This document includes House Committee Amendments incorporated into the bill on Wed, Feb 14, 2024 at 10:50 AM by housengrossing.
This document includes House Committee Amendments (CORRECTED) incorporated into the bill on Fri, Feb 16, 2024 at 9:21 AM by housengrossing.
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8 LONG TITLE
9 General Description:
10 This bill permits public transit innovation grants and amends provisions related to
11 allocation of certain local option sales and use taxes for transportation.
12 Highlighted Provisions:
13 This bill:
14 ▸ defines terms;
15 ▸ allows certain local option sales and use tax revenue and Transit Transportation
16 Investment Fund money to be used for public transit innovation grants;
17 ▸ requires a large public transit district and relevant cities to coordinate grant
18 proposals for public transit innovation and administer certain grants;
19 ▸ provides for the Department of Transportation to recommend certain grant
20 proposals for public transit innovation grants for allocation of money;
21 ▸ requires a large public transit district to provide a report to each city and town with
22 an accounting of how certain local option sales and use tax revenue is spent; and
23 ▸ makes technical changes.
24 Money Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 AMENDS:
30 17B-2a-802, as last amended by Laws of Utah 2023, Chapters 15, 476
31 17B-2a-808.1, as last amended by Laws of Utah 2022, Chapter 207
32 59-12-2202, as last amended by Laws of Utah 2023, Chapter 529
33 59-12-2212.2, as enacted by Laws of Utah 2019, Chapter 479
34 59-12-2219, as last amended by Laws of Utah 2023, Chapter 529
35 59-12-2220, as last amended by Laws of Utah 2023, Chapter 529
36 72-2-121, as last amended by Laws of Utah 2023, Chapter 529
37 72-2-124, as last amended by Laws of Utah 2023, Chapters 22, 88, 219, and 529
38 ENACTS:
39 17B-2a-828, Utah Code Annotated 1953
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41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 17B-2a-802 is amended to read:
43 17B-2a-802. Definitions.
44 As used in this part:
45 (1) "Affordable housing" means housing occupied or reserved for occupancy by
46 households that meet certain gross household income requirements based on the area median
47 income for households of the same size.
48 (a) "Affordable housing" may include housing occupied or reserved for occupancy by
49 households that meet specific area median income targets or ranges of area median income
50 targets.
51 (b) "Affordable housing" does not include housing occupied or reserved for occupancy
52 by households with gross household incomes that are more than 60% of the area median
53 income for households of the same size.
54 (2) "Appointing entity" means the person, county, unincorporated area of a county, or
55 municipality appointing a member to a public transit district board of trustees.
56 (3) (a) "Chief executive officer" means a person appointed by the board of trustees of a
57 small public transit district to serve as chief executive officer.
58 (b) "Chief executive officer" shall enjoy all the rights, duties, and responsibilities
59 defined in Sections 17B-2a-810 and 17B-2a-811 and includes all rights, duties, and
60 responsibilities assigned to the general manager but prescribed by the board of trustees to be
61 fulfilled by the chief executive officer.
62 (4) "Confidential employee" means a person who, in the regular course of the person's
63 duties:
64 (a) assists in and acts in a confidential capacity in relation to other persons who
65 formulate, determine, and effectuate management policies regarding labor relations; or
66 (b) has authorized access to information relating to effectuating or reviewing the
67 employer's collective bargaining policies.
68 (5) "Council of governments" means a decision-making body in each county composed
69 of membership including the county governing body and the mayors of each municipality in the
70 county.
71 (6) "Department" means the Department of Transportation created in Section 72-1-201.
72 (7) "Executive director" means a person appointed by the board of trustees of a large
73 public transit district to serve as executive director.
74 (8) "Fixed guideway" means the same as that term is defined in Section 59-12-102.
75 (9) "Fixed guideway capital development" means the same as that term is defined in
76 Section 72-1-102.
77 (10) (a) "General manager" means a person appointed by the board of trustees of a
78 small public transit district to serve as general manager.
79 (b) "General manager" shall enjoy all the rights, duties, and responsibilities defined in
80 Sections 17B-2a-810 and 17B-2a-811 prescribed by the board of trustees of a small public
81 transit district.
82 (11) "High-growth area" means an area or municipality within a public transit district
83 that:
84 (a) has significantly higher population increase relative to other areas within the public
85 transit district;
86 (b) is projected to continue to have significant population growth; and
87 (c) has less public transit service within the area or municipality relative to other areas
88 or municipalities within the same public transit district.
89 [
90 public transit to an area that includes:
91 (a) more than 65% of the population of the state based on the most recent official
92 census or census estimate of the United States Census Bureau; and
93 (b) two or more counties.
94 [
95 position with a county or municipality.
96 (b) "Locally elected public official" does not include a person who holds an elected
97 position if the elected position is not with a county or municipality.
98 [
99 (a) engaged in executive and management functions; and
100 (b) charged with the responsibility of directing, overseeing, or implementing the
101 effectuation of management policies and practices.
102 [
103 defined in Section 72-1-208.5.
104 [
105 one county.
106 [
107 transportation of passengers for hire.
108 [
109 transportation services that are open to the general public or open to a segment of the general
110 public defined by age, disability, or low income.
111 (b) "Public transit" does not include transportation services provided by:
112 (i) chartered bus;
113 (ii) sightseeing bus;
114 (iii) taxi;
115 (iv) school bus service;
116 (v) courtesy shuttle service for patrons of one or more specific establishments; or
117 (vi) intra-terminal or intra-facility shuttle services.
118 [
119 services.
120 (20) (a) "Public transit innovation grant" means a grant to provide targeted pilot
121 programs to:
122 (i) increase public transit ridership;
123 (ii) increase public transit service in high-growth areas within the public transit district;
124 and
125 (iii) improve coordination and communication between local governments and the
126 relevant public transit district.
127 (b) "Public transit innovation grant" includes a grant to provide:
128 (i) bus routes and services in high-growth areas;
129 (ii) shuttle connections between fixed guideway stations and job centers, recreation and
130 cultural facilities and attractions, or schools;
131 (iii) free or reduced fare for students or teachers; or
132 (iv) programs similar to those described in Subsections (20)(b)(i) through (iii) as
133 coordinated between the public transit district and political subdivisions within the public
134 transit district.
135 [
136 large public transit district.
137 [
138 in accordance with Section 10-9a-403.1.
139 [
140 employer, to:
141 (i) hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or
142 discipline other employees; or
143 (ii) adjust another employee's grievance or recommend action to adjust another
144 employee's grievance.
145 (b) "Supervisor" does not include a person whose exercise of the authority described in
146 Subsection [
147 (i) is of a merely routine or clerical nature; and
148 (ii) does not require the person to use independent judgment.
149 [
150 loading or unloading zone, parking lot, or other facility:
151 (a) leased by or operated by or on behalf of a public transit district; and
152 (b) related to the public transit services provided by the district, including:
153 (i) railway or other right-of-way;
154 (ii) railway line; and
155 (iii) a reasonable area immediately adjacent to a designated stop on a route traveled by
156 a transit vehicle.
157 [
158 vehicle operated as public transportation by a public transit district.
159 [
160 commercial area that is designed to maximize access to public transit and includes the
161 development of land owned by a large public transit district.
162 [
163 commercial area that is designed to maximize access to public transit and does not include the
164 development of land owned by a large public transit district.
165 Section 2. Section 17B-2a-808.1 is amended to read:
166 17B-2a-808.1. Large public transit district board of trustees powers and duties --
167 Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
168 (1) The powers and duties of a board of trustees of a large public transit district stated
169 in this section are in addition to the powers and duties stated in Section 17B-1-301.
170 (2) The board of trustees of each large public transit district shall:
171 (a) hold public meetings and receive public comment;
172 (b) ensure that the policies, procedures, and management practices established by the
173 public transit district meet state and federal regulatory requirements and federal grantee
174 eligibility;
175 (c) subject to Subsection (8), create and approve an annual budget, including the
176 issuance of bonds and other financial instruments, after consultation with the local advisory
177 council;
178 (d) approve any interlocal agreement with a local jurisdiction;
179 (e) in consultation with the local advisory council, approve contracts and overall
180 property acquisitions and dispositions for transit-oriented development;
181 (f) in consultation with constituent counties, municipalities, metropolitan planning
182 organizations, and the local advisory council:
183 (i) develop and approve a strategic plan for development and operations on at least a
184 four-year basis; and
185 (ii) create and pursue funding opportunities for transit capital and service initiatives to
186 meet anticipated growth within the public transit district;
187 (g) annually report the public transit district's long-term financial plan to the State
188 Bonding Commission;
189 (h) annually report the public transit district's progress and expenditures related to state
190 resources to the Executive Appropriations Committee and the Infrastructure and General
191 Government Appropriations Subcommittee;
192 (i) annually report to the Transportation Interim Committee the public transit district's
193 efforts to engage in public-private partnerships for public transit services;
194 (j) hire, set salaries, and develop performance targets and evaluations for:
195 (i) the executive director; and
196 (ii) all chief level officers;
197 (k) supervise and regulate each transit facility that the public transit district owns and
198 operates, including:
199 (i) fix rates, fares, rentals, charges and any classifications of rates, fares, rentals, and
200 charges; and
201 (ii) make and enforce rules, regulations, contracts, practices, and schedules for or in
202 connection with a transit facility that the district owns or controls;
203 (l) subject to Subsection (4), control the investment of all funds assigned to the district
204 for investment, including funds:
205 (i) held as part of a district's retirement system; and
206 (ii) invested in accordance with the participating employees' designation or direction
207 pursuant to an employee deferred compensation plan established and operated in compliance
208 with Section 457 of the Internal Revenue Code;
209 (m) in consultation with the local advisory council created under Section
210 17B-2a-808.2, invest all funds according to the procedures and requirements of Title 51,
211 Chapter 7, State Money Management Act;
212 (n) if a custodian is appointed under Subsection (3)(d), and subject to Subsection (4),
213 pay the fees for the custodian's services from the interest earnings of the investment fund for
214 which the custodian is appointed;
215 (o) (i) cause an annual audit of all public transit district books and accounts to be made
216 by an independent certified public accountant;
217 (ii) as soon as practicable after the close of each fiscal year, submit to each of the
218 councils of governments within the public transit district a financial report showing:
219 (A) the result of district operations during the preceding fiscal year;
220 (B) an accounting of the expenditures of all local sales and use tax revenues generated
221 under Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for Transportation Act;
222 (C) the district's financial status on the final day of the fiscal year; and
223 (D) the district's progress and efforts to improve efficiency relative to the previous
224 fiscal year; and
225 (iii) supply copies of the report under Subsection (2)(o)(ii) to the general public upon
226 request;
227 (p) report at least annually to the Transportation Commission created in Section
228 72-1-301, which report shall include:
229 (i) the district's short-term and long-range public transit plans, including the portions of
230 applicable regional transportation plans adopted by a metropolitan planning organization
231 established under 23 U.S.C. Sec. 134; and
232 (ii) any transit capital development projects that the board of trustees would like the
233 Transportation Commission to consider;
234 (q) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits
235 that the board of trustees determines, in consultation with the local advisory council created in
236 Section 17B-2a-808.2, to be the most critical to the success of the organization;
237 (r) together with the local advisory council created in Section 17B-2a-808.2, hear audit
238 reports for audits conducted in accordance with Subsection (2)(o);
239 (s) review and approve all contracts pertaining to reduced fares, and evaluate existing
240 contracts, including review of:
241 (i) how negotiations occurred;
242 (ii) the rationale for providing a reduced fare; and
243 (iii) identification and evaluation of cost shifts to offset operational costs incurred and
244 impacted by each contract offering a reduced fare;
245 (t) in consultation with the local advisory council, develop and approve other board
246 policies, ordinances, and bylaws; [
247 (u) review and approve any:
248 (i) contract or expense exceeding $200,000; or
249 (ii) proposed change order to an existing contract if the change order:
250 (A) increases the total contract value to $200,000 or more;
251 (B) increases a contract of or expense of $200,000 or more by 15% or more; or
252 (C) has a total change order value of $200,000 or more[
253 (v) coordinate with Ĥ→ [
253a large
254 public transit district to provide and execute public transit innovation grants.
255 (3) A board of trustees of a large public transit district may:
256 (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
257 are:
258 (i) not repugnant to the United States Constitution, the Utah Constitution, or the
259 provisions of this part; and
260 (ii) necessary for:
261 (A) the governance and management of the affairs of the district;
262 (B) the execution of district powers; and
263 (C) carrying into effect the provisions of this part;
264 (b) provide by resolution, under terms and conditions the board considers fit, for the
265 payment of demands against the district without prior specific approval by the board, if the
266 payment is:
267 (i) for a purpose for which the expenditure has been previously approved by the board;
268 (ii) in an amount no greater than the amount authorized; and
269 (iii) approved by the executive director or other officer or deputy as the board
270 prescribes;
271 (c) in consultation with the local advisory council created in Section 17B-2a-808.2:
272 (i) hold public hearings and subpoena witnesses; and
273 (ii) appoint district officers to conduct a hearing and require the officers to make
274 findings and conclusions and report them to the board; and
275 (d) appoint a custodian for the funds and securities under its control, subject to
276 Subsection (2)(n).
277 (4) For a large public transit district in existence as of May 8, 2018, on or before
278 September 30, 2019, the board of trustees of a large public transit district shall present a report
279 to the Transportation Interim Committee regarding retirement benefits of the district, including:
280 (a) the feasibility of becoming a participating employer and having retirement benefits
281 of eligible employees and officials covered in applicable systems and plans administered under
282 Title 49, Utah State Retirement and Insurance Benefit Act;
283 (b) any legal or contractual restrictions on any employees that are party to a collectively
284 bargained retirement plan; and
285 (c) a comparison of retirement plans offered by the large public transit district and
286 similarly situated public employees, including the costs of each plan and the value of the
287 benefit offered.
288 (5) The board of trustees may not issue a bond unless the board of trustees has
289 consulted and received approval from the State Finance Review Commission created in Section
290 63C-25-201.
291 (6) A member of the board of trustees of a large public transit district or a hearing
292 officer designated by the board may administer oaths and affirmations in a district investigation
293 or proceeding.
294 (7) (a) The vote of the board of trustees on each ordinance or resolution shall be by roll
295 call vote with each affirmative and negative vote recorded.
296 (b) The board of trustees of a large public transit district may not adopt an ordinance
297 unless it is introduced at least 24 hours before the board of trustees adopts it.
298 (c) Each ordinance adopted by a large public transit district's board of trustees shall
299 take effect upon adoption, unless the ordinance provides otherwise.
300 (8) (a) For a large public transit district in existence on May 8, 2018, for the budget for
301 calendar year 2019, the board in place on May 8, 2018, shall create the tentative annual budget.
302 (b) The budget described in Subsection (8)(a) shall include setting the salary of each of
303 the members of the board of trustees that will assume control on or before November 1, 2018,
304 which salary may not exceed $150,000, plus additional retirement and other standard benefits,
305 as set by the local advisory council as described in Section 17B-2a-808.2.
306 (c) For a large public transit district in existence on May 8, 2018, the board of trustees
307 that assumes control of the large public transit district on or before November 2, 2018, shall
308 approve the calendar year 2019 budget on or before December 31, 2018.
309 Section 3. Section 17B-2a-828 is enacted to read:
310 17B-2a-828. Public transit innovation grants.
311 (1) A public transit district shall coordinate and facilitate public transit innovation
312 grant projects as provided in this section.
313 (2) A public transit innovation grant proposal may be considered by:
314 (a) a county legislative body, using funds as described in Subsection
315 59-12-2219(11)(b);
316 (b) the Transportation Commission created in Section 72-1-301, using funds in the
317 Transit Transportation Investment Fund as described in Subsection 72-2-124(9); and
318 (c) the Department of Transportation, as provided in Subsection 72-2-121(7), for
319 recommendation to the Legislature, using funds in the County of the First Class Highway
320 Projects Fund created in Section 72-2-121 deposited according to Subsection 59-12-2220(11).
321 (3) A municipality or a public transit district may propose a public transit innovation
322 grant to the relevant reviewing entity.
323 (4) A public transit innovation grant proposal shall include information about:
324 (a) the proposed mode of public transit or purpose for the funding;
325 (b) the proposed operator of the service, including qualifications for any proposed
326 operator that is not a public transit district;
327 (c) any funds provided by the municipality or public transit district as part of the public
328 transit innovation proposal;
329 (d) the targeted demographic or group, such as students or low-income residents; and
330 (e) any other information that the municipality or public transit district finds relevant.
331 (5) In considering a public transit innovation grant proposal, the reviewing entity may
332 consider how the proposal furthers the following objectives:
333 (a) increasing public transit ridership in the area;
334 (b) improving connectivity for the first and last mile relative to other public transit
335 services;
336 (c) improving public transit connectivity in high-growth areas within the public transit
337 district; and
338 (d) improving access to opportunities for low-income residents.
339 (6) Subject to available funding, a reviewing entity described in Subsection (2) may
340 award a public transit innovation grant to a recipient that the reviewing entity determines
341 furthers the objectives described in Subsection (5).
342 Section 4. Section 59-12-2202 is amended to read:
343 59-12-2202. Definitions.
344 As used in this part:
345 (1) "Airline" means the same as that term is defined in Section 59-2-102.
346 (2) "Airport facility" means the same as that term is defined in Section 59-12-602.
347 (3) "Airport of regional significance" means an airport identified by the Federal
348 Aviation Administration in the most current National Plan of Integrated Airport Systems or an
349 update to the National Plan of Integrated Airport Systems.
350 (4) "Annexation" means an annexation to:
351 (a) a county under Title 17, Chapter 2, County Consolidations and Annexations; or
352 (b) a city or town under Title 10, Chapter 2, Part 4, Annexation.
353 (5) "Annexing area" means an area that is annexed into a county, city, or town.
354 (6) "Class A road" means the same as that term is described in Section 72-3-102.
355 (7) "Class B road" means the same as that term is described in Section 72-3-103.
356 (8) "Class C road" means the same as that term is described in Section 72-3-104.
357 (9) "Class D road" means the same as that term is described in Section 72-3-105.
358 (10) "Council of governments" means the same as that term is defined in Section
359 72-2-117.5.
360 (11) "Eligible political subdivision" means a political subdivision that:
361 (a) provides public transit services;
362 (b) is not a public transit district; and
363 (c) is not annexed into a public transit district.
364 (12) "Fixed guideway" means the same as that term is defined in Section 59-12-102.
365 (13) "Large public transit district" means the same as that term is defined in Section
366 17B-2a-802.
367 (14) "Major collector highway" means the same as that term is defined in Section
368 72-4-102.5.
369 (15) "Metropolitan planning organization" means the same as that term is defined in
370 Section 72-1-208.5.
371 (16) "Minor arterial highway" means the same as that term is defined in Section
372 72-4-102.5.
373 (17) "Minor collector road" means the same as that term is defined in Section
374 72-4-102.5.
375 (18) "Principal arterial highway" means the same as that term is defined in Section
376 72-4-102.5.
377 (19) "Public transit" means the same as that term is defined in Section 17B-2a-802.
378 (20) "Public transit district" means the same as that term is defined in Section
379 17B-2a-802.
380 (21) "Public transit innovation grant" means the same as that term is defined in Section
381 17B-2a-802.
382 [
383 political subdivision.
384 [
385 [
386 (a) in a county of the first or second class:
387 (i) a principal arterial highway;
388 (ii) a minor arterial highway;
389 (iii) a fixed guideway that:
390 (A) extends across two or more cities or unincorporated areas; or
391 (B) is an extension to an existing fixed guideway; or
392 (iv) an airport of regional significance; or
393 (b) in a county of the second class that is not part of a large public transit district, or in
394 a county of the third, fourth, fifth, or sixth class:
395 (i) a principal arterial highway;
396 (ii) a minor arterial highway;
397 (iii) a major collector highway;
398 (iv) a minor collector road; or
399 (v) an airport of regional significance.
400 [
401 72, Chapter 4, Designation of State Highways Act.
402 [
403 means the same as the term "public transit" is defined in Section 17B-2a-802.
404 (b) "System for public transit" includes:
405 (i) the following costs related to public transit:
406 (A) maintenance costs; or
407 (B) operating costs;
408 (ii) a fixed guideway;
409 (iii) a park and ride facility;
410 (iv) a passenger station or passenger terminal;
411 (v) a right-of-way for public transit; or
412 (vi) the following that serve a public transit facility:
413 (A) a maintenance facility;
414 (B) a platform;
415 (C) a repair facility;
416 (D) a roadway;
417 (E) a storage facility;
418 (F) a utility line; or
419 (G) a facility or item similar to those described in Subsections [
420 (26)(b)(vi)(A) through (F).
421 Section 5. Section 59-12-2212.2 is amended to read:
422 59-12-2212.2. Allowable uses of local option sales and use tax revenue.
423 (1) Except as otherwise provided in this part, a county, city, or town that imposes a
424 local option sales and use tax under this part may expend the revenue generated from the local
425 option sales and use tax for the following purposes:
426 (a) the development, construction, maintenance, or operation of:
427 (i) a class A road;
428 (ii) a class B road;
429 (iii) a class C road;
430 (iv) a class D road;
431 (v) traffic and pedestrian safety infrastructure, including:
432 (A) a sidewalk;
433 (B) curb and gutter;
434 (C) a safety feature;
435 (D) a traffic sign;
436 (E) a traffic signal; or
437 (F) street lighting;
438 (vi) streets, alleys, roads, highways, and thoroughfares of any kind, including
439 connected structures;
440 (vii) an airport facility;
441 (viii) an active transportation facility that is for nonmotorized vehicles and multimodal
442 transportation and connects an origin with a destination; or
443 (ix) an intelligent transportation system;
444 (b) a system for public transit;
445 (c) all other modes and forms of conveyance used by the public;
446 (d) debt service or bond issuance costs related to a project or facility described in
447 Subsections (1)(a) through (c); or
448 (e) corridor preservation related to a project or facility described in Subsections (1)(a)
449 through (c).
450 (2) Any revenue subject to rights or obligations under a contract between a county,
451 city, or town and a public transit district entered into before January 1, 2019, remains subject to
452 existing contractual rights and obligations.
453 (3) In addition to the uses described in Subsection (1), for any revenue not
454 contractually obligated for debt service, a public transit district may expend the revenue
455 generated from the local option sales and use tax for public transit innovation grants.
456 (4) Ĥ→ (a) ←Ĥ A large public transit district shall provide Ĥ→ [
456a to each city and town
457 within the boundary of the large public transit district, which report shall provide an accounting
458 of:
459 Ĥ→ [
459a that was
460 collected within each respective county, city, or town and allocated to the large public transit
461 district as provided in this part;
462 Ĥ→ [
462a allocated to provide public
463 transit services within each city and town; and
464 Ĥ→ [
464a spent to provide public transit
465 services within each respective city and town.
465a Ĥ→ (b) A large public transit district shall provide the report described in Subsection (4)(a):
465b (i) on or before November 1, 2024; and
465c (ii) at least every two years thereafter.
465d (c) To provide the report described in this Subsection (4), a large public transit district may
465e coordinate with the Department of Transportation to report on relevant public transit capital
465f development administered by the Department of Transportation. ←Ĥ
466 Section 6. Section 59-12-2219 is amended to read:
467 59-12-2219. County option sales and use tax for highways and public transit --
468 Base -- Rate -- Distribution and expenditure of revenue -- Revenue may not supplant
469 existing budgeted transportation revenue.
470 (1) Subject to the other provisions of this part, and subject to Subsection (13), a county
471 legislative body may impose a sales and use tax of .25% on the transactions described in
472 Subsection 59-12-103(1) within the county, including the cities and towns within the county.
473 (2) Subject to Subsection (9), the commission shall distribute sales and use tax revenue
474 collected under this section as provided in Subsections (3) through (8).
475 (3) If the entire boundary of a county that imposes a sales and use tax under this section
476 is annexed into a single public transit district, the commission shall distribute the sales and use
477 tax revenue collected within the county as follows:
478 (a) .10% shall be transferred to the public transit district in accordance with Section
479 59-12-2206;
480 (b) .10% shall be distributed as provided in Subsection (6); and
481 (c) .05% shall be distributed to the county legislative body.
482 (4) If the entire boundary of a county that imposes a sales and use tax under this section
483 is not annexed into a single public transit district, but a city or town within the county is
484 annexed into a single large public transit district, the commission shall distribute the sales and
485 use tax revenue collected within the county as follows:
486 (a) for a city or town within the county that is annexed into a single public transit
487 district, the commission shall distribute the sales and use tax revenue collected within that city
488 or town as follows:☆
489 ☆(i) .10% shall be transferred to the public transit district in accordance with Section
490 59-12-2206;
491 (ii) .10% shall be distributed as provided in Subsection (6); and
492 (iii) .05% shall be distributed to the county legislative body;
493 (b) for an eligible political subdivision within the county, the commission shall
494 distribute the sales and use tax revenue collected within that eligible political subdivision as
495 follows:
496 (i) .10% shall be transferred to the eligible political subdivision in accordance with
497 Section 59-12-2206;
498 (ii) .10% shall be distributed as provided in Subsection (6); and
499 (iii) .05% shall be distributed to the county legislative body; and
500 (c) the commission shall distribute the sales and use tax revenue, except for the sales
501 and use tax revenue described in Subsections (4)(a) and (b), as follows:
502 (i) .10% shall be distributed as provided in Subsection (6); and
503 (ii) .15% shall be distributed to the county legislative body.
504 (5) For a county not described in Subsection (3) or (4), if a county of the second, third,
505 fourth, fifth, or sixth class imposes a sales and use tax under this section, the commission shall
506 distribute the sales and use tax revenue collected within the county as follows:
507 (a) for a city or town within the county that is annexed into a single public transit
508 district, the commission shall distribute the sales and use tax revenue collected within that city
509 or town as follows:
510 (i) .10% shall be distributed as provided in Subsection (6);
511 (ii) .10% shall be distributed as provided in Subsection (7); and
512 (iii) .05% shall be distributed to the county legislative body;
513 (b) for an eligible political subdivision within the county, the commission shall
514 distribute the sales and use tax revenue collected within that eligible political subdivision as
515 follows:
516 (i) .10% shall be distributed as provided in Subsection (6);
517 (ii) .10% shall be distributed as provided in Subsection (7); and
518 (iii) .05% shall be distributed to the county legislative body; and
519 (c) the commission shall distribute the sales and use tax revenue, except for the sales
520 and use tax revenue described in Subsections (5)(a) and (b), as follows:
521 (i) .10% shall be distributed as provided in Subsection (6); and
522 (ii) .15% shall be distributed to the county legislative body.
523 (6) (a) Subject to Subsection (6)(b), the commission shall make the distributions
524 required by Subsections (3)(b), (4)(a)(ii), (4)(b)(ii), (4)(c)(i), (5)(a)(i), (5)(b)(i), (5)(c)(i), and
525 (7)(d)(ii)(A) as follows:
526 (i) 50% of the total revenue collected under Subsections (3)(b), (4)(a)(ii), (4)(b)(ii),
527 (4)(c)(i), (5)(a)(i), (5)(b)(i), (5)(c)(i), and (7)(d)(ii)(A) within the counties and cities that
528 impose a tax under this section shall be distributed to the unincorporated areas, cities, and
529 towns within those counties and cities on the basis of the percentage that the population of each
530 unincorporated area, city, or town bears to the total population of all of the counties and cities
531 that impose a tax under this section; and
532 (ii) 50% of the total revenue collected under Subsections (3)(b), (4)(a)(ii), (4)(b)(ii),
533 (4)(c)(i), (5)(a)(i), (5)(b)(i), (5)(c)(i), and (7)(d)(ii)(A) within the counties and cities that
534 impose a tax under this section shall be distributed to the unincorporated areas, cities, and
535 towns within those counties and cities on the basis of the location of the transaction as
536 determined under Sections 59-12-211 through 59-12-215.
537 (b) (i) Population for purposes of this Subsection (6) shall be determined on the basis
538 of the most recent official census or census estimate of the United States Bureau of the Census.
539 (ii) If a needed population estimate is not available from the United States Bureau of
540 the Census, population figures shall be derived from an estimate from the Utah Population
541 Committee.
542 (7) (a) (i) Subject to the requirements in Subsections (7)(b) and (c), a county legislative
543 body:
544 (A) for a county that obtained approval from a majority of the county's registered
545 voters voting on the imposition of a sales and use tax under this section prior to May 10, 2016,
546 may, in consultation with any cities, towns, or eligible political subdivisions within the county,
547 and in compliance with the requirements for changing an allocation under Subsection (7)(e),
548 allocate the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) by adopting a resolution specifying
549 the percentage of revenue under Subsection (5)(a)(ii) or (5)(b)(ii) that will be allocated to a
550 public transit district or an eligible political subdivision; or
551 (B) for a county that imposes a sales and use tax under this section on or after May 10,
552 2016, shall, in consultation with any cities, towns, or eligible political subdivisions within the
553 county, allocate the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) by adopting a resolution
554 specifying the percentage of revenue under Subsection (5)(a)(ii) or (5)(b)(ii) that will be
555 allocated to a public transit district or an eligible political subdivision.
556 (ii) If a county described in Subsection (7)(a)(i)(A) does not allocate the revenue under
557 Subsection (5)(a)(ii) or (5)(b)(ii) in accordance with Subsection (7)(a)(i)(A), the commission
558 shall distribute 100% of the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) to:
559 (A) a public transit district for a city or town within the county that is annexed into a
560 single public transit district; or
561 (B) an eligible political subdivision within the county.
562 (b) If a county legislative body allocates the revenue as described in Subsection
563 (7)(a)(i), the county legislative body shall allocate not less than 25% of the revenue under
564 Subsection (5)(a)(ii) or (5)(b)(ii) to:
565 (i) a public transit district for a city or town within the county that is annexed into a
566 single public transit district; or
567 (ii) an eligible political subdivision within the county.
568 (c) Notwithstanding Section 59-12-2208, the opinion question described in Section
569 59-12-2208 shall state the allocations the county legislative body makes in accordance with this
570 Subsection (7).
571 (d) The commission shall make the distributions required by Subsection (5)(a)(ii) or
572 (5)(b)(ii) as follows:
573 (i) the percentage specified by a county legislative body shall be distributed in
574 accordance with a resolution adopted by a county legislative body under Subsection (7)(a) to an
575 eligible political subdivision or a public transit district within the county; and
576 (ii) except as provided in Subsection (7)(a)(ii), if a county legislative body allocates
577 less than 100% of the revenue under Subsection (5)(a)(ii) or (5)(b)(ii) to a public transit district
578 or an eligible political subdivision, the remainder of the revenue under Subsection (5)(a)(ii) or
579 (5)(b)(ii) not allocated by a county legislative body through a resolution under Subsection
580 (7)(a) shall be distributed as follows:
581 (A) 50% of the revenue as provided in Subsection (6); and
582 (B) 50% of the revenue to the county legislative body.
583 (e) If a county legislative body seeks to change an allocation specified in a resolution
584 under Subsection (7)(a), the county legislative body may change the allocation by:
585 (i) adopting a resolution in accordance with Subsection (7)(a) specifying the percentage
586 of revenue under Subsection (5)(a)(ii) or (5)(b)(ii) that will be allocated to a public transit
587 district or an eligible political subdivision;
588 (ii) obtaining approval to change the allocation of the sales and use tax by a majority of
589 all the members of the county legislative body; and
590 (iii) subject to Subsection (7)(f):
591 (A) in accordance with Section 59-12-2208, submitting an opinion question to the
592 county's registered voters voting on changing the allocation so that each registered voter has the
593 opportunity to express the registered voter's opinion on whether the allocation should be
594 changed; and
595 (B) in accordance with Section 59-12-2208, obtaining approval to change the
596 allocation from a majority of the county's registered voters voting on changing the allocation.
597 (f) Notwithstanding Section 59-12-2208, the opinion question required by Subsection
598 (7)(e)(iii)(A) shall state the allocations specified in the resolution adopted in accordance with
599 Subsection (7)(e) and approved by the county legislative body in accordance with Subsection
600 (7)(e)(ii).
601 (g) (i) If a county makes an allocation by adopting a resolution under Subsection (7)(a)
602 or changes an allocation by adopting a resolution under Subsection (7)(e), the allocation shall
603 take effect on the first distribution the commission makes under this section after a 90-day
604 period that begins on the date the commission receives written notice meeting the requirements
605 of Subsection (7)(g)(ii) from the county.
606 (ii) The notice described in Subsection (7)(g)(i) shall state:
607 (A) that the county will make or change the percentage of an allocation under
608 Subsection (7)(a) or (e); and
609 (B) the percentage of revenue under Subsection (5)(a)(ii) or (5)(b)(ii) that will be
610 allocated to a public transit district or an eligible political subdivision.
611 (8) (a) If a public transit district is organized after the date a county legislative body
612 first imposes a tax under this section, a change in a distribution required by this section may
613 not take effect until the first distribution the commission makes under this section after a
614 90-day period that begins on the date the commission receives written notice from the public
615 transit district of the organization of the public transit district.
616 (b) If an eligible political subdivision intends to provide public transit service within a
617 county after the date a county legislative body first imposes a tax under this section, a change
618 in a distribution required by this section may not take effect until the first distribution the
619 commission makes under this section after a 90-day period that begins on the date the
620 commission receives written notice from the eligible political subdivision stating that the
621 eligible political subdivision intends to provide public transit service within the county.
622 (9) (a) (i) Notwithstanding Subsections (3) through (8), for a county that has not
623 imposed a sales and use tax under this section before May 8, 2018, and if the county imposes a
624 sales and use tax under this section before June 30, 2019, the commission shall distribute all of
625 the sales and use tax revenue collected by the county before June 30, 2019, to the county for
626 the purposes described in Subsection (9)(a)(ii).
627 (ii) For any revenue collected by a county pursuant to Subsection (9)(a)(i) before June
628 30, 2019, the county may expend that revenue for:
629 (A) reducing transportation related debt;
630 (B) a regionally significant transportation facility; or
631 (C) a public transit project of regional significance.
632 (b) For a county that has not imposed a sales and use tax under this section before May
633 8, 2018, and if the county imposes a sales and use tax under this section before June 30, 2019,
634 the commission shall distribute the sales and use tax revenue collected by the county on or after
635 July 1, 2019, as described in Subsections (3) through (8).
636 (c) For a county that has not imposed a sales and use tax under this section before June
637 30, 2019, if the entire boundary of that county is annexed into a large public transit district, and
638 if the county imposes a sales and use tax under this section on or after July 1, 2019, the
639 commission shall distribute the sales and use tax revenue collected by the county as described
640 in Subsections (3) through (8).
641 (10) A county, city, or town may expend revenue collected from a tax under this
642 section, except for revenue the commission distributes in accordance with Subsection (3)(a),
643 (4)(a)(i), (4)(b)(i), or (7)(d)(i), for a purpose described in Section 59-12-2212.2.
644 (11) (a) A public transit district or an eligible political subdivision may expend revenue
645 the commission distributes in accordance with Subsection (3)(a), (4)(a)(i), (4)(b)(i), or (7)(d)(i)
646 for capital expenses and service delivery expenses of the public transit district or eligible
647 political subdivision.
648 (b) As provided in Section 59-12-2212.2, for the .10% designated for public transit
649 described in Subsection (3)(a) that is not contractually obligated for debt service, Ĥ→ beginning on
649a July 1, 2025, ←Ĥ a large public
650 transit district shall expend 10% of the .10% for public transit innovation grants.
651 (c) The relevant county legislative body shall approve a public transit innovation grant
652 as provided in Section 17B-2a-828.
653 (12) Notwithstanding Section 59-12-2208, a county, city, or town legislative body may,
654 but is not required to, submit an opinion question to the county's, city's, or town's registered
655 voters in accordance with Section 59-12-2208 to impose a sales and use tax under this section.
656 (13) (a) (i) Notwithstanding any other provision in this section, if the entire boundary
657 of a county is annexed into a large public transit district, if the county legislative body wishes
658 to impose a sales and use tax under this section, the county legislative body shall pass the
659 ordinance to impose a sales and use tax under this section on or before June 30, 2022.
660 (ii) If the entire boundary of a county is annexed into a large public transit district, the
661 county legislative body may not pass an ordinance to impose a sales and use tax under this
662 section on or after July 1, 2022.
663 (b) Notwithstanding the deadline described in Subsection (13)(a), any sales and use tax
664 imposed under this section by passage of a county ordinance on or before June 30, 2022, may
665 remain in effect.
666 (14) (a) Beginning on July 1, 2020, and subject to Subsection (15), if a county has not
667 imposed a sales and use tax under this section, subject to the provisions of this part, the
668 legislative body of a city or town described in Subsection (14)(b) may impose a .25% sales and
669 use tax on the transactions described in Subsection 59-12-103(1) within the city or town.
670 (b) The following cities or towns may impose a sales and use tax described in
671 Subsection (14)(a):
672 (i) a city or town that has been annexed into a public transit district; or
673 (ii) an eligible political subdivision.
674 (c) If a city or town imposes a sales and use tax as provided in this section, the
675 commission shall distribute the sales and use tax revenue collected by the city or town as
676 follows:
677 (i) .125% to the city or town that imposed the sales and use tax, to be distributed as
678 provided in Subsection (6); and
679 (ii) .125%, as applicable, to:
680 (A) the public transit district in which the city or town is annexed; or
681 (B) the eligible political subdivision for public transit services.
682 (d) If a city or town imposes a sales and use tax under this section and the county
683 subsequently imposes a sales and use tax under this section, the commission shall distribute the
684 sales and use tax revenue collected within the city or town as described in Subsection (14)(c).
685 (15) (a) (i) Notwithstanding any other provision in this section, if a city or town
686 legislative body wishes to impose a sales and use tax under this section, the city or town
687 legislative body shall pass the ordinance to impose a sales and use tax under this section on or
688 before June 30, 2022.
689 (ii) A city or town legislative body may not pass an ordinance to impose a sales and use
690 tax under this section on or after July 1, 2022.
691 (b) Notwithstanding the deadline described in Subsection (15)(a), any sales and use tax
692 imposed under this section by passage of an ordinance by a city or town legislative body on or
693 before June 30, 2022, may remain in effect.
694 Section 7. Section 59-12-2220 is amended to read:
695 59-12-2220. County option sales and use tax to fund highways or a system for
696 public transit -- Base -- Rate.
697 (1) Subject to the other provisions of this part and subject to the requirements of this
698 section, the following counties may impose a sales and use tax under this section:
699 (a) a county legislative body may impose the sales and use tax on the transactions
700 described in Subsection 59-12-103(1) located within the county, including the cities and towns
701 within the county if:
702 (i) the entire boundary of a county is annexed into a large public transit district; and
703 (ii) the maximum amount of sales and use tax authorizations allowed pursuant to
704 Section 59-12-2203 and authorized under the following sections has been imposed:
705 (A) Section 59-12-2213;
706 (B) Section 59-12-2214;
707 (C) Section 59-12-2215;
708 (D) Section 59-12-2216;
709 (E) Section 59-12-2217;
710 (F) Section 59-12-2218; and
711 (G) Section 59-12-2219;
712 (b) if the county is not annexed into a large public transit district, the county legislative
713 body may impose the sales and use tax on the transactions described in Subsection
714 59-12-103(1) located within the county, including the cities and towns within the county if:
715 (i) the county is an eligible political subdivision; or
716 (ii) a city or town within the boundary of the county is an eligible political subdivision;
717 or
718 (c) a county legislative body of a county not described in Subsection (1)(a) may impose
719 the sales and use tax on the transactions described in Subsection 59-12-103(1) located within
720 the county, including the cities and towns within the county.
721 (2) For purposes of Subsection (1) and subject to the other provisions of this section, a
722 county legislative body that imposes a sales and use tax under this section may impose the tax
723 at a rate of .2%.
724 (3) (a) The commission shall distribute sales and use tax revenue collected under this
725 section as determined by a county legislative body as described in Subsection (3)(b).
726 (b) If a county legislative body imposes a sales and use tax as described in this section,
727 the county legislative body may elect to impose a sales and use tax revenue distribution as
728 described in Subsection (4), (5), (6), or (7), depending on the class of county, and presence and
729 type of a public transit provider in the county.
730 (4) If a county legislative body imposes a sales and use tax as described in this section,
731 and the entire boundary of the county is annexed into a large public transit district, and the
732 county is a county of the first class, the commission shall distribute the sales and use tax
733 revenue as follows:
734 (a) .10% to a public transit district as described in Subsection (11);
735 (b) .05% to the cities and towns as provided in Subsection (8); and
736 (c) .05% to the county legislative body.
737 (5) If a county legislative body imposes a sales and use tax as described in this section
738 and the entire boundary of the county is annexed into a large public transit district, and the
739 county is a county not described in Subsection (4), the commission shall distribute the sales
740 and use tax revenue as follows:
741 (a) .10% to a public transit district as described in Subsection (11);
742 (b) .05% to the cities and towns as provided in Subsection (8); and
743 (c) .05% to the county legislative body.
744 (6) (a) Except as provided in Subsection (12)(c), if the entire boundary of a county that
745 imposes a sales and use tax as described in this section is not annexed into a single public
746 transit district, but a city or town within the county is annexed into a single public transit
747 district, or if the city or town is an eligible political subdivision, the commission shall distribute
748 the sales and use tax revenue collected within the county as provided in Subsection (6)(b) or
749 (c).
750 (b) For a city, town, or portion of the county described in Subsection (6)(a) that is
751 annexed into the single public transit district, or an eligible political subdivision, the
752 commission shall distribute the sales and use tax revenue collected within the portion of the
753 county that is within a public transit district or eligible political subdivision as follows:
754 (i) .05% to a public transit provider as described in Subsection (11);
755 (ii) .075% to the cities and towns as provided in Subsection (8); and
756 (iii) .075% to the county legislative body.
757 (c) Except as provided in Subsection (12)(c), for a city, town, or portion of the county
758 described in Subsection (6)(a) that is not annexed into a single public transit district or eligible
759 political subdivision in the county, the commission shall distribute the sales and use tax
760 revenue collected within that portion of the county as follows:
761 (i) .08% to the cities and towns as provided in Subsection (8); and
762 (ii) .12% to the county legislative body.
763 (7) For a county without a public transit service that imposes a sales and use tax as
764 described in this section, the commission shall distribute the sales and use tax revenue
765 collected within the county as follows:
766 (a) .08% to the cities and towns as provided in Subsection (8); and
767 (b) .12% to the county legislative body.
768 (8) (a) Subject to Subsections (8)(b) and (c), the commission shall make the
769 distributions required by Subsections (4)(b), (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) as follows:
770 (i) 50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii),
771 (6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4) through (7)
772 shall be distributed to the unincorporated areas, cities, and towns within those counties on the
773 basis of the percentage that the population of each unincorporated area, city, or town bears to
774 the total population of all of the counties that impose a tax under this section; and
775 (ii) 50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii),
776 (6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4) through (7)
777 shall be distributed to the unincorporated areas, cities, and towns within those counties on the
778 basis of the location of the transaction as determined under Sections 59-12-211 through
779 59-12-215.
780 (b) (i) Population for purposes of this Subsection (8) shall be determined on the basis
781 of the most recent official census or census estimate of the United States Census Bureau.
782 (ii) If a needed population estimate is not available from the United States Census
783 Bureau, population figures shall be derived from an estimate from the Utah Population
784 Estimates Committee created by executive order of the governor.
785 (c) (i) Beginning on January 1, 2024, if the Housing and Community Development
786 Division within the Department of Workforce Services determines that a city, town, or metro
787 township is ineligible for funds in accordance with Subsection 10-9a-408(7), beginning the
788 first day of the calendar quarter after receiving 90 days' notice, the commission shall distribute
789 the distribution that city, town, or metro township would have received under Subsection (8)(a)
790 to cities, towns, or metro townships to which Subsection 10-9a-408(7) does not apply.
791 (ii) Beginning on January 1, 2024, if the Housing and Community Development
792 Division within the Department of Workforce Services determines that a county is ineligible
793 for funds in accordance with Subsection 17-27a-408(7), beginning the first day of the calendar
794 quarter after receiving 90 days' notice, the commission shall distribute the distribution that
795 county would have received under Subsection (8)(a) to counties to which Subsection
796 17-27a-408(7) does not apply.
797 (9) If a public transit service is organized after the date a county legislative body first
798 imposes a tax under this section, a change in a distribution required by this section may not
799 take effect until the first distribution the commission makes under this section after a 90-day
800 period that begins on the date the commission receives written notice from the public transit
801 provider that the public transit service has been organized.
802 (10) A county, city, or town that received distributions described in Subsections (4)(b),
803 (4)(c), (5)(b), (5)(c), (6)(b)(ii), (6)(b)(iii), (6)(c), and (7) may only expend those funds for a
804 purpose described in Section 59-12-2212.2.
805 (11) (a) Subject to Subsections (11)(b), (c), and (d), revenue designated for public
806 transit as described in this section may be used for capital expenses and service delivery
807 expenses of:
808 (i) a public transit district;
809 (ii) an eligible political subdivision; or
810 (iii) another entity providing a service for public transit or a transit facility within the
811 relevant county, as those terms are defined in Section 17B-2a-802.
812 (b) (i) (A) If a county of the first class imposes a sales and use tax described in this
813 section, for a three-year period following the date on which the county imposes the sales and
814 use tax under this section, revenue designated for public transit within a county of the first class
815 as described in Subsection (4)(a) shall be transferred to the County of the First Class Highway
816 Projects Fund created in Section 72-2-121.
817 (B) Revenue deposited into the County of the First Class Highway Projects Fund
818 created in Section 72-2-121 as described in Subsection (11)(b)(i)(A) may be used for public
819 transit innovation grants as provided in Section 59-12-2212.2.
820 (ii) If a county of the first class imposes a sales and use tax described in this section,
821 beginning on the day three years after the date on which the county imposed the tax as
822 described in Subsection (11)(b)(i), for revenue designated for public transit as described in
823 Subsection (4)(a):
824 (A) 50% of the revenue from a sales and use tax imposed under this section in a county
825 of the first class shall be transferred to the County of the First Class Highway Projects Fund
826 created in Section 72-2-121; and
827 (B) 50% of the revenue from a sales and use tax imposed under this section in a county
828 of the first class shall be transferred to the Transit Transportation Investment Fund created in
829 Subsection 72-2-124(9).
830 (c) (i) If a county that is not a county of the first class for which the entire boundary of
831 the county is annexed into a large public transit district imposes a sales and use tax described in
832 this section, for a three-year period following the date on which the county imposes the sales
833 and use tax under this section, revenue designated for public transit as described in Subsection
834 (5)(a) shall be transferred to the relevant county legislative body to be used for a purpose
835 described in Subsection (11)(a).
836 (ii) If a county that is not a county of the first class for which the entire boundary of the
837 county is annexed into a large public transit district imposes a sales and use tax described in
838 this section, beginning on the day three years after the date on which the county imposed the
839 tax as described in Subsection (11)(c)(i), for the revenue that is designated for public transit in
840 Subsection (5)(a):
841 (A) 50% shall be transferred to the Transit Transportation Investment Fund created in
842 Subsection 72-2-124(9); and
843 (B) 50% shall be transferred to the relevant county legislative body to be used for a
844 purpose described in Subsection (11)(a).
845 (d) Except as provided in Subsection (12)(c), for a county that imposes a sales and use
846 tax under this section, for revenue designated for public transit as described in Subsection
847 (6)(b)(i), the revenue shall be transferred to the relevant county legislative body to be used for a
848 purpose described in Subsection (11)(a).
849 (12) (a) Notwithstanding Section 59-12-2208, a county legislative body may, but is not
850 required to, submit an opinion question to the county's registered voters in accordance with
851 Section 59-12-2208 to impose a sales and use tax under this section.
852 (b) If a county passes an ordinance to impose a sales and use tax as described in this
853 section, the sales and use tax shall take effect on the first day of the calendar quarter after a
854 90-day period that begins on the date the commission receives written notice from the county
855 of the passage of the ordinance.
856 (c) A county that imposed the local option sales and use tax described in this section
857 before January 1, 2023, may maintain that county's distribution allocation in place as of
858 January 1, 2023.
859 (13) (a) Revenue collected from a sales and use tax under this section may not be used
860 to supplant existing General Fund appropriations that a county, city, or town budgeted for
861 transportation or public transit as of the date the tax becomes effective for a county, city, or
862 town.
863 (b) The limitation under Subsection (13)(a) does not apply to a designated
864 transportation or public transit capital or reserve account a county, city, or town established
865 before the date the tax becomes effective.
866 Section 8. Section 72-2-121 is amended to read:
867 72-2-121. County of the First Class Highway Projects Fund.
868 (1) There is created a special revenue fund within the Transportation Fund known as
869 the "County of the First Class Highway Projects Fund."
870 (2) The fund consists of money generated from the following revenue sources:
871 (a) any voluntary contributions received for new construction, major renovations, and
872 improvements to highways within a county of the first class;
873 (b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
874 deposited into or transferred to the fund;
875 (c) the portion of the sales and use tax described in Section 59-12-2217 deposited into
876 or transferred to the fund;
877 (d) a portion of the local option highway construction and transportation corridor
878 preservation fee imposed in a county of the first class under Section 41-1a-1222 deposited into
879 or transferred to the fund; and
880 (e) the portion of the sales and use tax transferred into the fund as described in
881 Subsections 59-12-2220(4)(a) and 59-12-2220(11)(b).
882 (3) (a) The fund shall earn interest.
883 (b) All interest earned on fund money shall be deposited into the fund.
884 (4) Subject to Subsection [
885 only:
886 (a) to pay debt service and bond issuance costs for bonds issued under Sections
887 63B-16-102, 63B-18-402, and 63B-27-102;
888 (b) for right-of-way acquisition, new construction, major renovations, and
889 improvements to highways within a county of the first class and to pay any debt service and
890 bond issuance costs related to those projects, including improvements to a highway located
891 within a municipality in a county of the first class where the municipality is located within the
892 boundaries of more than a single county;
893 (c) for the construction, acquisition, use, maintenance, or operation of:
894 (i) an active transportation facility for nonmotorized vehicles;
895 (ii) multimodal transportation that connects an origin with a destination; or
896 (iii) a facility that may include a:
897 (A) pedestrian or nonmotorized vehicle trail;
898 (B) nonmotorized vehicle storage facility;
899 (C) pedestrian or vehicle bridge; or
900 (D) vehicle parking lot or parking structure;
901 (d) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
902 Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the amounts
903 transferred in accordance with Subsection 72-2-124(4)(a)(iv);
904 (e) for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
905 issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the projects
906 described in Subsection 63B-18-401(4)(a);
907 (f) for a fiscal year beginning on or after July 1, 2013, and after the department has
908 verified that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund, to
909 transfer an amount equal to 50% of the revenue generated by the local option highway
910 construction and transportation corridor preservation fee imposed under Section 41-1a-1222 in
911 a county of the first class:
912 (i) to the legislative body of a county of the first class; and
913 (ii) to be used by a county of the first class for:
914 (A) highway construction, reconstruction, or maintenance projects; or
915 (B) the enforcement of state motor vehicle and traffic laws;
916 (g) for a fiscal year beginning on or after July 1, 2015, after the department has verified
917 that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and the
918 transfer under Subsection (4)(e) has been made, to annually transfer an amount of the sales and
919 use tax revenue imposed in a county of the first class and deposited into the fund in accordance
920 with Subsection 59-12-2214(3)(b) equal to an amount needed to cover the debt to:
921 (i) the appropriate debt service or sinking fund for the repayment of bonds issued under
922 Section 63B-27-102; and
923 (ii) the appropriate debt service or sinking fund for the repayment of bonds issued
924 under Sections 63B-31-102 and 63B-31-103;
925 (h) after the department has verified that the amount required under Subsection
926 72-2-121.3(4)(c) is available in the fund and after the transfer under Subsection (4)(d), the
927 payment under Subsection (4)(e), and the transfer under Subsection (4)(g)(i) has been made, to
928 annually transfer $2,000,000 to a public transit district in a county of the first class to fund a
929 system for public transit;
930 (i) for a fiscal year beginning on or after July 1, 2018, after the department has verified
931 that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund and after
932 the transfer under Subsection (4)(d), the payment under Subsection (4)(e), and the transfer
933 under Subsection (4)(g)(i) has been made, to annually transfer 20% of the amount deposited
934 into the fund under Subsection (2)(b):
935 (i) to the legislative body of a county of the first class; and
936 (ii) to fund parking facilities in a county of the first class that facilitate significant
937 economic development and recreation and tourism within the state;
938 (j) for the 2018-19 fiscal year only, after the department has verified that the amount
939 required under Subsection 72-2-121.3(4)(c) is available in the fund and after the transfer under
940 Subsection (4)(d), the payment under Subsection (4)(e), and the transfers under Subsections
941 (4)(g), (h), and (i) have been made, to transfer $12,000,000 to the department to distribute for
942 the following projects:
943 (i) $2,000,000 to West Valley City for highway improvement to 4100 South;
944 (ii) $1,000,000 to Herriman for highway improvements to Herriman Boulevard from
945 6800 West to 7300 West;
946 (iii) $1,100,000 to South Jordan for highway improvements to Grandville Avenue;
947 (iv) $1,800,000 to Riverton for highway improvements to Old Liberty Way from 13400
948 South to 13200 South;
949 (v) $1,000,000 to Murray City for highway improvements to 5600 South from State
950 Street to Van Winkle;
951 (vi) $1,000,000 to Draper for highway improvements to Lone Peak Parkway from
952 11400 South to 12300 South;
953 (vii) $1,000,000 to Sandy City for right-of-way acquisition for Monroe Street;
954 (viii) $900,000 to South Jordan City for right-of-way acquisition and improvements to
955 10200 South from 2700 West to 3200 West;
956 (ix) $1,000,000 to West Jordan for highway improvements to 8600 South near
957 Mountain View Corridor;
958 (x) $700,000 to South Jordan right-of-way improvements to 10550 South; and
959 (xi) $500,000 to Salt Lake County for highway improvements to 2650 South from
960 7200 West to 8000 West; and
961 (k) subject to Subsection (5), for a fiscal year beginning on or after July 1, 2021, and
962 for 15 years thereafter, to annually transfer the following amounts to the following cities, metro
963 townships, and the county of the first class for priority projects to mitigate congestion and
964 improve transportation safety:
965 (i) $2,000,000 to Sandy;
966 (ii) $2,000,000 to Taylorsville;
967 (iii) $1,100,000 to Salt Lake City;
968 (iv) $1,100,000 to West Jordan;
969 (v) $1,100,000 to West Valley City;
970 (vi) $800,000 to Herriman;
971 (vii) $700,000 to Draper;
972 (viii) $700,000 to Riverton;
973 (ix) $700,000 to South Jordan;
974 (x) $500,000 to Bluffdale;
975 (xi) $500,000 to Midvale;
976 (xii) $500,000 to Millcreek;
977 (xiii) $500,000 to Murray;
978 (xiv) $400,000 to Cottonwood Heights; and
979 (xv) $300,000 to Holladay.
980 (5) (a) If revenue in the fund is insufficient to satisfy all of the transfers described in
981 Subsection (4)(k), the executive director shall proportionately reduce the amounts transferred
982 as described in Subsection (4)(k).
983 (b) A local government entity, as that term is defined in Section 63J-1-220, is exempt
984 from entering into an agreement as described in Section 63J-1-220 pertaining to the receipt or
985 expenditure of any funding described in Subsection (4)(k).
986 (c) A local government may not use revenue described in Subsection (4)(k) to supplant
987 existing class B or class C road funds that a local government has budgeted for transportation
988 projects.
989 (d) (i) A municipality or county that received a transfer of funds described in
990 Subsection (4)(j) shall submit to the department a statement of cash flow and progress
991 pertaining to the municipality's or county's respective project described in Subsection (4)(j).
992 (ii) After the department is satisfied that the municipality or county described in
993 Subsection (4)(j) has made substantial progress and the expenditure of funds is programmed
994 and imminent, the department may transfer to the same municipality or county the respective
995 amounts described in Subsection (4)(k).
996 (6) The revenues described in Subsections (2)(b), (c), and (d) that are deposited into the
997 fund and bond proceeds from bonds issued under Sections 63B-16-102, 63B-18-402, and
998 63B-27-102 are considered a local matching contribution for the purposes described under
999 Section 72-2-123.
1000 (7) (a) Revenue deposited into the account in accordance with Subsection
1001 59-12-2220(11)(b), is eligible for public transit innovation grants, as defined in Section
1002 17B-2a-802.
1003 (b) As provided in Section 17B-2a-828, the department shall review grant proposals
1004 from a large public transit district or a political subdivision within a large public transit district
1005 and, before October 1 of each year, provide recommendations to the Transportation Interim
1006 Committee.
1007 (c) The Transportation Interim Committee may consider recommendations made under
1008 Subsection (7)(b) and propose legislation to allocate money from the fund for public transit
1009 innovation grants.
1010 [
1011 shall be paid from money in the fund.
1012 [
1013 restrictions on the use or expenditure of the revenue sources deposited into this fund, the
1014 Department of Transportation may use the money in this fund for any of the purposes detailed
1015 in Subsection (4).
1016 [
1017 be used to provide funding or loans for public transit projects, operations, and supporting
1018 infrastructure in the county of the first class.
1019 Section 9. Section 72-2-124 is amended to read:
1020 72-2-124. Transportation Investment Fund of 2005.
1021 (1) There is created a capital projects fund entitled the Transportation Investment Fund
1022 of 2005.
1023 (2) The fund consists of money generated from the following sources:
1024 (a) any voluntary contributions received for the maintenance, construction,
1025 reconstruction, or renovation of state and federal highways;
1026 (b) appropriations made to the fund by the Legislature;
1027 (c) registration fees designated under Section 41-1a-1201;
1028 (d) the sales and use tax revenues deposited into the fund in accordance with Section
1029 59-12-103; and
1030 (e) revenues transferred to the fund in accordance with Section 72-2-106.
1031 (3) (a) The fund shall earn interest.
1032 (b) All interest earned on fund money shall be deposited into the fund.
1033 (4) (a) Except as provided in Subsection (4)(b), the executive director may only use
1034 fund money to pay:
1035 (i) the costs of maintenance, construction, reconstruction, or renovation to state and
1036 federal highways prioritized by the Transportation Commission through the prioritization
1037 process for new transportation capacity projects adopted under Section 72-1-304;
1038 (ii) the costs of maintenance, construction, reconstruction, or renovation to the highway
1039 projects described in Subsections 63B-18-401(2), (3), and (4);
1040 (iii) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
1041 minus the costs paid from the County of the First Class Highway Projects Fund in accordance
1042 with Subsection 72-2-121(4)(e);
1043 (iv) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
1044 Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the amount certified
1045 by Salt Lake County in accordance with Subsection 72-2-121.3(4)(c) as necessary to pay the
1046 debt service on $30,000,000 of the revenue bonds issued by Salt Lake County;
1047 (v) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
1048 for projects prioritized in accordance with Section 72-2-125;
1049 (vi) all highway general obligation bonds that are intended to be paid from revenues in
1050 the Centennial Highway Fund created by Section 72-2-118;
1051 (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
1052 Class Highway Projects Fund created in Section 72-2-121 to be used for the purposes described
1053 in Section 72-2-121;
1054 (viii) if a political subdivision provides a contribution equal to or greater than 40% of
1055 the costs needed for construction, reconstruction, or renovation of paved pedestrian or paved
1056 nonmotorized transportation for projects that:
1057 (A) mitigate traffic congestion on the state highway system;
1058 (B) are part of an active transportation plan approved by the department; and
1059 (C) are prioritized by the commission through the prioritization process for new
1060 transportation capacity projects adopted under Section 72-1-304;
1061 (ix) $705,000,000 for the costs of right-of-way acquisition, construction,
1062 reconstruction, or renovation of or improvement to the following projects:
1063 (A) the connector road between Main Street and 1600 North in the city of Vineyard;
1064 (B) Geneva Road from University Parkway to 1800 South;
1065 (C) the SR-97 interchange at 5600 South on I-15;
1066 (D) two lanes on U-111 from Herriman Parkway to 11800 South;
1067 (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
1068 (F) improvements to 1600 North in Orem from 1200 West to State Street;
1069 (G) widening I-15 between mileposts 6 and 8;
1070 (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
1071 (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197 in
1072 Spanish Fork Canyon;
1073 (J) I-15 northbound between mileposts 43 and 56;
1074 (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts 43
1075 and 45.1;
1076 (L) east Zion SR-9 improvements;
1077 (M) Toquerville Parkway;
1078 (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
1079 (O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds, for
1080 construction of an interchange on Bangerter Highway at 13400 South; and
1081 (P) an environmental impact study for Kimball Junction in Summit County; and
1082 (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
1083 costs based upon a statement of cash flow that the local jurisdiction where the project is located
1084 provides to the department demonstrating the need for money for the project, for the following
1085 projects in the following amounts:
1086 (A) $5,000,000 for Payson Main Street repair and replacement;
1087 (B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
1088 (C) $5,000,000 for improvements to 4700 South in Taylorsville; and
1089 (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S. 40
1090 between mile markers 7 and 10.
1091 (b) The executive director may use fund money to exchange for an equal or greater
1092 amount of federal transportation funds to be used as provided in Subsection (4)(a).
1093 (5) (a) Except as provided in Subsection (5)(b), if the department receives a notice of
1094 ineligibility for a municipality as described in Subsection 10-9a-408(7), the executive director
1095 may not program fund money to a project prioritized by the commission under Section
1096 72-1-304, including fund money from the Transit Transportation Investment Fund, within the
1097 boundaries of the municipality until the department receives notification from the Housing and
1098 Community Development Division within the Department of Workforce Services that
1099 ineligibility under this Subsection (5) no longer applies to the municipality.
1100 (b) Within the boundaries of a municipality described in Subsection (5)(a), the
1101 executive director:
1102 (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
1103 facility or interchange connecting limited-access facilities;
1104 (ii) may not program fund money for the construction, reconstruction, or renovation of
1105 an interchange on a limited-access facility;
1106 (iii) may program Transit Transportation Investment Fund money for a
1107 multi-community fixed guideway public transportation project; and
1108 (iv) may not program Transit Transportation Investment Fund money for the
1109 construction, reconstruction, or renovation of a station that is part of a fixed guideway public
1110 transportation project.
1111 (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
1112 director before July 1, 2022, for projects prioritized by the commission under Section
1113 72-1-304.
1114 (6) (a) Except as provided in Subsection (6)(b), if the department receives a notice of
1115 ineligibility for a county as described in Subsection 17-27a-408(7), the executive director may
1116 not program fund money to a project prioritized by the commission under Section 72-1-304,
1117 including fund money from the Transit Transportation Investment Fund, within the boundaries
1118 of the unincorporated area of the county until the department receives notification from the
1119 Housing and Community Development Division within the Department of Workforce Services
1120 that ineligibility under this Subsection (6) no longer applies to the county.
1121 (b) Within the boundaries of the unincorporated area of a county described in
1122 Subsection (6)(a), the executive director:
1123 (i) may program fund money in accordance with Subsection (4)(a) for a limited-access
1124 facility to a project prioritized by the commission under Section 72-1-304;
1125 (ii) may not program fund money for the construction, reconstruction, or renovation of
1126 an interchange on a limited-access facility;
1127 (iii) may program Transit Transportation Investment Fund money for a
1128 multi-community fixed guideway public transportation project; and
1129 (iv) may not program Transit Transportation Investment Fund money for the
1130 construction, reconstruction, or renovation of a station that is part of a fixed guideway public
1131 transportation project.
1132 (c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive
1133 director before July 1, 2022, for projects prioritized by the commission under Section
1134 72-1-304.
1135 (7) (a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued
1136 in any fiscal year, the department and the commission shall appear before the Executive
1137 Appropriations Committee of the Legislature and present the amount of bond proceeds that the
1138 department needs to provide funding for the projects identified in Subsections 63B-18-401(2),
1139 (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.
1140 (b) The Executive Appropriations Committee of the Legislature shall review and
1141 comment on the amount of bond proceeds needed to fund the projects.
1142 (8) The Division of Finance shall, from money deposited into the fund, transfer the
1143 amount of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
1144 Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt service or
1145 sinking fund.
1146 (9) (a) There is created in the Transportation Investment Fund of 2005 the Transit
1147 Transportation Investment Fund.
1148 (b) The fund shall be funded by:
1149 (i) contributions deposited into the fund in accordance with Section 59-12-103;
1150 (ii) appropriations into the account by the Legislature;
1151 (iii) deposits of sales and use tax increment related to a housing and transit
1152 reinvestment zone as described in Section 63N-3-610;
1153 (iv) transfers of local option sales and use tax revenue as described in Subsection
1154 59-12-2220(11)(b) or (c);
1155 (v) private contributions; and
1156 (vi) donations or grants from public or private entities.
1157 (c) (i) The fund shall earn interest.
1158 (ii) All interest earned on fund money shall be deposited into the fund.
1159 (d) Subject to Subsection (9)(e), the commission may prioritize money from the fund:
1160 (i) for public transit capital development of new capacity projects and fixed guideway
1161 capital development projects to be used as prioritized by the commission through the
1162 prioritization process adopted under Section 72-1-304; or
1163 (ii) to the department for oversight of a fixed guideway capital development project for
1164 which the department has responsibility.
1165 (e) (i) Subject to Subsections (9)(g) and (h), the commission may only prioritize money
1166 from the fund for a public transit capital development project or pedestrian or nonmotorized
1167 transportation project that provides connection to the public transit system if the public transit
1168 district or political subdivision provides funds of equal to or greater than 30% of the costs
1169 needed for the project.
1170 (ii) A public transit district or political subdivision may use money derived from a loan
1171 granted pursuant to Title 72, Chapter 2, Part 2, State Infrastructure Bank Fund, to provide all or
1172 part of the 30% requirement described in Subsection (9)(e)(i) if:
1173 (A) the loan is approved by the commission as required in Title 72, Chapter 2, Part 2,
1174 State Infrastructure Bank Fund; and
1175 (B) the proposed capital project has been prioritized by the commission pursuant to
1176 Section 72-1-303.
1177 (f) Before July 1, 2022, the department and a large public transit district shall enter into
1178 an agreement for a large public transit district to pay the department $5,000,000 per year for 15
1179 years to be used to facilitate the purchase of zero emissions or low emissions rail engines and
1180 trainsets for regional public transit rail systems.
1181 (g) For any revenue transferred into the fund pursuant to Subsection
1182 59-12-2220(11)(b):
1183 (i) the commission may prioritize money from the fund for public transit projects,
1184 operations, or maintenance within the county of the first class; and
1185 (ii) Subsection (9)(e) does not apply.
1186 (h) For any revenue transferred into the fund pursuant to Subsection
1187 59-12-2220(11)(c):
1188 (i) the commission may prioritize public transit projects, operations, or maintenance in
1189 the county from which the revenue was generated; and
1190 (ii) Subsection (9)(e) does not apply.
1191 (i) As provided in Section 17B-2a-828, the commission may prioritize money from the
1192 fund for public transit innovation grants, as that term is defined in Section 17B-2a-802,
1193 requested by a political subdivision within a public transit district.
1194 (10) (a) There is created in the Transportation Investment Fund of 2005 the
1195 Cottonwood Canyons Transportation Investment Fund.
1196 (b) The fund shall be funded by:
1197 (i) money deposited into the fund in accordance with Section 59-12-103;
1198 (ii) appropriations into the account by the Legislature;
1199 (iii) private contributions; and
1200 (iv) donations or grants from public or private entities.
1201 (c) (i) The fund shall earn interest.
1202 (ii) All interest earned on fund money shall be deposited into the fund.
1203 (d) The Legislature may appropriate money from the fund for public transit or
1204 transportation projects in the Cottonwood Canyons of Salt Lake County.
1205 (11) (a) There is created in the Transportation Investment Fund of 2005 the Active
1206 Transportation Investment Fund.
1207 (b) The fund shall be funded by:
1208 (i) money deposited into the fund in accordance with Section 59-12-103;
1209 (ii) appropriations into the account by the Legislature; and
1210 (iii) donations or grants from public or private entities.
1211 (c) (i) The fund shall earn interest.
1212 (ii) All interest earned on fund money shall be deposited into the fund.
1213 (d) The executive director may only use fund money to pay the costs needed for:
1214 (i) the planning, design, construction, maintenance, reconstruction, or renovation of
1215 paved pedestrian or paved nonmotorized trail projects that:
1216 (A) are prioritized by the commission through the prioritization process for new
1217 transportation capacity projects adopted under Section 72-1-304;
1218 (B) serve a regional purpose; and
1219 (C) are part of an active transportation plan approved by the department or the plan
1220 described in Subsection (11)(d)(ii);
1221 (ii) the development of a plan for a statewide network of paved pedestrian or paved
1222 nonmotorized trails that serve a regional purpose; and
1223 (iii) the administration of the fund, including staff and overhead costs.
1224 Section 10. Effective date.
1225 This bill takes effect on May 1, 2024.