Senator Wayne A. Harper proposes the following substitute bill:


1     
ROAD USAGE CHARGE PROGRAM AMENDMENTS

2     
2024 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 makes changes to Title 41, Motor Vehicles, and Title 72, Transportation Code,
10     regarding alternative fuel vehicles.
11     Highlighted Provisions:
12          This bill:
13          ▸     makes changes to the road usage charge program;
14          ▸     addresses registration fees for alternative fuel vehicles;
15          ▸     updates current registration fees; and
16          ▸     makes technical changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          This bill provides a special effective date.
21     Utah Code Sections Affected:
22     AMENDS:
23          41-1a-1206, as last amended by Laws of Utah 2023, Chapters 22, 33 and 464
24          72-1-213.1, as last amended by Laws of Utah 2022, Chapters 56, 259
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 41-1a-1206 is amended to read:
28          41-1a-1206. Registration fees -- Fees by gross laden weight.
29          (1) Except as provided in Subsections (2) and (3), at the time application is made for
30     registration or renewal of registration of a vehicle or combination of vehicles under this
31     chapter, a registration fee shall be paid to the division as follows:
32          (a) [$46.00] $57.75 for each motorcycle;
33          (b) [$44] $54.75 for each motor vehicle of 12,000 pounds or less gross laden weight,
34     excluding motorcycles;
35          (c) unless the semitrailer or trailer is exempt from registration under Section 41-1a-202
36     or is registered under Section 41-1a-301:
37          (i) [$31] $39.25 for each trailer or semitrailer over 750 pounds gross unladen weight;
38     or
39          (ii) [$28.50] $35.75 for each commercial trailer or commercial semitrailer of 750
40     pounds or less gross unladen weight;
41          (d) [(i) $53] $66.25 for each farm truck over 12,000 pounds, but not exceeding 14,000
42     pounds gross laden weight[;], plus [(ii)] $9 for each 2,000 pounds over 14,000 pounds gross
43     laden weight;
44          (e) [(i) $69.50] $86.50 for each motor vehicle or combination of motor vehicles,
45     excluding farm trucks, over 12,000 pounds, but not exceeding 14,000 pounds gross laden
46     weight[;], plus [(ii)] $19 for each 2,000 pounds over 14,000 pounds gross laden weight;
47          (f) [(i) $69.50] $86.50 for each park model recreational vehicle over 12,000 pounds,
48     but not exceeding 14,000 pounds gross laden weight[;], plus [(ii)] $19 for each 2,000 pounds
49     over 14,000 pounds gross laden weight;
50          (g) [$45] $56.50 for each vintage vehicle that has a model year of 1983 or newer;
51          (h) in addition to the fee described in Subsection (1)(b):
52          (i) an amount equal to the road usage charge cap described in Section 72-1-213.1 for:
53          (A) each electric motor vehicle; and
54          (B) Each motor vehicle not described in this Subsection (1)(h) that is fueled
55     exclusively by a source other than motor fuel, diesel fuel, natural gas, or propane;
56          (ii) [$21.75] $23.25 for each hybrid electric motor vehicle; and
57          (iii) [$56.50] $60.25 for each plug-in hybrid electric motor vehicle; and
58          (i) in addition to the fee described in Subsection (1)(g), for a vintage vehicle that has a
59     model year of 1983 or newer, 50 cents.
60          (2) (a) At the time application is made for registration or renewal of registration of a
61     vehicle under this chapter for a six-month registration period under Section 41-1a-215.5, a
62     registration fee shall be paid to the division as follows:
63          (i) [$34.50] $43.50 for each motorcycle; and
64          (ii) [$33.50] $42.25 for each motor vehicle of 12,000 pounds or less gross laden
65     weight, excluding motorcycles.
66          (b) In addition to the fee described in Subsection (2)(a)(ii), for registration or renewal
67     of registration of a vehicle under this chapter for a six-month registration period under Section
68     41-1a-215.5 a registration fee shall be paid to the division as follows:
69          (i) an amount equal to the road usage charge cap described in Section 72-1-213.1 for:
70          (A) each electric motor vehicle; and
71          (B) each motor vehicle not described in this Subsection (2)(b) that is fueled exclusively
72     by a source other than motor fuel, diesel fuel, natural gas, or propane;
73          (ii) [$16.50] $17.75 for each hybrid electric motor vehicle; and
74          (iii) [$43.50] $46.25 for each plug-in hybrid electric motor vehicle.
75          (3) [(a)] Beginning on January 1, 2024, at the time of registration:
76          [(i)] (a) in addition to the amounts described in Subsections (1)(a), (1)(b), (1)(c)(i),
77     (1)(c)(ii), (1)(d)(i), (1)(e)(i), (1)(f)(i), (1)(g), (1)(h), (4)(a), and [(7)] (8), the individual shall
78     also pay an additional $7 as part of the registration fee; and
79          [(ii)] (b) in addition to the amounts described in Subsection (2)(a), the individual shall
80     also pay an additional $5 as part of the registration fee.
81          [(b) (i) Beginning on January 1, 2019, the commission shall, on January 1, annually
82     adjust the registration fees described in Subsections (1)(a), (1)(b), (1)(c)(i), (1)(c)(ii), (1)(d)(i),
83     (1)(e)(i), (1)(f)(i), (1)(g), (2)(a), (3)(a), (4)(a), and (7), by taking the registration fee rate for the
84     previous year and adding an amount equal to the greater of:]
85          [(A) an amount calculated by multiplying the registration fee of the previous year by
86     the actual percentage change during the previous fiscal year in the Consumer Price Index; and]
87          [(B) 0.]
88          [(ii) Beginning on January 1, 2024, the commission shall, on January 1, annually adjust
89     the registration fees described in Subsections (1)(h)(ii) and (iii) and (2)(b)(ii) and (iii) by taking
90     the registration fee rate for the previous year and adding an amount equal to the greater of:]
91          [(A) an amount calculated by multiplying the registration fee of the previous year by
92     the actual percentage change during the previous fiscal year in the Consumer Price Index; and]
93          [(B) 0.]
94          [(c) The amounts calculated as described in Subsection (3)(b) shall be rounded up to
95     the nearest 25 cents.]
96          (4) (a) The initial registration fee for a vintage vehicle that has a model year of 1982 or
97     older is [$40] $50.
98          (b) A vintage vehicle that has a model year of 1982 or older is exempt from the
99     renewal of registration fees under Subsection (1).
100          (c) A vehicle with a Purple Heart special group license plate issued on or before
101     December 31, 2023, or issued in accordance with Part 16, Sponsored Special Group License
102     Plates, is exempt from the registration fees under Subsection (1).
103          (d) A camper is exempt from the registration fees under Subsection (1).
104          (5) (a) The commission shall, on January 1, annually adjust all registration fees
105     described in this section by taking the registration fee rate for the previous year and adding an
106     amount equal to the greater of:
107          (i) an amount calculated by multiplying the registration fee of the previous year by the
108     actual percentage change during the previous fiscal year in the Consumer Price Index; and
109          (ii) zero.
110          (b) The commission shall round up the adjustment described in Subsection (5)(a) to the
111     nearest 25 cents.
112          [(5)] (6) If a motor vehicle is operated in combination with a semitrailer or trailer, each
113     motor vehicle shall register for the total gross laden weight of all units of the combination if the
114     total gross laden weight of the combination exceeds 12,000 pounds.
115          [(6)] (7) (a) Registration fee categories under this section are based on the gross laden
116     weight declared in the licensee's application for registration.
117          (b) Gross laden weight shall be computed in units of 2,000 pounds. A fractional part
118     of 2,000 pounds is a full unit.
119          [(7)] (8) The owner of a commercial trailer or commercial semitrailer may, as an
120     alternative to registering under Subsection (1)(c), apply for and obtain a special registration and
121     license plate for a fee of [$130] $161.50.
122          [(8)] (9) Except as provided in Section 41-6a-1642, a truck may not be registered as a
123     farm truck unless:
124          (a) the truck meets the definition of a farm truck under Section 41-1a-102; and
125          (b) (i) the truck has a gross vehicle weight rating of more than 12,000 pounds; or
126          (ii) the truck has a gross vehicle weight rating of 12,000 pounds or less and the owner
127     submits to the division a certificate of emissions inspection or a waiver in compliance with
128     Section 41-6a-1642.
129          [(9)] (10) A violation of Subsection [(8)] (9) is an infraction that shall be punished by a
130     fine of not less than $200.
131          [(10)] (11) Trucks used exclusively to pump cement, bore wells, or perform crane
132     services with a crane lift capacity of five or more tons, are exempt from 50% of the amount of
133     the fees required for those vehicles under this section.
134          Section 2. Section 72-1-213.1 is amended to read:
135          72-1-213.1. Road usage charge program.
136          (1) As used in this section:
137          (a) "Account manager" means an entity under contract with the department to
138     administer and manage the road usage charge program.
139          (b) "Alternative fuel vehicle" means:
140          (i) an electric motor vehicle as defined in Section 41-1a-102; or
141          (ii) a motor vehicle powered exclusively by a fuel other than:
142          (A) motor fuel;
143          (B) diesel fuel;
144          (C) natural gas; or
145          (D) propane.
146          (c) "Payment period" means the interval during which an owner is required to report
147     mileage and pay the appropriate road usage charge according to the terms of the program.
148          (d) "Program" means the road usage charge program established and described in this
149     section.
150          (e) "Road usage charge cap" means the maximum fee charged to a participant in the
151     program for a registration period.
152          (f) "Road usage charge rate" means the per-mile usage fee charged to a participant in
153     the program.
154          (2) There is established a road usage charge program as described in this section.
155          (3) (a) The department shall implement and oversee the administration of the program[,
156     which shall begin on January 1, 2020].
157          (b) To implement and administer the program, the department may contract with an
158     account manager.
159          (4) (a) The owner or lessee of an alternative fuel vehicle may apply for enrollment of
160     the alternative fuel vehicle in the program.
161          (b) If an application for enrollment into the program is approved by the department, the
162     owner or lessee of an alternative fuel vehicle may participate in the program in lieu of paying
163     the fee described in Subsection 41-1a-1206(1)(h) or (2)(b).
164          (c) An owner or lessee of a hybrid electric motor vehicle or a plug-in hybrid motor
165     vehicle who was enrolled in the program before May 1, 2024, may withdraw from the program.
166          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
167     consistent with this section, the department:
168          (a) shall make rules to establish:
169          (i) processes and terms for enrollment into and withdrawal or removal from the
170     program;
171          (ii) payment periods and other payment methods and procedures for the program;
172          (iii) standards for mileage reporting mechanisms for an owner or lessee of an
173     alternative fuel vehicle to report mileage as part of participation in the program;
174          (iv) standards for program functions for mileage recording, payment processing,
175     account management, and other similar aspects of the program;
176          (v) contractual terms between an owner or lessee of an alternative fuel vehicle owner
177     and an account manager for participation in the program;
178          (vi) contractual terms between the department and an account manager, including
179     authority for an account manager to enforce the terms of the program;
180          (vii) procedures to provide security and protection of personal information and data
181     connected to the program, and penalties for account managers for violating privacy protection
182     rules;
183          (viii) penalty procedures for a program participant's failure to pay a road usage charge
184     or tampering with a device necessary for the program; and
185          (ix) department oversight of an account manager, including privacy protection of
186     personal information and access and auditing capability of financial and other records related to
187     administration of the program; and
188          (b) may make rules to establish:
189          [(i) an enrollment cap for certain alternative fuel vehicle types to participate in the
190     program;]
191          [(ii)] (i) a process for collection of an unpaid road usage charge or penalty; or
192          [(iii)] (ii) integration of the program with other similar programs, such as tolling.
193          (6) Revenue generated by the road usage charge program and relevant penalties shall
194     be deposited into the Road Usage Charge Program Special Revenue Fund.
195          (7) (a) The department may:
196          (i) (A) impose a penalty for failure to timely pay a road usage charge according to the
197     terms of the program or tampering with a device necessary for the program; and
198          (B) request that the Division of Motor Vehicles place a hold on the registration of the
199     owner's or lessee's alternative fuel vehicle for failure to pay a road usage charge according to
200     the terms of the program;
201          (ii) send correspondence to the owner of an alternative fuel vehicle to inform the owner
202     or lessee of:
203          (A) the road usage charge program, implementation, and procedures;
204          (B) an unpaid road usage charge and the amount of the road usage charge to be paid to
205     the department;
206          (C) the penalty for failure to pay a road usage charge within the time period described
207     in Subsection (7)(a)(iii); and
208          (D) a hold being placed on the owner's or lessee's registration for the alternative fuel
209     vehicle, if the road usage charge and penalty are not paid within the time period described in
210     Subsection (7)(a)(iii), which would prevent the renewal of the alternative fuel vehicle's
211     registration; and
212          (iii) require that the owner or lessee of the alternative fuel vehicle pay the road usage
213     charge to the department within 30 days of the date when the department sends written notice
214     of the road usage charge to the owner or lessee.
215          (b) The department shall send the correspondence and notice described in Subsection
216     (7)(a) to the owner of the alternative fuel vehicle according to the terms of the program.
217          (8) (a) The Division of Motor Vehicles and the department shall share and provide
218     access to information pertaining to an alternative fuel vehicle and participation in the program
219     including:
220          (i) registration and ownership information pertaining to an alternative fuel vehicle;
221          (ii) information regarding the failure of an alternative fuel vehicle owner or lessee to
222     pay a road usage charge or penalty imposed under this section within the time period described
223     in Subsection (7)(a)(iii); and
224          (iii) the status of a request for a hold on the registration of an alternative fuel vehicle.
225          (b) If the department requests a hold on the registration in accordance with this section,
226     the Division of Motor Vehicles may not renew the registration of a motor vehicle under Title
227     41, Chapter 1a, Part 2, Registration, until the department withdraws the hold request.
228          (9) The owner of an alternative fuel vehicle may apply for enrollment in the program
229     [or withdraw from the program] according to the terms established by the department pursuant
230     to rules made under Subsection (5).
231          (10) [If] When enrolled in the program, the owner or lessee of an alternative fuel
232     vehicle shall:
233          (a) report mileage driven as required by the department pursuant to Subsection (5);
234          (b) pay the road usage fee for each payment period in accordance with Subsection (5);
235     and
236          (c) comply with all other provisions of this section and other requirements of the
237     program.
238          (11) The department shall submit annually, on or before October 1, to the
239     Transportation Interim Committee, an electronic report that:
240          (a) states for the preceding fiscal year:
241          (i) the amount of revenue collected from the program;
242          (ii) the participation rate in the program; and
243          (iii) the department's costs to administer the program; and
244          (b) provides for the current fiscal year, an estimate of:
245          (i) the revenue that will be collected from the program;
246          (ii) the participation rate in the program; and
247          (iii) the department's costs to administer the program.
248          (12) (a) Beginning on January 1, [2023] 2024:
249          (i) the road usage charge rate is 1.06 [cent] cents per mile; and
250          (ii) the road usage charge cap is:
251          (A) [$130.25] $138.50 for an annual registration period; and
252          (B) [$100.75] $107.25 for a six-month registration period.
253          (b) Beginning on January 1, 2026:
254          (i) the road usage charge rate is 1.25 cents per mile; and
255          (ii) the road usage charge cap is:
256          (A) $180 for an annual registration period; and
257          (B) $139 for a six-month registration period.
258          (c) Beginning on January 1, 2032:
259          (i) the road usage charge rate is 1.5 cents per mile, unless the commission establishes a
260     different road usage charge rate in accordance with Subsection (13); and
261          (ii) the road usage charge cap is eliminated.
262          [(ii) the road usage charge cap is:]
263          [(A) $240 for an annual registration period; and]
264          [(B) $185 for a six-month registration period.]
265          (d) Beginning in 2024, the department shall, on January 1, annually adjust the road
266     usage charge rates described in this Subsection (12) by taking the road usage charge rate for the
267     previous year and adding an amount equal to the greater of:
268          (i) an amount calculated by multiplying the road usage charge rate of the previous year
269     by the actual percentage change during the previous fiscal year in the Consumer Price Index as
270     determined by the State Tax Commission; and
271          (ii) [0.] zero.
272          (e) [Beginning in 2024, the] The State Tax Commission shall, on January 1, annually
273     adjust the road usage charge caps described in this Subsection (12) by taking the road usage
274     charge cap for the previous year and adding an amount equal to the greater of:
275          (i) an amount calculated by multiplying the road usage charge cap of the previous year
276     by the actual percentage change during the previous fiscal year in the Consumer Price Index;
277     and
278          (ii) [0.] zero.
279          (f) The amounts calculated as described in Subsection (12)(d) shall be rounded up to
280     the nearest .01 cent.
281          (g) The amounts calculated as described in Subsection (12)(e) shall be rounded up to
282     the nearest 25 cents.
283          (h) On or before January 1 of each year, the department shall publish:
284          (i) the adjusted road usage charge rate described in Subsection (12)(d); and
285          (ii) adjusted road usage charge cap described in Subsection (12)(e).
286          (13) (a) Beginning January 1, 2032, the commission may establish by rule made in
287     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the road usage
288     charge rate for each type of alternative fuel vehicle.
289          (b) (i) Before making rules in accordance with Subsection (13)(a), the commission
290     shall consult with the department regarding the road usage charge rate for each type of
291     alternative fuel vehicle.
292          (ii) The department shall cooperate with and make recommendations to the
293     commission regarding the road usage charge rate for each type of alternative fuel vehicle.
294          Section 3. Effective date.
295          This bill takes effect on July 1, 2024.