HB 375

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                           Jason B. Kyle proposes the following substitute bill:
1Outdoor Recreation Modifications
                                       2026 GENERAL SESSION
                                             STATE OF UTAH
                                     Chief Sponsor: Jason B. Kyle
                                   Senate Sponsor: Keven J. Stratton
2
3   LONG TITLE
4   General Description:
5This bill modifies provisions related to outdoor recreation.
6   Highlighted Provisions:
7This bill:
8▸ changes the name of the Outdoor Adventure Infrastructure Restricted Account;
9▸ expands the permissible uses of funds in the Outdoor Adventure Infrastructure Restricted
10   Account to include the Every Kid Outdoors Initiative, outdoor recreation grants
11   administered by the office, and administrative costs;
12▸ creates the Every Kid Outdoor Initiative administered by the Division of Outdoor
13   Recreation (division);
14▸ authorizes the division to use money in the Outdoor Recreation Infrastructure Account to
15   pay for the division's administrative costs of administering outdoor recreation grants;
16▸ expands the types of entities eligible for a UCORE grant; and
17▸ makes technical and conforming changes.
                                                                                                      1st Sub. H.B. 375
18   Money Appropriated in this Bill:
19None
20   Other Special Clauses:
21This bill provides a special effective date.
22   Utah Code Sections Affected:
23   AMENDS:
2451-9-901, as last amended by Laws of Utah 2024, Chapter 41
2551-9-902, as last amended by Laws of Utah 2025, Chapter 285
2659-12-103, as last amended by Laws of Utah 2025, Chapter 285
2779-7-503, as last amended by Laws of Utah 2024, Chapter 41
2879-8-102, as last amended by Laws of Utah 2022, Chapters 68, 274
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2979-8-106, as last amended by Laws of Utah 2023, Chapter 183
3079-8-303, as last amended by Laws of Utah 2022, Chapter 68
31   ENACTS:
3279-7-801, Utah Code Annotated 1953
3379-7-802, Utah Code Annotated 1953
34
35   Be it enacted by the Legislature of the state of Utah:
36Section 1. Section 51-9-901 is amended to read:
37Part 9. Outdoor Adventure Restricted Account
3851-9-901 . Definitions.
39      As used in this part:
40   (1) "Account" means the Outdoor Adventure [Infrastructure ]Restricted Account created in
41Section 51-9-902.
42   (2) "Facility" means a site, location, building, structure, or other improvement to property.
43   (3)(a) "Outdoor recreation infrastructure" means a public facility or public land used by
44the public to access outdoor recreational opportunities.
45(b) "Outdoor recreation infrastructure" includes:
46(i) a facility used for water sports, snow sports, backpacking, canoeing, canyoning,
47caving, camping, climbing, hiking, hill walking, hunting, kayaking, rafting,
48biking, operating a snowmobile or all-terrain vehicle, or any similar motorized or
49nonmotorized activity;
50(ii) a state park, golf course, sports field, playground, toboggan run, sledding hill,
51trail, paved pedestrian or paved nonmotorized transportation facility, park, pool,
52waterway, road, bridge, or similar facility;
53(iii) an unpaved trail, trail head infrastructure, signage, or crossing infrastructure for
54recreation, regardless of whether the recreation is motorized or nonmotorized
55recreation;
56(iv) a campground or day-use recreation site;
57(v) water recreation infrastructure, including a pier, dock, or boat ramp; and
58(vi) outdoor recreation facilities that are accessible to visitors with disabilities.
59Section 2. Section 51-9-902 is amended to read:
6051-9-902 . Outdoor Adventure Restricted Account.
61   (1) There is created within the General Fund a restricted account known as the "Outdoor
62Adventure [Infrastructure ]Restricted Account."
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63   (2) The account shall consist of:
64(a) money deposited into the account under Subsection 59-12-103(4)(h); and
65(b) interest and earnings on money in the account.
66   (3) Subject to appropriation from the Legislature, money from the account shall be used for:
67(a) new construction of outdoor recreation infrastructure;
68(b) upgrades of outdoor recreation infrastructure;
69(c) the replacement of or structural improvements to outdoor recreation infrastructure;
70(d) the acquisition of land, a right-of-way, or easement used in relationship to outdoor
71recreation infrastructure;
72(e) providing access from state highways, as defined in Section 72-1-102, to outdoor
73recreation infrastructure;
74   (f) the costs associated with bringing new construction or upgrades of outdoor
75recreation infrastructure into environmental compliance;
76(g) strategic planning related to the development of outdoor recreation infrastructure;
77(h) facilitating avalanche safety forecasting to protect the public in relation to outdoor
78recreation infrastructure;[ or]
79(i) clean up or security relating to outdoor recreation infrastructure[.] ;
80(j) the Every Kid Outdoors Initiative created in Section 79-7-802;
81(k) grant programs established under Title 79, Chapter 8, Outdoor Recreation Grants; or
82(l) administrative costs, not to exceed 2% of the amount appropriated in accordance with
83Subsection (4)(d).
84   (4) For each fiscal year, beginning with fiscal year 2025-2026, the Division of Finance
85shall, subject to appropriation by the Legislature, distribute money from the Outdoor
86Adventure [Infrastructure ]Restricted Account as follows:
87(a) at least 15% to the Department of Natural Resources - Division of State Parks -
88Capital, to be expended using the department's existing prioritization process for
89capital projects in state parks described in Subsection (3);
90[(b) at least 22% to the Department of Natural Resources - Division of Outdoor
91Recreation - Capital, to be expended for competitive Recreation Restoration
92Infrastructure grants or Outdoor Recreational Infrastructure grants for outdoor
93recreation capital projects and related maintenance expenses, where maintenance
94expenses do not exceed 15% of the appropriation;]
95(b) at least 4%, divided according to legislative appropriation, to:
96(i) the Outdoor Recreation Infrastructure Account created in Section 79-8-106 to be
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97used to fund the Utah Children's Outdoor Recreation and Education Grants
98Program created in Section 79-8-302; and
99(ii) the Division of Outdoor Recreation to be used for the Every Kid Outdoors
100Initiative created in Section 79-7-802;
101(c) subject to Subsection (5), at least 18% to the Outdoor Recreation Infrastructure
102Account created in Section 79-8-106 to be used to fund:
103(i) the Recreation Restoration Infrastructure Grant Program created in Section
10479-8-202; or
105(ii) the Outdoor Recreational Infrastructure Grant Program created in Section
10679-8-401;
107[(c)] (d) at least 53% to the Department of Natural Resources - Division of Outdoor
108Recreation - Capital, to be expended for larger outdoor recreation infrastructure
109projects described in Subsection (3) as recommended to the Legislature by the
110Outdoor Adventure Commission; and
111[(d)] (e) at least 10% to the Utah Fairpark Area Investment and Restoration District
112created in Section 11-70-201 for the development and operation of the district.
113   (5) The Division of Outdoor Recreation shall use money appropriated under Subsection
114(4)(c) to provide grants for outdoor recreation capital projects and related maintenance
115expenses, provided the maintenance expenses do not exceed 15% of the grant.
116   [(5)] (6) If the Legislature appropriates money to the Department of Transportation from the
117account, the Transportation Commission, created in Section 72-1-301, shall prioritize
118projects and determine funding levels in accordance with Subsection 72-1-303(1)(a)
119based on recommendations of the Department of Transportation.
120Section 3. Section 59-12-103 is amended to read:
12159-12-103 . Sales and use tax base -- Rates -- Effective dates -- Use of sales and
122   use tax revenue.
123   (1) A tax is imposed on the purchaser as provided in this part on the purchase price or sales
124price for amounts paid or charged for the following transactions:
125(a) retail sales of tangible personal property made within the state;
126(b) amounts paid for:
127(i) telecommunications service, other than mobile telecommunications service, that
128originates and terminates within the boundaries of this state;
129(ii) mobile telecommunications service that originates and terminates within the
130boundaries of one state only to the extent permitted by the Mobile
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131Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
132(iii) an ancillary service associated with a:
133(A) telecommunications service described in Subsection (1)(b)(i); or
134(B) mobile telecommunications service described in Subsection (1)(b)(ii);
135      (c) sales of the following for commercial use:
136(i) gas;
137(ii) electricity;
138(iii) heat;
139(iv) coal;
140(v) fuel oil; or
141(vi) other fuels;
142      (d) sales of the following for residential use:
143(i) gas;
144(ii) electricity;
145(iii) heat;
146(iv) coal;
147(v) fuel oil; or
148(vi) other fuels;
149      (e) sales of prepared food;
150      (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
151user fees for theaters, movies, operas, museums, planetariums, shows of any type or
152nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
153menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling
154matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling
155lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts,
156ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
157river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or
158any other amusement, entertainment, recreation, exhibition, cultural, or athletic
159activity;
160      (g) amounts paid or charged for services for repairs or renovations of tangible personal
161property, unless Section 59-12-104 provides for an exemption from sales and use tax
162for:
163(i) the tangible personal property; and
164(ii) parts used in the repairs or renovations of the tangible personal property described
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165in Subsection (1)(g)(i), regardless of whether:
166(A) any parts are actually used in the repairs or renovations of that tangible
167personal property; or
168(B) the particular parts used in the repairs or renovations of that tangible personal
169property are exempt from a tax under this chapter;
170(h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted
171cleaning or washing of tangible personal property;
172(i) amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer
173court accommodations and services;
174(j) amounts paid or charged for laundry or dry cleaning services;
175(k) amounts paid or charged for leases or rentals of tangible personal property if within
176this state the tangible personal property is:
177(i) stored;
178(ii) used; or
179(iii) otherwise consumed;
180(l) amounts paid or charged for tangible personal property if within this state the tangible
181personal property is:
182(i) stored;
183(ii) used; or
184(iii) consumed;
185(m) amounts paid or charged for a sale:
186(i)(A) of a product transferred electronically; or
187(B) of a repair or renovation of a product transferred electronically; and
188(ii) regardless of whether the sale provides:
189(A) a right of permanent use of the product; or
190(B) a right to use the product that is less than a permanent use, including a right:
191(I) for a definite or specified length of time; and
192(II) that terminates upon the occurrence of a condition; and
193(n) sales of leased tangible personal property from the lessor to the lessee made in the
194state.
195   (2)(a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are
196imposed on a transaction described in Subsection (1) equal to the sum of:
197(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
198(A) 4.70%;
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199(B) the rate specified in Subsection (6)(a); and
200(C) the tax rate the state imposes in accordance with Part 20, Supplemental State
201Sales and Use Tax Act, if the location of the transaction as determined under
202Sections 59-12-211 through 59-12-215 is in a city, town, or the unincorporated
203area of a county in which the state imposes the tax under Part 20, Supplemental
204State Sales and Use Tax Act; and
205(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
206transaction under this chapter other than this part.
207      (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state
208tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal
209to the sum of:
210(i) a state tax imposed on the transaction at a tax rate of 2%; and
211(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
212transaction under this chapter other than this part.
213      (c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed
214on amounts paid or charged for food and food ingredients equal to the sum of:
215(i) a state tax imposed on the amounts paid or charged for food and food ingredients
216at a tax rate of 1.75%; and
217(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
218amounts paid or charged for food and food ingredients under this chapter other
219than this part.
220      (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid
221or charged for fuel to a common carrier that is a railroad for use in a locomotive
222engine at a rate equal to the sum of the rates described in Subsections (2)(a)(i)(A) and
223(2)(a)(i)(B).
224      (e)(i)(A) The rates described in Subsections (2)(a)(i)(A) and (2)(a)(i)(B) do not
225apply to car sharing, a car sharing program, a shared vehicle driver, or a shared
226vehicle owner, for a car sharing or shared vehicle transaction if a shared
227vehicle owner certifies to the commission, on a form prescribed by the
228commission, that the shared vehicle is an individual-owned shared vehicle.
229(B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
230required once during the time that the shared vehicle owner owns the shared
231vehicle.
232(C) The commission shall verify that a shared vehicle is an individual-owned
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233shared vehicle by verifying that the applicable Utah taxes imposed under this
234chapter were paid on the purchase of the shared vehicle.
235(D) The exception under Subsection (2)(e)(i)(A) applies to a certified
236individual-owned shared vehicle shared through a car-sharing program even if
237non-certified shared vehicles are also available to be shared through the same
238car-sharing program.
239(ii) A tax imposed under Subsection (2)(a)(i)(C) or (2)(a)(ii) applies to car sharing.
240(iii)(A) A car-sharing program may rely in good faith on a shared vehicle owner's
241representation that the shared vehicle is an individual-owned shared vehicle
242certified with the commission as described in Subsection (2)(e)(i).
243(B) If a car-sharing program relies in good faith on a shared vehicle owner's
244representation that the shared vehicle is an individual-owned shared vehicle
245certified with the commission as described in Subsection (2)(e)(i), the
246car-sharing program is not liable for any tax, penalty, fee, or other sanction
247imposed on the shared vehicle owner.
248(iv) If all shared vehicles shared through a car-sharing program are certified as
249described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has
250no obligation to collect and remit the tax under Subsections (2)(a)(i)(A) and
251(2)(a)(i)(B) for that tax period.
252(v) A car-sharing program is not required to list or otherwise identify an
253individual-owned shared vehicle on a return or an attachment to a return.
254(vi) A car-sharing program shall:
255(A) retain tax information for each car-sharing program transaction; and
256(B) provide the information described in Subsection (2)(e)(vi)(A) to the
257commission at the commission's request.
258(f)(i) For a bundled transaction that is attributable to food and food ingredients and
259tangible personal property other than food and food ingredients, a state tax and a
260local tax is imposed on the entire bundled transaction equal to the sum of:
261(A) the tax rates described in Subsection (2)(a)(i); and
262(B) a local tax imposed on the entire bundled transaction at the sum of the tax
263rates described in Subsection (2)(a)(ii).
264(ii) If an optional computer software maintenance contract is a bundled transaction
265that consists of taxable and nontaxable products that are not separately itemized
266on an invoice or similar billing document, the purchase of the optional computer
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267software maintenance contract is 40% taxable under this chapter and 60%
268nontaxable under this chapter.
269(iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
270transaction described in Subsection (2)(f)(i) or (ii):
271(A) if the sales price of the bundled transaction is attributable to tangible personal
272property, a product, or a service that is subject to taxation under this chapter
273and tangible personal property, a product, or service that is not subject to
274taxation under this chapter, the entire bundled transaction is subject to taxation
275under this chapter unless:
276(I) the seller is able to identify by reasonable and verifiable standards the
277tangible personal property, product, or service that is not subject to taxation
278under this chapter from the books and records the seller keeps in the seller's
279regular course of business; or
280(II) state or federal law provides otherwise; or
281(B) if the sales price of a bundled transaction is attributable to two or more items
282of tangible personal property, products, or services that are subject to taxation
283under this chapter at different rates, the entire bundled transaction is subject to
284taxation under this chapter at the higher tax rate unless:
285(I) the seller is able to identify by reasonable and verifiable standards the
286tangible personal property, product, or service that is subject to taxation
287under this chapter at the lower tax rate from the books and records the seller
288keeps in the seller's regular course of business; or
289(II) state or federal law provides otherwise.
290(iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
291seller's regular course of business includes books and records the seller keeps in
292the regular course of business for nontax purposes.
293      (g)(i) Except as otherwise provided in this chapter and subject to Subsections
294(2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible
295personal property, a product, or a service that is subject to taxation under this
296chapter, and the sale, lease, or rental of tangible personal property, other property,
297a product, or a service that is not subject to taxation under this chapter, the entire
298transaction is subject to taxation under this chapter unless the seller, at the time of
299the transaction:
300(A) separately states the portion of the transaction that is not subject to taxation
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301under this chapter on an invoice, bill of sale, or similar document provided to
302the purchaser; or
303(B) is able to identify by reasonable and verifiable standards, from the books and
304records the seller keeps in the seller's regular course of business, the portion of
305the transaction that is not subject to taxation under this chapter.
306(ii) A purchaser and a seller may correct the taxability of a transaction if:
307(A) after the transaction occurs, the purchaser and the seller discover that the
308portion of the transaction that is not subject to taxation under this chapter was
309not separately stated on an invoice, bill of sale, or similar document provided
310to the purchaser because of an error or ignorance of the law; and
311(B) the seller is able to identify by reasonable and verifiable standards, from the
312books and records the seller keeps in the seller's regular course of business, the
313portion of the transaction that is not subject to taxation under this chapter.
314(iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller
315keeps in the seller's regular course of business includes books and records the
316seller keeps in the regular course of business for nontax purposes.
317(h)(i) If the sales price of a transaction is attributable to two or more items of tangible
318personal property, products, or services that are subject to taxation under this
319chapter at different rates, the entire purchase is subject to taxation under this
320chapter at the higher tax rate unless the seller, at the time of the transaction:
321(A) separately states the items subject to taxation under this chapter at each of the
322different rates on an invoice, bill of sale, or similar document provided to the
323purchaser; or
324(B) is able to identify by reasonable and verifiable standards the tangible personal
325property, product, or service that is subject to taxation under this chapter at the
326lower tax rate from the books and records the seller keeps in the seller's regular
327course of business.
328(ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
329seller's regular course of business includes books and records the seller keeps in
330the regular course of business for nontax purposes.
331(i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate
332imposed under the following shall take effect on the first day of a calendar quarter:
333(i) Subsection (2)(a)(i)(A);
334(ii) Subsection (2)(a)(i)(B);
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335(iii) Subsection (2)(b)(i);
336(iv) Subsection (2)(c)(i); or
337(v) Subsection (2)(f)(i)(A).
338      (j)(i) A tax rate increase takes effect on the first day of the first billing period that
339begins on or after the effective date of the tax rate increase if the billing period for
340the transaction begins before the effective date of a tax rate increase imposed
341under:
342(A) Subsection (2)(a)(i)(A);
343(B) Subsection (2)(a)(i)(B);
344(C) Subsection (2)(b)(i);
345(D) Subsection (2)(c)(i); or
346(E) Subsection (2)(f)(i)(A).
347(ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
348statement for the billing period is rendered on or after the effective date of the
349repeal of the tax or the tax rate decrease imposed under:
350(A) Subsection (2)(a)(i)(A);
351(B) Subsection (2)(a)(i)(B);
352(C) Subsection (2)(b)(i);
353(D) Subsection (2)(c)(i); or
354(E) Subsection (2)(f)(i)(A).
355      (k)(i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
356is computed on the basis of sales and use tax rates published in the catalogue, a
357tax rate repeal or change in a tax rate takes effect:
358(A) on the first day of a calendar quarter; and
359(B) beginning 60 days after the effective date of the tax rate repeal or tax rate
360change.
361(ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
362(A) Subsection (2)(a)(i)(A);
363(B) Subsection (2)(a)(i)(B);
364(C) Subsection (2)(b)(i);
365(D) Subsection (2)(c)(i); or
366(E) Subsection (2)(f)(i)(A).
367(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
368the commission may by rule define the term "catalogue sale."
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369(l)(i) For a location described in Subsection (2)(l)(ii), the commission shall determine
370the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
371based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other
372fuel at the location.
373(ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
374or other fuel is furnished through a single meter for two or more of the following
375uses:
376(A) a commercial use;
377(B) an industrial use; or
378(C) a residential use.
379   (3)(a) The commission shall deposit the following state taxes into the General Fund:
380(i) the tax imposed by Subsection (2)(a)(i)(A);
381(ii) the tax imposed by Subsection (2)(b)(i);
382(iii) the tax imposed by Subsection (2)(c)(i);
383(iv) the tax imposed by Subsection (2)(d); and
384(v) the tax imposed by Subsection (2)(f)(i)(A).
385(b) The commission shall distribute the following local taxes to a county, city, or town
386as provided in this chapter:
387(i) the tax imposed by Subsection (2)(a)(ii);
388(ii) the tax imposed by Subsection (2)(b)(ii);
389(iii) the tax imposed by Subsection (2)(c)(ii); and
390(iv) the tax imposed by Subsection (2)(f)(i)(B).
391   (4)(a) Notwithstanding Subsection (3)(a), for each fiscal year the commission shall make
392the deposits described in Subsections (4)(b) through (4)(h) from the revenue from the
393taxes imposed by:
394(i) Subsection (2)(a)(i)(A);
395(ii) Subsection (2)(b)(i);
396(iii) Subsection (2)(c)(i); and
397(iv) Subsection (2)(f)(i)(A).
398(b) The commission shall deposit 15% of the difference between 1.4543% of the
399revenue described in Subsection (4)(a) and the deposits made under Subsection (5)(b),
400into the Water Rights Restricted Account created in Section 73-2-1.6.
401(c) The commission shall deposit 85% of the difference between 1.4543% of the revenue
402described in Subsection (4)(a) and the deposits made under Subsection (5)(b), into
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403the Water Resources Conservation and Development Fund created in Section
40473-10-24 for use by the Division of Water Resources for:
405(i) preconstruction costs:
406(A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73,
407Chapter 26, Bear River Development Act; and
408(B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
409authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
410(ii) the cost of employing a civil engineer to oversee any project authorized by Title
41173, Chapter 26, Bear River Development Act;
412(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline
413project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development
414Act; and
415(iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
416Subsection (5)(b)(iv)(B) after funding the uses specified in Subsections (4)(c)(i)
417through (iii).
418      (d) The commission shall deposit 1.4543% of the revenue described in Subsection (4)(a)
419into the Water Infrastructure Restricted Account created in Section 73-10g-103.
420      (e)(i) Subject to Subsection (4)(e)(ii), the commission shall deposit 26.24% of the
421revenue described in Subsection (4)(a) into the Transportation Investment Fund of
4222005 created in Section 72-2-124.
423(ii) The commission shall annually reduce the deposit described in Subsection
424(4)(e)(i) by the sum of:
425(A) $1,813,400;
426(B) the earmark described in Subsection (5)(c); and
427(C) an amount equal to 35% of the revenue generated in the current fiscal year by
428the portion of the tax imposed on motor and special fuel that is sold, used, or
429received in the state that exceeds 29.4 cents per gallon.
430(iii) The amount described in Subsection (4)(e)(ii)(C) shall be annually deposited into
431the Transit Transportation Investment Fund created in Section 72-2-124.
432      (f) The commission shall deposit .44% of the revenue described in Subsection (4)(a) into
433the Cottonwood Canyons Transportation Investment Fund created in Section
43472-2-124.
435      (g) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into
436the Commuter Rail Subaccount created in Section 72-2-124.
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437(h) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into
438the Outdoor Adventure [Infrastructure ]Restricted Account created in Section
43951-9-902 as follows:
440(i) into the Outdoor Adventure [Infrastructure ]Restricted Account created in Section
44151-9-902, an amount equal to the amount that was deposited into the Outdoor
442Adventure [Infrastructure ]Restricted Account in fiscal year 2025; and
443(ii) for any amount exceeding the amount described in Subsection (4)(h)(i), 50% into
444the Outdoor Adventure [Infrastructure ]Restricted Account and 50% to the Utah
445Fairpark Area Investment and Restoration District created in Section 11-70-201.
446   (5)(a) Notwithstanding Subsection (3)(a), each fiscal year the commission shall make
447the deposits described in this Subsection (5).
448(b)(i)(A) The commission shall deposit $500,000 to the Department of Natural
449Resources to be used for watershed rehabilitation or restoration.
450(B) At the end of each fiscal year, 100% of any unexpended amount described in
451Subsection (5)(b)(i)(A) shall lapse into the Water Resources Conservation and
452Development Fund created in Section 73-10-24.
453(ii) The commission shall deposit $150,000 to the Division of Water Resources for
454cloud-seeding projects authorized by Title 73, Chapter 15, Modification of
455Weather.
456(iii) The commission shall deposit $525,000 into the Division of Conservation
457created in Section 4-46-401 to implement water related programs.
458(iv) The commission shall deposit $7,175,000 into the Water Resources Conservation
459and Development Fund created in Section 73-10-24 for use by the Division of
460Water Resources:
461(A) for the uses allowed of the Water Resources Conservation and Development
462Fund under Section 73-10-24;
463(B) to conduct hydrologic and geotechnical investigations by the Division of
464Water Resources in a cooperative effort with other state, federal, or local
465entities, for the purpose of quantifying surface and ground water resources and
466describing the hydrologic systems of an area in sufficient detail so as to enable
467local and state resource managers to plan for and accommodate growth in
468water use without jeopardizing the resource;
469(C) to fund state required dam safety improvements; and
470(D) to protect the state's interest in interstate water compact allocations, including
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471the hiring of technical and legal staff.
472(v) The commission shall deposit $3,587,500 into the Utah Wastewater Loan
473Program Subaccount created in Section 73-10c-5 for use by the Water Quality
474Board to fund wastewater projects.
475(vi) The commission shall deposit $3,587,500 into the Drinking Water Loan Program
476Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water
477to:
478(A) provide for the installation and repair of collection, treatment, storage, and
479distribution facilities for any public water system, as defined in Section
48019-4-102;
481(B) develop underground sources of water, including springs and wells; and
482(C) develop surface water sources.
483(vii) The commission shall deposit $2,450,000 to the Division of Wildlife Resources
484to:
485(A) implement the measures described in Subsections 23A-3-214(3)(a) through
486(d) to protect sensitive plant and animal species; or
487(B) award grants, up to the amount authorized by the Legislature in an
488appropriations act, to political subdivisions of the state to implement the
489measures described in Subsections 23A-3-214(3)(a) through (d) to protect
490sensitive plant and animal species.
491(viii) Funds transferred to the Division of Wildlife Resources under Subsection
492(5)(b)(vii)(A) may not be used to assist the United States Fish and Wildlife
493Service or any other person to list or attempt to have listed a species as threatened
494or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531, et
495seq.
496(ix) At the end of each fiscal year, any unexpended amounts described in Subsections
497(5)(b)(vii)(A) and (B) shall lapse:
498(A) 50% into the Water Resources Conservation and Development Fund created
499in Section 73-10-24;
500(B) 25% into the Utah Wastewater Loan Program Subaccount created in Section
50173-10c-5; and
502(C) 25% into the Drinking Water Loan Program Subaccount created in Section
50373-10c-5.
504(x) The commission shall allocate $175,000 to the Division of Water Rights to cover
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505the costs incurred in hiring legal and technical staff for the adjudication of water
506rights.
507(xi) At the end of each fiscal year, any unexpended amounts described in Subsection
508(5)(b)(x) shall lapse:
509(A) 50% into the Water Resources Conservation and Development Fund created
510in Section 73-10-24;
511(B) 25% into the Utah Wastewater Loan Program Subaccount created in Section
51273-10c-5; and
513(C) 25% into the Drinking Water Loan Program Subaccount created in Section
51473-10c-5.
515(c) The commission shall deposit $45,000,000 into the Active Transportation Investment
516Fund created in Section 72-2-124.
517(d) The commission shall deposit $533,750 into the Qualified Emergency Food
518Agencies Fund created by and expended in accordance with Section 35A-8-1009.
519(e) The commission shall deposit $200,000 into the General Fund as a dedicated credit
520for the sole use of the Search and Rescue Financial Assistance Program created by
521and to be expended in accordance with Title 53, Chapter 2a, Part 11, Search and
522Rescue Act.
523   (6)(a) The rate specified in this Subsection (6) is 0.15%.
524(b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning
525on or after July 1, 2019, annually transfer the amount of revenue collected from the
526rate described in Subsection (6)(a) on the transactions that are subject to the sales and
527use tax under Subsection (2)(a)(i)(B) into the Medicaid ACA Fund created in Section
52826B-1-315.
529   (7)(a) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11),
530(12), and (13), and as described in Section 63N-3-610, beginning the first day of a
531calendar quarter one year after the sales and use tax boundary for a housing and
532transit reinvestment zone is established under Title 63N, Chapter 3, Part 6, Housing
533and Transit Reinvestment Zone Act, the commission, at least annually, shall transfer
534an amount equal to 15% of the sales and use tax increment from the sales and use tax
535imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within
536an established sales and use tax boundary, as defined in Section 63N-3-602, into the
537Transit Transportation Investment Fund created in Section 72-2-124.
538(b) Beginning no sooner than January 1, 2026, notwithstanding Subsection (3)(a), and
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539except as provided in Subsections (11), (12), and (13), and as described in Section
54063N-3-610.1, beginning the first day of a calendar quarter after the year set in the
541proposal and after the sales and use tax boundary for a convention center
542reinvestment zone is established in a capital city under Title 63N, Chapter 3, Part 6,
543Housing and Transit Reinvestment Zone Act, the commission, at least annually, shall
544transfer an amount equal to 50% of the sales and use tax increment as defined in
545Section 63N-3-602 from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a
5464.7% rate, on transactions occurring within an established sales and use tax boundary,
547as defined in Section 63N-3-602, to a convention center public infrastructure district
548created in accordance with Section 17D-4-202.1 and specified in the convention
549center reinvestment zone proposal submitted pursuant to Title 63N, Chapter 3, Part 6,
550Housing and Transit Reinvestment Zone Act.
551   (8) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and
552(13), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark Area
553Investment and Restoration District, created in Section 11-70-201, the revenue from the
554sales and use tax imposed by Subsection (2)(a)(i)(A), on transactions occurring within
555the district sales tax area, as defined in Section 11-70-101.
556   (9)(a) As used in this Subsection (9):
557(i) "Additional land" means point of the mountain state land described in Subsection
55811-59-102(6)(b) that the point of the mountain authority acquires after the point of
559the mountain authority provides the commission a map under Subsection (9)(c).
560(ii) "Point of the mountain authority" means the Point of the Mountain State Land
561Authority, created in Section 11-59-201.
562(iii) "Point of the mountain state land" means the same as that term is defined in
563Section 11-59-102.
564(b) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12),
565and (13), the commission shall distribute to the point of the mountain authority 50%
566of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A), on
567transactions occurring on the point of the mountain state land.
568(c) The distribution under Subsection (9)(b) shall begin the next calendar quarter that
569begins at least 90 days after the point of the mountain authority provides the
570commission a map that:
571(i) accurately describes the point of the mountain state land; and
572(ii) the point of the mountain authority certifies as accurate.
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573(d) A distribution under Subsection (9)(b) with respect to additional land shall begin the
574next calendar quarter that begins at least 90 days after the point of the mountain
575authority provides the commission a map of point of the mountain state land that:
576(i) accurately describes the point of the mountain state land, including the additional
577land; and
578(ii) the point of the mountain authority certifies as accurate.
579(e)(i) Upon the payment in full of bonds secured by the sales and use tax revenue
580distributed to the point of the mountain authority under Subsection (9)(b), the
581point of the mountain authority shall immediately notify the commission in
582writing that the bonds are paid in full.
583(ii) The commission shall discontinue distributions of sales and use tax revenue under
584Subsection (9)(b) at the beginning of the calendar quarter that begins at least 90
585days after the date that the commission receives the written notice under
586Subsection (9)(e)(i).
587   (10) Notwithstanding Subsection (3)(a), the amount of state sales tax revenues described in
588Section 63N-2-503.5 is deposited into the Convention Incentive Fund created in Section
58963N-2-503.5.
590   (11)(a) As used in this Subsection (11):
591(i) "Applicable percentage" means:
592(A) for a housing and transit reinvestment zone created under Title 63N, Chapter
5933, Part 6, Housing and Transit Reinvestment Zone Act, 15% of the revenue
594from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate
595for sales occurring within the qualified development zone described in
596Subsection (11)(a)(ii)(A);
597(B) for the Utah Fairpark Area Investment and Restoration District created in
598Section 11-70-201, the revenue from the sales and use tax imposed by
599Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified
600development zone described in Subsection (11)(a)(ii)(B); and
601(C) for the Point of the Mountain State Land Authority created in Section
60211-59-201, 50% of the revenue from sales and use tax imposed by Subsection
603(2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development
604zone described in Subsection (11)(a)(ii)(C).
605(ii) "Qualified development zone" means:
606(A) the sales and use tax boundary of a housing and transit reinvestment zone
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607created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment
608Act;
609(B) the district sales tax boundary as defined in Section 11-70-101 for the Utah
610Fairpark Area Investment and Restoration District, created in Section
61111-70-201; or
612(C) the sales and use tax boundary of point of the mountain state land, as defined
613in Section 11-59-102, under the Point of the Mountain State Land Authority
614created in Section 11-59-201.
615(iii) "Schedule J sale" means a sale reported on State Tax Commission Form
616TC-62M, Schedule J or a substantially similar form as designated by the
617commission.
618(b) Revenue generated from the applicable percentage by a Schedule J sale within a
619qualified development zone shall be deposited into the General Fund.
620   (12)(a) As used in Subsections (12) and (13):
621(i) "Applicable percentage" means, for a convention center reinvestment zone created
622in a capital city under Title 63N, Chapter 3, Part 6, Housing and Transit
623Reinvestment Zone Act, an amount equal to 50% of the sales and use tax
624increment, as that term is defined in Section 63N-3-602, from the sales and use tax
625imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the
626qualified development zone described in Subsection (12)(a)(ii).
627(ii) "Qualified development zone" means the sales and use tax boundary of a
628convention center reinvestment zone created in a capital city under Title 63N,
629Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
630(iii) "Qualifying construction materials" means construction materials that are:
631(A) delivered to a delivery outlet within a qualified development zone; and
632(B) intended to be permanently attached to real property within the qualified
633development zone.
634(b) For a sale of qualifying construction materials, the commission shall distribute the
635product calculated in Subsection (12)(c) to a qualified development zone if the seller
636of the construction materials:
637(i) establishes a delivery outlet with the commission within the qualified development
638zone;
639(ii) reports the sales of the construction materials to the delivery outlet described in
640Subsection (12)(b)(i); and
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641(iii) does not report the sales of the construction materials on a simplified electronic
642return.
643(c) For the purposes of Subsection (12)(b), the product is equal to:
644(i) the sales price or purchase price of the qualifying construction materials; and
645(ii) the applicable percentage.
646   (13)(a) As used in this Subsection (13), "Schedule J sale" means a sale reported on State
647Tax Commission Form TC-62M, Schedule J, or a substantially similar form as
648designated by the commission.
649(b) Revenue generated from the applicable percentage by a Schedule J sale within a
650qualified development zone shall be distributed into the General Fund.
651Section 4. Section 79-7-503 is amended to read:
65279-7-503 . Funding of initiative.
653   (1) The initiative is funded from the following sources:
654(a) appropriations made to the initiative by the Legislature, including any appropriation
655from the Outdoor Adventure [Infrastructure ]Restricted Account created in Section
65651-9-902; and
657(b) contributions, including in-kind assistance, from public and private sources,
658including a federal agency, state agency, local government, or private entity.
659   (2) The division may reimburse itself with initiative funds for costs related to administering
660the initiative.
661Section 5. Section 79-7-801 is enacted to read:
662Part 8. Every Kid Outdoors Initiative
66379-7-801 . Definitions.
664   (1) "Children" means an individual who is three years old or older and 18 years old or
665younger.
666   (2) "Initiative" means the Every Kid Outdoors Initiative created in Section 79-7-802.
667Section 6. Section 79-7-802 is enacted to read:
66879-7-802 . Every Kid Outdoors Initiative.
669   (1) There is created the Every Kid Outdoors Initiative administered by the division.
670   (2) The division shall establish the initiative to:
671(a) promote the health and social benefits of outdoor recreation to the state's children;
672(b) encourage children to develop the skills and confidence to be physically active for
673life;
674(c) provide outdoor recreational opportunities to underserved communities, as defined in
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675Section 79-8-102, in the state; and
676(d) encourage hands-on outdoor or nature-based learning and play to prepare children
677for achievement in science, technology, engineering, and math.
678   (3) As part of the initiative, the division may:
679(a) implement outdoor recreation and education efforts for children, including field trips,
680events, and educational campaigns;
681(b) contract with public or private entities to provide services consistent with the
682initiative's objectives;
683(c) purchase or lease equipment or supplies necessary to facilitate the initiative; and
684(d) collaborate with and provide technical assistance, training, and educational resources
685to educators, schools, and community organizations to further the initiative's
686objectives.
687Section 7. Section 79-8-102 is amended to read:
68879-8-102 . Definitions.
689      As used in this chapter:
690   (1) "Accessible to the general public" in relation to the awarding of an infrastructure grant,
691means:
692(a) the public may use the infrastructure in accordance with federal and state regulations;
693and
694(b) no community or group retains exclusive rights to access the infrastructure.
695   (2) "Advisory committee" means the Utah Outdoor Recreation Infrastructure Advisory
696Committee created in Section 79-7-206.
697   (3) "Children," in relation to the awarding of a UCORE grant, means individuals who are [
698six] three years old or older and 18 years old or younger.
699   (4) "Director" means the director of the Division of Outdoor Recreation.
700   (5) "Division" means the Division of Outdoor Recreation.
701   (6) "Executive director" means the executive director of the Department of Natural
702Resources.
703   (7) "Infrastructure grant" means an outdoor recreational infrastructure grant described in
704Section 79-8-401.
705   (8)(a) "Recreational infrastructure project" means an undertaking to build or improve an
706approved facility or installation needed for the public to access and enjoy the state's
707outdoors.
708(b) "Recreational infrastructure project" may include the:
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709(i) establishment, construction, or renovation of a trail, trail infrastructure, or a trail
710facility;
711(ii) construction of a project for a water-related outdoor recreational activity;
712(iii) development of a project for a wildlife watching opportunity, including bird
713watching;
714(iv) development of a project that provides a winter recreation amenity;
715(v) construction or improvement of a community park that has an amenity for
716outdoor recreation; and
717(vi) construction or improvement of a naturalistic and accessible playground.
718   (9) "UCORE grant" means a children's outdoor recreation and education grant described in
719Section 79-8-302.
720   (10)(a) "Underserved community" means a group of people, including a municipality,
721county, or American Indian tribe, that is economically disadvantaged.
722(b) "Underserved community" includes an economically disadvantaged community
723where in relation to awarding a UCORE grant, the children of the community,
724including children with disabilities, have limited access to outdoor recreation or
725education programs.
726Section 8. Section 79-8-106 is amended to read:
72779-8-106 . Outdoor Recreation Infrastructure Account -- Uses -- Costs.
728   (1) There is created an expendable special revenue fund known as the "Outdoor Recreation
729Infrastructure Account," which the division shall use to fund:
730(a) the Outdoor Recreational Infrastructure Grant Program created in Section 79-8-401;
731(b) the Recreation Restoration Infrastructure Grant Program created in Section 79-8-202;
732and
733(c) the Utah Children's Outdoor Recreation and Education Grant Program created in
734Section 79-8-302.
735   (2) The account consists of:
736(a) distributions to the account under Section 59-28-103;
737(b) interest earned on the account;
738(c) appropriations made by the Legislature;
739(d) money from a cooperative agreement entered into with the United States Department
740of Agriculture or the United States Department of the Interior; and
741(e) private donations, grants, gifts, bequests, or money made available from any other
742source to implement this part.
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743   (3)(a) The division shall, with the advice of the advisory committee, administer the
744account.
745(b) The division may use money in the account to pay for the division's administrative
746costs of administering grants authorized under this chapter.
747   [(4) The cost of administering the account shall be paid from money in the account.]
748   [(5)] (4) Interest accrued from investment of money in the account shall remain in the
749account.
750Section 9. Section 79-8-303 is amended to read:
75179-8-303 . Rulemaking and requirements for awarding a UCORE grant.
752   (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
753division, after consulting with the advisory committee, shall make rules establishing the
754eligibility and reporting criteria for an entity to receive a UCORE grant, including:
755(a) the form and process of submitting an application to the division for a UCORE grant;
756(b) which entities are eligible to apply for a UCORE grant;
757(c) specific categories of children's programs that are eligible for a UCORE grant;
758(d) the method and formula for determining grant amounts; and
759(e) the reporting requirements of grant recipients.
760   (2) In determining the award of a UCORE grant, the division may prioritize a children's
761program that will serve an underserved community in the state.
762   (3) A UCORE grant may only be awarded by the executive director after consultation with
763the director and the advisory committee.
764   [(4) The following entities may not receive a UCORE grant under this part:]
765[(a) a federal government entity;]
766[(b) a state agency, except for public schools and institutions of higher education; and]
767[(c) a for-profit entity.]
768   (4) The division may not award a UCORE grant to a for-profit entity.
769   (5) In awarding UCORE grants, consideration shall be given to entities that implement
770programs that:
771(a) contribute to healthy and active lifestyles through outdoor recreation; and
772(b) include one or more of the following attributes in their programs or initiatives:
773(i) serve children with the greatest needs in rural, suburban, and urban areas of the
774state;
775(ii) provide students with opportunities to directly experience nature;
776(iii) maximize the number of children who can participate;
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777(iv) commit matching and in-kind resources;
778(v) create partnerships with public and private entities;
779(vi) include ongoing program evaluation and assessment;
780(vii) use veterans in program implementation;
781(viii) include outdoor or nature-based programming that incorporates concept
782learning in science, technology, engineering, or math; or
783(ix) use educated volunteers in program implementation.
784Section 10. Effective Date.
785   This bill takes effect on July 1, 2026.
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