HB 492

     Enrolled Copy  H.B. 492
1Transportation, Infrastructure, and Housing Amendments
                                     2026 GENERAL SESSION
                                          STATE OF UTAH
                                  Chief Sponsor: Calvin Roberts
                                Senate Sponsor: Kirk A. Cullimore
2
3  LONG TITLE
4  General Description:
5      This bill modifies transportation, infrastructure, and housing provisions.
6  Highlighted Provisions:
7      This bill:
8      ▸ defines terms;
9      ▸ creates the State Housing Infrastructure Partnership Fund (fund) and provides for the use
10  of fund money;
11      ▸ creates the State Housing Infrastructure Partnership Board (infrastructure loan board) and
12  describes the infrastructure loan board's membership and duties;
13      ▸ requires the Governor's Office of Economic Opportunity to provide staff support to the
14  infrastructure loan board;
15      ▸ authorizes the infrastructure loan board to make loans from the fund to qualifying
16  political subdivisions to finance system improvements that will facilitate the
17  construction of housing;
18      ▸ establishes terms and requirements for infrastructure loans awarded by the infrastructure
19  loan board;
20      ▸ directs the state treasurer to complete a study that analyzes the economic effect of the
21  infrastructure loan program;
22      ▸ exempts conduct arising from the provision of affordable housing, if the housing benefits
23  are provided to all qualified residents, from certain ethics requirements for public
24  officers;
25      ▸ modifies the membership of the Affordable Housing Infrastructure Grant Board (grant
26  board) for the provision of affordable housing infrastructure grants;
27      ▸ limits to owner-occupied the affordable housing for which public entities in certain
     H.B. 492  Enrolled Copy
28   counties may qualify for an affordable housing infrastructure grant;
29▸ allows the grant board, in relation to awarding affordable housing infrastructure grants, to:
30●   determine whether an owner-occupied dwelling qualifies as an affordable housing
31   unit; and
32●   waive certain preliminary cost estimate requirements;
33▸ increases the maximum amount of bonds the Utah Department of Transportation
34   (department) may authorize for affordable housing infrastructure grants;
35▸ allows the department to use certain local option sales tax revenue to pay for affordable
36   housing infrastructure grants, subject to repayment from bond proceeds;
37▸ diverts a certain portion of revenue from the County of the First Class Highway Projects
38   Fund for revitalization of a convention center;
39▸ establishes expenditure requirements for revenue in the County of the First Class
40   Highway Projects Fund;
41▸ establishes requirements in relation to a public transit hub project for the Cottonwood
42   Canyons;
43▸ reduces the amount of revenue the department may allocate from the Transportation
44   Investment Fund to pay for a certain roadway project;
45▸ establishes the Convention Center Reserves Restricted Account (account);
46▸ requires the Division of Finance to transfer a certain amount of revenue from the
47   Transportation Investment Fund to the account;
48▸ limits the use of money deposited into the account for revitalization of a convention
49   center;
50▸ establishes requirements for the department to coordinate and assist on certain projects,
51   subject to availability of funding;
52▸ allows state agencies to sell surplus real property at pre-entitlement appraised value to
53   certain qualifying entities and defer payment for the purchase of such property;
54▸ addresses the sale or disposal of real property by the department and other state agencies;
55   and
56▸ makes technical and conforming changes.
57   Money Appropriated in this Bill:
58This bill appropriates $100,000,000 in restricted fund and account transfers for fiscal year
59   2027, all of which is from the various sources as detailed in this bill.
60   Other Special Clauses:
61None
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62  Utah Code Sections Affected:
63  AMENDS:
64      59-12-2214 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 29
65      63B-34-101 (Effective 05/06/26), as enacted by Laws of Utah 2025, Chapter 502
66      63L-12-102 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
67      Session, Chapter 17
68      67-16-4 (Effective 05/06/26), as last amended by Laws of Utah 2018, Chapter 415
69      72-2-121 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
70      Session, Chapter 17
71      72-2-124 (Effective 05/06/26) (Superseded 07/01/26), as last amended by Laws of Utah
72      2025, First Special Session, Chapter 15
73      72-2-124 (Effective 07/01/26), as last amended by Laws of Utah 2025, First Special
74      Session, Chapter 15
75      72-2-501 (Effective 05/06/26), as enacted by Laws of Utah 2025, Chapter 502
76      72-2-502 (Effective 05/06/26), as enacted by Laws of Utah 2025, Chapter 502
77      72-2-503 (Effective 05/06/26), as enacted by Laws of Utah 2025, Chapter 502
78      72-5-111 (Effective 05/06/26), as last amended by Laws of Utah 2022, Chapter 101
79      72-5-117 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
80      Session, Chapter 15
81      78B-6-521 (Effective 05/06/26), as last amended by Laws of Utah 2022, Chapter 101
82  ENACTS:
83      63A-2-412 (Effective 05/06/26), Utah Code Annotated 1953
84      63N-3-1801 (Effective 05/06/26), Utah Code Annotated 1953
85      63N-3-1802 (Effective 05/06/26), Utah Code Annotated 1953
86      63N-3-1803 (Effective 05/06/26), Utah Code Annotated 1953
87      63N-3-1804 (Effective 05/06/26), Utah Code Annotated 1953
88      63N-3-1805 (Effective 05/06/26), Utah Code Annotated 1953
89      72-2-136 (Effective 05/06/26), Utah Code Annotated 1953
90
91  Be it enacted by the Legislature of the state of Utah:
92Section 1. Section 59-12-2214 is amended to read:
9359-12-2214 (Effective 05/06/26). County, city, or town option sales and use tax to
94  fund a system for public transit, an airport facility, a water conservation project, or to be
95  deposited into the County of the First Class Highway Projects Fund -- Base -- Rate.
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96   (1) Subject to the other provisions of this part, a county, city, or town may impose a sales
97and use tax of .25% on the transactions described in Subsection 59-12-103(1) located
98within the county, city, or town.
99   (2) Notwithstanding Section 59-12-2212.2, and subject to Subsections (3) and (4), a county,
100city, or town that imposes a sales and use tax under this section shall expend the
101revenues collected from the sales and use tax:
102(a) to fund a system for public transit;
103(b) to fund a project or service related to an airport facility for the portion of the project
104or service that is performed within the county, city, or town within which the sales
105and use tax is imposed:
106(i) for a county that imposes the sales and use tax, if the airport facility is part of the
107regional transportation plan of the area metropolitan planning organization if a
108metropolitan planning organization exists for the area; or
109(ii) for a city or town that imposes the sales and use tax, if:
110(A) that city or town is located within a county of the second class;
111(B) that city or town owns or operates the airport facility; and
112(C) an airline is headquartered in that city or town; or
113(c) for a combination of Subsections (2)(a) and (b).
114   (3) After application of Subsection 59-12-2206(5), a county of the first class that imposes a
115sales and use tax under this section shall expend the revenues collected from the sales
116and use tax as follows:
117(a) 80% of the revenues collected from the sales and use tax shall be expended to fund a
118system for public transit; and
119(b) except as provided in Subsection (5), 20% of the revenues collected from the sales
120and use tax shall be deposited into the County of the First Class Highway Projects
121Fund created by Section 72-2-121.
122   (4)(a) A county of the third class that has a portion of the county annexed into a large
123public transit district and that has imposed a sales and use tax under this section as of
124January 1, 2020, may change the list of purposes for which the sales and use tax
125revenue may be expended if:
126(i) the proposed uses of the sales and use tax revenue are allowed uses described in
127this section; and
128(ii) in coordination with a relevant large public transit district, the county legislative
129body passes an ordinance describing the allowed uses of the sales and use tax
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130revenue.
131      (b) Notwithstanding Section 59-12-2208, and regardless of whether the imposition of the
132sales and use tax imposed under this section was submitted to the voters as described
133in Section 59-12-2208, the county legislative body is not required to submit an
134opinion question to the county's registered voters to change the allowed uses as
135described in Subsection (4)(a).
136  (5)(a) For a fiscal year beginning on or after July 1, 2030, but beginning on or before
137      July 1, 2060, $5,000,000 of the revenue described in Subsection (3)(b) shall be
138      distributed to a county of the first class.
139      (b) A county of the first class may expend the revenue described in Subsection (5)(a) for
140revitalization of a convention center owned by the county within a city of the first
141class and surrounding revitalization projects related to the convention center.
142Section 2. Section 63A-2-412 is enacted to read:
14363A-2-412 (Effective 05/06/26). Sale of surplus real property by state agency to
144  qualifying entity for pre-entitlement appraised value -- Deferred payment.
145  (1) As used in this section, "qualifying entity" means a state agency or an independent
146      entity, as defined in Section 63E-1-102, that administers public interests in housing.
147  (2) A state agency may provide for the sale of the state's surplus real property to a
148      qualifying entity for a pre-entitlement appraised value, payment of which may be
149      deferred, as determined by the state agency and subject to state and federal law.
150Section 3. Section 63B-34-101 is amended to read:
15163B-34-101 (Effective 05/06/26). Transportation bonds -- Maximum amount --
152  Use for transportation projects related to affordable housing initiatives.
153  (1)(a) Subject to the restriction in Subsection (1)(c), the total amount of bonds issued
154      under this section may not exceed [$70,000,000] $150,000,000.
155      (b) When the Department of Transportation certifies to the commission the amount of
156bond proceeds that the commission needs to provide funding for the projects
157described in Subsection (2), the commission may issue and sell general obligation
158bonds in an amount equal to the certified amount plus costs of issuance.
159      (c) The commission may not issue general obligation bonds authorized under this
160section if the issuance for general obligation bonds would result in the total current
161outstanding general obligation debt of the state exceeding 50% of the limitation
162described in Utah Constitution, Article XIV, Section 1.
163  (2)(a) Proceeds from the bonds issued under this section shall be provided to the
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164Department of Transportation through the Transportation Investment Fund of 2005
165created in Section 72-2-124 to pay for or to provide funds to public entities for costs
166related to affordable housing initiatives as described in Subsection (2)(b).
167(b) Bond proceeds described under Subsection (2)(a) shall be used to pay for
168infrastructure to assist in affordable housing related grants and allocated as described
169in Title 72, Chapter 2, Part 5, Affordable Housing Infrastructure Grants.
170(c) The costs under this Subsection (2) may include the costs of acquiring land, interests
171in land, easements and rights-of-way, the costs of improving sites, making all
172improvements necessary, incidental, or convenient to the facilities, and the costs of
173interest estimated to accrue on these bonds during the period to be covered by
174construction of the projects plus a period of six months after the end of the
175construction period, interest estimated to accrue on any bond anticipation notes
176issued under the authority of this title, and all related engineering, architectural, and
177legal fees.
178   (3) The executive director of the Department of Transportation may allocate bond proceeds
179under this section as provided in Title 72, Chapter 2, Part 5, Affordable Housing
180Infrastructure Grants.
181Section 4. Section 63L-12-102 is amended to read:
18263L-12-102 (Effective 05/06/26). Grant or lease of real property for moderate
183   income housing.
184   (1) Subject to the requirements of this section, a governmental entity may grant or lease real
185property owned by the governmental entity to an entity for the development of moderate
186income housing on the real property.
187   (2) A governmental entity shall ensure that real property granted or leased under Subsection
188(1) is deed restricted for moderate income housing for at least 30 years after the day on
189which each moderate income housing unit is completed and occupied.
190   (3) If applicable, a governmental entity granting real property under this section shall
191comply with:
192(a) the provisions of Title 78B, Chapter 6, Part 5, Eminent Domain;
193(b) Subsection 10-8-2(4), if a municipality is granting real property under this section;
194(c) Subsection 17-78-103(4), if a county is granting real property under this section; and
195(d) except as provided in Subsection (4), any other applicable provisions of law that
196govern the granting of real property by the governmental entity.
197   (4) A municipality granting real property under this section is not subject to the provisions
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198      of Subsection 10-8-2(3).
199Section 5. Section 63N-3-1801 is enacted to read:
200Part 18. State Housing Infrastructure Partnership
20163N-3-1801 (Effective 05/06/26). Definitions.
202     As used in this part:
203  (1) "Board" means the State Housing Infrastructure Partnership Board created in Section
204      63N-3-1803.
205  (2) "Development agreement" means the same as that term is defined in Section 10-20-102.
206  (3) "Fund" means the State Housing Infrastructure Partnership Fund created in Section
207      63N-3-1802.
208  (4) "Housing development" means a land development proposal to construct new housing
209      that a municipality or a county approves with a land use application, development
210      agreement, or zone change.
211  (5) "Infrastructure facility" means a facility used in connection with system-level
212      infrastructure, including:
213      (a) a drinking water facility;
214      (b) a wastewater facility;
215      (c) a sewer lift station;
216      (d) a stormwater system;
217      (e) a water drainage system;
218      (f) a secondary water system;
219      (g) power transmission and distribution lines, including burying of the lines; or
220      (h) a regional transportation facility.
221  (6) "Infrastructure loan" means a loan of fund money to finance a system improvement.
222  (7) "Land use application" means the same as that term is defined in Section 10-20-102.
223  (8) "Qualifying political subdivision" means:
224      (a) a municipality;
225      (b) a county;
226      (c) a special district;
227      (d) a special service district;
228      (e) an agency as defined in Section 17C-1-102; or
229      (f) the Point of the Mountain State Land Authority created in Section 11-59-201.
230  (9) "Special district" means the same as that term is defined in Section 17B-1-102.
231  (10) "Special service district" means the same as that term is defined in Section 17D-1-102.
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232   (11)(a) "System improvement" means a project to construct or improve a publicly
233owned:
234(i) highway, public transit facility, or paved pedestrian or non-motorized trail that is a
235part of:
236(A) the statewide long-range transportation plan;
237(B) a regional transportation plan of a metropolitan planning organization; or
238(C) a municipal or county general plan, transportation master plan, or economic
239development initiative; or
240(ii) infrastructure facility that is part of:
241(A) a municipal or county general plan, infrastructure plan, or economic
242development initiative; or
243(B) a special district infrastructure plan or strategic plan.
244(b) "System improvement" may include the costs of:
245(i) designing a project described in Subsection (11)(a);
246(ii) acquiring property for a project described in Subsection (11)(a); or
247(iii) environmental remediation for a project described in Subsection (11)(a).
248Section 6. Section 63N-3-1802 is enacted to read:
24963N-3-1802 (Effective 05/06/26). State Housing Infrastructure Partnership Fund.
250   (1) There is created a revolving loan fund known as the "State Housing Infrastructure
251Partnership Fund."
252   (2) The fund consists of money generated from the following revenue sources:
253(a) appropriations made to the fund by the Legislature;
254(b) amounts received for the repayment of infrastructure loans made by the board under
255this part;
256(c) grants, gifts, loans, or other funding from:
257(i) the federal government; or
258(ii) other public or private sources; and
259(d) interest or other earnings deposited under Subsection (3).
260   (3) The state treasurer shall:
261(a) invest the money in the fund by following the procedures and requirements of Title
26251, Chapter 7, State Money Management Act; and
263(b) deposit all interest or other earnings derived from those investments into the fund.
264   (4) Money in the fund may only be used for:
265(a) infrastructure loans made by the board under this part; and
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266      (b) the administrative costs incurred by the office, in an amount that does not exceed 1%
267of the revenues of the fund, including any appropriation to the fund, from:
268(i) implementing this part; and
269(ii) facilitating the implementation of Section 63A-2-412 and Subsection
27072-5-117(2)(f).
271Section 7. Section 63N-3-1803 is enacted to read:
27263N-3-1803 (Effective 05/06/26). State Housing Infrastructure Partnership
273  Board.
274  (1) There is created within the office the State Housing Infrastructure Partnership Board
275      composed of:
276      (a) five voting members as follows:
277(i) the executive director of the office or the executive director's designee;
278(ii) the executive director of the Department of Transportation or the executive
279director's designee;
280(iii) one member appointed by the governor;
281(iv) one member appointed by the president of the Senate; and
282(v) one member appointed by the speaker of the House of Representatives; and
283      (b) any number of nonvoting members appointed by the chair and vice chair of the board.
284  (2)(a) The members described in Subsections (1)(a)(iv) and (v) shall serve a four-year
285      term.
286      (b) When a vacancy occurs in a position described in Subsections (1)(a)(iv) and (v), the
287person that appointed the member shall appoint a new member for the unexpired term.
288      (c) If a member described in Subsections (1)(a)(iv) and (v) leaves elected office, the
289appointing entity shall appoint a new member for the unexpired term.
290  (3)(a) The voting members of the board shall elect a chair and vice chair from the
291      board's voting members.
292      (b) The chair and vice chair of the board shall serve a term of one year.
293      (c) The chair of the board is responsible for the call and conduct of board meetings.
294  (4)(a) A majority of the voting members of the board constitutes a quorum.
295      (b) Action by a majority vote of a quorum of the board constitutes action by the board.
296  (5)(a) A voting member of the board who is a legislator shall be paid salary and
297      expenses in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5,
298      Chapter 3, Legislator Compensation.
299      (b) A voting member of the board who is not a legislator may not receive compensation
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300or benefits for the member's service, but may receive per diem and travel expenses in
301accordance with:
302(i) Section 63A-3-106;
303(ii) Section 63A-3-107; and
304(iii) rules made by the Division of Finance in accordance with Sections 63A-3-106
305and 63A-3-107.
306   (6) A voting member of the board shall comply with the conflict of interest provisions
307described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.
308   (7) The office shall provide staff support to the board.
309Section 8. Section 63N-3-1804 is enacted to read:
31063N-3-1804 (Effective 05/06/26). Board duties -- Annual report -- Rulemaking --
311   Study of economic effect by state treasurer.
312   (1) The board shall:
313(a) make infrastructure loans to qualifying political subdivisions for system
314improvements that will facilitate the construction of housing in accordance with
315Section 63N-3-1805;
316(b) for the infrastructure loans described in Subsection (1)(a):
317(i) establish criteria for determining infrastructure loan eligibility;
318(ii) establish criteria by which an infrastructure loan will be made and repaid; and
319(iii) determine the order in which system improvements will be funded; and
320(c) administer the fund in a manner that will keep a portion of the fund revolving.
321   (2) On or before September 1 of each year, the board shall submit a written report to the
322Economic Development and Workforce Services Interim Committee and the Political
323Subdivisions Interim Committee that includes:
324(a) information regarding the activities of the board, including any rules made under
325Subsection (3);
326(b) the number and types of infrastructure loans made;
327(c) a list of qualifying political subdivisions that received an infrastructure loan;
328(d) the number of constructed housing units that each infrastructure loan facilitated; and
329(e) any recommendations for legislation.
330   (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
331subject to any recommendations provided by the Economic Development and
332Workforce Services Interim Committee and the Political Subdivisions Interim
333Committee, the board may make rules governing:
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334      (a) management of the fund; and
335      (b) infrastructure loan application requirements and eligibility review criteria.
336  (4)(a) Beginning after June 30, 2028, the state treasurer shall conduct a study that
337      analyzes whether the lending activity under this part resulted in measurable local
338      economic benefits.
339      (b) On or before October 1, 2028, the state treasurer shall submit a report summarizing
340the results of the study to the Legislative Management Committee and the governor.
341      (c) The state treasurer may contract with a third party to complete the study and report
342described in this Subsection (4).
343Section 9. Section 63N-3-1805 is enacted to read:
34463N-3-1805 (Effective 05/06/26). Infrastructure loans to qualifying political
345  subdivisions -- Application -- Loan requirements.
346  (1) A qualifying political subdivision may receive an infrastructure loan under this part to
347      finance a system improvement that will facilitate the construction of a housing
348      development.
349  (2) To receive an infrastructure loan, a qualifying political subdivision shall submit an
350      application to the board that:
351      (a) demonstrates:
352(i) the qualifying political subdivision has approved or will approve a housing
353development;
354(ii) the infrastructure loan will accelerate the completion of the housing development;
355(iii) the builder or developer of the housing development has agreed to, or will agree
356to, a specific timeline to complete the housing development if the board approves
357the infrastructure loan;
358(iv) the qualifying political subdivision will provide matching funds for the system
359improvement in an amount determined by the board;
360(v) the qualifying political subdivision has a primary revenue source for repaying the
361infrastructure loan; and
362(vi) if the qualifying political subdivision is a municipality or county, the qualifying
363political subdivision has adopted a moderate income housing plan that complies
364with Section 10-21-202 or 17-80-202;
365      (b) identifies the qualifying political subdivision's current bonding capacity; and
366      (c) includes any other information the board requires.
367  (3) In considering an application for an infrastructure loan, the board shall:
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368(a) give preference to a housing development that includes, as a substantial component,
369the construction of detached single-family owner-occupied starter homes; and
370(b) consider criteria including:
371(i) the number of housing units that may be built compared to the requested
372infrastructure loan amount;
373(ii) geographic diversity, including whether the applicant is urban or rural;
374(iii) the inclusion of affordable housing in the housing development;
375(iv) the inclusion of for-sale owner-occupied housing units in the housing
376development;
377(v) the likelihood that the housing development will be completed in accordance with
378the timeline described in Subsection (2)(a)(iii);
379(vi) the amount of matching funds the qualifying political subdivision will provide
380for the system improvement;
381(vii) other available sources of funding that may be used to construct the system
382improvement; and
383(viii) existing public facilities and services nearby the housing development.
384   (4) The board shall ensure that each infrastructure loan:
385(a) is secured by any combination of revenue sources for the loan recipient, whether the
386revenue is actualized or anticipated, and which may include revenue the loan
387recipient receives from:
388(i) the imposition of property taxes;
389(ii) the collection of impact fees;
390(iii) the issuance of bonds; or
391(iv) any other revenue source the board determines to be sufficient for securing the
392infrastructure loan;
393(b) has a term that does not exceed 20 years, except as provided in Subsection (5)(b)(ii);
394(c) charges interest:
395(i) to a presumed repayment date established by the board, regardless of the actual
396repayment date; and
397(ii) at a rate that is within 1.5% of the federal funds rate target:
398(A) established by the Federal Open Market Committee; and
399(B) in effect on January 1 of the year in which the loan is made; and
400(d) specifies the terms and revenue sources for the loan recipient's repayment of the loan.
401   (5)(a) The board may make one infrastructure loan to the Point of the Mountain State
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402      Land Authority created in Section 11-59-201.
403      (b) The infrastructure loan described in Subsection (5)(a) may not exceed:
404(i) an amount of $18,000,000; and
405(ii) a term of three years.
406  (6) In making infrastructure loans, the board may:
407      (a) restructure all or part of a loan recipient's liability to repay an infrastructure loan for
408extenuating circumstances, subject to the requirements of Subsections (4) and (5); and
409      (b) condition approval of an infrastructure loan on whatever assurances the board
410considers necessary to ensure that loan proceeds are used in accordance with this part.
411Section 10. Section 67-16-4 is amended to read:
41267-16-4 (Effective 05/06/26). Improperly disclosing or using private, controlled,
413  or protected information -- Using position to secure privileges or exemptions -- Accepting
414  employment that would impair independence of judgment or ethical performance --
415  Exception.
416  (1) Except as provided in [Subsection (3)] Subsections (3) and (4), it is an offense for a
417      public officer, public employee, or legislator to:
418      (a) accept employment or engage in any business or professional activity that he might
419reasonably expect would require or induce him to improperly disclose controlled
420information that he has gained by reason of his official position;
421      (b) disclose or improperly use controlled, private, or protected information acquired by
422reason of his official position or in the course of official duties in order to further
423substantially the officer's or employee's personal economic interest or to secure
424special privileges or exemptions for himself or others;
425      (c) use or attempt to use his official position to:
426(i) further substantially the officer's or employee's personal economic interest; [or]
427(ii) secure special privileges or exemptions for himself or others; or
428(iii) coerce another person to secure special privileges or exemptions for himself or
429others;
430      (d) accept other employment that he might expect would impair his independence of
431judgment in the performance of his public duties; or
432      (e) accept other employment that he might expect would interfere with the ethical
433performance of his public duties.
434  (2)(a) Subsection (1) does not apply to the provision of education-related services to
435      public school students by public education employees acting outside their regular
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436employment.
437(b) The conduct referred to in Subsection (2)(a) is subject to Section 53E-3-512.
438   (3) This section does not apply to a public officer, public employee, or legislator who
439engages in conduct that constitutes a violation of this section to the extent that the public
440officer, public employee, or legislator is chargeable, for the same conduct, under Section
44163G-6a-2404 or Section 76-8-105.
442   (4) Subsections (1)(c)(i) and (ii) do not apply to conduct relating to the construction or
443operation of affordable housing, as authorized by Title 10, Chapter 9a, Municipal Land
444Use, Development, and Management Act, or Title 17, Chapter 27a, County Land Use,
445Development, and Management Act, if the benefits are provided to all qualified
446residents.
447Section 11. Section 72-2-121 is amended to read:
44872-2-121 (Effective 05/06/26). County of the First Class Highway Projects Fund.
449   (1) There is created a special revenue fund within the Transportation Fund known as the
450"County of the First Class Highway Projects Fund."
451   (2) The fund consists of money generated from the following revenue sources:
452(a) any voluntary contributions received for new construction, major renovations, and
453improvements to highways within a county of the first class;
454(b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
455deposited into or transferred to the fund;
456(c) the portion of the sales and use tax described in Section 59-12-2217 deposited into or
457transferred to the fund;
458(d) a portion of the local option highway construction and transportation corridor
459preservation fee imposed in a county of the first class under Section 41-1a-1222
460deposited into or transferred to the fund; [and]
461(e) the portion of the sales and use tax transferred into the fund as described in
462Subsections 59-12-2220(4)(a) and 59-12-2220(11)(b)[.] ; and
463(f) revenue from bond proceeds described in Section 63B-34-101 for repayment of
464grants paid from fund money in accordance with Subsection (4)(m).
465   (3)(a) The fund shall earn interest.
466(b) All interest earned on fund money shall be deposited into the fund.
467   (4) Subject to Subsection (11), the executive director shall use the fund money only:
468(a) to pay debt service and bond issuance costs for bonds issued under Sections
46963B-16-102, 63B-18-402, and 63B-27-102;
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470      (b) for right-of-way acquisition, new construction, major renovations, and improvements
471to highways within a county of the first class and to pay any debt service and bond
472issuance costs related to those projects, including improvements to a highway located
473within a municipality in a county of the first class where the municipality is located
474within the boundaries of more than a single county;
475      (c) for the construction, acquisition, use, maintenance, or operation of:
476(i) an active transportation facility for nonmotorized vehicles;
477(ii) multimodal transportation that connects an origin with a destination; or
478(iii) a facility that may include a:
479(A) pedestrian or nonmotorized vehicle trail;
480(B) nonmotorized vehicle storage facility;
481(C) pedestrian or vehicle bridge; or
482(D) vehicle parking lot or parking structure;
483      (d) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
484Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the
485amounts transferred in accordance with Subsection 72-2-124(4)(a)(v);
486      (e) for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
487issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the
488projects described in Subsection 63B-18-401(4)(a);
489      (f) for a fiscal year beginning on or after July 1, 2013, and after the department has
490verified that the amount required under Subsection 72-2-121.3(4)(c) is available in
491the fund, to transfer an amount equal to 50% of the revenue generated by the local
492option highway construction and transportation corridor preservation fee imposed
493under Section 41-1a-1222 in a county of the first class:
494(i) to the legislative body of a county of the first class; and
495(ii) to be used by a county of the first class for:
496(A) highway construction, reconstruction, or maintenance projects; or
497(B) the enforcement of state motor vehicle and traffic laws;
498      (g) for a fiscal year beginning on or after July 1, 2015, after the department has verified
499that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
500and the transfer under Subsection (4)(e) has been made, to annually transfer an
501amount of the sales and use tax revenue imposed in a county of the first class and
502deposited into the fund in accordance with Subsection 59-12-2214(3)(b) equal to an
503amount needed to cover the debt to:
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504(i) the appropriate debt service or sinking fund for the repayment of bonds issued
505under Section 63B-27-102; and
506(ii) the appropriate debt service or sinking fund for the repayment of bonds issued
507under Sections 63B-31-102 and 63B-31-103;
508      (h) after the department has verified that the amount required under Subsection
50972-2-121.3(4)(c) is available in the fund and after the transfer under Subsection (4)(d),
510the payment under Subsection (4)(e), and the transfer under Subsection (4)(g)(i) has
511been made, to annually transfer $2,000,000 to a public transit district in a county of
512the first class to fund a system for public transit;
513      (i) for a fiscal year beginning on or after July 1, 2018, after the department has verified
514that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
515and after the transfer under Subsection (4)(d), the payment under Subsection (4)(e),
516and the transfer under Subsection (4)(g)(i) has been made, through fiscal year 2027,
517to annually transfer 20%, and beginning with fiscal year 2028, and each year
518thereafter for 20 years, to annually transfer 33% of the amount deposited into the
519fund under Subsection (2)(b) to the legislative body of a county of the first class for
520the following purposes:
521(i) to fund parking facilities in a county of the first class that facilitate significant
522economic development and recreation and tourism within the state; and
523(ii) to be used for purposes allowed in Section 17-78-702;
524      (j) subject to Subsection (5), for a fiscal year beginning on or after July 1, 2021, and for
52515 years thereafter, to annually transfer the following amounts to the following cities
526and the county of the first class for priority projects to mitigate congestion and
527improve transportation safety:
528(i) $2,000,000 to Sandy;
529(ii) $2,300,000 to Taylorsville;
530(iii) $1,100,000 to Salt Lake City;
531(iv) $1,100,000 to West Jordan;
532(v) $1,100,000 to West Valley City;
533(vi) $800,000 to Herriman;
534(vii) $700,000 to Draper;
535(viii) $700,000 to Riverton;
536(ix) $700,000 to South Jordan;
537(x) $500,000 to Bluffdale;
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538(xi) $500,000 to Midvale;
539(xii) $500,000 to Millcreek;
540(xiii) $500,000 to Murray;
541(xiv) $400,000 to Cottonwood Heights; and
542(xv) $300,000 to Holladay;
543      (k) for the 2024-25, 2025-26, and 2026-27 fiscal years, and subject to revenue balances
544after the distributions under Subsection (4)(j), to reimburse the following
545municipalities for the amounts and projects indicated, as each project progresses and
546as revenue balances allow:
547(i) $3,200,000 to South Jordan for improvements to Bingham Rim Road from
548Grandville Avenue to Mountain View Corridor;
549(ii) $1,960,000 to Midvale for improvements to Center Street between State Street
550and 700 West;
551(iii) $3,500,000 to Salt Lake City for first and last mile public transit improvements
552throughout Salt Lake City;
553(iv) $1,500,000 to Cottonwood Heights for improvements to Fort Union Boulevard
554and 2300 East;
555(v) $3,450,000 to Draper for improvements to Bangerter Highway between 13800
556South and I-15;
557(vi) $10,500,000 to Herriman to construct a road between U-111 and 13200 South;
558(vii) $3,000,000 to West Jordan for improvements to 1300 West;
559(viii) $1,050,000 to Riverton for improvements to the Welby Jacob Canal Trail
560between 11800 South and 13800 South;
561(ix) $3,500,000 to Taylorsville for improvements to Bangerter Highway and 4700
562South;
563(x) $470,000 to the department for construction of a sound wall on Bangerter
564Highway at approximately 11200 South;
565(xi) $1,250,000 to Murray for improvements to Murray Boulevard between 4800
566South and 5300 South;
567(xii) $1,840,000 to Magna for construction and improvements to 8400 West and 4100
568South;
569(xiii) $1,000,000 to South Jordan for construction of arterial roads connecting U-111
570and Old Bingham Highway;
571(xiv) $1,200,000 to Millcreek for reconstruction of and improvements to 2000 East
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572between 3300 South and Atkin Avenue;
573(xv) $1,230,000 to Holladay for improvements to Highland Drive between Van
574Winkle Expressway and Arbor Lane;
575(xvi) $1,000,000 to Taylorsville for improvements to 4700 South at the I-215
576interchange;
577(xvii) $3,750,000 to West Valley City for improvements to 4000 West between 4100
578South and 4700 South and improvements to 4700 South from 4000 West to
579Bangerter Highway;
580(xviii) $1,700,000 to South Jordan for improvements to Prosperity Road between
581Crimson View Drive and Copper Hawk Drive;
582(xix) $2,300,000 to West Valley City for a road connecting U-111 at approximately
5836200 South, then east and turning north and connecting to 5400 South;
584(xx) $1,400,000 to Magna for improvements to 8000 West between 3500 South to
5854100 South;
586(xxi) $1,300,000 to Taylorsville for improvements on 4700 South between Redwood
587Road and 2700 West; and
588(xxii) $3,000,000 to West Jordan for improvements to 1300 West between 6600
589South and 7800 South; [and]
590(l) for a fiscal year beginning on or after July 1, 2026, and for 15 years thereafter, to pay
591debt service and bond issuance costs for [$70,000,000] $150,000,000 of the bonds
592issued under Section [63B-34-201] 63B-34-101 for the grants awarded under Part 5,
593Affordable Housing Infrastructure Grants[.] ; and
594(m) for a fiscal year beginning on or after July 1, 2026, and only until June 30, 2028, to
595pay for grants awarded under Part 5, Affordable Housing Infrastructure Grants,
596subject to repayment to the fund from bond proceeds described in Section 63B-34-101,
597if the executive director finds that providing the grant money will not delay a project
598prioritized by the commission.
599   (5)(a) If revenue in the fund is insufficient to satisfy all of the transfers described in
600Subsection (4)(j), the executive director shall proportionately reduce the amounts
601transferred as described in Subsection (4)(j).
602(b) A local government may not use revenue described in Subsection (4)(j) to supplant
603existing class B or class C road funds that a local government has budgeted for
604transportation projects.
605   (6) The revenues described in Subsections (2)(b), (c), and (d) that are deposited into the
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606      fund and bond proceeds from bonds issued under Sections 63B-16-102, 63B-18-402,
607      and 63B-27-102 are considered a local matching contribution for the purposes described
608      under Section 72-2-123.
609  (7) The department may expend up to $3,000,000 of revenue deposited into the account as
610      described in Subsection 59-12-2220(11)(b) for public transit innovation grants, as
611      provided in Part 4, Public Transit Innovation Grants.
612  (8) The additional administrative costs of the department to administer this fund shall be
613      paid from money in the fund.
614  (9) Subject to Subsection (11), and notwithstanding any statutory or other restrictions on
615      the use or expenditure of the revenue sources deposited into this fund, the Department of
616      Transportation may use the money in this fund for any of the purposes detailed in
617      Subsection (4).
618  (10) Subject to Subsection (11), any revenue deposited into the fund as described in
619      Subsection (2)(e) shall be used to provide funding or loans for public transit projects,
620      operations, and supporting infrastructure in the county of the first class.
621  (11) For the first three years after a county of the first class imposes a sales and use tax
622      authorized in Section 59-12-2220, revenue deposited into the fund as described in
623      Subsection (2)(e) shall be allocated as follows:
624      (a) 10% to the department to construct an express bus facility on 5600 West; and
625      (b) 90% into the County of the First Class Infrastructure Bank Fund created in Section
62672-2-302.
627Section 12. Section 72-2-124 is amended to read:
62872-2-124 (Effective 05/06/26) (Superseded 07/01/26). Transportation Investment
629  Fund of 2005.
630  (1) There is created a capital projects fund entitled the Transportation Investment Fund of
631      2005.
632  (2) The fund consists of money generated from the following sources:
633      (a) any voluntary contributions received for the maintenance, construction,
634reconstruction, or renovation of state and federal highways;
635      (b) appropriations made to the fund by the Legislature;
636      (c) registration fees designated under Section 41-1a-1201;
637      (d) the sales and use tax revenues deposited into the fund in accordance with Section
63859-12-103;
639      (e) revenues transferred to the fund in accordance with Section 72-2-106;
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H.B. 492  Enrolled Copy
640(f) revenues transferred into the fund in accordance with Subsection 72-2-121(4)(l); and
641(g) revenue from bond proceeds described in Section 63B-34-101.
642   (3)(a) The fund shall earn interest.
643(b) All interest earned on fund money shall be deposited into the fund.
644   (4)(a) Except as provided in Subsection (4)(b), the executive director may only use fund
645money to pay:
646(i) the costs of maintenance, construction, reconstruction, or renovation to state and
647federal highways prioritized by the Transportation Commission through the
648prioritization process for new transportation capacity projects adopted under
649Section 72-1-304;
650(ii) the costs of maintenance, construction, reconstruction, or renovation to the
651highway projects described in Subsections 63B-18-401(2), (3), and (4);
652(iii) subject to Subsection (9), costs of corridor preservation, as that term is defined in
653Section 72-5-401;
654(iv) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
655minus the costs paid from the County of the First Class Highway Projects Fund in
656accordance with Subsection 72-2-121(4)(e);
657(v) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
658Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the
659amount certified by Salt Lake County in accordance with Subsection
66072-2-121.3(4)(c) as necessary to pay the debt service on $30,000,000 of the
661revenue bonds issued by Salt Lake County;
662(vi) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
663for projects prioritized in accordance with Section 72-2-125;
664(vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
665Class Highway Projects Fund created in Section 72-2-121 to be used for the
666purposes described in Section 72-2-121;
667(viii) if a political subdivision provides a contribution equal to or greater than 40% of
668the costs needed for construction, reconstruction, or renovation of paved
669pedestrian or paved nonmotorized transportation for projects that:
670(A) mitigate traffic congestion on the state highway system;
671(B) are part of an active transportation plan approved by the department; and
672(C) are prioritized by the commission through the prioritization process for new
673transportation capacity projects adopted under Section 72-1-304;
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674(ix) $705,000,000 for the costs of right-of-way acquisition, construction,
675reconstruction, or renovation of or improvement to the following projects:
676(A) the connector road between Main Street and 1600 North in the city of
677Vineyard;
678(B) Geneva Road from University Parkway to 1800 South;
679(C) the SR-97 interchange at 5600 South on I-15;
680(D) subject to Subsection (4)(c), two lanes on U-111 from Herriman Parkway to
681South Jordan Parkway;
682(E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
683(F) improvements to 1600 North in Orem from 1200 West to State Street;
684(G) widening I-15 between mileposts 6 and 8;
685(H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
686(I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197
687in Spanish Fork Canyon;
688(J) I-15 northbound between mileposts 43 and 56;
689(K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts
69043 and 45.1;
691(L) east Zion SR-9 improvements;
692(M) Toquerville Parkway;
693(N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
694(O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds,
695for construction of an interchange on Bangerter Highway at 13400 South; and
696(P) an environmental impact study for Kimball Junction in Summit County;
697(x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
698costs based upon a statement of cash flow that the local jurisdiction where the
699project is located provides to the department demonstrating the need for money
700for the project, for the following projects in the following amounts:
701(A) $5,000,000 for Payson Main Street repair and replacement;
702(B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
703(C) $5,000,000 for improvements to 4700 South in Taylorsville; and
704(D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S.
70540 between mile markers 7 and 10;
706(xi) $13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way
707acquisition, construction, reconstruction, or renovation to connect Fingerhut Road
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H.B. 492  Enrolled Copy
708over the railroad and to U.S. Highway 6;
709(xii) for a fiscal year beginning on July 1, 2025, only, as pass-through funds from
710revenue deposited into the fund in accordance with Section 59-12-103, for the
711following projects:
712(A) $3,000,000 for the department to perform an environmental study for the I-15
713Salem and Benjamin project; and
714(B) $2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand
715Dunes Road project; [and]
716(xiii) for a fiscal year beginning on July 1, 2025, up to [$300,000,000] $250,000,000
717for the costs of right-of-way acquisition and construction for improvements on
718and connections to SR-89 and surrounding transportation facilities in a county of
719the first class[.] ; and
720(xiv) for grants awarded under Part 5, Affordable Housing Infrastructure Grants,
721subject to repayment to the fund from bond proceeds described in Section
72263B-34-101, if the executive director finds that providing the grant money will not
723delay a project prioritized by the commission.
724(b) The executive director may use fund money to exchange for an equal or greater
725amount of federal transportation funds to be used as provided in Subsection (4)(a).
726(c)(i) Construction related to the project described in Subsection (4)(a)(ix)(D) may
727not commence until a right-of-way not owned by a federal agency that is required
728for the realignment and extension of U-111, as described in the department's 2023
729environmental study related to the project, is dedicated to the department.
730(ii) Notwithstanding Subsection (4)(c)(i), if a right-of-way is not dedicated for the
731project as described in Subsection (4)(c)(i) on or before October 1, 2024, the
732department may proceed with the project, except that the project will be limited to
733two lanes on U-111 from Herriman Parkway to 11800 South.
734(d) For a fiscal year beginning on July 1, 2026, the Division of Finance shall transfer
735$50,000,000 of the revenue deposited into the fund to the Convention Center
736Reserves Restricted Account created in Section 72-2-136.
737   (5)(a) Except as provided in Subsection (5)(b), if the department receives a notice of
738ineligibility for a municipality as described in Subsection 10-21-202(8), the executive
739director may not program fund money to a project prioritized by the commission
740under Section 72-1-304, including fund money from the Transit Transportation
741Investment Fund, within the boundaries of the municipality until the department
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742      receives notification from the Housing and Community Development Division within
743      the Department of Workforce Services that ineligibility under this Subsection (5) no
744      longer applies to the municipality.
745      (b) Within the boundaries of a municipality described in Subsection (5)(a), the executive
746director:
747(i) may program fund money in accordance with Subsection (4)(a) for a
748limited-access facility or interchange connecting limited-access facilities;
749(ii) may not program fund money for the construction, reconstruction, or renovation
750of an interchange on a limited-access facility;
751(iii) may program Transit Transportation Investment Fund money for a
752multi-community fixed guideway public transportation project; and
753(iv) may not program Transit Transportation Investment Fund money for the
754construction, reconstruction, or renovation of a station that is part of a fixed
755guideway public transportation project.
756      (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
757director before July 1, 2022, for projects prioritized by the commission under Section
75872-1-304.
759  (6)(a) Except as provided in Subsection (6)(b), if the department receives a notice of
760      ineligibility for a county as described in Subsection 17-80-202(8), the executive
761      director may not program fund money to a project prioritized by the commission
762      under Section 72-1-304, including fund money from the Transit Transportation
763      Investment Fund, within the boundaries of the unincorporated area of the county until
764      the department receives notification from the Housing and Community Development
765      Division within the Department of Workforce Services that ineligibility under this
766      Subsection (6) no longer applies to the county.
767      (b) Within the boundaries of the unincorporated area of a county described in Subsection
768(6)(a), the executive director:
769(i) may program fund money in accordance with Subsection (4)(a) for a
770limited-access facility to a project prioritized by the commission under Section
77172-1-304;
772(ii) may not program fund money for the construction, reconstruction, or renovation
773of an interchange on a limited-access facility;
774(iii) may program Transit Transportation Investment Fund money for a
775multi-community fixed guideway public transportation project; and
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H.B. 492  Enrolled Copy
776(iv) may not program Transit Transportation Investment Fund money for the
777construction, reconstruction, or renovation of a station that is part of a fixed
778guideway public transportation project.
779(c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive
780director before July 1, 2022, for projects prioritized by the commission under Section
78172-1-304.
782   (7)(a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued in
783any fiscal year, the department and the commission shall appear before the Executive
784Appropriations Committee of the Legislature and present the amount of bond
785proceeds that the department needs to provide funding for the projects identified in
786Subsections 63B-18-401(2), (3), and (4) or Subsection 63B-27-101(2) for the current
787or next fiscal year.
788(b) The Executive Appropriations Committee of the Legislature shall review and
789comment on the amount of bond proceeds needed to fund the projects.
790   (8) The Division of Finance shall, from money deposited into the fund, transfer the amount
791of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
792Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt
793service or sinking fund.
794   (9) The executive director may only use money in the fund for corridor preservation as
795described in Subsection (4)(a)(iii):
796(a) if the project has been prioritized by the commission, including the use of fund
797money for corridor preservation; or
798(b) for a project that has not been prioritized by the commission, if the commission:
799(i) approves the use of fund money for the corridor preservation; and
800(ii) finds that the use of fund money for corridor preservation will not result in any
801delay to a project that has been prioritized by the commission.
802   (10)(a) There is created in the Transportation Investment Fund of 2005 the Transit
803Transportation Investment Fund.
804(b) The fund shall be funded by:
805(i) contributions deposited into the fund in accordance with Section 59-12-103;
806(ii) appropriations into the account by the Legislature;
807(iii) deposits of sales and use tax increment related to a housing and transit
808reinvestment zone as described in Section 63N-3-610;
809(iv) transfers of local option sales and use tax revenue as described in Subsection
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81059-12-2220(11)(b) or (c);
811(v) private contributions; and
812(vi) donations or grants from public or private entities.
813      (c)(i) The fund shall earn interest.
814(ii) All interest earned on fund money shall be deposited into the fund.
815      (d) Subject to Subsection (10)(e), the commission may prioritize money from the fund:
816(i) for public transit capital development of new capacity projects and fixed guideway
817capital development projects to be used as prioritized by the commission through
818the prioritization process adopted under Section 72-1-304;
819(ii) to the department for oversight of a fixed guideway capital development project
820for which the department has responsibility; or
821(iii) up to $500,000 per year, to be used for a public transit study.
822      (e)(i) Subject to Subsections (10)(g), (h), and (i), the commission may only prioritize
823money from the fund for a public transit capital development project or pedestrian
824or nonmotorized transportation project that provides connection to the public
825transit system if the public transit district or political subdivision provides funds of
826equal to or greater than 30% of the costs needed for the project.
827(ii) A public transit district or political subdivision may use money derived from a
828loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide
829all or part of the 30% requirement described in Subsection (10)(e)(i) if:
830(A) the loan is approved by the commission as required in Part 2, State
831Infrastructure Bank Fund; and
832(B) the proposed capital project has been prioritized by the commission pursuant
833to Section 72-1-303.
834      (f) Before July 1, 2022, the department and a large public transit district shall enter into
835an agreement for a large public transit district to pay the department $5,000,000 per
836year for 15 years to be used to facilitate the purchase of zero emissions or low
837emissions rail engines and trainsets for regional public transit rail systems.
838      (g) For any revenue transferred into the fund in accordance with Subsection
83959-12-2220(11)(b):
840(i) the commission may prioritize money from the fund for public transit projects,
841operations, or maintenance within the county of the first class; and
842(ii) Subsection (10)(e) does not apply.
843      (h) For any revenue transferred into the fund in accordance with Subsection
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84459-12-2220(11)(c):
845(i) the commission may prioritize public transit projects, operations, or maintenance
846in the county from which the revenue was generated; and
847(ii) Subsection (10)(e) does not apply.
848(i) The requirement to provide funds equal to or greater than 30% of the costs needed for
849the project described in Subsection (10)(e) does not apply to a public transit capital
850development project or pedestrian or nonmotorized transportation project that the
851department proposes.
852(j) In accordance with Part 4, Public Transit Innovation Grants, the commission may
853prioritize money from the fund for public transit innovation grants, as defined in
854Section 72-2-401, for public transit capital development projects requested by a
855political subdivision within a public transit district.
856   (11)(a) There is created in the Transportation Investment Fund of 2005 the Cottonwood
857Canyons Transportation Investment Fund.
858(b) The fund shall be funded by:
859(i) money deposited into the fund in accordance with Section 59-12-103;
860(ii) appropriations into the account by the Legislature;
861(iii) private contributions; and
862(iv) donations or grants from public or private entities.
863(c)(i) The fund shall earn interest.
864(ii) All interest earned on fund money shall be deposited into the fund.
865(d) The Legislature may appropriate money from the fund for public transit or
866transportation projects in the Cottonwood Canyons of Salt Lake County.
867(e) The department may use up to 2% of the revenue deposited into the account under
868Subsection 59-12-103(7)(b) to contract with local governments as necessary for
869public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
870(f) Beginning with fiscal year beginning on July 1, 2025, the department shall use any
871sales and use tax growth over sales and use tax collections during the 2025 fiscal year
872to fund projects to provide ingress and egress for a public transit hub, including
873construction of the public transit hub, in the Big Cottonwood Canyon area.
874   (12)(a) There is created in the Transportation Investment Fund of 2005 the Active
875Transportation Investment Fund.
876(b) The fund shall be funded by:
877(i) money deposited into the fund in accordance with Section 59-12-103;
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878(ii) appropriations into the account by the Legislature; and
879(iii) donations or grants from public or private entities.
880      (c)(i) The fund shall earn interest.
881(ii) All interest earned on fund money shall be deposited into the fund.
882      (d) The executive director may only use fund money to pay the costs needed for:
883(i) the planning, design, construction, maintenance, reconstruction, or renovation of
884paved pedestrian or paved nonmotorized trail projects that:
885(A) are prioritized by the commission through the prioritization process for new
886transportation capacity projects adopted under Section 72-1-304;
887(B) serve a regional purpose; and
888(C) are part of an active transportation plan approved by the department or the
889plan described in Subsection (12)(d)(ii);
890(ii) the development of a plan for a statewide network of paved pedestrian or paved
891nonmotorized trails that serve a regional purpose; and
892(iii) the administration of the fund, including staff and overhead costs.
893  (13)(a) As used in this Subsection (13), "commuter rail" means the same as that term is
894      defined in Section 63N-3-602.
895      (b) There is created in the Transit Transportation Investment Fund the Commuter Rail
896Subaccount.
897      (c) The subaccount shall be funded by:
898(i) contributions deposited into the subaccount in accordance with Section 59-12-103;
899(ii) appropriations into the subaccount by the Legislature;
900(iii) private contributions; and
901(iv) donations or grants from public or private entities.
902      (d)(i) The subaccount shall earn interest.
903(ii) All interest earned on money in the subaccount shall be deposited into the
904subaccount.
905      (e) As prioritized by the commission through the prioritization process adopted under
906Section 72-1-304 or as directed by the Legislature, the department may only use
907money from the subaccount for projects that improve the state's commuter rail
908infrastructure, including the building or improvement of grade-separated crossings
909between commuter rail lines and public highways.
910      (f) Appropriations made in accordance with this section are nonlapsing in accordance
911with Section 63J-1-602.1.
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912Section 13. Section 72-2-124 is amended to read:
91372-2-124 (Effective 07/01/26). Transportation Investment Fund of 2005.
914   (1) There is created a capital projects fund entitled the Transportation Investment Fund of
9152005.
916   (2) The fund consists of money generated from the following sources:
917(a) any voluntary contributions received for the maintenance, construction,
918reconstruction, or renovation of state and federal highways;
919(b) appropriations made to the fund by the Legislature;
920(c) registration fees designated under Section 41-1a-1201;
921(d) the sales and use tax revenues deposited into the fund in accordance with Section
92259-12-103;
923(e) revenues transferred to the fund in accordance with Section 72-2-106;
924(f) revenues transferred into the fund in accordance with Subsection 72-2-121(4)(l); and
925(g) revenue from bond proceeds described in Section [63B-34-201] 63B-34-101.
926   (3)(a) The fund shall earn interest.
927(b) All interest earned on fund money shall be deposited into the fund.
928   (4)(a) Except as provided in Subsection (4)(b), the executive director may only use fund
929money to pay:
930(i) the costs of maintenance, construction, reconstruction, or renovation to state and
931federal highways prioritized by the Transportation Commission through the
932prioritization process for new transportation capacity projects adopted under
933Section 72-1-304;
934(ii) the costs of maintenance, construction, reconstruction, or renovation to the
935highway projects described in Subsections 63B-18-401(2), (3), and (4);
936(iii) subject to Subsection (9), costs of corridor preservation, as that term is defined in
937Section 72-5-401;
938(iv) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
939minus the costs paid from the County of the First Class Highway Projects Fund in
940accordance with Subsection 72-2-121(4)(e);
941(v) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
942Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the
943amount certified by Salt Lake County in accordance with Subsection
94472-2-121.3(4)(c) as necessary to pay the debt service on $30,000,000 of the
945revenue bonds issued by Salt Lake County;
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946(vi) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
947for projects prioritized in accordance with Section 72-2-125;
948(vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
949Class Highway Projects Fund created in Section 72-2-121 to be used for the
950purposes described in Section 72-2-121;
951(viii) if a political subdivision provides a contribution equal to or greater than 40% of
952the costs needed for construction, reconstruction, or renovation of paved
953pedestrian or paved nonmotorized transportation for projects that:
954(A) mitigate traffic congestion on the state highway system;
955(B) are part of an active transportation plan approved by the department; and
956(C) are prioritized by the commission through the prioritization process for new
957transportation capacity projects adopted under Section 72-1-304;
958(ix) $705,000,000 for the costs of right-of-way acquisition, construction,
959reconstruction, or renovation of or improvement to the following projects:
960(A) the connector road between Main Street and 1600 North in the city of
961Vineyard;
962(B) Geneva Road from University Parkway to 1800 South;
963(C) the SR-97 interchange at 5600 South on I-15;
964(D) subject to Subsection (4)(c), two lanes on U-111 from Herriman Parkway to
965South Jordan Parkway;
966(E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
967(F) improvements to 1600 North in Orem from 1200 West to State Street;
968(G) widening I-15 between mileposts 6 and 8;
969(H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
970(I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197
971in Spanish Fork Canyon;
972(J) I-15 northbound between mileposts 43 and 56;
973(K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts
97443 and 45.1;
975(L) east Zion SR-9 improvements;
976(M) Toquerville Parkway;
977(N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
978(O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds,
979for construction of an interchange on Bangerter Highway at 13400 South; and
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 H.B. 492  Enrolled Copy
980(P) an environmental impact study for Kimball Junction in Summit County;
981(x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
982costs based upon a statement of cash flow that the local jurisdiction where the
983project is located provides to the department demonstrating the need for money
984for the project, for the following projects in the following amounts:
985(A) $5,000,000 for Payson Main Street repair and replacement;
986(B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
987(C) $5,000,000 for improvements to 4700 South in Taylorsville; and
988(D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S.
98940 between mile markers 7 and 10;
990(xi) $13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way
991acquisition, construction, reconstruction, or renovation to connect Fingerhut Road
992over the railroad and to U.S. Highway 6;
993(xii) for a fiscal year beginning on July 1, 2025, only, as pass-through funds from
994revenue deposited into the fund in accordance with Section 59-12-103, for the
995following projects:
996(A) $3,000,000 for the department to perform an environmental study for the I-15
997Salem and Benjamin project; and
998(B) $2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand
999Dunes Road project; [and]
1000  (xiii) for a fiscal year beginning on July 1, 2025, up to [$300,000,000] $250,000,000
1001  for the costs of right-of-way acquisition and construction for improvements on
1002  and connections to SR-89 and surrounding transportation facilities in a county of
1003  the first class[.] ; and
1004  (xiv) for grants awarded under Part 5, Affordable Housing Infrastructure Grants,
1005  subject to repayment to the fund from bond proceeds described in Section
1006  63B-34-101, if the executive director finds that providing the grant money will not
1007  delay a project prioritized by the commission.
1008        (b) The executive director may use fund money to exchange for an equal or greater
1009  amount of federal transportation funds to be used as provided in Subsection (4)(a).
1010        (c)(i) Construction related to the project described in Subsection (4)(a)(ix)(D) may
1011  not commence until a right-of-way not owned by a federal agency that is required
1012  for the realignment and extension of U-111, as described in the department's 2023
1013  environmental study related to the project, is dedicated to the department.
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1014  (ii) Notwithstanding Subsection (4)(c)(i), if a right-of-way is not dedicated for the
1015  project as described in Subsection (4)(c)(i) on or before October 1, 2024, the
1016  department may proceed with the project, except that the project will be limited to
1017  two lanes on U-111 from Herriman Parkway to 11800 South.
1018        (d) For a fiscal year beginning on July 1, 2026, the Division of Finance shall transfer
1019  $50,000,000 of the revenue deposited into the fund to the Convention Center
1020  Reserves Restricted Account created in Section 72-2-136.
1021    (5)(a) Except as provided in Subsection (5)(b), if the department receives a notice of
1022        ineligibility for a municipality as described in Subsection 10-21-202(8), the executive
1023        director may not program fund money to a project prioritized by the commission
1024        under Section 72-1-304, including fund money from the Transit Transportation
1025        Investment Fund, within the boundaries of the municipality until the department
1026        receives notification from the Housing and Community Development Division within
1027        the Department of Workforce Services that ineligibility under this Subsection (5) no
1028        longer applies to the municipality.
1029        (b) Within the boundaries of a municipality described in Subsection (5)(a), the executive
1030  director:
1031  (i) may program fund money in accordance with Subsection (4)(a) for a
1032  limited-access facility or interchange connecting limited-access facilities;
1033  (ii) may not program fund money for the construction, reconstruction, or renovation
1034  of an interchange on a limited-access facility;
1035  (iii) may program Transit Transportation Investment Fund money for a
1036  multi-community fixed guideway public transportation project; and
1037  (iv) may not program Transit Transportation Investment Fund money for the
1038  construction, reconstruction, or renovation of a station that is part of a fixed
1039  guideway public transportation project.
1040        (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
1041  director before July 1, 2022, for projects prioritized by the commission under Section
1042  72-1-304.
1043    (6)(a) Except as provided in Subsection (6)(b), if the department receives a notice of
1044        ineligibility for a county as described in Subsection 17-80-202(8), the executive
1045        director may not program fund money to a project prioritized by the commission
1046        under Section 72-1-304, including fund money from the Transit Transportation
1047        Investment Fund, within the boundaries of the unincorporated area of the county until
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 H.B. 492  Enrolled Copy
1048  the department receives notification from the Housing and Community Development
1049  Division within the Department of Workforce Services that ineligibility under this
1050  Subsection (6) no longer applies to the county.
1051  (b) Within the boundaries of the unincorporated area of a county described in Subsection
1052  (6)(a), the executive director:
1053  (i) may program fund money in accordance with Subsection (4)(a) for a
1054  limited-access facility to a project prioritized by the commission under Section
1055  72-1-304;
1056  (ii) may not program fund money for the construction, reconstruction, or renovation
1057  of an interchange on a limited-access facility;
1058  (iii) may program Transit Transportation Investment Fund money for a
1059  multi-community fixed guideway public transportation project; and
1060  (iv) may not program Transit Transportation Investment Fund money for the
1061  construction, reconstruction, or renovation of a station that is part of a fixed
1062  guideway public transportation project.
1063  (c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive
1064  director before July 1, 2022, for projects prioritized by the commission under Section
1065  72-1-304.
1066     (7)(a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued in
1067  any fiscal year, the department and the commission shall appear before the Executive
1068  Appropriations Committee of the Legislature and present the amount of bond
1069  proceeds that the department needs to provide funding for the projects identified in
1070  Subsections 63B-18-401(2), (3), and (4) or Subsection 63B-27-101(2) for the current
1071  or next fiscal year.
1072  (b) The Executive Appropriations Committee of the Legislature shall review and
1073  comment on the amount of bond proceeds needed to fund the projects.
1074     (8) The Division of Finance shall, from money deposited into the fund, transfer the amount
1075  of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
1076  Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt
1077  service or sinking fund.
1078     (9) The executive director may only use money in the fund for corridor preservation as
1079  described in Subsection (4)(a)(iii):
1080  (a) if the project has been prioritized by the commission, including the use of fund
1081  money for corridor preservation; or
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1082        (b) for a project that has not been prioritized by the commission, if the commission:
1083  (i) approves the use of fund money for the corridor preservation; and
1084  (ii) finds that the use of fund money for corridor preservation will not result in any
1085  delay to a project that has been prioritized by the commission.
1086    (10)(a) There is created in the Transportation Investment Fund of 2005 the Transit
1087        Transportation Investment Fund.
1088        (b) The fund shall be funded by:
1089  (i) contributions deposited into the fund in accordance with Section 59-12-103;
1090  (ii) appropriations into the account by the Legislature;
1091  (iii) deposits of sales and use tax increment related to a housing and transit
1092  reinvestment zone as described in Section 63N-3-610;
1093  (iv) transfers of local option sales and use tax revenue as described in Subsection
1094  59-12-2220(11)(b) or (c);
1095  (v) private contributions; and
1096  (vi) donations or grants from public or private entities.
1097        (c)(i) The fund shall earn interest.
1098  (ii) All interest earned on fund money shall be deposited into the fund.
1099        (d) Subject to Subsection (10)(e), the commission may prioritize money from the fund:
1100  (i) for public transit capital development of new capacity projects and fixed guideway
1101  capital development projects to be used as prioritized by the commission through
1102  the prioritization process adopted under Section 72-1-304;
1103  (ii) to the department for oversight of a fixed guideway capital development project
1104  for which the department has responsibility; or
1105  (iii) up to $500,000 per year, to be used for a public transit study.
1106        (e)(i) Subject to Subsections (10)(g), (h), and (i), the commission may only prioritize
1107  money from the fund for a public transit capital development project or pedestrian
1108  or nonmotorized transportation project that provides connection to the public
1109  transit system if the public transit district or political subdivision provides funds of
1110  equal to or greater than 30% of the costs needed for the project.
1111  (ii) A public transit district or political subdivision may use money derived from a
1112  loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide
1113  all or part of the 30% requirement described in Subsection (10)(e)(i) if:
1114  (A) the loan is approved by the commission as required in Part 2, State
1115  Infrastructure Bank Fund; and
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 H.B. 492  Enrolled Copy
1116  (B) the proposed capital project has been prioritized by the commission pursuant
1117  to Section 72-1-303.
1118  (f) Before July 1, 2022, the department and a large public transit district shall enter into
1119  an agreement for a large public transit district to pay the department $5,000,000 per
1120  year for 15 years to be used to facilitate the purchase of zero emissions or low
1121  emissions rail engines and trainsets for regional public transit rail systems.
1122  (g) For any revenue transferred into the fund in accordance with Subsection
1123  59-12-2220(11)(b):
1124  (i) the commission may prioritize money from the fund for public transit projects,
1125  operations, or maintenance within the county of the first class; and
1126  (ii) Subsection (10)(e) does not apply.
1127  (h) For any revenue transferred into the fund in accordance with Subsection
1128  59-12-2220(11)(c):
1129  (i) the commission may prioritize public transit projects, operations, or maintenance
1130  in the county from which the revenue was generated; and
1131  (ii) Subsection (10)(e) does not apply.
1132  (i) The requirement to provide funds equal to or greater than 30% of the costs needed for
1133  the project described in Subsection (10)(e) does not apply to a public transit capital
1134  development project or pedestrian or nonmotorized transportation project that the
1135  department proposes.
1136  (j) In accordance with Part 4, Public Transit Innovation Grants, the commission may
1137  prioritize money from the fund for public transit innovation grants, as defined in
1138  Section 72-2-401, for public transit capital development projects requested by a
1139  political subdivision within a public transit district.
1140     (11)(a) There is created in the Transportation Investment Fund of 2005 the Cottonwood
1141  Canyons Transportation Investment Fund.
1142  (b) The fund shall be funded by:
1143  (i) money deposited into the fund in accordance with Section 59-12-103;
1144  (ii) appropriations into the account by the Legislature;
1145  (iii) private contributions; and
1146  (iv) donations or grants from public or private entities.
1147  (c)(i) The fund shall earn interest.
1148  (ii) All interest earned on fund money shall be deposited into the fund.
1149  (d) The Legislature may appropriate money from the fund for public transit or
                                                   - 34 -
 Enrolled Copy  H.B. 492
1150  transportation projects in the Cottonwood Canyons of Salt Lake County.
1151        (e) The department may use up to 2% of the revenue deposited into the account under
1152  Subsection 59-12-103(4)(f) to contract with local governments as necessary for
1153  public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
1154        (f) Beginning with fiscal year beginning on July 1, 2025, the department shall use any
1155  sales and use tax growth over sales and use tax collections during the 2025 fiscal year
1156  to fund projects to provide ingress and egress for a public transit hub, including
1157  construction of the public transit hub, in the Big Cottonwood Canyon area.
1158    (12)(a) There is created in the Transportation Investment Fund of 2005 the Active
1159        Transportation Investment Fund.
1160        (b) The fund shall be funded by:
1161  (i) money deposited into the fund in accordance with Section 59-12-103;
1162  (ii) appropriations into the account by the Legislature; and
1163  (iii) donations or grants from public or private entities.
1164        (c)(i) The fund shall earn interest.
1165  (ii) All interest earned on fund money shall be deposited into the fund.
1166        (d) The executive director may only use fund money to pay the costs needed for:
1167  (i) the planning, design, construction, maintenance, reconstruction, or renovation of
1168  paved pedestrian or paved nonmotorized trail projects that:
1169  (A) are prioritized by the commission through the prioritization process for new
1170  transportation capacity projects adopted under Section 72-1-304;
1171  (B) serve a regional purpose; and
1172  (C) are part of an active transportation plan approved by the department or the
1173  plan described in Subsection (12)(d)(ii);
1174  (ii) the development of a plan for a statewide network of paved pedestrian or paved
1175  nonmotorized trails that serve a regional purpose; and
1176  (iii) the administration of the fund, including staff and overhead costs.
1177    (13)(a) As used in this Subsection (13), "commuter rail" means the same as that term is
1178        defined in Section 63N-3-602.
1179        (b) There is created in the Transit Transportation Investment Fund the Commuter Rail
1180  Subaccount.
1181        (c) The subaccount shall be funded by:
1182  (i) contributions deposited into the subaccount in accordance with Section 59-12-103;
1183  (ii) appropriations into the subaccount by the Legislature;
                                                - 35 -
 H.B. 492  Enrolled Copy
1184  (iii) private contributions; and
1185  (iv) donations or grants from public or private entities.
1186  (d)(i) The subaccount shall earn interest.
1187  (ii) All interest earned on money in the subaccount shall be deposited into the
1188  subaccount.
1189  (e) As prioritized by the commission through the prioritization process adopted under
1190  Section 72-1-304 or as directed by the Legislature, the department may only use
1191  money from the subaccount for projects that improve the state's commuter rail
1192  infrastructure, including the building or improvement of grade-separated crossings
1193  between commuter rail lines and public highways.
1194  (f) Appropriations made in accordance with this section are nonlapsing in accordance
1195  with Section 63J-1-602.1.
1196  Section 14. Section 72-2-136 is enacted to read:
1197  72-2-136 (Effective 05/06/26). Convention Center Reserves Restricted Account.
1198     (1) As used in this section, "convention center" means a convention center owned by a
1199  county of the first class within a city of the first class.
1200     (2) There is created within the Transportation Fund a restricted account known as the
1201  "Convention Center Reserves Restricted Account."
1202     (3) The account consists of:
1203  (a) revenue transferred to the account in accordance with Subsection 72-2-124(4)(d); and
1204  (b) amounts appropriated by the Legislature.
1205     (4) Subject to appropriation, money in the account may be used:
1206  (a) for revitalization of a convention center and surrounding revitalization projects
1207  related to the convention center; or
1208  (b) for securing the issuance of the debt of a county of the first class for a convention
1209  center in an amount that does not exceed $1,600,000,000.
1210  Section 15. Section 72-2-501 is amended to read:
1211  72-2-501 (Effective 05/06/26). Definitions.
1212        As used in this part:
1213     (1) "Affordable housing unit" means a dwelling that[:]
1214  [(a) is offered for rent at a rental price affordable to a household with a gross income of
1215  no more than 80% of the area median income for the county in which the residential
1216  unit is offered for rent; or]
1217  [(b)]   is offered for sale to an owner-occupier at a purchase price that the board
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1218  determines is affordable [to a household with a gross income of no more than 120%
1219  of the area median income ]for the county in which the residential unit is offered for
1220  sale and is deed restricted for [no fewer than] up to five years.
1221    (2) "Board" means the [affordable housing infrastructure grant board] Affordable Housing
1222        Infrastructure Grant Board created in Section 72-2-503.
1223    (3) "Grant" means a grant issued to a public entity in a county of the first class, as classified
1224        in Section 17-60-104, as provided in this part.
1225  Section 16. Section 72-2-502 is amended to read:
1226  72-2-502 (Effective 05/06/26). Affordable housing infrastructure grant funding
1227    sources.
1228    (1) In accordance with Section 72-2-503, the board may rank, prioritize, and award
1229        affordable housing infrastructure grants to public entities within a county of the first
1230        class with money derived from the following sources:
1231        (a) bond proceeds deposited into the Transportation Investment Fund of 2005 created in
1232  Section 72-2-124 in accordance with a bond issued under Section [63B-34-201]
1233  63B-34-101;
1234        (b) for a fiscal year beginning on or after July 1, 2026, and only until June 30, 2028,
1235  revenue deposited into the County of the First Class Highway Projects Fund created
1236  in Section 72-2-121;
1237        [(b)] (c) appropriations by the Legislature; and
1238        [(c)] (d) any other transfers or contributions.
1239    (2) Administrative costs of the department to administer affordable housing infrastructure
1240        grants under this part shall be paid from the funds described in Subsection (1).
1241  Section 17. Section 72-2-503 is amended to read:
1242  72-2-503 (Effective 05/06/26). Board creation -- Duties -- Grant administration.
1243    (1)(a) There is created the [affordable housing infrastructure grant board] Affordable
1244        Housing Infrastructure Grant Board consisting of:
1245  (i) the following five voting members:
1246  [(a) the executive director of the department, or the executive director's designee;]
1247  [(b)] (A) the executive director of the Governor's Office of Economic Opportunity
1248  appointed under Section 63N-1a-302, or the executive director's designee; [and]
1249  (B) two individuals from a county of the first class, as classified in Section
1250  17-60-104, appointed by the speaker of the House of Representatives; and
1251  (C) two individuals from a county of the first class, as classified in Section
                                                 - 37 -
 H.B. 492  Enrolled Copy
1252  17-60-104, appointed by the president of the Senate; and
1253  [(c) an employee of the governor's office that is an expert or advisor on housing strategy,
1254  appointed by the governor.]
1255  (ii) the following two nonvoting members:
1256  (A) the executive director of the department, or the executive director's designee;
1257  and
1258  (B) the legislative fiscal analyst, or the legislative fiscal analyst's designee.
1259  (b) In accordance with this section, the board shall award grants to public entities in a
1260  county of the first class, as classified in Section 17-60-104, for infrastructure that will
1261  facilitate the development of affordable housing units.
1262     (2)(a) The Governor's Office of Economic Opportunity shall provide staff support for
1263  the board and the grant program.
1264  (b) The Governor's Office of Economic Opportunity may use and the department shall
1265  transfer grant funds for the costs of the Governor's Office of Economic Opportunity
1266  to administer the grant program under this part.
1267  (c) The Governor's Office of Economic Opportunity and the department shall enter into
1268  a memorandum of understanding to facilitate the calculation and transfer of funds for
1269  the administrative costs described in Subsection (2)(b).
1270     (3) The [Governor's Office of Economic Opportunity] department, in consultation with the
1271  board, shall develop a process for the prioritization of grant proposals that includes:
1272  (a) instructions on making and submitting a grant proposal;
1273  (b) methodology for selecting grants; and
1274  (c) methodology for awarding grants.
1275     (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the [
1276  Governor's Office of Economic Opportunity] department shall make rules to establish the
1277  process described in Subsection (3) and as otherwise necessary to implement this part.
1278     (5) The board shall:
1279  (a) accept grant applications;
1280  (b) rank grant proposals; and
1281  (c) award grants in accordance with this part.
1282     (6) A grant applicant shall ensure that each grant proposal includes:
1283  (a) information about the proposed project, including the projected number of affordable
1284  housing units, which may not be less than 50 units of affordable housing;
1285  (b) the projected time line of the proposed project;
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1286        (c) data and information regarding the proposed types of affordable housing; and
1287        (d) information about the public infrastructure and other improvements needed.
1288    (7)(a) In considering a grant proposal, the board shall:
1289  (i) give priority to a project that includes, as a substantial component, the
1290  construction of detached single-family owner-occupied starter homes; and
1291  (ii) consider criteria including:
1292  [(i)] (A) the value and number of housing units the project will produce;
1293  [(ii)] (B) the value of any matching contribution from the grant applicant,
1294  including information about how the public entity determined the value of the
1295  matching assets; and
1296  [(iii)] (C) any other criteria the board determines relevant.
1297        (b) For a grant proposal including highway infrastructure, the board may not award a
1298  grant unless the grant applicant provides a minimum matching contribution of the
1299  right-of-way needed for the highway improvements.
1300        (c) If a grant proposal includes highway infrastructure, the board shall give priority to
1301  the construction of public highways that are highways of regional significance that
1302  connect to other highways or points of regional significance.
1303    (8)(a) Subject to available funding, and subject to Subsection (8)(b), the board may
1304        award a grant to a recipient that the board determines advisable.
1305        (b) For every $20,000 of grant funding awarded to a recipient, the infrastructure shall
1306  support at least one unit of affordable housing.
1307        (c) The board may not award a grant to a recipient if the board determines that the
1308  recipient will not be able to satisfy the requirement under Subsection (8)(b).
1309    (9) If the board approves the award of a grant as provided in this part, the department shall
1310        transfer the money to the grant recipient in accordance with Subsection (10).
1311    (10)(a)[(a)] (i) [Before] Except as provided in Subsection (10)(b), before the
1312        department may provide grant money to a public entity for a project related to a
1313        grant awarded by the board, the public entity shall provide a detailed cost estimate
1314        of costs to complete the planning and design of the project.
1315  [(b)] (ii) If the executive director approves the cost estimate described in Subsection [
1316  (10)(a)] (10)(a)(i), the department may provide to the public entity grant money
1317  reasonably necessary to complete the planning and design of the project.
1318  [(c)] (iii) After completion of the planning and design of a project related to a grant
1319  awarded by the board, the public entity shall provide to the department a detailed
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1320  estimate of the costs to construct and complete the project described in Subsection [
1321  (10)(b)] (10)(a)(ii).
1322  [(d)] (iv) If the executive director approves the cost estimates described in Subsection [
1323  (10)(c)] (10)(a)(iii), the department may provide grant money to a public entity to
1324  construct and complete the project described in Subsection [(10)(b)] (10)(a)(ii).
1325  (b) The board may, in relation to a grant awarded by the board:
1326  (i) waive the requirements of Subsection (10)(a); and
1327  (ii) direct the department to transfer grant money to the grant recipient.
1328  Section 18. Section 72-5-111 is amended to read:
1329  72-5-111 (Effective 05/06/26). Disposal of real property.
1330     (1)(a) If the department determines that any real property or interest in real property,
1331  acquired for a state transportation purpose, is no longer necessary for the purpose, the
1332  department may lease, sell, exchange, or otherwise dispose of the real property or
1333  interest in the real property.
1334  (b)(i) Real property or an interest in real property may be sold at private or public
1335  sale.
1336  (ii) Except as provided in Subsection (1)(c) related to exchanges and Subsection
1337  (1)(d) related to the proceeds of any sale of real property from a maintenance
1338  facility, proceeds of any sale shall be deposited with the state treasurer and
1339  credited to the Transportation Fund.
1340  (c)(i) Except as provided in Subsection (1)(c)(ii), if approved by the commission, real
1341  property or an interest in real property may be exchanged by the department for
1342  other real property or interest in real property, including improvements, for a state
1343  transportation purpose.
1344  (ii) The department may exchange an interest in real property for another interest in
1345  real property for a project that is part of a statewide transportation improvement
1346  program approved by the commission.
1347  (d) Proceeds from the sale of real property or an interest in real property from a
1348  maintenance facility may be used by the department for the purchase or improvement
1349  of another maintenance facility, including real property.
1350     (2)(a) In disposing of real property or an interest in real property described in Subsection
1351  (1), the department shall give the right of first refusal for the highest offer, as defined
1352  in Section 78B-6-521, to:
1353  (i) for real property, the original grantor if, since the date of the original transfer to
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1354  the department, the original grantor has owned real property adjacent to the
1355  transferred real property; or
1356  (ii) for an interest in real property that is an easement:
1357  (A) if the original grantor owns the servient estate subject to the easement, the
1358  original grantor; or
1359  (B) if a subsequent bona fide purchaser owns the servient estate subject to the
1360  easement, the subsequent bona fide purchaser.
1361        (b) Notwithstanding Subsection (2)(a) and Section 78B-6-521, if the department
1362  acquires real property or an easement and does not use any portion of the real
1363  property or easement for a state transportation purpose, the department shall give the
1364  original grantor the opportunity to purchase the real property or easement at the
1365  original purchase price if, since the date of the original transfer to the department, the
1366  original grantor has owned real property adjacent to the transferred real property or
1367  the servient estate subject to the easement.
1368        (c) In accordance with Section 72-5-404, this Subsection (2) does not apply to property
1369  rights acquired in proposed transportation corridors using funds from the Marda
1370  Dillree Corridor Preservation Fund created in Section 72-2-117.
1371        (d)[(i) The right of first refusal described in this Subsection (2) is subject to the same
1372  terms and may be assigned by the original grantor or subsequent bona fide
1373  purchaser in the manner described in Subsection 78B-6-521(3).]
1374  [(ii) The original grantor or subsequent bona fide purchaser, or the original grantor's
1375  or subsequent bona fide purchaser's assignee, shall notify the department of an
1376  assignment by certified mail to the current office address of the executive director
1377  of the department.]
1378  (i) If an original grantor or subsequent bona fide purchaser fails to purchase real
1379  property or an easement described in this Subsection (2), the department may
1380  reject all bids and dispose of the real property or easement in accordance with
1381  Subsection 78B-6-521(3).
1382  [(iii)] (ii) An exchange of real property [as provided in] under Subsection (1)(c) or
1383  Section 72-5-113 does not entitle the original grantor or subsequent bona fide
1384  purchaser to exercise the right of first refusal described in this Subsection (2).
1385  [(iv)] (iii) The right of first refusal described in this Subsection (2) terminates upon an
1386  exchange of the acquired real property [as provided in] under Subsection (1)(c) or
1387  Section 72-5-113.
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1388     (3)(a) Any sale, exchange, or disposal of real property or interest in real property made
1389  by the department under this section, is exempt from the mineral reservation
1390  provisions of Title 65A, Chapter 6, Mineral Leases.
1391  (b) Any deed made and delivered by the department under this section without specific
1392  reservations in the deed is a conveyance of all the state's right, title, and interest in the
1393  real property or interest in the real property.
1394  Section 19. Section 72-5-117 is amended to read:
1395  72-5-117 (Effective 05/06/26). Rulemaking for sale of real property -- Licensed
1396     or certified appraisers -- Exceptions.
1397     (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if the
1398  department buys, sells, or exchanges real property, the department shall make rules to
1399  ensure that the value of the real property is congruent with the proposed price and other
1400  terms of the purchase, sale, or exchange.
1401     (2) The rules:
1402  (a) shall establish procedures for determining the value of the real property;
1403  (b) may provide that an appraisal, as defined under Section 61-2g-102, demonstrates the
1404  real property's value;
1405  (c) may require that the appraisal be completed by a state-certified general appraiser, as
1406  defined under Section 61-2g-102;
1407  (d) may provide for the sale or exchange of real property, with or without charge, to a
1408  large public transit district if the executive director enters into an agreement with the
1409  large public transit district and determines that the real property:
1410  (i) is within the boundaries of a station area that has a station area plan certified by a
1411  metropolitan planning organization in accordance with Section 10-21-203;
1412  (ii) is part of a transit-oriented development or transit-supportive development as
1413  defined in Section 17B-2a-802;
1414  (iii) is adjacent to a completed fixed guideway capital development that was overseen
1415  by the department; or
1416  (iv) will only be used by the large public transit district in a manner that the executive
1417  director determines will provide a benefit to the state transportation system; [and]
1418  (e) may provide for the disposal of surplus real property for a purpose described in
1419  Section 63L-12-102; and
1420  [(e)] (f) may provide for a sale of surplus real property to a state agency or an
1421  independent entity, as defined in Section 63E-1-102, that administers public interests
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1422  in housing for a pre-entitlement appraised value, the payment of which may be
1423  deferred[ until after the development of owner-occupied housing] , as determined by
1424  the department and subject to state and federal law.
1425    (3) Subsection (1) does not apply to the purchase, sale, or exchange of real property, or to
1426        an interest in real property:
1427        (a) that is under a contract or other written agreement before May 5, 2008; or
1428        (b) with a value of less than $100,000, as estimated by the state agency.
1429  Section 20. Section 78B-6-521 is amended to read:
1430  78B-6-521 (Effective 05/06/26). Sale of property acquired by eminent domain.
1431    (1) As used in this section:
1432        (a) "Condemnation" or "threat of condemnation" means:
1433  (i) acquisition through an eminent domain proceeding; or
1434  (ii) an official body of the state or a subdivision of the state, having the power of
1435  eminent domain, has specifically authorized the use of eminent domain to acquire
1436  the real property.
1437        (b)(i) "Highest offer" means all material terms of the best bona fide offer received by
1438  the state or one of the state's subdivisions, including:
1439  (A) purchase price;
1440  (B) conditions; and
1441  (C) terms of performance.
1442  (ii) "Highest offer" does not mean the terms and conditions of an agreement to
1443  exchange real property or an interest in real property for other real property or an
1444  interest in real property.
1445    (2) If the state or one of the state's subdivisions, at the state's or the state subdivision's sole
1446        discretion, declares real property or an easement the state or state subdivision acquires
1447        through condemnation or threat of condemnation to be surplus real property, the state or
1448        state subdivision may not sell the real property or easement at a private or public sale
1449        unless:
1450        (a)(i) for real property, the state or state subdivision gives the right of first refusal to
1451  the original grantor for the highest offer if, since the date of the original transfer to
1452  the state or state subdivision, the original grantor has owned real property adjacent
1453  to the transferred real property; or
1454  (ii) for an easement, the state or state subdivision gives the right of first refusal to:
1455  (A) if the original grantor owns the servient estate subject to the easement, the
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1456  original grantor for the highest offer; or
1457  (B) if a subsequent bona fide purchaser owns the servient estate subject to the
1458  easement, the subsequent bona fide purchaser for the highest offer;
1459  (b) the original grantor or subsequent bona fide purchaser described in Subsection (2)(a):
1460  (i) expressly waives in writing the right of first refusal on the offer; or
1461  (ii) fails to accept the offer within 90 days after the day on which the original grantor
1462  or subsequent bona fide purchaser receives notification by registered mail to the
1463  original grantor's or subsequent bona fide purchaser's last-known address; and
1464  (c) neither the state nor the state subdivision selling the property is involved in the
1465  rezoning of the property or the acquisition of additional property to enhance the value
1466  of the real property to be sold.
1467     (3) If an original grantor or subsequent bona fide purchaser fails to purchase surplus real
1468  property or an easement described in Subsection (2), the state or the state subdivision
1469  that owns the real property or easement may reject all bids and sell the real property or
1470  easement in accordance with applicable provisions of law that govern the granting of
1471  real property or an interest in real property by the state or the state subdivision.
1472     [(3)(a) If the original grantor or subsequent bona fide purchaser has not waived the right
1473  of first refusal as described in Subsection (2)(b), an original grantor or subsequent
1474  bona fide purchaser may assign the right of first refusal.]
1475  [(b) The assignment of a right of first refusal in accordance with Subsection (3)(a) does
1476  not extend the time for acceptance of an offer as described in Subsection (2)(b).]
1477     (4)(a) Real property acquired through condemnation or the threat of condemnation is not
1478  considered surplus if the real property is approved for use in an exchange for other
1479  real property.
1480  (b) An exchange of real property for other real property is not a private or public sale.
1481  (c) The right of first refusal described in Subsection (2)(a) shall terminate upon an
1482  exchange of the acquired real property.
1483     (5) This section shall only apply to property acquired after July 1, 1983.
1484  Section 21. FY 2027 Appropriations.
1485  The following sums of money are appropriated for the fiscal year beginning July 1,
1486     2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
1487     fiscal year 2027.
1488  Subsection 21(a). Restricted Fund and Account Transfers
1489  The Legislature authorizes the State Division of Finance to transfer the following
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1490    amounts between the following funds or accounts as indicated. Expenditures and outlays from
1491    the funds to which the money is transferred must be authorized by an appropriation.
1492    ITEM 1     To State Housing Infrastructure Partnership Fund
1493  From Transportation Infrastructure General Fund
1494  Support Subfund, One-time  100,000,000
1495  Schedule of Programs:
1496  State Housing Infrastructure Partnership Fund  100,000,000
1497  Section 22. Effective Date.
1498    This bill takes effect on May 6, 2026.
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