Legislature
2102     that the Office of Legislative Research and General Counsel, in preparing the Utah Code

2103     database for publication, amend Section 72-14-103, being renumbered to Section 72-10-701 in
2104     S.B. 24, to read:
2105          "(1) As used in this section, "advanced air mobility business" means a business that
2106     operates an unmanned aircraft system or an advanced air mobility system for a commercial
2107     purpose that is required to obtain a certificate pursuant to 14 C.F.R. Part 107 or 135.
2108          [(1)] (2) A political subdivision of the state, or an entity within a political subdivision
2109     of the state, may not enact a law, ordinance, or rule governing the private use of an unmanned
2110     aircraft or the private use of an advanced air mobility system, unless:
2111          (a) authorized by this chapter; or
2112          (b) the political subdivision or entity is an airport operator that enacts the law, rule, or
2113     ordinance to govern:
2114          (i) the operation of an unmanned aircraft or an advanced air mobility system within the
2115     geographic boundaries of the airport over which the airport operator has authority; or
2116          (ii) the takeoff or landing of an unmanned aircraft or an aircraft operated as part of an
2117     advanced air mobility system at the airport over which the airport operator has authority.
2118          (3) (a) Subject to the provisions of this chapter, a political subdivision may require an
2119     advanced air mobility business to obtain a business license if the advanced air mobility
2120     business does not hold a current business license in good standing from another political
2121     subdivision in the state.
2122          (b) A political subdivision may only charge a licensing fee to an advanced air mobility
2123     business in an amount that reimburses the political subdivision for the actual cost of processing
2124     the business license.
2125          (4) A political subdivision may not require an advanced air mobility business to:
2126          (a) obtain a separate business license beyond the initial business license described in
2127     Subsection (3)(a);
2128          (b) pay a fee other than the fee for the initial business license described in Subsection
2129     (3); or
2130          (c) pay a fee for each employee the advanced air mobility business employs.
2131          (5) A political subdivision shall provide a reasonable accommodation to an advanced
2132     air mobility business with regard to any regulation or restriction on the size of the business.
2133          (6) A political subdivision shall recognize as valid within the political subdivision the

2134     business license of an advanced air mobility business obtained in another political subdivision
2135     within the state, if the business license is current and in good standing.
2136          (7) (a) A political subdivision may not create a monopoly by entering into an
2137     agreement to grant or permit an exclusive right to one or more vertiport owners as the only
2138     vertiport owners or operators within the boundary of the political subdivision.
2139          (b) Subsection (7)(a) does not preclude a political subdivision from granting a permit
2140     or right to a vertiport owner or operator if only one owner or operator applies for a permit in
2141     that political subdivision.
2142          (8) Notwithstanding Subsection (7), if a political subdivision issues a permit to a
2143     vertiport owner or operator, unless the vertiport owner, operator, or facility receives any public
2144     money, the vertiport owner or operator may exclude other users from using the owner's or
2145     operator's vertiport.
2146          [(2)] (9) This chapter supersedes any law, ordinance, or rule enacted by a political
2147     subdivision of the state before July 1, [2017] 2022.".