HB 436

     Enrolled Copy  H.B. 436
1Moderate Income Housing Infrastructure Amendments
                                     2026 GENERAL SESSION
                                           STATE OF UTAH
                                Chief Sponsor: Stephanie Gricius
                               Senate Sponsor: Calvin R. Musselman
2
3  LONG TITLE
4  General Description:
5      This bill modifies requirements and incentives for moderate income housing plans and
6  reports.
7  Highlighted Provisions:
8      This bill:
9      ▸ modifies moderate income housing reporting requirements for reporting year 2026;
10      ▸ modifies the information a municipality is required to submit in a moderate income
11  housing report;
12      ▸ provides priority consideration by the Transportation Commission for certain
13  transportation projects if the change of new residential dwelling units in a municipality
14  is 2.5% or greater; and
15      ▸ makes technical and conforming changes.
16  Money Appropriated in this Bill:
17      None
18  Other Special Clauses:
19      This bill provides a special effective date.
20  Utah Code Sections Affected:
21  AMENDS:
22      10-21-202 (Effective 05/06/26), as renumbered and amended by Laws of Utah 2025,
23      First Special Session, Chapter 15
24      17-80-202 (Effective 05/06/26), as renumbered and amended by Laws of Utah 2025,
25      First Special Session, Chapter 14
26      59-12-2220 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
27      Session, Chapter 15
     H.B. 436  Enrolled Copy
2863I-2-210 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
29Session, Chapter 15
3063I-2-217 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
31Session, Chapter 7
3272-1-304 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
33Session, Chapter 15
3472-2-124 (Effective 05/06/26) (Superseded 07/01/26), as last amended by Laws of Utah
352025, First Special Session, Chapter 15
3672-2-124 (Effective 07/01/26), as last amended by Laws of Utah 2025, First Special
37Session, Chapter 15
38
39   Be it enacted by the Legislature of the state of Utah:
40Section 1. Section 10-21-202 is amended to read:
4110-21-202 (Effective 05/06/26). Moderate income housing report -- Contents --
42   Prioritization for funds or projects -- Ineligibility for funds after noncompliance -- Civil
43   actions.
44   (1)(a) The legislative body of a specified municipality shall submit an initial moderate
45income housing report to the division.
46(b)(i) This Subsection (1)(b) applies to a municipality that is not a specified
47municipality as of January 1, 2023.
48(ii) As of January 1, if a municipality changes from one class to another or grows in
49population to qualify as a specified municipality, the municipality shall submit an
50initial plan to the division on or before August 1 of the first calendar year
51beginning on January 1 in which the municipality qualifies as a specified
52municipality.
53(c) The initial report shall:
54(i) identify each moderate income housing strategy selected by the specified
55municipality for continued, ongoing, or one-time implementation, restating the
56exact language used to describe the moderate income housing strategy; and
57(ii) include an implementation plan.
58(d) For reporting year 2026:
59(i) a specified municipality complies with the reporting requirements described in this
60section if the specified municipality satisfied the reporting requirements in 2025;
61(ii) a specified municipality qualifies for priority consideration under Subsection
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62(5)(a) if the specified municipality qualified for priority consideration in 2025;
63(iii) the Department of Transportation shall consider all municipalities that the
64Department of Transportation received a notice of prioritization for in 2025
65eligible for priority consideration under Subsection (5)(a); and
66(iv) on or before July 1, 2026, a specified municipality shall report to the division on
67the number of residential certificates of occupancy the municipality issued during
68the previous 12-month period.
69  (2)(a) After the division approves a specified municipality's initial report under this
70      section, the specified municipality shall, as an administrative act, annually submit to
71      the division a subsequent progress report on or before August 1 of each year after the
72      year in which the specified municipality is required to submit the initial report.
73      (b) The subsequent progress report shall include:
74(i) subject to Subsection (2)(c), a description of each action, whether one-time or
75ongoing, taken by the specified municipality during the previous 12-month period
76to implement the moderate income housing strategies identified in the initial
77report for implementation;
78(ii) a description of each land use regulation or land use decision made by the
79specified municipality during the previous 12-month period to implement the
80moderate income housing strategies, including an explanation of how the land use
81regulation or land use decision supports the specified municipality's efforts to
82implement the moderate income housing strategies;
83(iii) a description of any barriers encountered by the specified municipality in the
84previous 12-month period in implementing the moderate income housing
85strategies;
86(iv) information regarding the number of internal and external or detached accessory
87dwelling units located within the specified municipality for which the specified
88municipality:
89(A) issued a building permit to construct; or
90(B) issued a business license or comparable license or permit to rent;
91(v) the number of residential dwelling units that have been entitled that have not
92received a building permit as of the submission date of the progress report;
93(vi) the number of new residential dwelling units, as measured by the number of
94residential certificates of occupancy the specified municipality issued during the
95previous 12-month period;
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96(vii) the estimated percent change of total residential dwelling units, as measured by
97comparing the number of residential certificates of occupancy the specified
98municipality issued during the previous 12-month period to the number of housing
99units that existed in the specified municipality before the day on which the
100previous 12-month period began;
101[(vi)] (viii) shapefiles, or website links if shapefiles are not available, to current maps
102and tables related to zoning;
103[(vii)] (ix) a description of how the market has responded to the selected moderate
104income housing strategies, including the number of entitled moderate income
105housing units or other relevant data; and
106[(viii)] (x) any recommendations on how the state can support the specified
107municipality in implementing the moderate income housing strategies.
108(c) For purposes of describing actions taken by a specified municipality under
109Subsection (2)(b)(i), the specified municipality may include an ongoing action taken
110by the specified municipality before the 12-month reporting period applicable to the
111subsequent progress report if the specified municipality:
112(i) has already adopted an ordinance, approved a land use application, made an
113investment, or approved an agreement or financing that substantially promotes the
114implementation of a moderate income housing strategy identified in the initial
115report; and
116(ii) demonstrates in the subsequent progress report that the action taken under
117Subsection (2)(c)(i) is relevant to making meaningful progress towards the
118specified municipality's implementation plan.
119(d) A specified municipality's report shall be in a form:
120(i) approved by the division; and
121(ii) made available by the division on or before May 1 of the year in which the report
122is required.
123   (3) Within 90 days after the day on which the division receives a specified municipality's
124report, the division shall:
125(a) post the report on the division's website;
126(b) send a copy of the report to the Department of Transportation, the Governor's Office
127of Planning and Budget, the association of governments in which the specified
128municipality is located, and, if the specified municipality is located within the
129boundaries of a metropolitan planning organization, the appropriate metropolitan
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130planning organization; and
131      (c) subject to Subsection (4), review the report to determine compliance with this section.
132  (4)(a) An initial report complies with this section if the report:
133(i) includes the information required under Subsection (1)(c);
134(ii) demonstrates to the division that the specified municipality made plans to
135implement:
136(A) three or more moderate income housing strategies if the specified
137municipality does not have a fixed guideway public transit station; or
138(B) if the specified municipality has a fixed guideway public transit station:
139(I) five or more of the moderate income housing strategies described in
140Subsection 10-21-201(3)(a)(iii), of which one shall be the moderate income
141housing strategy described in Subsection 10-21-201(3)(a)(iii)(U) and one
142shall be a moderate income housing strategy described in Subsection
14310-21-201(3)(a)(iii)(G) or (H); or
144(II) the moderate income housing strategy described in Subsection
14510-21-201(3)(a)(iii)(U), one of the moderate income housing strategies
146described in Subsections 10-21-201(3)(a)(iii)(X) through (CC), and one
147moderate income strategy described in Subsection 10-21-201(3)(a)(iii); and
148(iii) is in a form approved by the division.
149      (b) A subsequent progress report complies with this section if the report:
150(i) demonstrates to the division that the specified municipality made plans to
151implement:
152(A) three or more moderate income housing strategies if the specified
153municipality does not have a fixed guideway public transit station; or
154(B) if the specified municipality has a fixed guideway public transit station:
155(I) five or more of the moderate income housing strategies described in
156Subsection 10-21-201(3)(a)(iii), of which one shall be the moderate income
157housing strategy described in Subsection 10-21-201(3)(a)(iii)(U) and one
158shall be a moderate income housing strategy described in Subsection
15910-21-201(3)(a)(iii)(G) or (H); or
160(II) the moderate income housing strategy described in Subsection
16110-21-201(3)(a)(iii)(U), one of the moderate income housing strategies
162described in Subsections 10-21-201(3)(a)(iii)(X) through (CC), and one
163moderate income housing strategy described in Subsection
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16410-21-201(3)(a)(iii);
165(ii) is in a form approved by the division; and
166(iii) provides sufficient information for the division to:
167(A) assess the specified municipality's progress in implementing the moderate
168income housing strategies;
169(B) monitor compliance with the specified municipality's implementation plan;
170(C) identify a clear correlation between the specified municipality's land use
171regulations and land use decisions and the specified municipality's efforts to
172implement the moderate income housing strategies;
173(D) identify how the market has responded to the specified municipality's selected
174moderate income housing strategies;[ and]
175(E) determine if the percent change of new residential dwelling units in the
176municipality during the previous 12-month period is 2.5% or greater; and
177[(E)] (F) identify any barriers encountered by the specified municipality in
178implementing the selected moderate income housing strategies.
179      (c)(i) Notwithstanding the requirements of Subsection (4)(a)(ii)(A) or (b)(i)(A), if a
180specified municipality without a fixed guideway public transit station implements
181or is implementing, by ordinance or development agreement, one of the following
182moderate income housing strategies, the division shall consider that one moderate
183income housing strategy to be the equivalent of three moderate income housing
184strategies:
185(A) a housing and transit reinvestment zone, as described in Subsection
18610-21-201(3)(a)(iii)(X);
187(B) a home ownership promotion zone, as described in Subsection
18810-21-201(3)(a)(iii)(Y);
189(C) a first home investment zone, described in Subsection 10-21-201(3)(a)(iii)(Z);
190(D) the approval or completion of a project described in Subsection
19110-21-201(3)(a)(iii)(AA);
192(E) a qualifying affordable home ownership density bonus for single-family
193residential units, as described in Subsection 10-21-201(3)(a)(iii)(BB); or
194(F) a qualifying affordable home ownership density bonus for multi-family
195residential units, as described in Subsection 10-21-201(3)(a)(iii)(CC).
196(ii) If the division considers one moderate income housing strategy described in
197Subsection (4)(c)(i) as the equivalent of three moderate income housing strategies,
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198the division shall also consider the specified municipality compliant with the
199reporting requirement described in this section for:
200(A) the year in which the specified municipality submits the initial report or
201subsequent report; and
202(B) two subsequent reporting years.
203  (5)(a) A specified municipality qualifies for priority consideration under this Subsection
204      (5) if the specified municipality's report:
205(i) complies with this section; and
206(ii) demonstrates to the division that the specified municipality made plans to
207implement:
208(A) five or more moderate income housing strategies if the specified municipality
209does not have a fixed guideway public transit station; or
210(B) six or more moderate income housing strategies if the specified municipality
211has a fixed guideway public transit station.
212      (b) The Transportation Commission may, in accordance with Subsection 72-1-304(3)(c),
213give priority consideration to transportation projects located within the boundaries of
214a specified municipality described in Subsection (5)(a) until the Department of
215Transportation receives notice from the division under Subsection [(5)(e)] (7)(c).
216  (6)(a) In addition to the priority consideration a specified municipality may receive
217      under Subsection (5), a specified municipality qualifies for priority consideration
218      under this Subsection (6) if the specified municipality's report:
219(i) complies with this section; and
220(ii) demonstrates to the division that the specified municipality's percent change of
221new residential dwelling units in the municipality during the previous 12-month
222period, as described in Subsection (2)(b)(vii), is 2.5% or greater.
223      (b) The Transportation Commission shall, in accordance with Subsection 72-1-304(3)(c),
224give priority consideration to a significant regional transportation project, as
225determined by the Transportation Commission, that benefits a specified municipality
226described in Subsection (6)(a) and is located within or outside the boundaries of the
227specified municipality until the Department of Transportation receives notice from
228the division under Subsection (7)(c).
229  [(c)] (7)(a) Upon determining that a specified municipality qualifies for priority
230      consideration under[ this] Subsection (5) or (6), the division shall send a notice of
231      prioritization to the legislative body of the specified municipality and the Department
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232of Transportation.
233[(d)] (b) The notice described in Subsection [(5)(c)] (7)(a) shall:
234(i) name the specified municipality that qualifies for priority consideration;
235(ii) describe the funds or projects for which the specified municipality qualifies to
236receive priority consideration under Subsection (5) or (6); and
237(iii) state the basis for the division's determination that the specified municipality
238qualifies for priority consideration.
239[(e)] (c) The division shall notify the legislative body of a specified municipality and the
240Department of Transportation in writing if the division determines that the specified
241municipality no longer qualifies for priority consideration under [this ]Subsection (5)
242or (6).
243   [(6)] (8)(a) If the division, after reviewing a specified municipality's report, determines
244that the report does not comply with this section, the division shall send a notice of
245noncompliance to the legislative body of the specified municipality.
246(b) A specified municipality that receives a notice of noncompliance may:
247(i) cure each deficiency in the report within 90 days after the day on which the notice
248of noncompliance is sent; or
249(ii) request an appeal of the division's determination of noncompliance within 10
250days after the day on which the notice of noncompliance is sent.
251(c) The notice described in Subsection [(6)(a)] (8)(a) shall:
252(i) describe each deficiency in the report and the actions needed to cure each
253deficiency;
254(ii) state that the specified municipality has an opportunity to:
255(A) submit to the division a corrected report that cures each deficiency in the
256report within 90 days after the day on which the notice of compliance is sent; or
257(B) submit to the division a request for an appeal of the division's determination of
258noncompliance within 10 days after the day on which the notice of
259noncompliance is sent; and
260(iii) state that failure to take action under Subsection [(6)(c)(ii)] (8)(c)(ii) will result in
261the specified municipality's ineligibility for funds under Subsection [(8)] (10).
262(d) For purposes of curing the deficiencies in a report under this Subsection [(6)] (8), if
263the action needed to cure the deficiency as described by the division requires the
264specified municipality to make a legislative change, the specified municipality may
265cure the deficiency by making that legislative change within the 90-day cure period.
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266      (e)(i) If a specified municipality submits to the division a corrected report in
267accordance with Subsection [(6)(b)(i)] (8)(b)(i) and the division determines that
268the corrected report does not comply with this section, the division shall send a
269second notice of noncompliance to the legislative body of the specified
270municipality within 30 days after the day on which the corrected report is
271submitted.
272(ii) A specified municipality that receives a second notice of noncompliance may
273submit to the division a request for an appeal of the division's determination of
274noncompliance within 10 days after the day on which the second notice of
275noncompliance is sent.
276(iii) The notice described in Subsection [(6)(e)(i)] (8)(e)(i) shall:
277(A) state that the specified municipality has an opportunity to submit to the
278division a request for an appeal of the division's determination of
279noncompliance within 10 days after the day on which the second notice of
280noncompliance is sent; and
281(B) state that failure to take action under Subsection [(6)(e)(iii)(A)] (8)(e)(iii)(A)
282will result in the specified municipality's ineligibility for funds under
283Subsection [(8)] (10).
284  [(7)] (9)(a) A specified municipality that receives a notice of noncompliance under
285      Subsection [(6)(a)] (8)(a) or [(6)(e)(i)] (8)(e)(i) may request an appeal of the division's
286      determination of noncompliance within 10 days after the day on which the notice of
287      noncompliance is sent.
288      (b) Within 90 days after the day on which the division receives a request for an appeal,
289an appeal board consisting of the following three members shall review and issue a
290written decision on the appeal:
291(i) one individual appointed by the Utah League of Cities and Towns;
292(ii) one individual appointed by the Utah Homebuilders Association; and
293(iii) one individual appointed by the presiding member of the association of
294governments, established in accordance with an interlocal agreement under Title
29511, Chapter 13, Interlocal Cooperation Act, of which the specified municipality is
296a member.
297      (c) The written decision of the appeal board shall either uphold or reverse the division's
298determination of noncompliance.
299      (d) The appeal board's written decision on the appeal is final.
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300   [(8)] (10)(a) A specified municipality is ineligible for funds under this Subsection [(8)]
301(10) if:
302(i) the specified municipality fails to submit a report to the division;
303(ii) after submitting a report to the division, the division determines that the report
304does not comply with this section and the specified municipality fails to:
305(A) cure each deficiency in the report within 90 days after the day on which the
306notice of noncompliance is sent; or
307(B) request an appeal of the division's determination of noncompliance within 10
308days after the day on which the notice of noncompliance is sent;
309(iii) after submitting to the division a corrected report to cure the deficiencies in a
310previously submitted report, the division determines that the corrected report does
311not comply with this section and the specified municipality fails to request an
312appeal of the division's determination of noncompliance within 10 days after the
313day on which the second notice of noncompliance is sent; or
314(iv) after submitting a request for an appeal under Subsection [(7)] (9), the appeal
315board issues a written decision upholding the division's determination of
316noncompliance.
317(b) The following apply to a specified municipality described in Subsection [(8)(a)]
318(10)(a) until the division provides notice under Subsection [(8)(e)] (10)(e):
319(i) the executive director of the Department of Transportation may not program funds
320from the Transportation Investment Fund of 2005, including the Transit
321Transportation Investment Fund, to projects located within the boundaries of the
322specified municipality in accordance with Subsection 72-2-124(5);
323(ii) beginning with a report submitted in 2024, the specified municipality shall pay a
324fee to the Olene Walker Housing Loan Fund in the amount of $250 per day that
325the specified municipality:
326(A) fails to submit the report to the division in accordance with this section,
327beginning the day after the day on which the report was due; or
328(B) fails to cure the deficiencies in the report, beginning the day after the day by
329which the cure was required to occur as described in the notice of
330noncompliance under Subsection [(6)] (8); and
331(iii) beginning with the report submitted in 2025, the specified municipality shall pay
332a fee to the Olene Walker Housing Loan Fund in the amount of $500 per day that
333the specified municipality, in a consecutive year:
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334(A) fails to submit the report to the division in accordance with this section,
335beginning the day after the day on which the report was due; or
336(B) fails to cure the deficiencies in the report, beginning the day after the day by
337which the cure was required to occur as described in the notice of
338noncompliance under Subsection [(6)] (8).
339      (c) Upon determining that a specified municipality is ineligible for funds under this
340Subsection [(8)] (10), and is required to pay a fee under Subsection [(8)(b)] (10)(b), if
341applicable, the division shall send a notice of ineligibility to the legislative body of
342the specified municipality, the Department of Transportation, the State Tax
343Commission, and the Governor's Office of Planning and Budget.
344      (d) The notice described in Subsection [(8)(c)] (10)(c) shall:
345(i) name the specified municipality that is ineligible for funds;
346(ii) describe the funds for which the specified municipality is ineligible to receive;
347(iii) describe the fee the specified municipality is required to pay under Subsection [
348(8)(b)] (10)(b), if applicable; and
349(iv) state the basis for the division's determination that the specified municipality is
350ineligible for funds.
351      (e) The division shall notify the legislative body of a specified municipality and the
352Department of Transportation in writing if the division determines that the provisions
353of this Subsection [(8)] (10) no longer apply to the specified municipality.
354      (f) The division may not determine that a specified municipality that is required to pay a
355fee under Subsection [(8)(b)] (10)(b) is in compliance with the reporting requirements
356of this section until the specified municipality pays all outstanding fees required
357under Subsection [(8)(b)] (10)(b) to the Olene Walker Housing Loan Fund, created
358under Title 35A, Chapter 8, Part 5, Olene Walker Housing Loan Fund.
359  [(9)] (11) In a civil action seeking enforcement or claiming a violation of this section or of
360      Subsection 10-20-405(4)(c), a plaintiff may not recover damages but may be awarded
361      only injunctive or other equitable relief.
362Section 2. Section 17-80-202 is amended to read:
36317-80-202 (Effective 05/06/26). Moderate income housing report -- Contents --
364  Prioritization for funds or projects -- Ineligibility for funds after noncompliance -- Civil
365  actions.
366  (1)(a) The legislative body of a specified county shall annually submit an initial report to
367      the division.
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368(b)(i) This Subsection (1)(b) applies to a county that is not a specified county as of
369January 1, 2023.
370(ii) As of January 1, if a county changes from one class to another or grows in
371population to qualify as a specified county, the county shall submit an initial plan
372to the division on or before August 1 of the first calendar year beginning on
373January 1 in which the county qualifies as a specified county.
374(c) The initial report shall:
375(i) identify each moderate income housing strategy selected by the specified county
376for continued, ongoing, or one-time implementation, using the exact language
377used to describe the moderate income housing strategy; and
378(ii) include an implementation plan.
379(d) For reporting year 2026:
380(i) a specified county complies with the reporting requirements described in this
381section if the specified county satisfied the reporting requirements in 2025; and
382(ii) a specified county qualifies for priority consideration under Subsection (5)(a) if
383the specified county qualified for priority consideration in 2025.
384   (2)(a) After the division approves a specified county's initial report under this section,
385the specified county shall, as an administrative act, annually submit to the division a
386subsequent progress report on or before August 1 of each year after the year in which
387the specified county is required to submit the initial report.
388(b) The subsequent progress report shall include:
389(i) subject to Subsection (2)(c), a description of each action, whether one-time or
390ongoing, taken by the specified county during the previous 12-month period to
391implement the moderate income housing strategies identified in the initial report
392for implementation;
393(ii) a description of each land use regulation or land use decision made by the
394specified county during the previous 12-month period to implement the moderate
395income housing strategies, including an explanation of how the land use
396regulation or land use decision supports the specified county's efforts to
397implement the moderate income housing strategies;
398(iii) a description of any barriers encountered by the specified county in the previous
39912-month period in implementing the moderate income housing strategies;
400(iv) the number of residential dwelling units that have been entitled that have not
401received a building permit as of the submission date of the progress report;
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402(v) shapefiles, or website links if shapefiles are not available, to current maps and
403tables related to zoning;
404(vi) information regarding the number of internal and external or detached accessory
405dwelling units located within the specified county for which the specified county:
406(A) issued a building permit to construct; or
407(B) issued a business license or comparable license or permit to rent;
408(vii) a description of how the market has responded to the selected moderate income
409housing strategies, including the number of entitled moderate income housing
410units or other relevant data; and
411(viii) any recommendations on how the state can support the specified county in
412implementing the moderate income housing strategies.
413      (c) For purposes of describing actions taken by a specified county under Subsection
414(2)(b)(i), the specified county may include an ongoing action taken by the specified
415county before the 12-month reporting period applicable to the subsequent progress
416report if the specified county:
417(i) has already adopted an ordinance, approved a land use application, made an
418investment, or approved an agreement or financing that substantially promotes the
419implementation of a moderate income housing strategy identified in the initial
420report; and
421(ii) demonstrates in the subsequent progress report that the action taken under
422Subsection (2)(b)(i) is relevant to making meaningful progress towards the
423specified county's implementation plan.
424      (d) A specified county's report shall be in a form:
425(i) approved by the division; and
426(ii) made available by the division on or before May 1 of the year in which the report
427is required.
428  (3) Within 90 days after the day on which the division receives a specified county's report,
429      the division shall:
430      (a) post the report on the division's website;
431      (b) send a copy of the report to the Department of Transportation, the Governor's Office
432of Planning and Budget, the association of governments in which the specified
433county is located, and, if the unincorporated area of the specified county is located
434within the boundaries of a metropolitan planning organization, the appropriate
435metropolitan planning organization; and
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436(c) subject to Subsection (4), review the report to determine compliance with this section.
437   (4)(a) An initial report complies with this section if the report:
438(i) includes the information required under Subsection (1)(c);
439(ii) demonstrates to the division that the specified county made plans to implement
440three or more moderate income housing strategies described in Subsections
44117-80-201(3)(a)(ii)(A) through (V) or at least one moderate income housing
442strategy described in Subsections 17-80-201(3)(a)(ii)(W) through (BB); and
443(iii) is in a form approved by the division.
444(b) A subsequent progress report complies with this section if the report:
445(i) demonstrates to the division that the specified county made plans to implement or
446is implementing three or more moderate income housing strategies described in
447Subsections 17-80-201(3)(a)(ii)(A) though (V) or at least one moderate income
448housing strategy described in Subsections 17-80-201(3)(a)(ii)(W) through (BB);
449(ii) is in a form approved by the division; and
450(iii) provides sufficient information for the division to:
451(A) assess the specified county's progress in implementing the moderate income
452housing strategies;
453(B) monitor compliance with the specified county's implementation plan;
454(C) identify a clear correlation between the specified county's land use decisions
455and efforts to implement the moderate income housing strategies;
456(D) identify how the market has responded to the specified county's selected
457moderate income housing strategies; and
458(E) identify any barriers encountered by the specified county in implementing the
459selected moderate income housing strategies.
460(c) If a specified county initial report or subsequent progress report demonstrates the
461county plans to implement or is implementing at least one moderate income housing
462strategy described in Subsections 17-80-201(3)(a)(ii)(W) through (BB), the division
463shall also consider the specified county compliant with the reporting requirement
464described in this section for:
465(i) the year in which the specified county submits the report; and
466(ii) two subsequent reporting years.
467   (5)(a) A specified county qualifies for priority consideration under this Subsection (5) if
468the specified county's report:
469(i) complies with this section; and
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470(ii) demonstrates to the division that the specified county made plans to implement
471five or more moderate income housing strategies.
472      (b) The Transportation Commission may, in accordance with Subsection 72-1-304(3)(c),
473give priority consideration to transportation projects located within the
474unincorporated areas of a specified county described in Subsection (5)(a) until the
475Department of Transportation receives notice from the division under Subsection
476(5)(e).
477      (c) Upon determining that a specified county qualifies for priority consideration under
478this Subsection (5), the division shall send a notice of prioritization to the legislative
479body of the specified county and the Department of Transportation.
480      (d) The notice described in Subsection (5)(c) shall:
481(i) name the specified county that qualifies for priority consideration;
482(ii) describe the funds or projects for which the specified county qualifies to receive
483priority consideration; and
484(iii) state the basis for the division's determination that the specified county qualifies
485for priority consideration.
486      (e) The division shall notify the legislative body of a specified county and the
487Department of Transportation in writing if the division determines that the specified
488county no longer qualifies for priority consideration under this Subsection (5).
489  (6)(a) If the division, after reviewing a specified county's report, determines that the
490      report does not comply with this section, the division shall send a notice of
491      noncompliance to the legislative body of the specified county.
492      (b) A specified county that receives a notice of noncompliance may:
493(i) cure each deficiency in the report within 90 days after the day on which the notice
494of noncompliance is sent; or
495(ii) request an appeal of the division's determination of noncompliance within 10
496days after the day on which the notice of noncompliance is sent.
497      (c) The notice described in Subsection (6)(a) shall:
498(i) describe each deficiency in the report and the actions needed to cure each
499deficiency;
500(ii) state that the specified county has an opportunity to:
501(A) submit to the division a corrected report that cures each deficiency in the
502report within 90 days after the day on which the notice of noncompliance is
503sent; or
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504(B) submit to the division a request for an appeal of the division's determination of
505noncompliance within 10 days after the day on which the notice of
506noncompliance is sent; and
507(iii) state that failure to take action under Subsection (6)(c)(ii) will result in the
508specified county's ineligibility for funds and fees owed under Subsection (8).
509(d) For purposes of curing the deficiencies in a report under this Subsection (6), if the
510action needed to cure the deficiency as described by the division requires the
511specified county to make a legislative change, the specified county may cure the
512deficiency by making that legislative change within the 90-day cure period.
513(e)(i) If a specified county submits to the division a corrected report in accordance
514with Subsection (6)(b)(i), and the division determines that the corrected report
515does not comply with this section, the division shall send a second notice of
516noncompliance to the legislative body of the specified county.
517(ii) A specified county that receives a second notice of noncompliance may request
518an appeal of the division's determination of noncompliance within 10 days after
519the day on which the second notice of noncompliance is sent.
520(iii) The notice described in Subsection (6)(e)(i) shall:
521(A) state that the specified county has an opportunity to submit to the division a
522request for an appeal of the division's determination of noncompliance within
52310 days after the day on which the second notice of noncompliance is sent; and
524(B) state that failure to take action under Subsection (6)(e)(iii)(A) will result in the
525specified county's ineligibility for funds under Subsection (8).
526   (7)(a) A specified county that receives a notice of noncompliance under Subsection (6)(a)
527or (6)(e)(i) may request an appeal of the division's determination of noncompliance
528within 10 days after the day on which the notice of noncompliance is sent.
529(b) Within 90 days after the day on which the division receives a request for an appeal,
530an appeal board consisting of the following three members shall review and issue a
531written decision on the appeal:
532(i) one individual appointed by the Utah Association of Counties;
533(ii) one individual appointed by the Utah Homebuilders Association; and
534(iii) one individual appointed by the presiding member of the association of
535governments, established in accordance with an interlocal agreement under Title
53611, Chapter 13, Interlocal Cooperation Act, of which the specified county is a
537member.
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538      (c) The written decision of the appeal board shall either uphold or reverse the division's
539determination of noncompliance.
540      (d) The appeal board's written decision on the appeal is final.
541  (8)(a) A specified county is ineligible for funds and owes a fee under this Subsection (8)
542      if:
543(i) the specified county fails to submit a report to the division;
544(ii) after submitting a report to the division, the division determines that the report
545does not comply with this section and the specified county fails to:
546(A) cure each deficiency in the report within 90 days after the day on which the
547notice of noncompliance is sent; or
548(B) request an appeal of the division's determination of noncompliance within 10
549days after the day on which the notice of noncompliance is sent;
550(iii) after submitting to the division a corrected report to cure the deficiencies in a
551previously submitted report, the division determines that the corrected report does
552not comply with this section and the specified county fails to request an appeal of
553the division's determination of noncompliance within 10 days after the day on
554which the second notice of noncompliance is sent; or
555(iv) after submitting a request for an appeal under Subsection (7), the appeal board
556issues a written decision upholding the division's determination of noncompliance.
557      (b) The following apply to a specified county described in Subsection (8)(a) until the
558division provides notice under Subsection (8)(e):
559(i) the executive director of the Department of Transportation may not program funds
560from the Transportation Investment Fund of 2005, including the Transit
561Transportation Investment Fund, to projects located within the unincorporated
562areas of the specified county in accordance with Subsection 72-2-124(6);
563(ii) beginning with the report submitted in 2024, the specified county shall pay a fee
564to the Olene Walker Housing Loan Fund in the amount of $250 per day that the
565specified county:
566(A) fails to submit the report to the division in accordance with this section,
567beginning the day after the day on which the report was due; or
568(B) fails to cure the deficiencies in the report, beginning the day after the day by
569which the cure was required to occur as described in the notice of
570noncompliance under Subsection (6); and
571(iii) beginning with the report submitted in 2025, the specified county shall pay a fee
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572to the Olene Walker Housing Loan Fund in the amount of $500 per day that the
573specified county, for a consecutive year:
574(A) fails to submit the report to the division in accordance with this section,
575beginning the day after the day on which the report was due; or
576(B) fails to cure the deficiencies in the report, beginning the day after the day by
577which the cure was required to occur as described in the notice of
578noncompliance under Subsection (6).
579(c) Upon determining that a specified county is ineligible for funds under this
580Subsection (8), and is required to pay a fee under Subsection (8)(b), if applicable, the
581division shall send a notice of ineligibility to the legislative body of the specified
582county, the Department of Transportation, the State Tax Commission, and the
583Governor's Office of Planning and Budget.
584(d) The notice described in Subsection (8)(c) shall:
585(i) name the specified county that is ineligible for funds;
586(ii) describe the funds for which the specified county is ineligible to receive;
587(iii) describe the fee the specified county is required to pay under Subsection (8)(b),
588if applicable; and
589(iv) state the basis for the division's determination that the specified county is
590ineligible for funds.
591(e) The division shall notify the legislative body of a specified county and the
592Department of Transportation in writing if the division determines that the provisions
593of this Subsection (8) no longer apply to the specified county.
594(f) The division may not determine that a specified county that is required to pay a fee
595under Subsection (8)(b) is in compliance with the reporting requirements of this
596section until the specified county pays all outstanding fees required under Subsection
597(8)(b) to the Olene Walker Housing Loan Fund, created under Title 35A, Chapter 8,
598Part 5, Olene Walker Housing Loan Fund.
599   (9) In a civil action seeking enforcement or claiming a violation of this section or of
600Subsection 17-79-404(5)(c), a plaintiff may not recover damages but may be awarded
601only injunctive or other equitable relief.
602Section 3. Section 59-12-2220 is amended to read:
60359-12-2220 (Effective 05/06/26). County option sales and use tax to fund
604   highways or a system for public transit -- Base -- Rate.
605   (1) Subject to the other provisions of this part and subject to the requirements of this
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606      section, the following counties may impose a sales and use tax under this section:
607      (a) a county legislative body may impose the sales and use tax on the transactions
608described in Subsection 59-12-103(1) located within the county, including the cities
609and towns within the county if:
610(i) the entire boundary of a county is annexed into a large public transit district; and
611(ii) the maximum amount of sales and use tax authorizations allowed in accordance
612with Section 59-12-2203 and authorized under the following sections has been
613imposed:
614(A) Section 59-12-2213;
615(B) Section 59-12-2214;
616(C) Section 59-12-2215;
617(D) Section 59-12-2216;
618(E) Section 59-12-2217;
619(F) Section 59-12-2218; and
620(G) Section 59-12-2219;
621      (b) if the county is not annexed into a large public transit district, the county legislative
622body may impose the sales and use tax on the transactions described in Subsection
62359-12-103(1) located within the county, including the cities and towns within the
624county if:
625(i) the county is an eligible political subdivision; or
626(ii) a city or town within the boundary of the county is an eligible political
627subdivision; or
628      (c) a county legislative body of a county not described in Subsection (1)(a) or (1)(b) may
629impose the sales and use tax on the transactions described in Subsection 59-12-103(1)
630located within the county, including the cities and towns within the county.
631  (2) For purposes of Subsection (1) and subject to the other provisions of this section, a
632      county legislative body that imposes a sales and use tax under this section may impose
633      the tax at a rate of .2%.
634  (3)(a) The commission shall distribute sales and use tax revenue collected under this
635      section as determined by a county legislative body as described in Subsection (3)(b).
636      (b) If a county legislative body imposes a sales and use tax as described in this section,
637the county legislative body may elect to impose a sales and use tax revenue
638distribution as described in Subsection (4), (5), (6), or (7), depending on the class of
639county, and presence and type of a public transit provider in the county.
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640   (4) Subject to Subsection (11), and after application of Subsection 59-12-2206(5), if a
641county legislative body imposes a sales and use tax as described in this section, and the
642entire boundary of the county is annexed into a large public transit district, and the
643county is a county of the first class, the commission shall distribute the sales and use tax
644revenue as follows:
645(a) .10% to a public transit district as described in Subsection (11);
646(b) .05% to the cities and towns as provided in Subsection (8); and
647(c) .05% to the county legislative body.
648   (5) Subject to Subsection (11), if a county legislative body imposes a sales and use tax as
649described in this section and the entire boundary of the county is annexed into a large
650public transit district, and the county is a county not described in Subsection (4), the
651commission shall distribute the sales and use tax revenue as follows:
652(a) .10% to a public transit district as described in Subsection (11);
653(b) .05% to the cities and towns as provided in Subsection (8); and
654(c) .05% to the county legislative body.
655   (6)(a) Except as provided in Subsection (14)(c), if the entire boundary of a county that
656imposes a sales and use tax as described in this section is not annexed into a single
657public transit district, but a city or town within the county is annexed into a single
658public transit district, or if the city or town is an eligible political subdivision, the
659commission shall distribute the sales and use tax revenue collected within the county
660as provided in Subsection (6)(b) or (c).
661(b) For a city, town, or portion of the county described in Subsection (6)(a) that is
662annexed into the single public transit district, or an eligible political subdivision, the
663commission shall distribute the sales and use tax revenue collected within the portion
664of the county that is within a public transit district or eligible political subdivision as
665follows:
666(i) .05% to a public transit provider as described in Subsection (11);
667(ii) .075% to the cities and towns as provided in Subsection (8); and
668(iii) .075% to the county legislative body.
669(c) Except as provided in Subsection (14)(c), for a city, town, or portion of the county
670described in Subsection (6)(a) that is not annexed into a single public transit district
671or eligible political subdivision in the county, the commission shall distribute the
672sales and use tax revenue collected within that portion of the county as follows:
673(i) .08% to the cities and towns as provided in Subsection (8); and
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674(ii) .12% to the county legislative body.
675  (7) For a county without a public transit service that imposes a sales and use tax as
676      described in this section, the commission shall distribute the sales and use tax revenue
677      collected within the county as follows:
678      (a) .08% to the cities and towns as provided in Subsection (8); and
679      (b) .12% to the county legislative body.
680  (8)(a) Subject to Subsections (8)(b) and (c), the commission shall make the distributions
681      required by Subsections (4)(b), (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) as follows:
682(i) 50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii),
683(6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4)
684through (7) shall be distributed to the unincorporated areas, cities, and towns
685within those counties on the basis of the percentage that the population of each
686unincorporated area, city, or town bears to the total population of all of the
687counties that impose a tax under this section; and
688(ii) 50% of the total revenue collected under Subsections (4)(b), (5)(b), (6)(b)(ii),
689(6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections (4)
690through (7) shall be distributed to the unincorporated areas, cities, and towns
691within those counties on the basis of the location of the transaction as determined
692under Sections 59-12-211 through 59-12-215.
693      (b)(i) Population for purposes of this Subsection (8) shall be based on, to the extent
694not otherwise required by federal law:
695(A) the most recent estimate from the Utah Population Committee created in
696Section 63C-20-103; or
697(B) if the Utah Population Committee estimate is not available for each
698municipality and unincorporated area, the adjusted sub-county population
699estimate provided by the Utah Population Committee in accordance with
700Section 63C-20-104.
701(ii) If a needed population estimate is not available from the United States Census
702Bureau, population figures shall be derived from an estimate from the Utah
703Population Estimates Committee created by executive order of the governor.
704      (c)(i) Beginning on January 1, 2024, if the Housing and Community Development
705Division within the Department of Workforce Services determines that a city or
706town is ineligible for funds in accordance with Subsection [10-21-202(6)]
70710-21-202(8), beginning the first day of the calendar quarter after receiving 90
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708days' notice, the commission shall distribute the distribution that city or town
709would have received under Subsection (8)(a) to cities or towns to which
710Subsection [10-21-202(6)] 10-21-202(8) does not apply.
711(ii) Beginning on January 1, 2024, if the Housing and Community Development
712Division within the Department of Workforce Services determines that a county is
713ineligible for funds in accordance with Subsection 17-80-202(6), beginning the
714first day of the calendar quarter after receiving 90 days' notice, the commission
715shall distribute the distribution that county would have received under Subsection
716(8)(a) to counties to which Subsection 17-80-202(6) does not apply.
717   (9) If a public transit service is organized after the date a county legislative body first
718imposes a tax under this section, a change in a distribution required by this section may
719not take effect until the first distribution the commission makes under this section after a
72090-day period that begins on the date the commission receives written notice from the
721public transit provider that the public transit service has been organized.
722   (10)(a) Except as provided in Subsections (10)(b) and (c), a county, city, or town that
723received distributions described in Subsections (4)(b), (4)(c), (5)(b), (5)(c), (6)(b)(ii),
724(6)(b)(iii), (6)(c), and (7) may only expend those funds for a purpose described in
725Section 59-12-2212.2.
726(b) If a county described in Subsection (1)(a) that is a county of the first class imposes
727the sales and use tax authorized in this section, the county may also use funds
728distributed in accordance with Subsection (4)(c) for public safety purposes.
729(c) In addition to the purposes described in Subsections (10)(a) and (b), for a city
730relevant to a project area, as that term is defined in Section 63N-3-1401, an allowable
731use of revenue from a sales and use tax under this section includes the revitalization
732of a convention center owned by the county within a city of the first class and
733surrounding revitalization projects related to the convention center.
734   (11)(a) Subject to Subsections (11)(b), (c), and (d), revenue designated for public transit
735as described in this section may be used for capital expenses and service delivery
736expenses of:
737(i) a public transit district;
738(ii) an eligible political subdivision; or
739(iii) another entity providing a service for public transit or a transit facility within the
740relevant county, as those terms are defined in Section 17B-2a-802.
741(b)(i)(A) If a county of the first class imposes a sales and use tax described in this
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742section, beginning on the date on which the county imposes the sales and use
743tax under this section, and for a three-year period after at least three counties
744described in Subsections (4) and (5) have imposed a tax under this section, or
745until June 30, 2030, whichever comes first, revenue designated for public
746transit within a county of the first class as described in Subsection (4)(a) shall
747be transferred to the County of the First Class Highway Projects Fund created
748in Section 72-2-121.
749(B) Revenue deposited into the County of the First Class Highway Projects Fund
750created in Section 72-2-121 as described in Subsection (11)(b)(i)(A) may be
751used for public transit innovation grants as provided in Title 72, Chapter 2, Part
7524, Public Transit Innovation Grants.
753(ii) If a county of the first class imposes a sales and use tax described in this section,
754beginning on the day three years after the date on which at least three counties
755described in Subsections (4) and (5) have imposed a tax under this section, or
756beginning on July 1, 2030, whichever comes first, for revenue designated for
757public transit as described in Subsection (4)(a):
758(A) 50% of the revenue from a sales and use tax imposed under this section in a
759county of the first class shall be transferred to the County of the First Class
760Highway Projects Fund created in Section 72-2-121; and
761(B) 50% of the revenue from a sales and use tax imposed under this section in a
762county of the first class shall be transferred to the Transit Transportation
763Investment Fund created in Subsection 72-2-124(9).
764      (c)(i) If a county that is not a county of the first class for which the entire boundary of
765the county is annexed into a large public transit district imposes a sales and use
766tax described in this section, beginning on the date on which the county imposes
767the sales and use tax under this section, and for a three-year period following the
768date on which at least three counties described in Subsections (4) and (5) have
769imposed a tax under this section, or until June 30, 2030, whichever comes first,
770revenue designated for public transit as described in Subsection (5)(a) shall be
771transferred to the relevant county legislative body to be used for a purpose
772described in Subsection (11)(a).
773(ii) If a county that is not a county of the first class for which the entire boundary of
774the county is annexed into a large public transit district imposes a sales and use
775tax described in this section, beginning on the day three years after the date on
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776which at least three counties described in Subsections (4) and (5) have imposed a
777tax under this section, or beginning on July 1, 2030, whichever comes first, for the
778revenue that is designated for public transit in Subsection (5)(a):
779(A) 50% shall be transferred to the Transit Transportation Investment Fund
780created in Subsection 72-2-124(9); and
781(B) 50% shall be transferred to the relevant county legislative body to be used for
782a purpose described in Subsection (11)(a).
783(d) Except as provided in Subsection [(13)(c)] (14)(c), for a county that imposes a sales
784and use tax under this section, for revenue designated for public transit as described
785in Subsection (6)(b)(i), the revenue shall be transferred to the relevant county
786legislative body to be used for a purpose described in Subsection (11)(a).
787   (12) A large public transit district shall send notice to the commission at least 90 days
788before the earlier of:
789(a) the date that is three years after the date on which at least three counties described in
790Subsections (4) and (5) have imposed a tax under this section; or
791(b) June 30, 2030.
792   (13) For a city described in Subsection (10)(c), during the bondable term of a revitalization
793project described in Subsection (10)(c), the city shall transfer at least 50%, and may
794transfer up to 100%, of any revenue the city receives from a distribution under
795Subsection (4)(b) to a convention center public infrastructure district created in
796accordance with Section 17D-4-202.1 for revitalization of a convention center owned by
797the county within a city of the first class and surrounding revitalization projects related
798to the convention center as permitted in Subsection (10)(c).
799   (14)(a) Notwithstanding Section 59-12-2208, a county legislative body may, but is not
800required to, submit an opinion question to the county's registered voters in
801accordance with Section 59-12-2208 to impose a sales and use tax under this section.
802(b) If a county passes an ordinance to impose a sales and use tax as described in this
803section, the sales and use tax shall take effect on the first day of the calendar quarter
804after a 90-day period that begins on the date the commission receives written notice
805from the county of the passage of the ordinance.
806(c) A county that imposed the local option sales and use tax described in this section
807before January 1, 2023, may maintain that county's distribution allocation in place as
808of January 1, 2023.
809   (15)(a) Revenue collected from a sales and use tax under this section may not be used to
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810      supplant existing General Fund appropriations that a county, city, or town budgeted
811      for transportation or public transit as of the date the tax becomes effective for a
812      county, city, or town.
813      (b) The limitation under Subsection (15)(a) does not apply to a designated transportation
814or public transit capital or reserve account a county, city, or town established before
815the date the tax becomes effective.
816Section 4. Section 63I-2-210 is amended to read:
81763I-2-210 (Effective 05/06/26). Repeal dates: Title 10.
818  (1) Subsection 10-2a-205(2)(b)(iii), regarding a feasibility study for the proposed
819      incorporation of a community council area, is repealed July 1, 2028.
820  (2) Section 10-2a-205.5, Additional feasibility consultant considerations for proposed
821      incorporation of community council area -- Additional feasibility study requirements, is
822      repealed July 1, 2028.
823  (3) Subsection 10-20-904(4)(c), regarding an inspection fee on a qualified water
824      conservancy district, is repealed July 1, 2026.
825  (4) Subsection 10-21-202(1)(d), regarding the moderate income housing plan reporting
826      requirements for reporting year 2026, is repealed July 1, 2027.
827Section 5. Section 63I-2-217 is amended to read:
82863I-2-217 (Effective 05/06/26). Repeal dates: Titles 17 through 17D.
829  (1) Subsection 17-79-804(4)(c), regarding an inspection fee on a qualified water
830      conservancy district, is repealed July 1, 2026.
831  (2) Subsection 17-62-102(3), regarding the process for changing a form of county
832      government, is repealed January 1, 2028.
833  (3) Subsections 17-62-203(10) through (12), regarding the process to create a districting
834      commission and implementing a district map, are repealed July 1, 2029.
835  (4) Subsection 17-80-202(1)(d), regarding the moderate income housing plan reporting
836      requirements for reporting year 2026, is repealed July 1, 2027.
837Section 6. Section 72-1-304 is amended to read:
83872-1-304 (Effective 05/06/26). Written project prioritization process for new
839  transportation capacity projects -- Rulemaking.
840  (1)(a) The Transportation Commission, in consultation with the department and the
841      metropolitan planning organizations as defined in Section 72-1-208.5, shall develop a
842      written prioritization process for the prioritization of:
843(i) new transportation capacity projects that are or will be part of the state highway
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844system under Chapter 4, Part 1, State Highways;
845(ii) paved pedestrian or paved nonmotorized transportation projects described in
846Section 72-2-124;
847(iii) public transit projects that directly add capacity to the public transit systems
848within the state, not including facilities ancillary to the public transit system; and
849(iv) pedestrian or nonmotorized transportation projects that provide connection to a
850public transit system.
851(b)(i) A local government or public transit district may nominate a project for
852prioritization in accordance with the process established by the commission in rule.
853(ii) If a local government or public transit district nominates a project for
854prioritization by the commission, the local government or public transit district
855shall provide data and evidence to show that:
856(A) the project will advance the purposes and goals described in Section 72-1-211;
857(B) for a public transit project, the local government or public transit district has
858an ongoing funding source for operations and maintenance of the proposed
859development; and
860(C) the local government or public transit district will provide the percentage of
861the costs for the project as required by Subsection 72-2-124(4)(a)(viii) or
86272-2-124(10)(e).
863   (2) The following shall be included in the written prioritization process under Subsection (1):
864(a) a description of how the strategic initiatives of the department adopted under Section
86572-1-211 are advanced by the written prioritization process;
866(b) a definition of the type of projects to which the written prioritization process applies;
867(c) specification of a weighted criteria system that is used to rank proposed projects and
868how it will be used to determine which projects will be prioritized;
869(d) specification of the data that is necessary to apply the weighted ranking criteria; and
870(e) any other provisions the commission considers appropriate, which may include
871consideration of:
872(i) regional and statewide economic development impacts, including improved local
873access to:
874(A) employment;
875(B) educational facilities;
876(C) recreation;
877(D) commerce; and
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878(E) residential areas, including moderate income housing as demonstrated in the
879local government's or public transit district's general plan in accordance with
880Section 10-20-404 or 17-79-403;
881(ii) the extent to which local land use plans relevant to a project support and
882accomplish the strategic initiatives adopted under Section 72-1-211; and
883(iii) any matching funds provided by a political subdivision or public transit district
884in addition to the percentage of costs required by Subsections 72-2-124(4)(a)(viii)
885and 72-2-124(10)(e).
886  (3)(a) When prioritizing a public transit project that increases capacity, the commission:
887(i) may give priority consideration to projects that are part of a transit-oriented
888development or transit-supportive development as defined in Section 17B-2a-802;
889and
890(ii) shall give priority consideration to projects that are within the boundaries of a
891housing and transit reinvestment zone created in accordance with Title 63N,
892Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
893      (b) When prioritizing a transportation project that increases capacity, the commission
894may give priority consideration to projects that are:
895(i) part of a transportation reinvestment zone created under Section 11-13-227 if:
896(A) the state is a participant in the transportation reinvestment zone; or
897(B) the commission finds that the transportation reinvestment zone provides a
898benefit to the state transportation system; or
899(ii) within the boundaries of a housing and transit reinvestment zone created [
900pursuant to] in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit
901Reinvestment Zone Act.
902      (c) If the department receives a notice of prioritization for a municipality as described in
903Subsection [10-21-202(5)] 10-21-202(7), or a notice of prioritization for a county as
904described in Subsection 17-80-202(5), the commission may give priority
905consideration to transportation projects that are within the boundaries of the
906municipality or the unincorporated areas of the county until the department receives
907notification from the Housing and Community Development Division within the
908Department of Workforce Services that the municipality or county no longer qualifies
909for prioritization under this Subsection (3)(c).
910      (d) When prioritizing a transportation project described in Subsection (1)(a)(ii) or (iv),
911the commission may give priority consideration to projects that improve connectivity
                                                - 27 -
H.B. 436  Enrolled Copy
912in accordance with Section 10-8-87.
913(e) The total priority consideration the commission gives under this Subsection (3) may
914not increase the score the commission uses to rank a project for purposes of
915prioritization by more than 7%.
916   (4) In developing the written prioritization process, the commission:
917(a) shall seek and consider public comment by holding public meetings at locations
918throughout the state; and
919(b) may not consider local matching dollars as provided under Section 72-2-123 unless
920the state provides an equal opportunity to raise local matching dollars for state
921highway improvements within each county.
922   (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
923Transportation Commission, in consultation with the department, shall make rules
924establishing the written prioritization process under Subsection (1).
925   (6) The commission shall submit the proposed rules under this section to the Transportation
926Interim Committee for review before taking final action on the proposed rules or any
927proposed amendment to the rules described in Subsection (5).
928Section 7. Section 72-2-124 is amended to read:
92972-2-124 (Effective 05/06/26) (Superseded 07/01/26). Transportation Investment
930   Fund of 2005.
931   (1) There is created a capital projects fund entitled the Transportation Investment Fund of
9322005.
933   (2) The fund consists of money generated from the following sources:
934(a) any voluntary contributions received for the maintenance, construction,
935reconstruction, or renovation of state and federal highways;
936(b) appropriations made to the fund by the Legislature;
937(c) registration fees designated under Section 41-1a-1201;
938(d) the sales and use tax revenues deposited into the fund in accordance with Section
93959-12-103;
940(e) revenues transferred to the fund in accordance with Section 72-2-106;
941(f) revenues transferred into the fund in accordance with Subsection 72-2-121(4)(l); and
942(g) revenue from bond proceeds described in Section 63B-34-101.
943   (3)(a) The fund shall earn interest.
944(b) All interest earned on fund money shall be deposited into the fund.
945   (4)(a) Except as provided in Subsection (4)(b), the executive director may only use fund
                                                 - 28 -
Enrolled Copy  H.B. 436
946      money to pay:
947(i) the costs of maintenance, construction, reconstruction, or renovation to state and
948federal highways prioritized by the Transportation Commission through the
949prioritization process for new transportation capacity projects adopted under
950Section 72-1-304;
951(ii) the costs of maintenance, construction, reconstruction, or renovation to the
952highway projects described in Subsections 63B-18-401(2), (3), and (4);
953(iii) subject to Subsection (9), costs of corridor preservation, as that term is defined in
954Section 72-5-401;
955(iv) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
956minus the costs paid from the County of the First Class Highway Projects Fund in
957accordance with Subsection 72-2-121(4)(e);
958(v) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
959Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the
960amount certified by Salt Lake County in accordance with Subsection
96172-2-121.3(4)(c) as necessary to pay the debt service on $30,000,000 of the
962revenue bonds issued by Salt Lake County;
963(vi) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
964for projects prioritized in accordance with Section 72-2-125;
965(vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
966Class Highway Projects Fund created in Section 72-2-121 to be used for the
967purposes described in Section 72-2-121;
968(viii) if a political subdivision provides a contribution equal to or greater than 40% of
969the costs needed for construction, reconstruction, or renovation of paved
970pedestrian or paved nonmotorized transportation for projects that:
971(A) mitigate traffic congestion on the state highway system;
972(B) are part of an active transportation plan approved by the department; and
973(C) are prioritized by the commission through the prioritization process for new
974transportation capacity projects adopted under Section 72-1-304;
975(ix) $705,000,000 for the costs of right-of-way acquisition, construction,
976reconstruction, or renovation of or improvement to the following projects:
977(A) the connector road between Main Street and 1600 North in the city of
978Vineyard;
979(B) Geneva Road from University Parkway to 1800 South;
                                              - 29 -
 H.B. 436  Enrolled Copy
980(C) the SR-97 interchange at 5600 South on I-15;
981(D) subject to Subsection (4)(c), two lanes on U-111 from Herriman Parkway to
982South Jordan Parkway;
983(E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
984(F) improvements to 1600 North in Orem from 1200 West to State Street;
985(G) widening I-15 between mileposts 6 and 8;
986(H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
987(I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197
988in Spanish Fork Canyon;
989(J) I-15 northbound between mileposts 43 and 56;
990(K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts
99143 and 45.1;
992(L) east Zion SR-9 improvements;
993(M) Toquerville Parkway;
994(N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
995(O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds,
996for construction of an interchange on Bangerter Highway at 13400 South; and
997(P) an environmental impact study for Kimball Junction in Summit County;
998(x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
999costs based upon a statement of cash flow that the local jurisdiction where the
1000  project is located provides to the department demonstrating the need for money
1001  for the project, for the following projects in the following amounts:
1002  (A) $5,000,000 for Payson Main Street repair and replacement;
1003  (B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
1004  (C) $5,000,000 for improvements to 4700 South in Taylorsville; and
1005  (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S.
1006  40 between mile markers 7 and 10;
1007  (xi) $13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way
1008  acquisition, construction, reconstruction, or renovation to connect Fingerhut Road
1009  over the railroad and to U.S. Highway 6;
1010  (xii) for a fiscal year beginning on July 1, 2025, only, as pass-through funds from
1011  revenue deposited into the fund in accordance with Section 59-12-103, for the
1012  following projects:
1013  (A) $3,000,000 for the department to perform an environmental study for the I-15
                                                 - 30 -
 Enrolled Copy  H.B. 436
1014  Salem and Benjamin project; and
1015  (B) $2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand
1016  Dunes Road project; and
1017  (xiii) for a fiscal year beginning on July 1, 2025, up to $300,000,000 for the costs of
1018  right-of-way acquisition and construction for improvements on SR-89 in a county
1019  of the first class.
1020        (b) The executive director may use fund money to exchange for an equal or greater
1021  amount of federal transportation funds to be used as provided in Subsection (4)(a).
1022        (c)(i) Construction related to the project described in Subsection (4)(a)(ix)(D) may
1023  not commence until a right-of-way not owned by a federal agency that is required
1024  for the realignment and extension of U-111, as described in the department's 2023
1025  environmental study related to the project, is dedicated to the department.
1026  (ii) Notwithstanding Subsection (4)(c)(i), if a right-of-way is not dedicated for the
1027  project as described in Subsection (4)(c)(i) on or before October 1, 2024, the
1028  department may proceed with the project, except that the project will be limited to
1029  two lanes on U-111 from Herriman Parkway to 11800 South.
1030    (5)(a) Except as provided in Subsection (5)(b), if the department receives a notice of
1031        ineligibility for a municipality as described in Subsection [10-21-202(8)]
1032        10-21-202(10), the executive director may not program fund money to a project
1033        prioritized by the commission under Section 72-1-304, including fund money from
1034        the Transit Transportation Investment Fund, within the boundaries of the
1035        municipality until the department receives notification from the Housing and
1036        Community Development Division within the Department of Workforce Services
1037        that ineligibility under this Subsection (5) no longer applies to the municipality.
1038        (b) Within the boundaries of a municipality described in Subsection (5)(a), the executive
1039  director:
1040  (i) may program fund money in accordance with Subsection (4)(a) for a
1041  limited-access facility or interchange connecting limited-access facilities;
1042  (ii) may not program fund money for the construction, reconstruction, or renovation
1043  of an interchange on a limited-access facility;
1044  (iii) may program Transit Transportation Investment Fund money for a
1045  multi-community fixed guideway public transportation project; and
1046  (iv) may not program Transit Transportation Investment Fund money for the
1047  construction, reconstruction, or renovation of a station that is part of a fixed
                                                - 31 -
 H.B. 436  Enrolled Copy
1048  guideway public transportation project.
1049  (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
1050  director before July 1, 2022, for projects prioritized by the commission under Section
1051  72-1-304.
1052     (6)(a) Except as provided in Subsection (6)(b), if the department receives a notice of
1053  ineligibility for a county as described in Subsection 17-80-202(8), the executive
1054  director may not program fund money to a project prioritized by the commission
1055  under Section 72-1-304, including fund money from the Transit Transportation
1056  Investment Fund, within the boundaries of the unincorporated area of the county until
1057  the department receives notification from the Housing and Community Development
1058  Division within the Department of Workforce Services that ineligibility under this
1059  Subsection (6) no longer applies to the county.
1060  (b) Within the boundaries of the unincorporated area of a county described in Subsection
1061  (6)(a), the executive director:
1062  (i) may program fund money in accordance with Subsection (4)(a) for a
1063  limited-access facility to a project prioritized by the commission under Section
1064  72-1-304;
1065  (ii) may not program fund money for the construction, reconstruction, or renovation
1066  of an interchange on a limited-access facility;
1067  (iii) may program Transit Transportation Investment Fund money for a
1068  multi-community fixed guideway public transportation project; and
1069  (iv) may not program Transit Transportation Investment Fund money for the
1070  construction, reconstruction, or renovation of a station that is part of a fixed
1071  guideway public transportation project.
1072  (c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive
1073  director before July 1, 2022, for projects prioritized by the commission under Section
1074  72-1-304.
1075     (7)(a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued in
1076  any fiscal year, the department and the commission shall appear before the Executive
1077  Appropriations Committee of the Legislature and present the amount of bond
1078  proceeds that the department needs to provide funding for the projects identified in
1079  Subsections 63B-18-401(2), (3), and (4) or Subsection 63B-27-101(2) for the current
1080  or next fiscal year.
1081  (b) The Executive Appropriations Committee of the Legislature shall review and
                                                  - 32 -
 Enrolled Copy  H.B. 436
1082  comment on the amount of bond proceeds needed to fund the projects.
1083    (8) The Division of Finance shall, from money deposited into the fund, transfer the amount
1084        of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
1085        Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt
1086        service or sinking fund.
1087    (9) The executive director may only use money in the fund for corridor preservation as
1088        described in Subsection (4)(a)(iii):
1089        (a) if the project has been prioritized by the commission, including the use of fund
1090  money for corridor preservation; or
1091        (b) for a project that has not been prioritized by the commission, if the commission:
1092  (i) approves the use of fund money for the corridor preservation; and
1093  (ii) finds that the use of fund money for corridor preservation will not result in any
1094  delay to a project that has been prioritized by the commission.
1095    (10)(a) There is created in the Transportation Investment Fund of 2005 the Transit
1096        Transportation Investment Fund.
1097        (b) The fund shall be funded by:
1098  (i) contributions deposited into the fund in accordance with Section 59-12-103;
1099  (ii) appropriations into the account by the Legislature;
1100  (iii) deposits of sales and use tax increment related to a housing and transit
1101  reinvestment zone as described in Section 63N-3-610;
1102  (iv) transfers of local option sales and use tax revenue as described in Subsection
1103  59-12-2220(11)(b) or (c);
1104  (v) private contributions; and
1105  (vi) donations or grants from public or private entities.
1106        (c)(i) The fund shall earn interest.
1107  (ii) All interest earned on fund money shall be deposited into the fund.
1108        (d) Subject to Subsection (10)(e), the commission may prioritize money from the fund:
1109  (i) for public transit capital development of new capacity projects and fixed guideway
1110  capital development projects to be used as prioritized by the commission through
1111  the prioritization process adopted under Section 72-1-304;
1112  (ii) to the department for oversight of a fixed guideway capital development project
1113  for which the department has responsibility; or
1114  (iii) up to $500,000 per year, to be used for a public transit study.
1115        (e)(i) Subject to Subsections (10)(g), (h), and (i), the commission may only prioritize
                                                - 33 -
 H.B. 436  Enrolled Copy
1116  money from the fund for a public transit capital development project or pedestrian
1117  or nonmotorized transportation project that provides connection to the public
1118  transit system if the public transit district or political subdivision provides funds of
1119  equal to or greater than 30% of the costs needed for the project.
1120  (ii) A public transit district or political subdivision may use money derived from a
1121  loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide
1122  all or part of the 30% requirement described in Subsection (10)(e)(i) if:
1123  (A) the loan is approved by the commission as required in Part 2, State
1124  Infrastructure Bank Fund; and
1125  (B) the proposed capital project has been prioritized by the commission pursuant
1126  to Section 72-1-303.
1127  (f) Before July 1, 2022, the department and a large public transit district shall enter into
1128  an agreement for a large public transit district to pay the department $5,000,000 per
1129  year for 15 years to be used to facilitate the purchase of zero emissions or low
1130  emissions rail engines and trainsets for regional public transit rail systems.
1131  (g) For any revenue transferred into the fund in accordance with Subsection
1132  59-12-2220(11)(b):
1133  (i) the commission may prioritize money from the fund for public transit projects,
1134  operations, or maintenance within the county of the first class; and
1135  (ii) Subsection (10)(e) does not apply.
1136  (h) For any revenue transferred into the fund in accordance with Subsection
1137  59-12-2220(11)(c):
1138  (i) the commission may prioritize public transit projects, operations, or maintenance
1139  in the county from which the revenue was generated; and
1140  (ii) Subsection (10)(e) does not apply.
1141  (i) The requirement to provide funds equal to or greater than 30% of the costs needed for
1142  the project described in Subsection (10)(e) does not apply to a public transit capital
1143  development project or pedestrian or nonmotorized transportation project that the
1144  department proposes.
1145  (j) In accordance with Part 4, Public Transit Innovation Grants, the commission may
1146  prioritize money from the fund for public transit innovation grants, as defined in
1147  Section 72-2-401, for public transit capital development projects requested by a
1148  political subdivision within a public transit district.
1149     (11)(a) There is created in the Transportation Investment Fund of 2005 the Cottonwood
                                                   - 34 -
 Enrolled Copy  H.B. 436
1150        Canyons Transportation Investment Fund.
1151        (b) The fund shall be funded by:
1152  (i) money deposited into the fund in accordance with Section 59-12-103;
1153  (ii) appropriations into the account by the Legislature;
1154  (iii) private contributions; and
1155  (iv) donations or grants from public or private entities.
1156        (c)(i) The fund shall earn interest.
1157  (ii) All interest earned on fund money shall be deposited into the fund.
1158        (d) The Legislature may appropriate money from the fund for public transit or
1159  transportation projects in the Cottonwood Canyons of Salt Lake County.
1160        (e) The department may use up to 2% of the revenue deposited into the account under
1161  Subsection 59-12-103(7)(b) to contract with local governments as necessary for
1162  public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
1163        (f) Beginning with fiscal year beginning on July 1, 2025, the department shall use any
1164  sales and use tax growth over sales and use tax collections during the 2025 fiscal year
1165  to fund projects to provide ingress and egress for a public transit hub, including
1166  construction of the public transit hub, in the Big Cottonwood Canyon area.
1167    (12)(a) There is created in the Transportation Investment Fund of 2005 the Active
1168        Transportation Investment Fund.
1169        (b) The fund shall be funded by:
1170  (i) money deposited into the fund in accordance with Section 59-12-103;
1171  (ii) appropriations into the account by the Legislature; and
1172  (iii) donations or grants from public or private entities.
1173        (c)(i) The fund shall earn interest.
1174  (ii) All interest earned on fund money shall be deposited into the fund.
1175        (d) The executive director may only use fund money to pay the costs needed for:
1176  (i) the planning, design, construction, maintenance, reconstruction, or renovation of
1177  paved pedestrian or paved nonmotorized trail projects that:
1178  (A) are prioritized by the commission through the prioritization process for new
1179  transportation capacity projects adopted under Section 72-1-304;
1180  (B) serve a regional purpose; and
1181  (C) are part of an active transportation plan approved by the department or the
1182  plan described in Subsection (12)(d)(ii);
1183  (ii) the development of a plan for a statewide network of paved pedestrian or paved
                                                - 35 -
 H.B. 436  Enrolled Copy
1184  nonmotorized trails that serve a regional purpose; and
1185  (iii) the administration of the fund, including staff and overhead costs.
1186     (13)(a) As used in this Subsection (13), "commuter rail" means the same as that term is
1187  defined in Section 63N-3-602.
1188  (b) There is created in the Transit Transportation Investment Fund the Commuter Rail
1189  Subaccount.
1190  (c) The subaccount shall be funded by:
1191  (i) contributions deposited into the subaccount in accordance with Section 59-12-103;
1192  (ii) appropriations into the subaccount by the Legislature;
1193  (iii) private contributions; and
1194  (iv) donations or grants from public or private entities.
1195  (d)(i) The subaccount shall earn interest.
1196  (ii) All interest earned on money in the subaccount shall be deposited into the
1197  subaccount.
1198  (e) As prioritized by the commission through the prioritization process adopted under
1199  Section 72-1-304 or as directed by the Legislature, the department may only use
1200  money from the subaccount for projects that improve the state's commuter rail
1201  infrastructure, including the building or improvement of grade-separated crossings
1202  between commuter rail lines and public highways.
1203  (f) Appropriations made in accordance with this section are nonlapsing in accordance
1204  with Section 63J-1-602.1.
1205  Section 8. Section 72-2-124 is amended to read:
1206  72-2-124 (Effective 07/01/26). Transportation Investment Fund of 2005.
1207     (1) There is created a capital projects fund entitled the Transportation Investment Fund of
1208  2005.
1209     (2) The fund consists of money generated from the following sources:
1210  (a) any voluntary contributions received for the maintenance, construction,
1211  reconstruction, or renovation of state and federal highways;
1212  (b) appropriations made to the fund by the Legislature;
1213  (c) registration fees designated under Section 41-1a-1201;
1214  (d) the sales and use tax revenues deposited into the fund in accordance with Section
1215  59-12-103;
1216  (e) revenues transferred to the fund in accordance with Section 72-2-106;
1217  (f) revenues transferred into the fund in accordance with Subsection 72-2-121(4)(l); and
                                                 - 36 -
 Enrolled Copy  H.B. 436
1218        (g) revenue from bond proceeds described in Section 63B-34-201.
1219    (3)(a) The fund shall earn interest.
1220        (b) All interest earned on fund money shall be deposited into the fund.
1221    (4)(a) Except as provided in Subsection (4)(b), the executive director may only use fund
1222        money to pay:
1223  (i) the costs of maintenance, construction, reconstruction, or renovation to state and
1224  federal highways prioritized by the Transportation Commission through the
1225  prioritization process for new transportation capacity projects adopted under
1226  Section 72-1-304;
1227  (ii) the costs of maintenance, construction, reconstruction, or renovation to the
1228  highway projects described in Subsections 63B-18-401(2), (3), and (4);
1229  (iii) subject to Subsection (9), costs of corridor preservation, as that term is defined in
1230  Section 72-5-401;
1231  (iv) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
1232  minus the costs paid from the County of the First Class Highway Projects Fund in
1233  accordance with Subsection 72-2-121(4)(e);
1234  (v) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
1235  Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the
1236  amount certified by Salt Lake County in accordance with Subsection
1237  72-2-121.3(4)(c) as necessary to pay the debt service on $30,000,000 of the
1238  revenue bonds issued by Salt Lake County;
1239  (vi) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
1240  for projects prioritized in accordance with Section 72-2-125;
1241  (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
1242  Class Highway Projects Fund created in Section 72-2-121 to be used for the
1243  purposes described in Section 72-2-121;
1244  (viii) if a political subdivision provides a contribution equal to or greater than 40% of
1245  the costs needed for construction, reconstruction, or renovation of paved
1246  pedestrian or paved nonmotorized transportation for projects that:
1247  (A) mitigate traffic congestion on the state highway system;
1248  (B) are part of an active transportation plan approved by the department; and
1249  (C) are prioritized by the commission through the prioritization process for new
1250  transportation capacity projects adopted under Section 72-1-304;
1251  (ix) $705,000,000 for the costs of right-of-way acquisition, construction,
                                                - 37 -
 H.B. 436  Enrolled Copy
1252  reconstruction, or renovation of or improvement to the following projects:
1253  (A) the connector road between Main Street and 1600 North in the city of
1254  Vineyard;
1255  (B) Geneva Road from University Parkway to 1800 South;
1256  (C) the SR-97 interchange at 5600 South on I-15;
1257  (D) subject to Subsection (4)(c), two lanes on U-111 from Herriman Parkway to
1258  South Jordan Parkway;
1259  (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
1260  (F) improvements to 1600 North in Orem from 1200 West to State Street;
1261  (G) widening I-15 between mileposts 6 and 8;
1262  (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
1263  (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197
1264  in Spanish Fork Canyon;
1265  (J) I-15 northbound between mileposts 43 and 56;
1266  (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts
1267  43 and 45.1;
1268  (L) east Zion SR-9 improvements;
1269  (M) Toquerville Parkway;
1270  (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
1271  (O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds,
1272  for construction of an interchange on Bangerter Highway at 13400 South; and
1273  (P) an environmental impact study for Kimball Junction in Summit County;
1274  (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
1275  costs based upon a statement of cash flow that the local jurisdiction where the
1276  project is located provides to the department demonstrating the need for money
1277  for the project, for the following projects in the following amounts:
1278  (A) $5,000,000 for Payson Main Street repair and replacement;
1279  (B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
1280  (C) $5,000,000 for improvements to 4700 South in Taylorsville; and
1281  (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S.
1282  40 between mile markers 7 and 10;
1283  (xi) $13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way
1284  acquisition, construction, reconstruction, or renovation to connect Fingerhut Road
1285  over the railroad and to U.S. Highway 6;
                                                 - 38 -
 Enrolled Copy  H.B. 436
1286  (xii) for a fiscal year beginning on July 1, 2025, only, as pass-through funds from
1287  revenue deposited into the fund in accordance with Section 59-12-103, for the
1288  following projects:
1289  (A) $3,000,000 for the department to perform an environmental study for the I-15
1290  Salem and Benjamin project; and
1291  (B) $2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand
1292  Dunes Road project; and
1293  (xiii) for a fiscal year beginning on July 1, 2025, up to $300,000,000 for the costs of
1294  right-of-way acquisition and construction for improvements on SR-89 in a county
1295  of the first class.
1296        (b) The executive director may use fund money to exchange for an equal or greater
1297  amount of federal transportation funds to be used as provided in Subsection (4)(a).
1298        (c)(i) Construction related to the project described in Subsection (4)(a)(ix)(D) may
1299  not commence until a right-of-way not owned by a federal agency that is required
1300  for the realignment and extension of U-111, as described in the department's 2023
1301  environmental study related to the project, is dedicated to the department.
1302  (ii) Notwithstanding Subsection (4)(c)(i), if a right-of-way is not dedicated for the
1303  project as described in Subsection (4)(c)(i) on or before October 1, 2024, the
1304  department may proceed with the project, except that the project will be limited to
1305  two lanes on U-111 from Herriman Parkway to 11800 South.
1306    (5)(a) Except as provided in Subsection (5)(b), if the department receives a notice of
1307        ineligibility for a municipality as described in Subsection [10-21-202(8)]
1308        10-21-202(10), the executive director may not program fund money to a project
1309        prioritized by the commission under Section 72-1-304, including fund money from
1310        the Transit Transportation Investment Fund, within the boundaries of the
1311        municipality until the department receives notification from the Housing and
1312        Community Development Division within the Department of Workforce Services
1313        that ineligibility under this Subsection (5) no longer applies to the municipality.
1314        (b) Within the boundaries of a municipality described in Subsection (5)(a), the executive
1315  director:
1316  (i) may program fund money in accordance with Subsection (4)(a) for a
1317  limited-access facility or interchange connecting limited-access facilities;
1318  (ii) may not program fund money for the construction, reconstruction, or renovation
1319  of an interchange on a limited-access facility;
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 H.B. 436  Enrolled Copy
1320  (iii) may program Transit Transportation Investment Fund money for a
1321  multi-community fixed guideway public transportation project; and
1322  (iv) may not program Transit Transportation Investment Fund money for the
1323  construction, reconstruction, or renovation of a station that is part of a fixed
1324  guideway public transportation project.
1325  (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
1326  director before July 1, 2022, for projects prioritized by the commission under Section
1327  72-1-304.
1328     (6)(a) Except as provided in Subsection (6)(b), if the department receives a notice of
1329  ineligibility for a county as described in Subsection 17-80-202(8), the executive
1330  director may not program fund money to a project prioritized by the commission
1331  under Section 72-1-304, including fund money from the Transit Transportation
1332  Investment Fund, within the boundaries of the unincorporated area of the county until
1333  the department receives notification from the Housing and Community Development
1334  Division within the Department of Workforce Services that ineligibility under this
1335  Subsection (6) no longer applies to the county.
1336  (b) Within the boundaries of the unincorporated area of a county described in Subsection
1337  (6)(a), the executive director:
1338  (i) may program fund money in accordance with Subsection (4)(a) for a
1339  limited-access facility to a project prioritized by the commission under Section
1340  72-1-304;
1341  (ii) may not program fund money for the construction, reconstruction, or renovation
1342  of an interchange on a limited-access facility;
1343  (iii) may program Transit Transportation Investment Fund money for a
1344  multi-community fixed guideway public transportation project; and
1345  (iv) may not program Transit Transportation Investment Fund money for the
1346  construction, reconstruction, or renovation of a station that is part of a fixed
1347  guideway public transportation project.
1348  (c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive
1349  director before July 1, 2022, for projects prioritized by the commission under Section
1350  72-1-304.
1351     (7)(a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued in
1352  any fiscal year, the department and the commission shall appear before the Executive
1353  Appropriations Committee of the Legislature and present the amount of bond
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 Enrolled Copy  H.B. 436
1354        proceeds that the department needs to provide funding for the projects identified in
1355        Subsections 63B-18-401(2), (3), and (4) or Subsection 63B-27-101(2) for the current
1356        or next fiscal year.
1357        (b) The Executive Appropriations Committee of the Legislature shall review and
1358  comment on the amount of bond proceeds needed to fund the projects.
1359    (8) The Division of Finance shall, from money deposited into the fund, transfer the amount
1360        of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
1361        Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt
1362        service or sinking fund.
1363    (9) The executive director may only use money in the fund for corridor preservation as
1364        described in Subsection (4)(a)(iii):
1365        (a) if the project has been prioritized by the commission, including the use of fund
1366  money for corridor preservation; or
1367        (b) for a project that has not been prioritized by the commission, if the commission:
1368  (i) approves the use of fund money for the corridor preservation; and
1369  (ii) finds that the use of fund money for corridor preservation will not result in any
1370  delay to a project that has been prioritized by the commission.
1371    (10)(a) There is created in the Transportation Investment Fund of 2005 the Transit
1372        Transportation Investment Fund.
1373        (b) The fund shall be funded by:
1374  (i) contributions deposited into the fund in accordance with Section 59-12-103;
1375  (ii) appropriations into the account by the Legislature;
1376  (iii) deposits of sales and use tax increment related to a housing and transit
1377  reinvestment zone as described in Section 63N-3-610;
1378  (iv) transfers of local option sales and use tax revenue as described in Subsection
1379  59-12-2220(11)(b) or (c);
1380  (v) private contributions; and
1381  (vi) donations or grants from public or private entities.
1382        (c)(i) The fund shall earn interest.
1383  (ii) All interest earned on fund money shall be deposited into the fund.
1384        (d) Subject to Subsection (10)(e), the commission may prioritize money from the fund:
1385  (i) for public transit capital development of new capacity projects and fixed guideway
1386  capital development projects to be used as prioritized by the commission through
1387  the prioritization process adopted under Section 72-1-304;
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 H.B. 436  Enrolled Copy
1388  (ii) to the department for oversight of a fixed guideway capital development project
1389  for which the department has responsibility; or
1390  (iii) up to $500,000 per year, to be used for a public transit study.
1391        (e)(i) Subject to Subsections (10)(g), (h), and (i), the commission may only prioritize
1392  money from the fund for a public transit capital development project or pedestrian
1393  or nonmotorized transportation project that provides connection to the public
1394  transit system if the public transit district or political subdivision provides funds of
1395  equal to or greater than 30% of the costs needed for the project.
1396  (ii) A public transit district or political subdivision may use money derived from a
1397  loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide
1398  all or part of the 30% requirement described in Subsection (10)(e)(i) if:
1399  (A) the loan is approved by the commission as required in Part 2, State
1400  Infrastructure Bank Fund; and
1401  (B) the proposed capital project has been prioritized by the commission pursuant
1402  to Section 72-1-303.
1403        (f) Before July 1, 2022, the department and a large public transit district shall enter into
1404  an agreement for a large public transit district to pay the department $5,000,000 per
1405  year for 15 years to be used to facilitate the purchase of zero emissions or low
1406  emissions rail engines and trainsets for regional public transit rail systems.
1407        (g) For any revenue transferred into the fund in accordance with Subsection
1408  59-12-2220(11)(b):
1409  (i) the commission may prioritize money from the fund for public transit projects,
1410  operations, or maintenance within the county of the first class; and
1411  (ii) Subsection (10)(e) does not apply.
1412        (h) For any revenue transferred into the fund in accordance with Subsection
1413  59-12-2220(11)(c):
1414  (i) the commission may prioritize public transit projects, operations, or maintenance
1415  in the county from which the revenue was generated; and
1416  (ii) Subsection (10)(e) does not apply.
1417        (i) The requirement to provide funds equal to or greater than 30% of the costs needed for
1418  the project described in Subsection (10)(e) does not apply to a public transit capital
1419  development project or pedestrian or nonmotorized transportation project that the
1420  department proposes.
1421        (j) In accordance with Part 4, Public Transit Innovation Grants, the commission may
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1422  prioritize money from the fund for public transit innovation grants, as defined in
1423  Section 72-2-401, for public transit capital development projects requested by a
1424  political subdivision within a public transit district.
1425    (11)(a) There is created in the Transportation Investment Fund of 2005 the Cottonwood
1426        Canyons Transportation Investment Fund.
1427        (b) The fund shall be funded by:
1428  (i) money deposited into the fund in accordance with Section 59-12-103;
1429  (ii) appropriations into the account by the Legislature;
1430  (iii) private contributions; and
1431  (iv) donations or grants from public or private entities.
1432        (c)(i) The fund shall earn interest.
1433  (ii) All interest earned on fund money shall be deposited into the fund.
1434        (d) The Legislature may appropriate money from the fund for public transit or
1435  transportation projects in the Cottonwood Canyons of Salt Lake County.
1436        (e) The department may use up to 2% of the revenue deposited into the account under
1437  Subsection 59-12-103(4)(f) to contract with local governments as necessary for
1438  public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
1439        (f) Beginning with fiscal year beginning on July 1, 2025, the department shall use any
1440  sales and use tax growth over sales and use tax collections during the 2025 fiscal year
1441  to fund projects to provide ingress and egress for a public transit hub, including
1442  construction of the public transit hub, in the Big Cottonwood Canyon area.
1443    (12)(a) There is created in the Transportation Investment Fund of 2005 the Active
1444        Transportation Investment Fund.
1445        (b) The fund shall be funded by:
1446  (i) money deposited into the fund in accordance with Section 59-12-103;
1447  (ii) appropriations into the account by the Legislature; and
1448  (iii) donations or grants from public or private entities.
1449        (c)(i) The fund shall earn interest.
1450  (ii) All interest earned on fund money shall be deposited into the fund.
1451        (d) The executive director may only use fund money to pay the costs needed for:
1452  (i) the planning, design, construction, maintenance, reconstruction, or renovation of
1453  paved pedestrian or paved nonmotorized trail projects that:
1454  (A) are prioritized by the commission through the prioritization process for new
1455  transportation capacity projects adopted under Section 72-1-304;
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 H.B. 436  Enrolled Copy
1456  (B) serve a regional purpose; and
1457  (C) are part of an active transportation plan approved by the department or the
1458  plan described in Subsection (12)(d)(ii);
1459  (ii) the development of a plan for a statewide network of paved pedestrian or paved
1460  nonmotorized trails that serve a regional purpose; and
1461  (iii) the administration of the fund, including staff and overhead costs.
1462     (13)(a) As used in this Subsection (13), "commuter rail" means the same as that term is
1463  defined in Section 63N-3-602.
1464  (b) There is created in the Transit Transportation Investment Fund the Commuter Rail
1465  Subaccount.
1466  (c) The subaccount shall be funded by:
1467  (i) contributions deposited into the subaccount in accordance with Section 59-12-103;
1468  (ii) appropriations into the subaccount by the Legislature;
1469  (iii) private contributions; and
1470  (iv) donations or grants from public or private entities.
1471  (d)(i) The subaccount shall earn interest.
1472  (ii) All interest earned on money in the subaccount shall be deposited into the
1473  subaccount.
1474  (e) As prioritized by the commission through the prioritization process adopted under
1475  Section 72-1-304 or as directed by the Legislature, the department may only use
1476  money from the subaccount for projects that improve the state's commuter rail
1477  infrastructure, including the building or improvement of grade-separated crossings
1478  between commuter rail lines and public highways.
1479  (f) Appropriations made in accordance with this section are nonlapsing in accordance
1480  with Section 63J-1-602.1.
1481  Section 9. Effective Date.
1482     (1) Except as provided in Subsection (2), this bill takes effect May 6, 2026.
1483     (2) The actions affecting Section 72-2-124 (Effective 07/01/26) take effect on July 1, 2026.
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