HB 505

     02-25 17:18  1st Sub. (Buff) H.B. 505
                           Norman K Thurston proposes the following substitute bill:
 1  Vehicle Tax and Fee Amendments
                                            2026 GENERAL SESSION
                                                  STATE OF UTAH
                                      Chief Sponsor: Norman K Thurston
                                                    Senate Sponsor:
 2
 3     LONG TITLE
 4     General Description:
 5  This bill reclassifies certain taxes and fees and reorganizes vehicle tax and fee provisions.
 6     Highlighted Provisions:
 7  This bill:
 8  ▸ reclassifies certain taxes and fees related to vehicles and vehicle registration, designating
 9     service fees, regulatory fees, and vehicle taxes;
10  ▸ reorganizes code related to the imposition of vehicle taxes and fees;
11  ▸ reorganizes the distribution of revenue related to vehicle taxes and fees;
12  ▸ creates a new restricted account for deposits from vehicle regulatory fees and funding for
13     the Motor Vehicle Division;
14  ▸ removes the option for a six-month registration; and
15  ▸ makes technical and conforming changes.
16     Money Appropriated in this Bill:
17  This bill appropriates $9,883,900 in capital project funds for fiscal year 2027, all of which
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18     is from the General Fund.
19     Other Special Clauses:
20  This bill provides a special effective date.
21     Utah Code Sections Affected:
22     AMENDS:
23  26B-1-318 (Effective 01/01/27) (Repealed 07/01/29), as last amended by Laws of Utah
24  2025, Chapter 126
25  31A-6a-101 (Effective 01/01/27), as last amended by Laws of Utah 2020, Chapter 32
26  41-1a-119 (Effective 01/01/27), as last amended by Laws of Utah 2008, Chapter 382
27  41-1a-122 (Effective 01/01/27), as last amended by Laws of Utah 2024, Chapter 251
28  41-1a-203 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
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29  41-1a-208 (Effective 01/01/27), as last amended by Laws of Utah 2006, Chapter 164
30  41-1a-213 (Effective 01/01/27), as last amended by Laws of Utah 2023, Chapter 456
31  41-1a-215 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 285
32  41-1a-215.5 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
33  41-1a-216 (Effective 01/01/27), as last amended by Laws of Utah 2021, Chapter 135
34  41-1a-230 (Effective 01/01/27), as last amended by Laws of Utah 2003, Chapter 126
35  41-1a-230.5 (Effective 01/01/27), as last amended by Laws of Utah 2023, Chapter 328
36  41-1a-230.7 (Effective 01/01/27), as last amended by Laws of Utah 2023, Chapters 310,
37  328
38  41-1a-301 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 234
39  41-1a-402 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
40  41-1a-410 (Effective 01/01/27), as last amended by Laws of Utah 2024, Chapter 251
41  41-1a-1202 (Effective 01/01/27), as renumbered and amended by Laws of Utah 1992,
42  Chapter 1
43  41-1a-1203 (Effective 01/01/27), as renumbered and amended by Laws of Utah 1992,
44  Chapter 1
45  41-1a-1204 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
46  41-1a-1207 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 234
47  41-1a-1209 (Effective 01/01/27), as last amended by Laws of Utah 2008, Chapter 210
48  41-1a-1219 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
49  41-1a-1221 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
50  41-1a-1222 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
51  41-1a-1223 (Effective 01/01/27), as last amended by Laws of Utah 2020, Chapter 83
52  41-1a-1301 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 302
53  41-1a-1603 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 247
54  41-3-302 (Effective 01/01/27), as last amended by Laws of Utah 2008, Chapter 382
55  41-6a-208 (Effective 01/01/27), as last amended by Laws of Utah 2019, Chapter 294
56  41-6a-1642 (Effective 01/01/27), as last amended by Laws of Utah 2025, First Special
57  Session, Chapter 5
58  41-12a-806 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 294
59  41-22-3 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
60  41-22-8 (Effective 01/01/27) (Partially Repealed 07/01/29), as last amended by Laws of
61  Utah 2025, Chapter 279
62  41-22-9 (Effective 01/01/27), as last amended by Laws of Utah 2008, Chapter 36
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63        41-22-19 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
64        41-22-33 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
65        41-22-34 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
66        41-27-201 (Effective 01/01/27), as enacted by Laws of Utah 2024, Chapter 459
67        53-3-905 (Effective 01/01/27), as last amended by Laws of Utah 2012, Chapter 397
68        53-8-214 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 271
69        53G-10-503 (Effective 01/01/27), as last amended by Laws of Utah 2024, Chapter 55
70        59-2-405.1 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
71        59-2-405.2 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapters 279,
72        336
73        59-12-103 [(Effective 07/01/26) ] (Effective 01/01/27), as last amended by Laws of Utah
74        2025, Chapter 285
75        72-1-213.1 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 452
76        72-1-213.2 (Effective 01/01/27), as last amended by Laws of Utah 2023, Chapters 22,
77        490
78        72-2-117.5 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 373
79        72-2-121 (Effective 01/01/27), as last amended by Laws of Utah 2025, First Special
80        Session, Chapter 17
81        72-2-124 [(Effective 07/01/26) ] (Effective 01/01/27), as last amended by Laws of Utah
82        2025, First Special Session, Chapter 15
83        72-2-133 (Effective 01/01/27), as last amended by Laws of Utah 2025, First Special
84        Session, Chapter 17
85        73-18-7 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 336
86        73-18-25.3 (Effective 01/01/27), as enacted by Laws of Utah 2023, Chapter 244
87     ENACTS:
88        41-1a-124 (Effective 01/01/27), Utah Code Annotated 1953
89     REPEALS AND REENACTS:
90        41-1a-1201 (Effective 01/01/27) (Partially Repealed 07/01/29), as last amended by Laws
91        of Utah 2025, Chapter 279
92        41-1a-1206 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapters 215,
93        279
94        41-1a-1211 (Effective 01/01/27), as last amended by Laws of Utah 2024, Chapter 251
95        41-1a-1218 (Effective 01/01/27), as last amended by Laws of Utah 2025, Chapter 279
96     REPEALS:
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 97  41-1a-123 (Effective 01/01/27), as enacted by Laws of Utah 2023, Chapter 212
 98  41-1a-1205 (Effective 01/01/27), as renumbered and amended by Laws of Utah 1992,
 99  Chapter 1
100  41-1a-1208 (Effective 01/01/27), as repealed and reenacted by Laws of Utah 1993,
101  Chapter 222
102  41-1a-1210 (Effective 01/01/27), as repealed and reenacted by Laws of Utah 1993,
103  Chapter 222
104  41-1a-1212 (Effective 01/01/27), as last amended by Laws of Utah 2023, Chapter 33
105
106     Be it enacted by the Legislature of the state of Utah:
107  Section 1. Section 26B-1-318 is amended to read:
108  26B-1-318 (Effective 01/01/27) (Repealed 07/01/29). Brain and Spinal Cord
109     Injury Fund.
110     (1) As used in this section:
111  (a) "Advisory committee" means the Brain and Spinal Cord Injury Advisory Committee
112  created in Section 26B-1-417.
113  (b) "Nervous system research" means research conducted by a qualified charitable clinic
114  that is:
115  (i) designed to improve, enhance, accelerate, or advance the clinical outcomes of:
116  (A) an individual affected by a spinal cord injury, a brain injury, or a stroke; or
117  (B) a child with a neurological condition or syndrome;
118  (ii) approved by an institutional review board; and
119  (iii) designed to be completed in a 12-month period.
120  (c) "Qualified charitable clinic" means a professional medical clinic that:
121  (i) provides therapeutic services;
122  (ii) employs licensed therapy clinicians;
123  (iii) has at least five years experience operating a post-acute care rehabilitation clinic
124  in the state; and
125  (iv) has obtained tax-exempt status under Internal Revenue Code, 26 U.S.C. Sec.
126  501(c)(3).
127  (d) "Research grant" means a grant that can only be used for nervous system research.
128  (e)(i) "Therapeutic services" means:
129  (A) rehabilitation services to individuals who have a spinal cord or brain injury
130  that tends to be non-progressive or non-deteriorating and require post-acute
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131  care; or
132  (B) rehabilitation services for children with neurological conditions and who
133  require post-acute care.
134  (ii) "Therapeutic services" include:
135  (A) physical, occupational, and speech therapy; and
136  (B) other services as determined by the department, in consultation with the
137  advisory committee, through rule made in accordance with Title 63G, Chapter
138  3, Utah Administrative Rulemaking Act.
139     (2) There is created an expendable special revenue fund known as the "Brain and Spinal
140  Cord Injury Fund."
141     (3) The fund shall consist of:
142  (a) gifts, grants, donations, or any other conveyance of money that may be made to the
143  fund from private sources; and
144  (b) additional amounts as appropriated by the Legislature;
145  (c) a portion of the impound fee as designated in Section 41-6a-1406; and
146  (d) the [fees] taxes and fees collected by the Motor Vehicle Division [under Subsections
147  41-1a-1201(8) and 41-22-8(3)] and deposited into the fund as described in Section
148  41-1a-1201 and Subsection 41-22-8(3).
149     (4) The fund shall be administered by the executive director, in consultation with the
150  advisory committee.
151     (5) Fund money may be used to:
152  (a) educate the general public and professionals regarding understanding, treatment, and
153  prevention of brain injury;
154  (b) provide access to evaluations and coordinate short-term care to assist an individual in
155  identifying services or support needs, resources, and benefits for which the individual
156  may be eligible;
157  (c) develop and support an information and referral system for persons with a brain
158  injury and their families;
159  (d) provide grants to persons or organizations to provide the services described in
160  Subsections (5)(a), (b), and (c);
161  (e) assist one or more qualified charitable clinics to provide therapeutic services;
162  (f) purchase equipment for use in the qualified charitable clinic; and
163  (g) provide research grants to qualified charitable clinics in accordance with Subsection
164  (7).
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165     (6) Each year, approximately no less than:
166  (a) 40% of the fund shall be used for programs and services described in Subsections
167  (5)(a) through (d);
168  (b) 25% of the fund shall be used to assist adults with brain or spinal cord injuries under
169  Subsections (5)(e) and (f); and
170  (c) 10 % of the fund shall be used to assist children with neurological conditions under
171  Subsections (5)(e) and (f).
172     (7)(a) Each year, if money remains in the fund after the money has been allocated in
173  accordance with Subsection (6), the advisory committee may award up to $100,000
174  in research grants divided among one or more qualified charitable clinics.
175  (b) A qualified charitable clinic that accepts a research grant shall agree to the
176  requirements in Subsection (7)(c) before receiving the grant.
177  (c) A qualified charitable clinic that accepts a research grant:
178  (i) shall report the results of the nervous system research to the advisory committee;
179  (ii) shall provide the committee an itemized list of expenditures for research grant
180  money;
181  (iii) shall return any unspent research grant money to the fund;
182  (iv) subject to Subsection (7)(c)(v), may collaborate with another entity for
183  performing the nervous system research;
184  (v) may not use research grant money to pay another entity to conduct the project; and
185  (vi) may not use research grant money to pay for administrative costs not directly
186  associated with the research project.
187     (8) An individual who receives services either paid for from the fund, or through an
188  organization under contract with the fund, shall:
189  (a) be a resident of Utah;
190  (b) have been diagnosed by a qualified professional as having a brain injury, spinal cord
191  injury, or other neurological condition which results in impairment of cognitive or
192  physical function; and
193  (c) have a need that can be met within the requirements of this section.
194     (9) The fund may not duplicate any services or support mechanisms being provided to an
195  individual by any other government or private agency.
196     (10) All actual and necessary operating expenses for the Brain and Spinal Cord Injury
197  Advisory Committee created in Section 26B-1-417 and staff shall be paid by the fund.
198  Section 2. Section 31A-6a-101 is amended to read:
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199  31A-6a-101 (Effective 01/01/27). Definitions.
200        As used in this chapter:
201     (1) "Home warranty service contract" means a service contract that requires a person to
202  repair or replace a component, system, or appliance of a home or make indemnification
203  to the contract holder for the repair or replacement of a component, system, or appliance
204  of the home:
205  (a) upon mechanical or operational failure of the component, system, or appliance;
206  (b) for a predetermined fee; and
207  (c) if:
208  (i) the person is not the builder, seller, or lessor of the home that is the subject of the
209  contract; and
210  (ii) the failure described in Subsection (1)(a) occurs within a specified period of time.
211     (2)(a) "Incidental cost" means a cost, incurred by a warranty holder in relation to a
212  vehicle protection product warranty, that is in addition to the cost of purchasing the
213  warranty.
214  (b) "Incidental cost" includes an insurance policy deductible, a rental vehicle charge, the
215  difference between the actual value of the stolen vehicle at the time of theft and the
216  cost of a replacement vehicle, sales tax, a [registration fee] vehicle tax or fee, a
217  transaction fee, a mechanical inspection fee, or damage a theft causes to a vehicle.
218     (3) "Mechanical breakdown insurance" means a policy, contract, or agreement issued by an
219  insurance company that has complied with either Chapter 5, Domestic Stock and Mutual
220  Insurance Corporations, or Chapter 14, Foreign Insurers, that undertakes to perform or
221  provide repair or replacement service on goods or property, or indemnification for repair
222  or replacement service, for the operational or structural failure of the goods or property
223  due to a defect in materials, workmanship, or normal wear and tear.
224     (4) "Nonmanufacturers' parts" means replacement parts not made for or by the original
225  manufacturer of the goods commonly referred to as "after market parts."
226     (5)(a) "Road hazard" means a hazard that is encountered while driving a motor vehicle.
227  (b) "Road hazard" includes potholes, rocks, wood debris, metal parts, glass, plastic,
228  curbs, or composite scraps.
229     (6)(a) "Service contract" means a contract or agreement to perform or reimburse for the
230  repair or maintenance of goods or property, for their operational or structural failure
231  due to a defect in materials, workmanship, normal wear and tear, power surge or
232  interruption, or accidental damage from handling, with or without additional
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233  provision for incidental payment of indemnity under limited circumstances, including
234  towing, providing a rental car, providing emergency road service, and covering food
235  spoilage.
236  (b) "Service contract" does not include:
237  (i) mechanical breakdown insurance; or
238  (ii) a prepaid contract of limited duration that provides for scheduled maintenance
239  only, regardless of whether the contract is executed before, on, or after May 9,
240  2017.
241  (c) "Service contract" includes any contract or agreement to perform or reimburse the
242  service contract holder for any one or more of the following services:
243  (i) the repair or replacement of tires, wheels, or both on a motor vehicle damaged as a
244  result of coming into contact with a road hazard;
245  (ii) the removal of dents, dings, or creases on a motor vehicle that can be repaired
246  using the process of paintless dent removal without affecting the existing paint
247  finish and without replacing vehicle body panels, sanding, bonding, or painting;
248  (iii) the repair of chips or cracks in or the replacement of a motor vehicle windshield
249  as a result of damage caused by a road hazard, that is primary to the coverage
250  offered by the motor vehicle owner's motor vehicle insurance policy; or
251  (iv) the replacement of a motor vehicle key or key-fob if the key or key-fob becomes
252  inoperable, lost, or stolen, except that the replacement of lost or stolen property is
253  limited to only the replacement of a lost or stolen motor vehicle key or key-fob.
254     (7) "Service contract holder" or "contract holder" means a person who purchases a service
255  contract.
256     (8) "Service contract provider" means a person who issues, makes, provides, administers,
257  sells or offers to sell a service contract, or who is contractually obligated to provide
258  service under a service contract.
259     (9) "Service contract reimbursement policy" or "reimbursement insurance policy" means a
260  policy of insurance providing coverage for all obligations and liabilities incurred by the
261  service contract provider or warrantor under the terms of the service contract or vehicle
262  protection product warranty issued by the provider or warrantor.
263     (10)(a) "Vehicle protection product" means a device or system that is:
264  (i) installed on or applied to a motor vehicle; and
265  (ii) designed to:
266  (A) prevent the theft of the vehicle; or
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267  (B) if the vehicle is stolen, aid in the recovery of the vehicle.
268  (b) "Vehicle protection product" includes:
269  (i) a vehicle protection product warranty;
270  (ii) an alarm system;
271  (iii) a body part marking product;
272  (iv) a steering lock;
273  (v) a window etch product;
274  (vi) a pedal and ignition lock;
275  (vii) a fuel and ignition kill switch; and
276  (viii) an electronic, radio, or satellite tracking device.
277     (11) "Vehicle protection product warranty" means a written agreement by a warrantor that
278  provides that if the vehicle protection product fails to prevent the theft of the motor
279  vehicle, or aid in the recovery of the motor vehicle within a time period specified in the
280  warranty, not exceeding 30 days after the day on which the motor vehicle is reported
281  stolen, the warrantor will reimburse the warranty holder for incidental costs specified in
282  the warranty, not exceeding $5,000, or in a specified fixed amount not exceeding $5,000.
283     (12) "Vehicle service contract" means a service contract for the repair or maintenance of a
284  vehicle:
285  (a) for operational or structural failure because of a defect in materials, workmanship,
286  normal wear and tear, or accidental damage from handling; and
287  (b) with or without additional provision for incidental payment of indemnity under
288  limited circumstances, including towing, providing a rental car, or providing
289  emergency road service.
290     (13) "Warrantor" means a person who is contractually obligated to the warranty holder
291  under the terms of a vehicle protection product warranty.
292     (14) "Warranty holder" means the person who purchases a vehicle protection product, any
293  authorized transferee or assignee of the purchaser, or any other person legally assuming
294  the purchaser's rights under the vehicle protection product warranty.
295  Section 3. Section 41-1a-119 is amended to read:
296  41-1a-119 (Effective 01/01/27). Emergency procedures for collection of fees.
297     (1) If the commission finds that the owner or operator of a vehicle who is liable for the
298  payment of any [registration ] vehicle tax or fee required by this chapter plans to depart
299  quickly from the state, to remove the owner or operator's property from the state, to
300  conceal the owner or operator's person or property, or do any other act tending to
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301  prejudice or render wholly or partially ineffectual proceedings to collect the [registration]
302  vehicle taxes or fees, the commission shall follow the emergency procedures set forth in
303  Title 63G, Chapter 4, Administrative Procedures Act, and declare that the [registration]
304  vehicle taxes or fees are immediately due and payable.
305     (2) When the commission issues [its] an emergency order, the [registration] vehicle taxes or
306  fees are immediately due and payable after notice is given to the owner or operator of
307  the vehicle.
308  Section 4. Section 41-1a-122 is amended to read:
309  41-1a-122 (Effective 01/01/27). License Plate Restricted Account.
310     (1) As used in this section, "account" means the License Plate Restricted Account created
311  by this section.
312     (2) There is created within the General Fund a restricted account known as the License
313  Plate Restricted Account.
314     (3)(a) The account shall be funded from the fees described in:
315  (i) [Subsection 41-1a-1201(3)] Section 41-1a-1201;
316  (ii) Subsection 41-1a-1604(2)(c); and
317  (iii) other fees as provided in this chapter.
318  (b) The fees described in Subsection (3)(a) shall be paid to the division, which shall
319  deposit them [in] into the account.
320     (4) The Legislature shall appropriate the funds in the account to the commission to cover
321  the costs of:
322  (a) issuing license plates and decals;
323  (b) processing applications for personalized license plates;
324  (c) centrally distributing license plates; and
325  (d) contracting with a vendor to design license plates.
326     (5)(a) For fiscal year 2024-25, the commission may expend up to $100,000 for design
327  and redesign of license plates.
328  (b) Beginning with the 2025-26 fiscal year, and each fiscal year thereafter, the
329  commission may expend up to $50,000 for the design and redesign of license plates.
330     (6) In accordance with Section 63J-1-602.1, appropriations made to the division from the
331  account are nonlapsing.
332  Section 5. Section 41-1a-124 is enacted to read:
333  41-1a-124 (Effective 01/01/27). Motor Vehicle Division Restricted Account --
334     Creation.
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335     (1) There is created within the General Fund a restricted account known as the Motor
336  Vehicle Division Restricted Account.
337     (2) The account shall be funded from the deposits into the account as described in Section
338  41-1a-1201.
339     (3) The Legislature may appropriate the funds in the account to the commission to cover the
340  costs of the division.
341     (4) In accordance with Section 63J-1-602.1, appropriations made to the commission from
342  the account are nonlapsing.
343  Section 6. Section 41-1a-203 is amended to read:
344  41-1a-203 (Effective 01/01/27). Prerequisites for registration, transfer of
345     ownership, or registration renewal.
346     (1)(a) Except as provided in Subsections (1)(b) and (1)(c), the division shall mail a
347  notification to the owner of a vehicle at least 30 days before the date the vehicle's
348  registration is due to expire.
349  (b)(i) The division shall provide a process for a vehicle owner to choose to receive
350  electronic notification of the pending expiration of a vehicle's registration.
351  (ii) If a vehicle owner chooses electronic notification, the division shall notify by
352  email the owner of a vehicle at least 30 days before the date the vehicle's
353  registration is due to expire.
354  (c) If at the time the owner renews the vehicle registration, the previous registration
355  period has been expired at least 270 days, the division is not required to comply with
356  the notification requirement described in Subsection (1)(a) for the next registration
357  period.
358  (d) An individual may elect to receive notification through both electronic means and
359  the mail.
360     (2) Except as otherwise provided, before registration of a vehicle, an owner shall:
361  (a) obtain an identification number inspection under Section 41-1a-204;
362  (b) obtain a certificate of emissions inspection, if required in the current year, as
363  provided under Section 41-6a-1642;
364  (c) pay property taxes, the in lieu fee, or receive a property tax clearance under Section
365  41-1a-206 or 41-1a-207;
366  (d) pay the automobile driver education tax required by Section 41-1a-208;
367  (e) pay the applicable [registration] vehicle tax or fee under Part 12, Fee and Tax
368  Requirements;
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369  (f) pay the uninsured motorist identification fee under Section 41-1a-1218, if applicable;
370  (g) pay the motor carrier fee under Section 41-1a-1219, if applicable;
371  (h) pay any applicable local emissions compliance fee under Section 41-1a-1223;
372  (i) pay the taxes applicable under Title 59, Chapter 12, Sales and Use Tax Act; and
373  (j) for a roadable aircraft, provide proof of registration of the roadable aircraft as an
374  aircraft under Section 72-10-109.
375     (3) In addition to the requirements in Subsection (1), an owner of a vehicle that has not
376  been previously registered or that is currently registered under a previous owner's name
377  shall apply for a valid certificate of title in the owner's name before registration.
378     (4) The division may not issue a new registration, transfer of ownership, or registration
379  renewal under Section 73-18-7 for a vessel or outboard motor that is subject to this
380  chapter unless a certificate of title has been or is in the process of being issued in the
381  same owner's name.
382     (5) The division may not issue a new registration, transfer of ownership, or registration
383  renewal under Section 41-22-3 for an off-highway vehicle that is subject to this chapter
384  unless a certificate of title has been or is in the process of being issued in the same
385  owner's name.
386     (6) The division may not issue a registration renewal for a motor vehicle if the division has
387  received a hold request for the motor vehicle for which a registration renewal has been
388  requested as described in:
389  (a) Section 72-1-213.1; or
390  (b) Section 72-6-118.
391  Section 7. Section 41-1a-208 is amended to read:
392  41-1a-208 (Effective 01/01/27). Payment of automobile driver education tax
393     prerequisite to registration of motor vehicle.
394     (1) The collection and payment of the automobile driver education tax is a prerequisite to
395  the registration of any motor vehicle.
396     (2) Except as provided under Subsection (3), the automobile driver education tax accrues
397  and is collectible upon each motor vehicle, subject to the same exemptions, and payable
398  in the same manner and time as [motor vehicle registration fees under Section
399  41-1a-1206] a vehicle tax described in Section 41-1a-1206.
400     (3) The automobile driver education tax:
401  (a) shall be paid in full at the time the motor vehicle is registered; and
402  (b) is not collectible or payable upon the transfers of registration, issuance, reissuance of
                                                       - 12 -
      02-25 17:18  1st Sub. (Buff) H.B. 505
403  certificates of registration, titles, or plates contemplated by Sections 41-1a-301,
404  41-1a-1207, [41-1a-1210, ]and 41-1a-1211.
405  Section 8. Section 41-1a-213 is amended to read:
406  41-1a-213 (Effective 01/01/27). Contents of registration cards.
407     (1) As used in this section:
408  (a) "Health care professional" means the same as that term is defined in Section 53-3-207.
409  (b) "Invisible condition" means the same as that term is defined in Section 53-3-207.
410  (c) "Invisible condition identification decal" means the decal created by the division that
411  incorporates the invisible condition identification symbol.
412  (d) "Invisible condition identification symbol" means the same as that term is defined in
413  Section 53-3-207.
414     (2) The registration card shall be delivered to the owner and shall contain:
415  (a) the date issued;
416  (b) the name of the owner;
417  (c) a description of the vehicle registered including the year, the make, the identification
418  number, and the license plate assigned to the vehicle;
419  (d) the expiration date; and
420  (e) other information as determined by the commission.
421     (3) If a vehicle is leased for a period in excess of 45 days, the registration shall contain:
422  (a) the owner's name; and
423  (b) the name of the lessee.
424     (4) On all vehicles registered under Subsections [41-1a-1206(1)(d) and (1)(e)]
425  41-1a-1206(3)(e) and (f), the registration card shall also contain the gross laden weight
426  as given in the application for registration.
427     (5)(a) Except as provided in Subsection (5)(b), a new registration card issued by the
428  commission on or after November 1, 2013, may not display the address of the owner
429  or the lessee on the registration card.
430  (b) A new registration card issued by the commission under one of the following
431  provisions shall display the address of the owner or the lessee on the registration
432  card:
433  (i) Section 41-1a-301 for a vehicle; or
434  (ii) Section 73-18-7 for a vessel.
435     (6)(a) Except as provided in Subsection (6)(d)(ii), the division shall include on a vehicle
436  owner's vehicle registration database record in the division's vehicle registration
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      1st Sub. (Buff) H.B. 505  02-25 17:18
437  database an invisible condition identification symbol if:
438  (i)(A) the vehicle owner or an individual who is a regular driver of or passenger in
439  the vehicle owner's vehicle has an invisible condition; or
440  (B) an individual with an invisible condition resides at the vehicle driver's
441  residence; and
442  (ii) the vehicle owner submits to the commission a request on a form prescribed by
443  the commission.
444  (b) A vehicle owner shall include in a request described in Subsection (6)(a):
445  (i) if the request is for an individual other than the vehicle owner, a declaration that
446  the individual is:
447  (A) a regular driver of or passenger in the vehicle; or
448  (B) a resident at the vehicle driver's residence;
449  (ii) written verification from a health care professional that the vehicle owner or other
450  individual described in Subsection (6)(a)(i) has an invisible condition; and
451  (iii) a waiver of liability signed by the individual with the invisible condition or the
452  individual's legal representative for the release of any medical information to:
453  (A) the commission;
454  (B) any person who has access to the individual's medical information as recorded
455  on the vehicle owner's vehicle registration database record or the Utah
456  Criminal Justice Information System; and
457  (C) any other person who may view or receive notice of the individual's medical
458  information by seeing the vehicle owner's vehicle registration database record
459  or the individual's information in the Utah Criminal Justice Information System.
460  (c) As part of the form described in Subsection (6)(a) and (b), the commission shall
461  advise the individual signing the waiver of liability that by submitting the signed
462  waiver, the individual consents to the release of the individual with an invisible
463  condition's medical information to any person described in Subsections (6)(b)(iii)(A)
464  through (C), even if the person is otherwise ineligible to access the individual with an
465  invisible condition's medical information under state or federal law.
466  (d)(i) The division:
467  (A) may not charge a fee to include an invisible condition identification symbol
468  on a vehicle owner's vehicle registration database record; and
469  (B) shall confirm with the Division of Professional Licensing that the health care
470  professional described in Subsection (6)(b)(ii) holds a current state license.
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      02-25 17:18  1st Sub. (Buff) H.B. 505
471  (ii) If the division is unable to confirm that the health care professional described in
472  Subsection (6)(b)(ii) holds a current state license, the division shall deny the
473  request described in Subsection (6)(a).
474  (e) The inclusion of an invisible condition identification symbol on a vehicle owner's
475  vehicle registration database record in accordance with this section does not confer
476  any legal rights or privileges on the vehicle owner or the individual with an invisible
477  condition, including parking privileges for individuals with disabilities under Section
478  41-1a-414.
479     (7)(a) For each individual who qualifies under this section to include an invisible
480  condition identification symbol in a vehicle owner's vehicle registration database
481  record, the division shall:
482  (i) include in the division's vehicle registration database a brief description of the
483  nature of the individual's invisible condition linked to the vehicle owner's vehicle
484  registration database record; and
485  (ii) provide an invisible condition identification decal that may be affixed to the
486  vehicle owner's vehicle, and instructions on where the invisible condition
487  identification decal may be placed on the vehicle, which the vehicle owner may
488  affix to the vehicle at the vehicle owner's discretion.
489  (b) The division shall provide the brief description described in Subsection (7)(a)(i) to
490  the Utah Criminal Justice Information System.
491  (c) Except as provided in Subsection (7)(b), the division may not release the information
492  described in Subsection (7)(a)(i).
493     (8) Within 30 days after the day on which the division receives a vehicle owner's written
494  request, the division shall:
495  (a) remove the invisible condition identification symbol and brief description described
496  in Subsection (7) from a vehicle owner's vehicle registration database record in the
497  division's vehicle registration database; and
498  (b) provide the updated vehicle registration database record to the Utah Criminal Justice
499  Information System.
500     (9) As provided in Section 63G-2-302, the information described in Subsection (6)(a) is a
501  private record for purposes of Title 63G, Chapter 2, Government Records Access and
502  Management Act.
503  Section 9. Section 41-1a-215 is amended to read:
504  41-1a-215 (Effective 01/01/27). Staggered registration dates -- Exceptions.
                                                      - 15 -
      1st Sub. (Buff) H.B. 505  02-25 17:18
505     (1)(a) Except as provided under Subsections (2) and (3), every vehicle registration,
506  every registration card, and every registration plate issued under this chapter for the
507  first registration of the vehicle in this state, continues in effect for a period of 12
508  months beginning with the first day of the calendar month of registration and does
509  not expire until the last day of the same month in the following year.
510  (b) If the last day of the registration period falls on a day in which the appropriate state
511  or county offices are not open for business, the registration of the vehicle is extended
512  to midnight of the next business day.
513     (2) The provisions of Subsection (1) do not apply to the following:
514  (a) registration issued to government vehicles under Section 41-1a-221;
515  (b) registration issued to apportioned vehicles under Section 41-1a-301;
516  (c) multiyear registration issued under Section 41-1a-222;
517  (d) lifetime trailer registration issued under Section 41-1a-1206;
518  (e) partial year registration issued under Section 41-1a-1207; or
519  [(f) a six-month registration issued under Section 41-1a-215.5; or]
520  [(g)] (f) plates issued to a dealer, dismantler, manufacturer, remanufacturer, and
521  transporter under Chapter 3, Part 5, Special Dealer License Plates.
522     (3)(a) Upon application of the owner or lessee of a fleet of commercial vehicles not
523  apportioned under Section 41-1a-301 and required to be registered in this state, the
524  State Tax Commission may permit the vehicles to be registered for a registration
525  period commencing on the first day of March, June, September, or December of any
526  year and expiring on the last day of March, June, September, or December in the
527  following year.
528  (b) Upon application of the owner or lessee of a fleet of commercial vehicles
529  apportioned under Section 41-1a-301 and required to be registered in this state, the
530  State Tax Commission may permit the vehicles to be registered for a registration
531  period commencing on the first day of January, April, July, or October of any year
532  and expiring on the last day of March, June, September, or December in the
533  following year.
534  (c)(i) Upon application of the owner or lessee of a fleet of personal vehicles required
535  to be registered in this state, the State Tax Commission may permit the vehicles to
536  be registered for a registration period commencing on the first day of February,
537  May, August, or November of any year and expiring on the last day of February,
538  May, August, or November of the following year.
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      02-25 17:18  1st Sub. (Buff) H.B. 505
539  (ii) If the registration period for a personal vehicle is adjusted under Subsection
540  (3)(c)(i), the [registration fees] vehicle taxes or fees for the adjustment are:
541  (A) 25% of the regular [registration fees] vehicle tax or fees under Part 12, Fee and
542  Tax Requirements, if the adjustment is for not more than three months;
543  (B) 50% of the regular [registration fees] vehicle tax or fees under Part 12, Fee and
544  Tax Requirements, if the adjustment is in excess of three months but not more
545  than six months;
546  (C) 75% of the regular [registration fees] vehicle tax or fees under Part 12, Fee and
547  Tax Requirements, if the adjustment is in excess of six months but not more
548  than nine months; and
549  (D) 100% of the regular [registration fees] vehicle tax or fees under Part 12, Fee
550  and Tax Requirements, if the adjustment is in excess of nine months but not
551  more than 12 months.
552     (4) When the expiration of a registration plate is extended by affixing a registration decal to
553  it, the expiration of the decal governs the expiration date of the plate.
554  Section 10. Section 41-1a-215.5 is amended to read:
555  41-1a-215.5 (Effective 01/01/27). Alternative term registration.
556     [(1) Subject to the requirements of this section, a person may register a motorcycle or motor
557  vehicle of 14,000 pounds or less gross laden weight for a six-month period that begins
558  on the first day of the calendar month of registration and expires on the last day of the
559  sixth month of registration.]
560     [(2)] (1)(a) A person may register the following types of vehicles for a 24-month period
561  that begins the first day of the calendar month of registration and expires on the last
562  day of the 24th month of registration:
563  (i) a trailer;
564  (ii) an electric motor vehicle;
565  (iii) an off-highway vehicle as described in Section 41-22-3; or
566  (iv) a street-legal all-terrain vehicle as described in Section 41-6a-1509 and Section
567  41-22-3.
568  (b) An interstate apportioned vehicle registered in accordance with Section 41-1a-301 is
569  not eligible for a 24-month registration.
570  (c) To register a vehicle for a 24-month period as provided in this Subsection [(2)] (1),
571  the person is required to pay double the amount of any tax or fee that would be due
572  for the same vehicle registered for a 12-month period.
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      1st Sub. (Buff) H.B. 505  02-25 17:18
573     [(3)] (2) If the last day of the registration period falls on a day in which the appropriate state
574  or county offices are not open for business, the registration of the vehicle is extended to
575  midnight of the next business day.
576     [(4)] (3) A registration under this section is subject to this chapter.
577  Section 11. Section 41-1a-216 is amended to read:
578  41-1a-216 (Effective 01/01/27). Renewal of registration.
579     (1) The division may receive applications for registration renewal and issue new
580  registration cards at any time [prior to] before the expiration of the registration, subject to
581  the availability of renewal materials.
582     (2)(a) Except as provided in [Subsections (2)(c) and] Subsection (3), the new registration
583  shall retain the same expiration month as recorded on the original registration even if
584  the registration has expired.
585  (b) [Except as provided in Subsection (2)(c), the] The year of registration expiration shall
586  be changed to reflect the renewed registration period.
587  [(c) If the application for renewal of registration is for a six-month registration period
588  under Section 41-1a-215.5, the new registration shall be for a six-month registration
589  period that begins with the first day of the calendar month following the last day of
590  the expiration month of the previous registration period as recorded on the original
591  registration even if the registration has expired.]
592     (3) Subsection (2) does not apply if the owner can verify to the satisfaction of the division
593  that the vehicle registration was not renewed [prior to its] before the vehicle registration's
594  expiration due to the fact that the vehicle was in storage, inoperable, or otherwise out of
595  service.
596     (4) If the registration renewal application is an application generated by the division
597  through its automated system, the owner need not surrender the last registration card or
598  duplicate.
599     (5) A vehicle with an "EX" or "UHP" license plate, owned by an entity described in Section
600  41-1a-407, is exempt from registration renewal requirements.
601     (6) The division shall establish a process by which an individual may request automatic
602  renewal of registration.
603     (7) An individual may request automatic renewal of registration as provided by the division.
604     (8) If the vehicle is subject to an emissions inspection as described in Section 41-6a-1642
605  for the year for which a vehicle automatic registration is requested, the automatic
606  renewal is not effective until the vehicle has passed an emissions inspection as required
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      02-25 17:18  1st Sub. (Buff) H.B. 505
607  in Section 41-6a-1642.
608     (9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
609  commission may make rules establishing procedures for an individual to apply for and
610  the division to administer automatic renewal of registration and automatic payment of
611  fees as required in this chapter and relevant taxes.
612  Section 12. Section 41-1a-230 is amended to read:
613  41-1a-230 (Effective 01/01/27). Registration checkoff for vision screening.
614     (1) A person who applies for a motor vehicle registration or registration renewal may
615  designate a voluntary contribution for vision screening of $2.
616     (2) This contribution shall be:
617  (a) collected by the division;
618  (b) treated as a voluntary contribution to Friends For Sight to provide blindness
619  prevention education, screening, and treatment and not as a [motor vehicle
620  registration fee] vehicle tax; and
621  (c) transferred to Friends For Sight at least monthly, less actual administrative costs
622  associated with collecting and transferring the contributions.
623  Section 13. Section 41-1a-230.5 is amended to read:
624  41-1a-230.5 (Effective 01/01/27). Registration checkoff for promoting and
625     supporting organ donation.
626     (1) A person who applies for a motor vehicle registration or registration renewal may
627  designate a voluntary contribution of $2 for the purpose of promoting and supporting
628  organ donation.
629     (2) This contribution shall be:
630  (a) collected by the division;
631  (b) treated as a voluntary contribution to the Allyson Gamble Organ Donation
632  Contribution Fund created in Section 26B-1-312 and not as a [motor vehicle
633  registration fee] vehicle tax; and
634  (c) transferred to the Allyson Gamble Organ Donation Contribution Fund created in
635  Section 26B-1-312 at least monthly, less actual administrative costs associated with
636  collecting and transferring the contributions.
637  Section 14. Section 41-1a-230.7 is amended to read:
638  41-1a-230.7 (Effective 01/01/27). Registration checkoff for supporting emergency
639     medical services and search and rescue operations.
640     (1) A person who applies for a motor vehicle registration or registration renewal may
                                                      - 19 -
      1st Sub. (Buff) H.B. 505  02-25 17:18
641  designate a voluntary contribution of $3 for the purpose of supporting:
642  (a) the Emergency Medical Services Grant Program; and
643  (b) the Search and Rescue Financial Assistance Program.
644     (2) This contribution shall be:
645  (a) collected by the division;
646  (b) treated as a voluntary contribution and not as a motor vehicle or off-highway vehicle [
647  registration fee] tax; and
648  (c) distributed equally to the Emergency Medical Services System Account created in
649  Section 53-2d-108 and the Search and Rescue Financial Assistance Program created
650  in Section 53-2a-1102 at least monthly, less actual administrative costs associated
651  with collecting and transferring the contributions.
652     (3) In addition to the administrative costs deducted under Subsection (2)(c), the division
653  may deduct the first $1,000 collected to cover costs incurred to change the registration
654  form.
655  Section 15. Section 41-1a-301 is amended to read:
656  41-1a-301 (Effective 01/01/27). Apportioned registration and licensing of
657     interstate vehicles.
658     (1) For purposes of this section, "registrant" means an owner or operator of one or more
659  commercial vehicles operating in two or more jurisdictions applying for apportioned
660  registration and licensing of a commercial vehicle.
661     (2)(a) An owner or operator of a fleet of commercial vehicles based in this state and
662  operating in two or more jurisdictions may register commercial vehicles for operation
663  under the International Registration Plan or the Uniform Vehicle Registration
664  Proration and Reciprocity Agreement by filing an application with the division.
665  (b) The application shall include information that identifies the vehicle owner, the
666  vehicle, the miles traveled in each jurisdiction, and other information pertinent to the
667  registration of apportioned vehicles.
668  (c) The division may not grant apportioned registration for vehicles operated exclusively
669  in this state.
670     (3)(a) If no operations were conducted during the preceding year, in computing fees due:
671  (i) the application shall contain a statement of the proposed operations; and
672  (ii) the division shall determine fees based on average per vehicle distance
673  requirements under the International Registration Plan.
674  (b) At renewal, the registrant shall use the actual mileage from the preceding year in
                                                        - 20 -
      02-25 17:18  1st Sub. (Buff) H.B. 505
675  computing fees due each jurisdiction.
676     (4) The division shall determine the [registration fee] vehicle tax and other fees for
677  apportioned vehicles as follows:
678  (a) divide the in-jurisdiction miles by the total miles generated during the preceding year;
679  (b) total the fees for each vehicle based on the taxes and fees prescribed in [Section
680  41-1a-1206] Part 12, Fee and Tax Requirements; and
681  (c) multiply the sum obtained under Subsection (4)(b) by the quotient obtained under
682  Subsection (4)(a).
683     (5) The registrant may list trailers or semitrailers of apportioned fleets separately as "trailer
684  fleets" on the application, with the fees paid according to the total distance those trailers
685  were towed in all jurisdictions during the preceding year mileage reporting period.
686     (6)(a)(i) When the registrant has paid the proper fees and cleared the property tax or
687  in lieu fee under Section 41-1a-206 or 41-1a-207, the division shall issue a
688  registration card and license plate for each unit listed on the application.
689  (ii) The owner or operator shall carry an original registration in each vehicle at all
690  times.
691  (b) The owner or operator may carry original registration cards for trailers or semitrailers
692  in the power unit.
693  (c)(i) In lieu of a permanent registration card or license plate, the division may issue
694  one temporary permit authorizing operation of new or unlicensed vehicles until
695  the permanent registration is completed.
696  (ii) Once a temporary permit is issued:
697  (A) neither the registrant nor the division may cancel the registration process; and
698  (B) the division shall complete registration and the registrant shall pay the [fees]
699  taxes, fees, and any property tax or in lieu fee due for the vehicle for which the
700  permit was issued.
701  (iii) The division may not issue temporary permits for renewals.
702  (d)(i) The division shall issue one distinctive license plate for apportioned vehicles.
703  (ii) The owner or operator shall display the plate on the front of an apportioned truck
704  tractor or power unit or on the rear of any other apportioned vehicle.
705  (iii)(A) The division shall issue distinctive decals or a distinctive license plate
706  displaying the word "apportioned" or the abbreviation "APP" for each
707  apportioned vehicle.
708  (B) A registrant of an apportioned vehicle is not required to display a registration
                                                       - 21 -
      1st Sub. (Buff) H.B. 505  02-25 17:18
709  decal.
710  (iv) At the request of a registrant of an apportioned vehicle, the division may issue a
711  second license plate, for a total of two, to display on both the front and rear of the
712  apportioned vehicle.
713  (e) The division shall charge a nonrefundable administrative fee, determined by the
714  commission [pursuant to] in accordance with Section 63J-1-504, for each temporary
715  permit, registration, or both.
716     (7) Vehicles that are apportionally registered are fully registered for intrastate and interstate
717  movements, providing the registrant has secured proper interstate and intrastate
718  authority.
719     (8)(a) The division shall register vehicles added to an apportioned fleet after the
720  beginning of the registration year by applying the quotient under Subsection (4)(a)
721  for the original application to the fees due for the remainder of the registration year.
722  (b)(i) The owner shall maintain and submit complete annual mileage for each vehicle
723  in each jurisdiction, showing all miles operated by the lessor and lessee.
724  (ii) The fiscal mileage reporting period begins July 1, and continues through June 30
725  of the year immediately preceding the calendar year in which the registration year
726  begins.
727  (c)(i) An owner-operator, who is a lessor, may register the vehicle in the name of the
728  owner-operator.
729  (ii) The identification plates and registration card shall be the property of the lessor
730  and may reflect both the owner-operator's name and that of the carrier as lessee.
731  (iii) The division shall allocate the fees according to the operational records of the
732  owner-operator.
733  (d)(i) At the option of the lessor, the lessee may register a leased vehicle.
734  (ii) If a lessee is the registrant of a leased vehicle, both the lessor's and lessee's name
735  shall appear on the registration.
736  (iii) The division shall allocate the fees according to the records of the carrier.
737     (9)(a) When the division has accepted an application for apportioned registration, the
738  registrant shall preserve the records on which the application is based for a period of
739  three years after the close of the registration year.
740  (b) Upon request for audit as to accuracy of computations, payments, and assessments
741  for deficiencies, or allowances for credits, the registrant shall provide the records to
742  the division.
                                                         - 22 -
      02-25 17:18  1st Sub. (Buff) H.B. 505
743  (c) The division may not make an assessment for deficiency or claim for credit for any
744  period for which records are no longer required.
745  (d) The division may assess interest in the amount prescribed by Section 59-1-402 from
746  the date due until paid on deficiencies found due after audit.
747  (e) Registrants with deficiencies are subject to the penalties under Section 59-1-401.
748  (f) The division may enter into agreements with other International Registration Plan
749  jurisdictions for joint audits.
750     (10)(a) Except as provided in Subsection (10)(b), the division shall deposit all state taxes
751  or fees collected under this section [in] into the Transportation Fund.
752  (b) The commission may use the following fees as a dedicated credit to cover the costs
753  of electronic credentialing as provided in Section 41-1a-303:
754  (i) $5 of each temporary registration permit [fee] tax or fee paid under Subsection
755  (13)(a)(i) for a single unit; and
756  (ii) $10 of each temporary registration permit [fee] tax or fee paid under Subsection
757  (13)(a)(ii) for multiple units.
758     (11) If registration is for less than a full year, the division shall assess fees for apportioned
759  registration according to Section 41-1a-1207.
760  (a)(i) If the registrant is replacing a vehicle for one withdrawn from the fleet and the
761  new vehicle is of the same weight category as the replaced vehicle, the registrant
762  shall file a supplemental application.
763  (ii) If the registrant is replacing a vehicle for one withdrawn from the fleet and the
764  new vehicle is heavier than the replaced vehicle, the division shall assess
765  additional [registration fees] vehicle taxes or other fees described in Part 12, Fee
766  and Tax Requirements.
767  (iii) If the registrant is replacing a vehicle for one withdrawn from the fleet, the
768  division shall issue a new registration card.
769  (b) If a vehicle is withdrawn from an apportioned fleet during the period for which it is
770  registered, the registrant shall notify the division and surrender the registration card
771  and license plate of the withdrawn vehicle.
772     (12)(a) An out-of-state carrier with an apportionally registered vehicle who has not
773  presented a certificate of property tax or in lieu fee as required by Section 41-1a-206
774  or 41-1a-207, shall pay, at the time of registration, a proportional part of an equalized
775  highway use tax computed as follows:
776  (i) Multiply the number of vehicles or combination vehicles registered in each weight
                                                         - 23 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
777  class by the equivalent tax figure from the following tables:
 778      Vehicle or Combination Regis-
          tered Weight  Age of Vehicle  Equivalent Tax
 779      14,000 pounds or less  12 or more years  $10
 780      14,000 pounds or less  9 or more years but less than 12 years  $50
 781      14,000 pounds or less  6 or more years but less than 9 years  $80
 782      14,000 pounds or less  3 or more years but less than 6 years  $110
 783      14,000 pounds or less  Less than 3 years  $150
 784  Vehicle or Combination Registered  Equivalent
                                           Weight  Tax
 785  14,001 - 18,000 pounds  $150
 786  18,001 - 34,000 pounds  200
 787  34,001 - 48,000 pounds  300
 788  48,001 - 64,000 pounds  450
 789  64,001 pounds and over  600
790  (ii) Multiply the equivalent tax value for the total fleet determined under Subsection
791  (12)(a)(i) by the fraction computed under Subsection (4) for the apportioned fleet
792  for the registration year.
793  (b) For registration described in Subsection (12)(a), the division shall assess fees as
794  provided in Section 41-1a-1207.
795      (13)(a) Commercial vehicles meeting the registration requirements of another
796  jurisdiction may, as an alternative to full or apportioned registration, secure a
797  temporary registration permit for a period not to exceed 96 hours or until they leave
798  the state, whichever is less, for a fee of:
799  (i) $25 for a single unit; and
800  (ii) $50 for multiple units.
801  (b) A state temporary permit or [registration fee] vehicle tax is not required from
802  nonresident owners or operators of vehicles or combination of vehicles having a
803  gross laden weight of 26,000 pounds or less for each single unit or combination.
804      (14) The division may not register a park model recreational vehicle under this section.
805      (15) A violation of this section is an infraction.
                                                           - 24 -
      02-25 17:18  1st Sub. (Buff) H.B. 505
806  Section 16. Section 41-1a-402 is amended to read:
807  41-1a-402 (Effective 01/01/27). Standard license plates -- Required colors,
808     numerals, and letters -- Expiration.
809     (1)(a) Upon registering a vehicle, the division shall issue to the owner a standard license
810  plate described in Subsection (1)(b) unless the division issues to the owner:
811  (i) a special group license plate in accordance with Section 41-1a-418; or
812  (ii) an apportioned vehicle license plate in accordance with Section 41-1a-301.
813  (b) The division may offer up to four standard license plate options at one time, each
814  with a different design as follows:
815  (i) two designs that incorporate one or more elements that represent the state's
816  economy or geography;
817  (ii) one design that represents the state's values or culture; and
818  (iii) one design that commemorates a current event relevant to the state or a
819  significant anniversary of a historic event relevant to the state.
820  (c) The division shall offer:
821  (i) each design described in Subsection (1)(b)(i) or (ii) for at least a 10-year period;
822  and
823  (ii) each design described in Subsection (1)(b)(iii) for no more than a five-year period.
824  (d) The division may not offer more than four standard license plate designs at any one
825  time.
826     (2) Before the division may offer a design described in Subsection (1)(b), the division shall:
827  (a) consult with the Utah Department of Cultural and Community Engagement regarding
828  the proposed design;
829  (b) identify which current standard license plate design will be replaced by the proposed
830  design; and
831  (c) submit the proposed design to the commission.
832     (3)(a) If the commission receives a submission for a proposed design of a standard
833  license plate as described in Subsection (2)(c), or a sponsored special group license
834  plate as described in Section 41-1a-419 and Part 16, Sponsored Special Group
835  License Plates, the commission shall notify:
836  (i) the governor;
837  (ii) the speaker of the House of Representatives; and
838  (iii) the president of the Senate.
839  (b) After receiving a notification described in Subsection (3)(a):
                                                      - 25 -
      1st Sub. (Buff) H.B. 505  02-25 17:18
840  (i) the governor shall appoint an individual to the license plate design review board
841  described in Subsection (3)(c);
842  (ii) the speaker of the House of Representatives shall appoint a member of the House
843  of Representatives to the license plate design review board described in
844  Subsection (3)(c); and
845  (iii) the president of the Senate shall appoint a member of the Senate to the license
846  plate design review board described in Subsection (3)(c).
847  (c)(i) The license plate design review board, comprised of the members appointed as
848  described in Subsection (3)(b), shall review proposed license plate designs.
849  (ii) The member of the license plate design review board appointed by the governor
850  shall serve as chair and convene the license plate design review board.
851  (iii) The license plate design review board shall:
852  (A) review each proposed license plate design; and
853  (B) vote whether to approve or reject the proposed license plate design.
854  (iv) If all three members of the license plate design review board are not present, the
855  license plate design review board may not consider or vote on a proposed license
856  plate design.
857  (v) The license plate design review board shall notify the commission and the
858  division regarding the results of the vote to approve each proposed license plate
859  design.
860  (d) The license plate design review board is not subject to Title 52, Chapter 4, Open and
861  Public Meetings Act.
862  (e) If the license plate design review board approves a proposed license plate design, the
863  division may begin the processes necessary for production and distribution of the
864  license plate.
865     (4)(a) Except as provided in Subsection (4)(b), the division may not order or produce a
866  standard license plate that is discontinued under this section.
867  (b) The division may issue a discontinued standard license plate until the division
868  exhausts the discontinued standard license plate's remaining stock.
869     (5)(a) Each license plate shall have displayed on it:
870  (i) the registration number assigned to the vehicle for which the license plate is issued;
871  (ii) the name of the state; and
872  (iii) unless exempted by Section 41-1a-301 or 41-1a-407, a registration decal
873  showing the date of expiration displayed in accordance with Subsection (8).
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      02-25 17:18  1st Sub. (Buff) H.B. 505
874  (b) [No later than July 1, 2025, each] Each license plate:
875  (i) shall have an embossed edge around the perimeter of the plate; and
876  (ii) may not have embossed registration numbers or characters.
877     (6) If registration is extended by affixing a registration decal to the license plate, the
878  expiration date of the registration decal governs the expiration date of the license plate.
879     (7)(a)(i) Except as provided under Subsection (7)(b), Subsection 41-1a-215(2), [
880  Subsection 41-1a-215.5(2)] Section 41-1a-215.5, and Section 41-1a-216, a license
881  plate shall be renewed annually.
882  (ii)(A) The division shall issue the vehicle owner a month registration decal and a
883  year registration decal upon the vehicle's first registration with the division.
884  (B) The division shall issue the vehicle owner only a year registration decal upon
885  subsequent renewals of registration to validate registration renewal.
886  (b) [Beginning on January 1, 2025, the] The division shall issue one registration decal
887  displaying both the month and year.
888  [(c) For a vehicle registered for a 24-month period as provided in Section 41-1a-215.5,
889  the division may issue two 12-month decals for the 24-month registration period.]
890     (8)(a) Except as otherwise provided in Subsection (8)(b) and by rule:
891  (i) the month registration decal issued in accordance with Subsection (7) shall be
892  displayed on the license plate in the left position; and
893  (ii) the year registration decal issued in accordance with Subsection (7) shall be
894  displayed on the license plate in the right position.
895  (b) [Beginning on January 1, 2025, the] The registration decal shall be displayed on the
896  upper right position on the license plate.
897     (9) The current year registration decal issued in accordance with Subsection (7) shall be
898  placed over or in place of the previous year registration decal.
899     (10) If a license plate or registration decal is lost or destroyed, a replacement shall be issued
900  upon application and payment of the fees required under Section 41-1a-1211[ or
901  41-1a-1212].
902     (11)(a) A violation of this section is an infraction.
903  (b) A court shall waive a fine for a violation under this section if:
904  (i) the registration for the vehicle was current at the time of the citation; and
905  (ii) the person to whom the citation was issued provides, within 21 business days,
906  evidence that the license plate and registration decal are properly displayed in
907  compliance with this section.
                                                       - 27 -
      1st Sub. (Buff) H.B. 505  02-25 17:18
908     (12) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
909  division may make rules regarding the placement and positioning of registration decal
910  on a license plate issued by the division.
911  Section 17. Section 41-1a-410 is amended to read:
912  41-1a-410 (Effective 01/01/27). Eligibility for personalized plates.
913     (1) A person who is the registered owner of a vehicle not subject to registration under
914  Section 41-1a-301, registered with the division, or who applies for an original
915  registration of a vehicle not subject to registration under Section 41-1a-301, may upon
916  payment of the [fee] vehicle taxes and fees prescribed in Section 41-1a-1211 apply to the
917  division for a personalized license plate.
918     (2) Application shall be made in accordance with Section 41-1a-411.
919     (3) The personalized license plate shall be affixed to the vehicle for which registration is
920  sought in lieu of the regular license plate.
921     (4) A personalized license plate shall be issued only to the registered owner of the vehicle
922  on which they are to be displayed.
923  Section 18. Section 41-1a-1201 is repealed and reenacted to read:
924  41-1a-1201 (Effective 01/01/27) (Partially Repealed 07/01/29). Disposition of
925     taxes and fees.
926     (1) All taxes and fees collected under this part shall be transmitted daily to the state
927  treasurer.
928     (2)(a) Except as otherwise provided in this section, the vehicle weight tax shall be
929  deposited into the Transportation Fund.
930  (b) The following amounts of the vehicle weight tax shall be deposited into the
931  Transportation Investment Fund of 2005 created in Section 72-2-124:
932  (i) $30 of the vehicle weight taxes imposed under Subsections 41-1a-1206(3)(a),
933  (3)(b), (3)(d), (3)(g), (3)(h), (3)(i), (3)(k), and (3)(m);
934  (ii) $21 of the vehicle weight taxes on a trailer imposed under Subsections
935  41-1a-1206(3)(c)(i) and (3)(c)(ii);
936  (iii) $23 of the vehicle weight tax on a farm truck with a gross combined weight
937  rating over 14,000 pounds but below 16,000 pounds, imposed under Subsection
938  41-1a-1206(3)(e)(i);
939  (iv) $1 of the vehicle weight tax on a farm truck for each 2,000 pounds over 16,000
940  pounds gross combined weight rating, imposed under Subsection
941  41-1a-1206(3)(e)(ii);
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      02-25 17:18  1st Sub. (Buff) H.B. 505
942  (v) $24.50 of vehicle weight tax on a vehicle, excluding a farm truck, with a gross
943  combined weight rating over 14,000 pounds but below 16,000 pounds, imposed
944  under Subsection 41-1a-1206(3)(f)(i);
945  (vi) $2.50 of the vehicle weight tax for each 2,000 pounds over 16,000 pounds of the
946  vehicle's gross combined weight rating imposed under Subsection
947  41-1a-1206(3)(f)(ii); and
948  (vii) $17 of the vehicle weight tax for a roadable aircraft imposed under Subsection
949  41-1a-1206(3)(l).
950  (c) Fifty cents of each vehicle weight tax imposed under Subsection 41-1a-1206(3)(b)
951  for a motorcycle shall be deposited into the Brain and Spinal Cord Injury Fund
952  created in Section 26B-1-318.
953  (d)(i) Subject to Subsection (2)(d)(ii), $4.30 from the vehicle weight tax for each
954  vehicle registered shall be deposited into the Rural Transportation Infrastructure
955  Fund created in Section 72-2-133.
956  (ii) Beginning on January 1, 2028, and each January 1 thereafter, the amount
957  described in Subsection (2)(d)(i) shall be annually adjusted by taking the amount
958  deposited the previous year and adding an amount equal to the greater of:
959  (A) an amount calculated by multiplying the amount deposited by the previous
960  year by the actual percentage change during the previous fiscal year in the
961  Consumer Price Index; and
962  (B) 0.
963  (iii) The amounts calculated as described in Subsection (2)(d)(ii) shall be rounded up
964  to the nearest 1 cent.
965  (e) Ninety-four cents from each vehicle weight tax imposed under Subsections
966  41-1a-1206(3)(a) and (3)(b) shall be deposited into the Public Safety Restricted
967  Account created in Section 53-3-106.
968  (f) One dollar from each vehicle weight tax described in Subsections 41-1a-1206(3)(a)
969  and (3)(b) shall be deposited into the Motor Vehicle Safety Impact Restricted
970  Account created in Section 53-8-214.
971     (3)(a) The following amounts from the following fees shall be deposited into the
972  Transportation Fund:
973  (i) $1 from the service fee for the issuance of a new license plate described in
974  Subsection 41-1a-1211(2)(a);
975  (ii) $1 from the service fee for the replacement of a license plate described in
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       1st Sub. (Buff) H.B. 505  02-25 17:18
 976  Subsection 41-1a-1211(2)(b);
 977  (iii) $50 from the personalized license plate application fee described in Subsection
 978  41-1a-1211(c)(i);
 979  (iv) $10 from the personalized license plate renewal fee described in Subsection
 980  41-1a-1211(c)(ii);
 981  (v) $5 from the specialized license plate additional fee described in Subsection
 982  41-1a-1211(d);
 983  (vi) $4 from the duplicate registration fee described in Subsection 41-1a-1211(2)(h);
 984  and
 985  (vii) $6 from the original or duplicate title fee described in Subsection
 986  41-1a-1211(2)(i).
 987  (b) The following amounts from the following fees shall be deposited into the Motor
 988  Vehicle Safety Impact Restricted Account created in Section 53-8-214:
 989  (i) $1 from the service fee for the issuance of a new license plate described in
 990  Subsection 41-1a-1211(2)(a); and
 991  (ii) $1 from the service fee for the replacement of a license plate described in
 992  Subsection 41-1a-1211(2)(b).
 993     (4) The following shall be deposited into the following accounts within the General Fund:
 994  (a) the vehicle regulatory fee described in Subsection 41-1a-1211(5) shall be deposited
 995  into the Motor Vehicle Division Restricted Account created in Section 41-1a-124; and
 996  (b) the revenue from the automobile driver education tax described in Section
 997  41-1a-1204 as a dedicated credit into the Automobile Driver Education Tax Account.
 998     (5) Except as provided in Subsection (3), the license plate service fees described in
 999  Subsections 41-1a-1211(2)(a) through (g) shall be deposited into the License Plate
1000  Restricted Account created in Section 41-1a-122.
1001     (6) The uninsured motorist identification regulatory fee described in Section 41-1a-1218
1002  shall be deposited into the Uninsured Motorist Identification Restricted Account created
1003  in Section 41-12a-806.
1004     (7) The local emissions compliance tax as described in Section 41-1a-1223 shall be
1005  transferred to the county that imposed the tax.
1006  Section 19. Section 41-1a-1202 is amended to read:
1007  41-1a-1202 (Effective 01/01/27). Refused or rejected application -- Refunds.
1008        If an application to the division is accompanied by any taxes and fees required by law
1009     and the application is refused or rejected, the taxes and fees shall be returned immediately to
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       02-25 17:18  1st Sub. (Buff) H.B. 505
1010     the applicant.
1011  Section 20. Section 41-1a-1203 is amended to read:
1012  41-1a-1203 (Effective 01/01/27). Application for refund.
1013        If the division through error collects any tax or fee not required to be paid, the tax or fee
1014     shall be refunded to the person paying the tax or fee upon written application for a refund
1015     made within six months after date of the payment.
1016  Section 21. Section 41-1a-1204 is amended to read:
1017  41-1a-1204 (Effective 01/01/27). Automobile driver education tax -- Amount --
1018     When paid -- Exception.
1019     (1) Each year there is levied and shall be paid to the commission the automobile driver
1020  education [fee] tax as part of the vehicle tax described in Subsection 41-1a-1206(2).
1021     (2)(a) Except as provided in Subsections (2)(b) and (c), the [fee] tax is $2.50 upon each
1022  motor vehicle to be registered for a one-year registration period.
1023  [(b) The fee is $2.00 upon each motor vehicle to be registered under Section 41-1a-215.5
1024  for a six-month registration period.]
1025  (b) The tax is $5.00 for a vehicle registered for a 24-month registration period as
1026  described in Section 41-1a-215.5.
1027  (c) The following registrations are exempt from the [fee] tax in Subsection (2)(a) or (b):
1028  (i) a motorcycle registration; and
1029  (ii) a registration of a vehicle with a Purple Heart special group license plate issued:
1030  (A) on or before December 31, 2023; or
1031  (B) in accordance with Part 16, Sponsored Special Group License Plates.
1032     (3) The necessary expenses of the commission incurred in the administration and collection
1033  of the tax shall be paid from the commission's legislative appropriation into the General
1034  Fund, which fund shall be reimbursed by a transfer for the expenses from the legislative
1035  appropriation of the Uniform School Fund.
1036     [(3) For a vehicle registered for a 24-month period as provided in Section 41-1a-215.5, the
1037  fee amounts are double the amounts due for a 12-month registration of the same vehicle.]
1038  Section 22. Section 41-1a-1206 is repealed and reenacted to read:
1039  41-1a-1206 (Effective 01/01/27). Vehicle Tax -- Taxed by weight -- Exemptions.
1040     (1)(a) There is imposed on each vehicle registered in the state a vehicle tax.
1041  (b) An applicant for vehicle registration or renewal of vehicle registration shall pay the
1042  vehicle tax to the division at the time of the application.
1043  (c)(i) Vehicle weight tax categories under this section are based on the gross
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       1st Sub. (Buff) H.B. 505  02-25 17:18
1044  combined weight rating declared in the application for registration.
1045  (ii)(A) Gross combined weight rating is computed in units of 2,000 pounds.
1046  (B) For purposes of computing gross combined weight rating under Subsection
1047  (1)(c)(i)(A), a fractional part of 2,000 pounds is a full unit.
1048     (2) The vehicle tax includes the following taxes:
1049  (a) subject to Subsection (6), the vehicle weight tax described in Subsection (3);
1050  (b) the automobile driver education tax described in Section 41-1a-1204;
1051  (c) a local option highway construction and transportation corridor preservation tax, if
1052  imposed in accordance with Section 41-1a-1222; and
1053  (d) a local emissions compliance tax, if imposed in accordance with Section 41-1a-1223.
1054     (3)(a) The vehicle weight tax for a motor vehicle with a gross laden weight of 14,000
1055  pounds or less, excluding a motorcycle, is $61.
1056  (b) The vehicle weight tax for a motorcycle is $64.25.
1057  (c) Unless a trailer is exempt from registration as described in Section 41-1a-202 or
1058  registered as described in Section 41-1a-228 or 41-1a-301, the vehicle weight tax for
1059  a trailer is:
1060  (i) $44.25 for each trailer with a shipping weight over 750 pounds; or
1061  (ii) $40.25 for each commercial trailer with a shipping weight of 750 pounds or less.
1062  (d) The vehicle weight tax for a trailer registered in accordance with Section 41-1a-228
1063  is $177.
1064  (e) The vehicle weight tax for a farm truck with a gross combined weight rating over
1065  14,000 pounds but below 16,000 pounds is:
1066  (i) $73.50; plus
1067  (ii) $9 for each 2,000 pounds over 16,000 pounds gross combined weight rating.
1068  (f) The vehicle weight tax for a motor vehicle or combination of vehicles, excluding a
1069  farm truck, with a gross combined weight rating over 14,000 pounds but below
1070  16,000 pounds is:
1071  (i) $95.50; plus
1072  (ii) $19 for each 2,000 pounds over 16,000 pounds gross combined weight rating.
1073  (g) The vehicle weight tax for a park model recreational vehicle with a gross combined
1074  weight rating over 14,000 pounds but below 16,000 pounds is:
1075  (i) $95.50; plus
1076  (ii) $19 for each 2,000 pounds over 16,000 pounds gross combined weight rating.
1077  (h) The vehicle weight tax for an electric motor vehicle is:
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       02-25 17:18  1st Sub. (Buff) H.B. 505
1078  (i) the amount described in Subsection (3)(a); plus
1079  (ii) an amount equal to the road usage charge cap described in Section 72-1-213.1.
1080  (i) The vehicle weight tax for a motor vehicle that is fueled exclusively by a source other
1081  than motor fuel, diesel fuel, natural gas, or propane, is:
1082  (i) the amount described in Subsection (3)(a); plus
1083  (ii) an amount equal to the road usage charge cap described in Section 72-1-213.1.
1084  (j) The vehicle weight tax for a hybrid electric motor vehicle is:
1085  (i) the amount described in Subsection (3)(a); plus
1086  (ii) $25.75.
1087  (k) The vehicle weight tax for a plug-in hybrid electric motor vehicle is:
1088  (i) the amount described in Subsection (3)(a); plus
1089  (ii) $65.75.
1090  (l) The vehicle weight tax for a roadable aircraft is $23.75.
1091  (m)(i) The vehicle weight tax for a vintage vehicle with a model year of 1983 or
1092  newer is $63.
1093  (ii) The vehicle weight tax for a vintage vehicle with a model year of 1982 or older,
1094  the first time the vehicle is registered, is $55.75.
1095  (iii) A vintage vehicle with a model year of 1982 or older is exempt from the vehicle
1096  weight tax at the time of registration renewal.
1097  (n) A street legal all-terrain vehicle:
1098  (i) is not subject to a vehicle weight tax under this section; and
1099  (ii) is required to pay a vehicle tax as provided in Section 41-22-9.
1100     (4) The vehicle weight tax for vehicle registered for a 24-month period as provided in
1101  Section 41-1a-215.5 is double the amount due for the same vehicle if registered for a
1102  12-month registration period.
1103     (5)(a) A vehicle with a Purple Heart special group license plate issued on or before
1104  December 31, 2023, or issued in accordance with Part 16, Sponsored Special Group
1105  License Plates, is exempt from the vehicle weight taxes described in Subsection (3).
1106  (b) A camper is exempt from the vehicle weight taxes described in Subsection (3).
1107  (c) A vehicle used exclusively to pump cement, bore wells, or perform crane services
1108  with a crane lift capacity of five or more tons, are exempt from 50% of the amount of
1109  the vehicle weight tax required for that vehicle under this section.
1110     (6) Beginning on January 1, 2028, the commission shall, on January 1, annually adjust the
1111  registration fees described in Subsections (3)(a), (3)(b), (3)(c), (3)(d), (3)(e)(i), (3)(f)(i),
                                                         - 33 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1112  (3)(g)(i), (3)(l), and (3)(m), by taking the registration fee rate for the previous year and
1113  adding an amount equal to the greater of:
1114  (a) an amount calculated by multiplying the registration fee of the previous year by the
1115  actual percentage change during the previous fiscal year in the Consumer Price
1116  Index; and
1117  (b) 0.
1118     (7)(a) Except as provided in Section 41-6a-1642, a truck may not be registered as a farm
1119  truck unless:
1120  (i) the truck meets the definition of a farm truck under Section 41-1a-102; and
1121  (ii)(A) the truck has a gross vehicle weight rating of more than 14,000 pounds; or
1122  (B) the truck has a gross vehicle weight rating of 14,000 pounds or less and the
1123  owner submits to the division a certificate of emissions inspection or a waiver
1124  in compliance with Section 41-6a-1642.
1125  (b) A violation of Subsection (7)(a) is an infraction that shall be punished by a fine of
1126  not less than $200.
1127  Section 23. Section 41-1a-1207 is amended to read:
1128  41-1a-1207 (Effective 01/01/27). Reduced fees for portion of year.
1129        If a motor vehicle exceeding 14,000 pounds gross laden weight is registered for less than
1130     a 12-month registration period, the [registration fees] vehicle taxes and fees are:
1131     (1) for not more than three months, 30% of the regular [registration fee] vehicle taxes or fees
1132  under this part;
1133     (2) for in excess of three months but not more than six months, 60% of the regular [
1134  registration fee] vehicle taxes or fees under this part;
1135     (3) for in excess of six months and not more than nine months, 90% of the regular [
1136  registration fee] vehicle taxes or fees under this part; and
1137     (4) for anything in excess of nine months but not more than 12 months, the entire [
1138  registration fee] vehicle taxes or fees under this part.
1139  Section 24. Section 41-1a-1209 is amended to read:
1140  41-1a-1209 (Effective 01/01/27). Exemptions from registration fees.
1141     (1) A vehicle tax or fee may not be charged for the registration of ambulances, law
1142  enforcement vehicles, fire engines, and passenger cars and trucks owned and used by the
1143  United States government or by the state of Utah or any of its political subdivisions.
1144     (2) A vehicle tax or fee may not be charged municipal corporations for the issuance of any
1145  certificate of title or registration or a duplicate certificate of title or registration.
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       02-25 17:18  1st Sub. (Buff) H.B. 505
1146  Section 25. Section 41-1a-1211 is repealed and reenacted to read:
1147  41-1a-1211 (Effective 01/01/27). Vehicle, license plate, and registration related
1148     service fees -- Vehicle regulatory fee.
1149     (1)(a) In accordance with Section 63J-1-504, the commission shall establish service fees
1150  as described in this section.
1151  (b) An applicant for vehicle registration or renewal of vehicle registration shall pay the
1152  service fees described in this section to the division at the time of the application for
1153  registration.
1154  (c) The commission shall annually establish and publish a fee schedule for service fees.
1155     (2) The commission shall establish the following service fees:
1156  (a) a license plate fee for the issuance of a new license plate under Part 4, License Plates
1157  and Registration Indicia;
1158  (b) a license plate fee for the replacement of any license plate;
1159  (c)(i) a fee for the original issuance of a personalized license plate; and
1160  (ii) a fee for the renewal of a personalized license plate;
1161  (d) a fee for the issuance of an original special group license plate;
1162  (e) a fee for the replacement of a registration decal required by Section 41-1a-401 or
1163  license plate registration decal required in Section 41-1a-402;
1164  (f) a fee for the issuance of registration decals for an original issue license plate as
1165  described in Section 41-1a-416;
1166  (g) a fee for the issuance of a duplicate registration; and
1167  (h) a fee for the issuance of an original or duplicate certificate of title.
1168     (3) An applicant is exempt from the fee under Subsection (2)(a) or (b) if the applicant:
1169  (a) was issued a clean fuel special group license plate in accordance with Section
1170  41-1a-418 before the effective date of rules made by the Department of
1171  Transportation under Subsection 41-6a-702(5)(b); and
1172  (b) upon renewal or reissuance, is required to replace the clean fuel special group license
1173  plate with a new license plate.
1174     (4)(a) An applicant for a license plate issued under Section 41-1a-407 is not subject to
1175  the license plate fee under Subsection (2)(a).
1176  (b) An applicant is exempt from the license plate fee under Subsections (2)(a), (d), and
1177  (f) if the applicant presents official documentation that the individual is a recipient of
1178  the Purple Heart Award in one of the following forms:
1179  (i) official documentation issued by a recognized association representing peace
                                                        - 35 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1180  officers who:
1181  (A) receive a salary from a federal, state, county, or municipal government or any
1182  other subdivision of the state; and
1183  (B) work in the state;
1184  (ii) a membership card in the Military Order of the Purple Heart; or
1185  (iii) an original or certificate in lieu of the applicant's military discharge form,
1186  DD-214, issued by the National Personnel Records Center.
1187     (5)(a) In accordance with Section 63J-1-504, the commission shall establish a vehicle
1188  regulatory fee as described in this Subsection (5) to cover the commission's costs in
1189  regulating vehicles in this state.
1190  (b) An applicant for vehicle registration or renewal of vehicle registration shall pay the
1191  vehicle regulatory fee described in this Subsection (5) to the division at the time of
1192  the application for registration.
1193  (c) The commission shall annually establish and publish a fee schedule for the vehicle
1194  regulatory fee.
1195  Section 26. Section 41-1a-1218 is repealed and reenacted to read:
1196  41-1a-1218 (Effective 01/01/27). Uninsured motorist identification regulatory fee
1197     for tracking motor vehicle insurance -- Exemption.
1198     (1) In accordance with Section 63J-1-504, the Department of Public Safety and the
1199  commission shall establish a vehicle regulatory fee to cover the costs of regulating and
1200  identifying uninsured motorists.
1201     (2) Except as provided in Subsection (3), at the time application is made for registration or
1202  renewal of registration, each motor vehicle, street-legal all-terrain vehicle, and
1203  motorboat shall pay the regulatory fee established by the commission as described in
1204  Subsection (1).
1205     (3) The following are exempt from the fee required under this section:
1206  (a) a commercial vehicle registered as part of a fleet under Section 41-1a-222 or Section
1207  41-1a-301;
1208  (b) a vehicle described in Section 41-1a-1209 or Subsection 41-1a-419(3) that is exempt
1209  from a vehicle tax or fee; and
1210  (c) a motor vehicle with a Purple Heart special group license plate issued:
1211  (i) on or before December 31, 2023; or
1212  (ii) in accordance with Part 16, Sponsored Special Group License Plates.
1213  Section 27. Section 41-1a-1219 is amended to read:
                                                        - 36 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
1214  41-1a-1219 (Effective 01/01/27). Motor carrier fee.
1215     (1) At the time application is made for registration or renewal of registration of a motor
1216  vehicle or combination of motor vehicles over 14,000 pounds gross laden weight, the
1217  applicant shall pay a motor carrier fee of $6 for each motor vehicle or combination of
1218  motor vehicles.
1219     (2) This fee is in addition to the [registration fees] vehicle tax under Subsections[
1220  41-1a-1206(1)(d) and (e)] 41-1a-1206(3)(e) and (f).
1221     (3) For a vehicle registered for a 24-month period as provided in Section 41-1a-215.5, the
1222  fee amounts under this section are double the amounts due for the same vehicle
1223  registered for a 12-month period.
1224  Section 28. Section 41-1a-1221 is amended to read:
1225  41-1a-1221 (Effective 01/01/27). Fees to cover the cost of electronic payments.
1226     (1) As used in this section:
1227  (a) "Electronic payment" means use of any form of payment processed through
1228  electronic means, including credit cards, debit cards, and automatic clearinghouse
1229  transactions.
1230  (b) "Electronic payment fee" means the fee assessed to defray:
1231  (i) the charge, discount fee, or processing fee charged by credit card companies or
1232  processing agents to process an electronic payment; or
1233  (ii) costs associated with the purchase of equipment necessary for processing
1234  electronic payments.
1235     (2)(a) The Motor Vehicle Division may collect an electronic payment fee on all
1236  registrations and renewals of registration under Subsections [41-1a-1206(1)(a), (1)(b),
1237  (2)(a), (2)(b), and (4)] 41-1a-1206(3)(a), (3)(b), and (3)(m).
1238  (b) The fee described in Subsection (2)(a):
1239  (i) shall be imposed regardless of the method of payment for a particular transaction;
1240  and
1241  (ii) need not be separately identified from the fees imposed for registration and
1242  renewals of registration under Subsections [41-1a-1206(1)(a), (1)(b), (2)(a), (2)(b),
1243  and (4)] 41-1a-1206(3)(a), (3)(b), and (3)(m).
1244  (c) For a vehicle registered for a 24-month period as provided in Section 41-1a-215.5,
1245  the electronic fee amounts under this section are double the amounts due for the same
1246  vehicle registered for a 12-month period.
1247     (3) The division shall establish the fee according to the procedures and requirements of
                                                       - 37 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1248  Section 63J-1-504.
1249     (4) A fee imposed under this section:
1250  (a) shall be deposited [in] into the Electronic Payment Fee Restricted Account created by
1251  Section 41-1a-121; and
1252  (b) is not subject to Subsection 63J-1-105(3) or (4).
1253  Section 29. Section 41-1a-1222 is amended to read:
1254  41-1a-1222 (Effective 01/01/27). Local option highway construction and
1255     transportation corridor preservation tax -- Exemptions -- Deposit -- Transfer -- County
1256     ordinance -- Notice.
1257     (1) As used in this section, "unincorporated" means the same as that term is defined in
1258  Section 10-1-104.
1259     (2)(a)(i) Except as provided in Subsection (2)(a)(ii), a county legislative body may
1260  impose a local option highway construction and transportation corridor
1261  preservation [fee] tax of up to $10 on each motor vehicle registration within the
1262  county.
1263  (ii) A county legislative body may impose a local option highway construction and
1264  transportation corridor preservation [fee] tax of up to [$7.75 ] $20.00 on each motor
1265  vehicle registration for a [six-month] 24-month registration period under Section
1266  41-1a-215.5 within the county.
1267  (iii) A [fee] tax imposed under Subsection (2)(a)(i) or (ii) shall be set in whole dollar
1268  increments.
1269  (iv) A tax imposed as described in this section is part of the vehicle tax described in
1270  Subsection 41-1a-1206(2).
1271  (b)(i) If imposed under Subsection (2)(a), at the time application is made for
1272  registration or renewal of registration of a motor vehicle under this chapter, the
1273  applicant shall pay the local option highway construction and transportation
1274  corridor preservation [fee] tax established by the county legislative body.
1275  (ii) If imposed under Subsection (2)(a), at the time application is made for
1276  registration or renewal of registration of a vehicle under this chapter for a
1277  24-month period as provided in Section 41-1a-215.5, the applicant shall pay
1278  double the amount of the local option highway construction and transportation
1279  corridor preservation [fee] tax established by the county legislative body for the
1280  same vehicle registered for a 12-month period.
1281  (c) The following are exempt from the [fee] tax required under Subsection (2)(a):
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       02-25 17:18  1st Sub. (Buff) H.B. 505
1282  (i) a motor vehicle that is exempt from the registration [fee] tax under Section
1283  41-1a-1209 or Subsection 41-1a-419(3);
1284  (ii) a commercial vehicle with an apportioned registration under Section 41-1a-301;
1285  and
1286  (iii) a motor vehicle with a Purple Heart special group license plate issued:
1287  (A) on or before December 31, 2023; or
1288  (B) in accordance with Part 16, Sponsored Special Group License Plates.
1289     (3)(a) Except as provided in Subsection (3)(b), the revenue generated under this section
1290  shall be:
1291  (i) deposited [in] into the Local Highway and Transportation Corridor Preservation
1292  Fund created in Section 72-2-117.5;
1293  (ii) credited to the county from which it is generated; and
1294  (iii) used and distributed in accordance with Section 72-2-117.5.
1295  (b) The revenue generated by a [fee] tax imposed under this section in a county of the
1296  first class shall be deposited or transferred as follows:
1297  (i) 50% of the revenue shall be:
1298  (A) deposited [in] into the County of the First Class Highway Projects Fund
1299  created in Section 72-2-121; and
1300  (B) used in accordance with Section 72-2-121;
1301  (ii) 30% of the revenue shall be deposited, credited, and used as provided in
1302  Subsection (3)(a); and
1303  (iii) 20% of the revenue shall be transferred to the legislative body of a county of the
1304  first class.
1305     (4) Beginning in a fiscal year beginning on or after July 1, 2023, and for 15 years thereafter,
1306  the legislative body of the county of the first class shall annually transfer, from the
1307  revenue transferred to the legislative body of a county of the first class as described in
1308  Subsection (3)(b)(iii):
1309  (a) $300,000 to Kearns; and
1310  (b) $225,000 to Magna.
1311     (5) To impose or change the amount of a [fee] tax under this section, the county legislative
1312  body shall pass an ordinance:
1313  (a) approving the [fee] tax;
1314  (b) setting the amount of the [fee] tax; and
1315  (c) providing an effective date for the [fee] tax as provided in Subsection (6).
                                                       - 39 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1316     (6)(a) If a county legislative body enacts, changes, or repeals a [fee] tax under this
1317  section, the enactment, change, or repeal shall take effect on July 1 if the commission
1318  receives notice meeting the requirements of Subsection (6)(b) from the county [prior
1319  to] before April 1.
1320  (b) The notice described in Subsection (6)(a) shall:
1321  (i) state that the county will enact, change, or repeal a [fee] tax under this part;
1322  (ii) include a copy of the ordinance imposing the [fee] tax; and
1323  (iii) if the county enacts or changes the [fee] tax under this section, state the amount
1324  of the [fee] tax.
1325  Section 30. Section 41-1a-1223 is amended to read:
1326  41-1a-1223 (Effective 01/01/27). Local emissions compliance tax -- Exemptions --
1327     Transfer -- County ordinance -- Notice.
1328     (1)(a)(i) A county legislative body of a county that is required to utilize a motor
1329  vehicle emissions inspection and maintenance program or in which an emissions
1330  inspection and maintenance program is necessary to attain or maintain any
1331  national ambient air quality standard in accordance with Section 41-6a-1642 may
1332  impose a local emissions compliance [fee] tax of up to:
1333  (A) $3 on each motor vehicle registration within the county for a motor vehicle
1334  registration under Section 41-1a-215; or
1335  (B) [$2.25 ] $6 on each motor vehicle registration within the county for a [
1336  six-month] 24-month registration period under Section 41-1a-215.5.
1337  (ii) A [fee] tax imposed under Subsection (1)(a)(i) shall be set in whole dollar
1338  increments.
1339  (b) If imposed under Subsection (1)(a)(i), at the time application is made for registration
1340  or renewal of registration of a motor vehicle under this chapter, the applicant shall
1341  pay the local emissions compliance [fee] tax established by the county legislative
1342  body.
1343  (c) The following are exempt from the [fee] tax required under Subsection (1)(a)(i):
1344  (i) a motor vehicle that is exempt from the registration [fee] tax under Section
1345  41-1a-1209 or Subsection 41-1a-419(3);
1346  (ii) a commercial vehicle with an apportioned registration under Section 41-1a-301;
1347  and
1348  (iii) an electric motor vehicle.
1349     [(2) The revenue generated from the fees collected under this section shall be transferred to
                                                       - 40 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
1350  the county that imposed the fee.]
1351     [(3)] (2) To impose or change the amount of a [fee] tax under this section, the county
1352  legislative body shall pass an ordinance:
1353  (a) approving the [fee] tax;
1354  (b) setting the amount of the [fee] tax; and
1355  (c) providing an effective date for the [fee] tax as provided in Subsection [(4)] (3).
1356     [(4)] (3)(a) If a county legislative body enacts, changes, or repeals a [fee] tax under this
1357  section, the enactment, change, or repeal shall take effect on January 1 if the
1358  commission receives notice meeting the requirements of Subsection [(4)(b)] (3)(b)
1359  from the county [prior to] before October 1.
1360  (b) The notice described in Subsection [(4)(a)] (3)(a) shall:
1361  (i) state that the county will enact, change, or repeal a [fee] tax under this section;
1362  (ii) include a copy of the ordinance imposing the [fee] tax; and
1363  (iii) if the county enacts or changes the [fee] tax under this section, state the amount
1364  of the [fee] tax.
1365  Section 31. Section 41-1a-1301 is amended to read:
1366  41-1a-1301 (Effective 01/01/27). Unpaid fees and penalty -- Lien -- Seizure and
1367     sale.
1368     (1)(a) Every [registration fee] vehicle tax, fee, and penalty not paid by the due date is a
1369  lien upon all:
1370  (i) the unexempt personal property of the owner or operator of the vehicle, vessel, or
1371  outboard motor; and
1372  (ii) interest or equity of the owner or operator in all personal property, including
1373  vehicles, vessels, or outboard motors used by the owner or operator in the conduct
1374  or operation of the owner's or operator's business.
1375  (b) The properties and vehicles, vessels, or outboard motors may be held under warrant,
1376  issued by the commission, and sold in accordance with the law applicable to personal
1377  property taxes.
1378     (2) Delinquency is a ground for the issuance of a writ of attachment against the owner or
1379  operator.
1380  Section 32. Section 41-1a-1603 is amended to read:
1381  41-1a-1603 (Effective 01/01/27). Application requirements -- Fees --
1382     Contributions -- Rulemaking.
1383     (1) An applicant for a sponsored special group license plate shall submit to the division:
                                                         - 41 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1384  (a) in a form and manner that the division prescribes, a complete application;
1385  (b) payment of the fee for the issuance of the sponsored special group license plate
1386  established under Subsection (4)(a)(i);
1387  (c) the required contribution for the sponsored special group license plate, unless the
1388  applicant previously paid the required contribution as part of a preorder application
1389  described in Subsection (3); and
1390  (d) if the sponsoring organization elects to require verification as described in Section
1391  41-1a-1604, a verification form obtained from the sponsoring organization.
1392     (2) An applicant who owns a vehicle with the sponsoring organization's sponsored special
1393  group license plate shall submit to the division the required contribution to renew the
1394  sponsored special group license plate.
1395     (3)(a) An applicant who wishes to obtain a new type of sponsored special group license
1396  plate may preorder the new type of sponsored special group license plate by:
1397  (i) submitting to the sponsoring organization associated with the new type of
1398  sponsored special group license plate a complete preorder form created by the
1399  division; and
1400  (ii) making the required contribution to the sponsoring organization.
1401  (b) After the division approves the sponsoring organization's request for the new type of
1402  sponsored special group license plate under Section 41-1a-1604, an applicant who
1403  submitted a preorder in accordance with Subsection (3)(a) may apply for the
1404  sponsored special group license plate in accordance with Subsection (1).
1405     (4)(a) The division shall, in accordance with Section 63J-1-504, establish:
1406  (i) the fee to charge an applicant for the division's costs of issuing or renewing a
1407  sponsored special group license plate or symbol decal;
1408  (ii) the fee to charge a sponsoring organization for the division's costs of designing
1409  and administering a new type of sponsored special group license plate, in
1410  accordance with Subsection 41-1a-1604(2)(c); and
1411  (iii) subject to Subsections (4)(b) and (6), in an amount equal to at least $25, the
1412  minimum annual contribution amount an applicant is required to make to obtain or
1413  renew the sponsoring organization's sponsored special group license plate.
1414  (b) A fee paid in accordance with Subsection (4)(a)(i) shall be deposited into the License
1415  Plate Restricted Account created in Section 41-1a-122.
1416  (c) A sponsoring organization may establish a required contribution amount for the
1417  sponsoring organization's sponsored special group license plate that is greater than
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       02-25 17:18  1st Sub. (Buff) H.B. 505
1418  the amount established by the division under Subsection (4)(a)(ii).
1419     (5) An applicant's contribution is a voluntary contribution for funding the sponsoring
1420  organization's activities and not a [motor vehicle registration fee] vehicle tax or fee.
1421     (6) Beginning on July 1, 2025, an applicant's voluntary contribution described in
1422  Subsection (4)(a)(iii) for the historical support special group license plate described in
1423  Section 41-1a-419 is $25 which the division shall allocate as follows:
1424  (a) $2 to the Utah State Historical Society as the sponsoring organization; and
1425  (b) $23 into the Transportation Investment Fund of 2005, created in Section 72-2-124.
1426     (7) For a fiscal year beginning on July 1, 2025, only, the division shall transfer into the
1427  General Fund $3,500,000 from the Sponsored Special Group License Plate Fund created
1428  in Section 41-1a-1610 from funds generated by the historical support special group
1429  license plate.
1430     (8) The division shall provide notice indicating the allocation of the voluntary contributions
1431  described in Subsection (6) for the historical support special group license plate as
1432  follows:
1433  (a) on or before July 1, 2025, on the division website; and
1434  (b) beginning on July 1, 2025, and until June 30, 2026, in any email notification of a
1435  registrant's pending vehicle registration expiration described in Section 41-1a-203.
1436     (9) An applicant for a historical support special group license plate for a vehicle that is a
1437  vintage vehicle is not required to make the voluntary contribution to obtain the historical
1438  support special group license plate.
1439     (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1440  commission may make rules to establish and administer the sponsored special group
1441  license plate program.
1442  Section 33. Section 41-3-302 is amended to read:
1443  41-3-302 (Effective 01/01/27). Temporary permits -- Purchasers of motor
1444     vehicles -- Penalty for use after expiration -- Sale and rescission.
1445     (1)(a)(i) A dealer or the division may issue a temporary permit.
1446  (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1447  the administrator shall makes rules for the issuance of a temporary permit under
1448  Subsection (1)(a)(i).
1449  (iii) The division shall furnish the forms for temporary permits issued by dealers
1450  under Subsection (1)(a)(i).
1451  (b) A dealer may issue a temporary permit to a bona fide purchaser of a motor vehicle
                                                        - 43 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1452  for a period not to exceed 45 days on a motor vehicle sold to the purchaser by the
1453  dealer.
1454  (c) The dealer is responsible and liable for the [registration] vehicle taxes and fees or fee
1455  of each motor vehicle for which the permit is issued.
1456  (d) All issued temporary permits that are outstanding after 45 days from the date they
1457  are issued are delinquent and a penalty equal to the [registration fee] vehicle taxes and
1458  fees shall be collected from the issuing dealer.
1459     (2) If a temporary permit is issued by a dealer under this section and the sale of the motor
1460  vehicle is subsequently rescinded, the temporary permit may be voided and the issuing
1461  dealer is not liable for the [registration fee] vehicle tax or penalty.
1462  Section 34. Section 41-6a-208 is amended to read:
1463  41-6a-208 (Effective 01/01/27). Regulatory powers of local highway authorities --
1464     Traffic-control device affecting state highway -- Necessity of erecting traffic-control
1465     devices.
1466     (1) As used in this section:
1467  (a)(i) "Ground transportation vehicle" means a motor vehicle used for the
1468  transportation of persons, used in ride or shared ride, on demand, or for hire
1469  transportation of passengers or baggage over public highways.
1470  (ii) "Ground transportation vehicle" includes a:
1471  (A) shared ride vehicle;
1472  (B) bus;
1473  (C) courtesy vehicle;
1474  (D) hotel vehicle;
1475  (E) limousine;
1476  (F) minibus;
1477  (G) special transportation vehicle;
1478  (H) specialty vehicle;
1479  (I) taxicab;
1480  (J) van; or
1481  (K) trailer being towed by a ground transportation vehicle.
1482  (b) "Idle" means the operation of a vehicle engine while the vehicle is stationary or not
1483  in the act of performing work or its normal function.
1484     (2) The provisions of this chapter do not prevent a local highway authority for a highway
1485  under its jurisdiction and within the reasonable exercise of police power, from:
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       02-25 17:18  1st Sub. (Buff) H.B. 505
1486        (a) regulating or prohibiting stopping, standing, or parking;
1487        (b) regulating traffic by means of a peace officer or a traffic-control device;
1488        (c) regulating or prohibiting processions or assemblages on a highway;
1489        (d) designating particular highways or roadways for use by traffic moving in one
1490  direction under Section 41-6a-709;
1491        (e) establishing speed limits for vehicles in public parks, which supersede Section
1492  41-6a-603 regarding speed limits;
1493        (f) designating any highway as a through highway or designating any intersection or
1494  junction of roadways as a stop or yield intersection or junction;
1495        (g) restricting the use of a highway under Section 72-7-408;
1496        (h) requiring the registration and inspection of bicycles, including requiring a
1497  registration tax or fee;
1498        (i) regulating or prohibiting:
1499  (i) certain turn movements of a vehicle; or
1500  (ii) specified types of vehicles;
1501        (j) altering or establishing speed limits under Section 41-6a-603;
1502        (k) requiring written accident reports under Section 41-6a-403;
1503        (l) designating no-passing zones under Section 41-6a-708;
1504        (m) prohibiting or regulating the use of controlled-access highways by any class or kind
1505  of traffic under Section 41-6a-715;
1506        (n) prohibiting or regulating the use of heavily traveled streets by any class or kind of
1507  traffic found to be incompatible with the normal and safe movement of traffic;
1508        (o) establishing minimum speed limits under Subsection 41-6a-605(3);
1509        (p) prohibiting pedestrians from crossing a highway in a business district or any
1510  designated highway except in a crosswalk under Section 41-6a-1001;
1511        (q) restricting pedestrian crossings at unmarked crosswalks under Section 41-6a-1010;
1512        (r) regulating persons upon skates, coasters, sleds, skateboards, and other toy vehicles;
1513        (s) adopting and enforcing temporary or experimental ordinances as necessary to cover
1514  emergencies or special conditions;
1515        (t) prohibiting drivers of ambulances from exceeding maximum speed limits;
1516        (u) adopting other traffic ordinances as specifically authorized by this chapter; or
1517        (v) adopting an ordinance that requires a ground transportation vehicle to conform to
1518  state safety standards and reasonable annual appearance requirements, in consultation
1519  with a transportation advisory board of the local highway authority.
                                                      - 45 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1520     (3) A local highway authority may not:
1521  (a) in accordance with Title 72, Chapter 3, Part 1, Highways in General, erect or
1522  maintain any official traffic-control device at any location which regulates the traffic
1523  on a highway not under the local highway authority's jurisdiction, unless written
1524  approval is obtained from the highway authority having jurisdiction over the highway;
1525  (b) prohibit or restrict the use of a cellular phone by the operator or passenger of a motor
1526  vehicle;
1527  (c) enact an ordinance that prohibits or restricts an owner or operator of a vehicle from
1528  causing or permitting the vehicle's engine to idle unless the ordinance:
1529  (i) is primarily educational;
1530  (ii) provides that a person must be issued at least one warning citation before
1531  imposing a fine;
1532  (iii) has the same fine structure as a parking violation;
1533  (iv) provides for the safety of law enforcement personnel who enforce the ordinance;
1534  and
1535  (v) provides that the ordinance may be enforced on:
1536  (A) public property; or
1537  (B) private property that is open to the general public unless the private property
1538  owner:
1539  (I) has a private business that has a drive-through service as a component of the
1540  private property owner's business operations and posts a sign provided by or
1541  acceptable to the local highway authority informing its customers and the
1542  public of the local highway authority's time limit for idling vehicle engines;
1543  or
1544  (II) adopts an idle reduction education policy approved by the local highway
1545  authority;
1546  (d) enact an ordinance that prohibits a vehicle from being licensed as a ground
1547  transportation vehicle:
1548  (i) if the vehicle to be licensed otherwise passes all state safety inspection
1549  requirements established by the Utah Highway Patrol Division in accordance with
1550  Section 53-8-204; and
1551  (ii)(A) based on the manufacture date of the vehicle; or
1552  (B) based on the number of miles the vehicle has accumulated;
1553  (e) enact an ordinance, regulation, rule, fee, or criminal or civil fine pertaining to a
                                                        - 46 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
1554  registration violation under Section 41-1a-201 or a registration decal issued under
1555  Section 41-1a-402 that conflicts with or is more stringent than the registration
1556  requirements under Title 41, Motor Vehicles;
1557  (f) enact an ordinance that:
1558  (i) is inconsistent with the provisions of this chapter; or
1559  (ii) prohibits the use of a bicycle on any public street or highway, except as allowed
1560  by Section 41-6a-714, unless the local highway authority has:
1561  (A) documented that the local highway authority has reviewed the safety history
1562  of the highway and considered other reasonable alternatives, including signage
1563  and routes; and
1564  (B) clearly marked a safe alternative route for the prohibited section of highway; or
1565  (g) enact an ordinance, regulation, or rule that requires the owner or driver of a ground
1566  transportation vehicle to maintain liability insurance coverage in an amount that is
1567  greater than the minimum amount of liability coverage a transportation network
1568  company or transportation network driver is required to maintain under Subsection
1569  13-51-108(1)(b).
1570     (4) An ordinance enacted under Subsection (2)(d), (e), (f), (g), (i), (j), (l), (m), (n), or (q) is
1571  not effective until official traffic-control devices giving notice of the local traffic
1572  ordinances are erected upon or at the entrances to the highway or part of it affected as is
1573  appropriate.
1574     (5) An ordinance enacted by a local highway authority that violates Subsection (3) is not
1575  effective.
1576  Section 35. Section 41-6a-1642 is amended to read:
1577  41-6a-1642 (Effective 01/01/27). Emissions inspection -- County program.
1578     (1) The legislative body of each county required under federal law to utilize a motor vehicle
1579  emissions inspection and maintenance program or in which an emissions inspection and
1580  maintenance program is necessary to attain or maintain any national ambient air quality
1581  standard shall require:
1582  (a) a certificate of emissions inspection, a waiver, or other evidence the motor vehicle is
1583  exempt from emissions inspection and maintenance program requirements be
1584  presented:
1585  (i) as a condition of registration or renewal of registration; and
1586  (ii) at other times as the county legislative body may require to enforce inspection
1587  requirements for individual motor vehicles, except that the county legislative body
                                                         - 47 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1588  may not routinely require a certificate of emissions inspection, or waiver of the
1589  certificate, more often than required under Subsection (9); and
1590  (b) compliance with this section for a motor vehicle registered or principally operated in
1591  the county and owned by or being used by a department, division, instrumentality,
1592  agency, or employee of:
1593  (i) the federal government;
1594  (ii) the state and any of its agencies; or
1595  (iii) a political subdivision of the state, including school districts.
1596     (2)(a) A vehicle owner subject to Subsection (1) shall obtain a motor vehicle emissions
1597  inspection and maintenance program certificate of emissions inspection as described
1598  in Subsection (1), but the program may not deny vehicle registration based solely on
1599  the presence of a defeat device covered in the Volkswagen partial consent decrees or
1600  a United States Environmental Protection Agency-approved vehicle modification in
1601  the following vehicles:
1602  (i) a 2.0-liter diesel engine motor vehicle in which its lifetime nitrogen oxide
1603  emissions are mitigated in the state [pursuant to] in accordance with a partial
1604  consent decree, including:
1605  (A) Volkswagen Jetta, model years 2009, 2010, 2011, 2012, 2013, 2014, and 2015;
1606  (B) Volkswagen Jetta Sportwagen, model years 2009, 2010, 2011, 2012, 2013,
1607  and 2014;
1608  (C) Volkswagen Golf, model years 2010, 2011, 2012, 2013, 2014, and 2015;
1609  (D) Volkswagen Golf Sportwagen, model year 2015;
1610  (E) Volkswagen Passat, model years 2012, 2013, 2014, and 2015;
1611  (F) Volkswagen Beetle, model years 2013, 2014, and 2015;
1612  (G) Volkswagen Beetle Convertible, model years 2013, 2014, and 2015; and
1613  (H) Audi A3, model years 2010, 2011, 2012, 2013, and 2015; and
1614  (ii) a 3.0-liter diesel engine motor vehicle in which its lifetime nitrogen oxide
1615  emissions are mitigated in the state to a settlement, including:
1616  (A) Volkswagen Touareg, model years 2009, 2010, 2011, 2012, 2013, 2014, 2015,
1617  and 2016;
1618  (B) Audi Q7, model years 2009, 2010, 2011, 2012, 2013, 2014, 2015, and 2016;
1619  (C) Audi A6 Quattro, model years 2014, 2015, and 2016;
1620  (D) Audi A7 Quattro, model years 2014, 2015, and 2016;
1621  (E) Audi A8, model years 2014, 2015, and 2016;
                                                        - 48 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
1622  (F) Audi A8L, model years 2014, 2015, and 2016;
1623  (G) Audi Q5, model years 2014, 2015, and 2016; and
1624  (H) Porsche Cayenne Diesel, model years 2013, 2014, 2015, and 2016.
1625  (b)(i) An owner of a restored-modified vehicle subject to Subsection (1) shall obtain
1626  a motor vehicle emissions inspection and maintenance program certificate of
1627  emissions inspection as described in Subsection (1).
1628  (ii) A county emissions program may not refuse to perform an emissions inspection
1629  or indicate a failed emissions test of the vehicle based solely on a modification to
1630  the engine or component of the motor vehicle if:
1631  (A) the modification is not likely to result in the motor vehicle having increased
1632  emissions relative to the emissions of the motor vehicle before the
1633  modification; and
1634  (B) the motor vehicle modification is a change to an engine that is newer than the
1635  engine with which the motor vehicle was originally equipped, or the engine
1636  includes technology that increases the facility of the administration of an
1637  emissions test, such as an on-board diagnostics system.
1638  (iii) The first time an owner seeks to obtain an emissions inspection as a prerequisite
1639  to registration of a restored-modified vehicle:
1640  (A) the owner shall present the signed statement described in Subsection
1641  41-1a-226(4); and
1642  (B) the county emissions program shall perform the emissions test.
1643  (iv) If a motor vehicle is registered as a restored-modified vehicle and the registration
1644  certificate is notated as described in Subsection 41-1a-226(4), a county emissions
1645  program may not refuse to perform an emissions test based solely on the
1646  restored-modified status of the motor vehicle.
1647     (3)(a) The legislative body of a county identified in Subsection (1), in consultation with
1648  the Air Quality Board created under Section 19-1-106, shall make regulations or
1649  ordinances regarding:
1650  (i) emissions standards;
1651  (ii) test procedures;
1652  (iii) inspections stations;
1653  (iv) repair requirements and dollar limits for correction of deficiencies; and
1654  (v) certificates of emissions inspections.
1655  (b) In accordance with Subsection (3)(a), a county legislative body:
                                                      - 49 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1656  (i) shall make regulations or ordinances to attain or maintain ambient air quality
1657  standards in the county, consistent with the state implementation plan and federal
1658  requirements;
1659  (ii) may allow for a phase-in of the program by geographical area; and
1660  (iii) shall comply with the analyzer design and certification requirements contained in
1661  the state implementation plan prepared under Title 19, Chapter 2, Air
1662  Conservation Act.
1663  (c) The county legislative body and the Air Quality Board shall give preference to an
1664  inspection and maintenance program that:
1665  (i) is decentralized, to the extent the decentralized program will attain and maintain
1666  ambient air quality standards and meet federal requirements;
1667  (ii) is the most cost effective means to achieve and maintain the maximum benefit
1668  with regard to ambient air quality standards and to meet federal air quality
1669  requirements as related to vehicle emissions; and
1670  (iii) provides a reasonable phase-out period for replacement of air pollution emission
1671  testing equipment made obsolete by the program.
1672  (d) The provisions of Subsection (3)(c)(iii) apply only to the extent the phase-out:
1673  (i) may be accomplished in accordance with applicable federal requirements; and
1674  (ii) does not otherwise interfere with the attainment and maintenance of ambient air
1675  quality standards.
1676     (4) The following vehicles are exempt from an emissions inspection program and the
1677  provisions of this section:
1678  (a) an implement of husbandry as defined in Section 41-1a-102;
1679  (b) a motor vehicle that:
1680  (i) meets the definition of a farm truck under Section 41-1a-102; and
1681  (ii) has a gross vehicle weight rating of 12,001 pounds or more;
1682  (c) a vintage vehicle as defined in Section 41-21-1:
1683  (i) if the vintage vehicle has a model year of 1982 or older; or
1684  (ii) for a vintage vehicle that has a model year of 1983 or newer, if the owner
1685  provides proof of vehicle insurance that is a type specific to a vehicle collector;
1686  (d) a custom vehicle as defined in Section 41-6a-1507;
1687  (e) a vehicle registered as a novel vehicle under Section 41-27-201;
1688  (f) to the extent allowed under the current federally approved state implementation plan,
1689  in accordance with the federal Clean Air Act, 42 U.S.C. Sec. 7401, et seq., a motor
                                                      - 50 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
1690  vehicle that is less than two years old on January 1 based on the age of the vehicle as
1691  determined by the model year identified by the manufacturer;
1692  (g) a pickup truck, as defined in Section 41-1a-102, with a gross vehicle weight rating of
1693  12,000 pounds or less, if the registered owner of the pickup truck provides a signed
1694  statement to the legislative body stating the truck is used:
1695  (i) by the owner or operator of a farm located on property that qualifies as land in
1696  agricultural use under Sections 59-2-502 and 59-2-503; and
1697  (ii) exclusively for the following purposes in operating the farm:
1698  (A) for the transportation of farm products, including livestock and its products,
1699  poultry and its products, floricultural and horticultural products; and
1700  (B) in the transportation of farm supplies, including tile, fence, and every other
1701  thing or commodity used in agricultural, floricultural, horticultural, livestock,
1702  and poultry production and maintenance;
1703  (h) a motorcycle as defined in Section 41-1a-102;
1704  (i) an electric motor vehicle as defined in Section 41-1a-102;
1705  (j) a motor vehicle with a model year of 1967 or older; and
1706  (k) a roadable aircraft as defined in Section 72-10-102.
1707     (5) The county shall issue to the registered owner who signs and submits a signed statement
1708  under Subsection (4)(g) a certificate of exemption from emissions inspection
1709  requirements for purposes of registering the exempt vehicle.
1710     (6) A legislative body of a county described in Subsection (1) may exempt from an
1711  emissions inspection program a diesel-powered motor vehicle with a:
1712  (a) gross vehicle weight rating of more than 14,000 pounds; or
1713  (b) model year of 1997 or older.
1714     (7) The legislative body of a county required under federal law to utilize a motor vehicle
1715  emissions inspection program shall require:
1716  (a) a computerized emissions inspection for a diesel-powered motor vehicle that has:
1717  (i) a model year of 2007 or newer;
1718  (ii) a gross vehicle weight rating of 14,000 pounds or less; and
1719  (iii) a model year that is five years old or older; and
1720  (b) a visual inspection of emissions equipment for a diesel-powered motor vehicle:
1721  (i) with a gross vehicle weight rating of 14,000 pounds or less;
1722  (ii) that has a model year of 1998 or newer; and
1723  (iii) that has a model year that is five years old or older.
                                                       - 51 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1724     (8)(a) Subject to Subsection (8)(c), the legislative body of each county required under
1725  federal law to utilize a motor vehicle emissions inspection and maintenance program
1726  or in which an emissions inspection and maintenance program is necessary to attain
1727  or maintain any national ambient air quality standard may require each college or
1728  university located in a county subject to this section to require its students and
1729  employees who park a motor vehicle not registered in a county subject to this section
1730  to provide proof of compliance with an emissions inspection accepted by the county
1731  legislative body if the motor vehicle is parked on the college or university campus or
1732  property.
1733  (b) College or university parking areas that are metered or for which payment is required
1734  per use are not subject to the requirements of this Subsection (8).
1735  (c) The legislative body of a county shall make the reasons for implementing the
1736  provisions of this Subsection (8) part of the record at the time that the county
1737  legislative body takes its official action to implement the provisions of this
1738  Subsection (8).
1739     (9)(a) An emissions inspection station shall issue a certificate of emissions inspection for
1740  each motor vehicle that meets the inspection and maintenance program requirements
1741  established in regulations or ordinances made under Subsection (3).
1742  (b) The frequency of the emissions inspection shall be determined based on the age of
1743  the vehicle as determined by model year and shall be required annually subject to the
1744  provisions of Subsection (9)(c).
1745  (c)(i) To the extent allowed under the current federally approved state
1746  implementation plan, in accordance with the federal Clean Air Act, 42 U.S.C. Sec.
1747  7401 et seq., the legislative body of a county identified in Subsection (1) shall
1748  only require the emissions inspection every two years for each vehicle.
1749  (ii) The provisions of Subsection (9)(c)(i) apply only to a vehicle that is less than six
1750  years old on January 1.
1751  (iii) For a county required to implement a new vehicle emissions inspection and
1752  maintenance program on or after December 1, 2012, under Subsection (1), but for
1753  which no current federally approved state implementation plan exists, a vehicle
1754  shall be tested at a frequency determined by the county legislative body, in
1755  consultation with the Air Quality Board created under Section 19-1-106, that is
1756  necessary to comply with federal law or attain or maintain any national ambient
1757  air quality standard.
                                                       - 52 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
1758  (iv) If a county legislative body establishes or changes the frequency of a vehicle
1759  emissions inspection and maintenance program under Subsection (9)(c)(iii), the
1760  establishment or change shall take effect on January 1 if the State Tax
1761  Commission receives notice meeting the requirements of Subsection (9)(c)(v)
1762  from the county before October 1.
1763  (v) The notice described in Subsection (9)(c)(iv) shall:
1764  (A) state that the county will establish or change the frequency of the vehicle
1765  emissions inspection and maintenance program under this section;
1766  (B) include a copy of the ordinance establishing or changing the frequency; and
1767  (C) if the county establishes or changes the frequency under this section, state how
1768  frequently the emissions testing will be required.
1769  (d) If an emissions inspection is only required every two years for a vehicle under
1770  Subsection (9)(c), the inspection shall be required for the vehicle in:
1771  (i) odd-numbered years for vehicles with odd-numbered model years; or
1772  (ii) in even-numbered years for vehicles with even-numbered model years.
1773     (10)(a) Except as provided in Subsections (9)(b), (c), and (d), the emissions inspection
1774  required under this section may be made no more than two months before the
1775  renewal of registration.
1776  (b)(i) If the title of a used motor vehicle is being transferred, the owner may use an
1777  emissions inspection certificate issued for the motor vehicle during the previous
1778  11 months to satisfy the requirement under this section.
1779  (ii) If the transferor is a licensed and bonded used motor vehicle dealer, the owner
1780  may use an emissions inspection certificate issued for the motor vehicle in a
1781  licensed and bonded motor vehicle dealer's name during the previous 11 months to
1782  satisfy the requirement under this section.
1783  (c) If the title of a leased vehicle is being transferred to the lessee of the vehicle, the
1784  lessee may use an emissions inspection certificate issued during the previous 11
1785  months to satisfy the requirement under this section.
1786  (d) If the motor vehicle is part of a fleet of 101 or more vehicles, the owner may not use
1787  an emissions inspection made more than 11 months before the renewal of registration
1788  to satisfy the requirement under this section.
1789  [(e) If the application for renewal of registration is for a six-month registration period
1790  under Section 41-1a-215.5, the owner may use an emissions inspection certificate
1791  issued during the previous eight months to satisfy the requirement under this section.]
                                                        - 53 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1792     (11)(a) A county identified in Subsection (1) shall collect information about and monitor
1793  the program.
1794  (b) A county identified in Subsection (1) shall supply this information to the
1795  Transportation Interim Committee to identify program needs, including funding
1796  needs.
1797     (12) If approved by the county legislative body, a county that had an established emissions
1798  inspection fee as of January 1, 2002, may increase the established fee that an emissions
1799  inspection station may charge by $2.50 for each year that is exempted from emissions
1800  inspections under Subsection (9)(c) up to a $7.50 increase.
1801     (13)(a) Except as provided in Subsection 41-1a-1223(1)(c), a county identified in
1802  Subsection (1) may impose a local emissions compliance fee on each motor vehicle
1803  registration within the county in accordance with the procedures and requirements of
1804  Section 41-1a-1223.
1805  (b) A county that imposes a local emissions compliance fee may use revenues generated
1806  from the fee for the establishment and enforcement of an emissions inspection and
1807  maintenance program in accordance with the requirements of this section.
1808  (c) A county that imposes a local emissions compliance fee may use revenues generated
1809  from the fee to promote programs to maintain a local, state, or national ambient air
1810  quality standard.
1811     (14)(a) If a county has reason to believe that a vehicle owner has provided an address as
1812  required in Section 41-1a-209 to register or attempt to register a motor vehicle in a
1813  county other than the county of the bona fide residence of the owner in order to avoid
1814  an emissions inspection required under this section, the county may investigate and
1815  gather evidence to determine whether the vehicle owner has used a false address or
1816  an address other than the vehicle owner's bona fide residence or place of business.
1817  (b) If a county conducts an investigation as described in Subsection (14)(a) and
1818  determines that the vehicle owner has used a false or improper address in an effort to
1819  avoid an emissions inspection as required in this section, the county may impose a
1820  civil penalty of $1,000.
1821     (15) A county legislative body described in Subsection (1) may exempt a motor vehicle
1822  from an emissions inspection if:
1823  (a) the motor vehicle is 30 years old or older;
1824  (b) the county determines that the motor vehicle was driven less than 1,500 miles during
1825  the preceding 12-month period; and
                                                      - 54 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
1826  (c) the owner provides to the county legislative body a statement signed by the owner
1827  that states the motor vehicle:
1828  (i) is primarily a collector's item used for:
1829  (A) participation in club activities;
1830  (B) exhibitions;
1831  (C) tours; or
1832  (D) parades; or
1833  (ii) is only used for occasional transportation.
1834  Section 36. Section 41-12a-806 is amended to read:
1835  41-12a-806 (Effective 01/01/27). Restricted account -- Creation -- Funding --
1836     Interest -- Purposes.
1837     (1) There is created within the Transportation Fund a restricted account known as the
1838  "Uninsured Motorist Identification Restricted Account."
1839     (2) The account consists of money generated from the following revenue sources:
1840  (a) money received by the state under Subsection 41-1a-202(3);
1841  [(b) money received by the state under Section 41-1a-1218, the uninsured motorist
1842  identification fee;]
1843  (b) money deposited into the account as described in Section 41-1a-1201;
1844  (c) money received by the state under Section 41-1a-1220, the registration reinstatement
1845  fee; and
1846  (d) appropriations made to the account by the Legislature.
1847     (3)(a) The account shall earn interest.
1848  (b) All interest earned on account money shall be deposited into the account.
1849     (4) The Legislature shall appropriate money from the account to:
1850  (a) the department to fund the contract with the designated agent;
1851  (b) the department to offset the costs to state and local law enforcement agencies of
1852  using the information for the purposes authorized under this part;
1853  (c) the State Tax Commission to:
1854  (i) offset the costs to the Motor Vehicle Division for revoking and reinstating vehicle
1855  registrations under Subsection 41-1a-110(2)(a)(ii); and
1856  (ii) cover the contract and other costs of the designated agent for address verification
1857  described in Subsection 41-1a-202(3); and
1858  (d) the department to reimburse a person for the costs of towing and storing the person's
1859  vehicle if:
                                                       - 55 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1860  (i) the person's vehicle was impounded in accordance with Subsection 41-1a-1101(4);
1861  (ii) the impounded vehicle had owner's or operator's security in effect for the vehicle
1862  at the time of the impoundment;
1863  (iii) the database indicated that owner's or operator's security was not in effect for the
1864  impounded vehicle; and
1865  (iv) the department determines that the person's vehicle was wrongfully impounded.
1866     (5) The Legislature may appropriate not more than $2,000,000 annually from the account to
1867  the Peace Officer Standards and Training Division, created under Section 53-6-103, for
1868  use in law enforcement training, including training on the use of the Uninsured Motorist
1869  Identification Database Program created under Part 8, Uninsured Motorist Identification
1870  Database Program.
1871     (6)(a) By following the procedures in Title 63G, Chapter 4, Administrative Procedures
1872  Act, the department shall hold a hearing to determine whether a person's vehicle was
1873  wrongfully impounded under Subsection 41-1a-1101(4).
1874  (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1875  division shall make rules establishing procedures for a person to apply for a
1876  reimbursement under Subsection (4)(d).
1877  (c) A person is not eligible for a reimbursement under Subsection (4)(d) unless the
1878  person applies for the reimbursement within six months from the date that the motor
1879  vehicle was impounded.
1880  Section 37. Section 41-22-3 is amended to read:
1881  41-22-3 (Effective 01/01/27). Registration of vehicles -- Application -- Issuance of
1882     sticker and card -- Proof of property tax payment -- Records.
1883     (1)(a) Unless exempted under Section 41-22-9, a person may not operate or place and an
1884  owner may not give another person permission to operate or place any off-highway
1885  vehicle on any public land, trail, street, or highway in this state unless the
1886  off-highway vehicle is registered under this chapter for the current year.
1887  (b) Unless exempted under Section 41-22-9, a dealer may not sell an off-highway
1888  vehicle which can be used on any public land, trail, street, or highway in this state,
1889  unless the off-highway vehicle is registered or is in the process of being registered
1890  under this chapter for the current year.
1891  (c) Unless specifically provided in this chapter, the division shall administer license
1892  plates, decals, and registration of off-highway vehicles in accordance with Chapter
1893  1a, Motor Vehicle Act.
                                                        - 56 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
1894     (2)(a) The owner of an off-highway vehicle subject to registration under this chapter
1895  shall apply to the Motor Vehicle Division for registration on forms approved by the
1896  Motor Vehicle Division.
1897  (b) An owner of an off-highway vehicle may apply for automatic registration renewal as
1898  described in Section 41-1a-216.
1899  (c) A person may register an off-highway vehicle or street-legal all-terrain vehicle for a
1900  24-month period as described in Section 41-1a-215.5.
1901     (3) Each application for registration of an off-highway vehicle shall be accompanied by:
1902  (a) evidence of ownership, a title, or a manufacturer's certificate of origin, and a bill of
1903  sale showing ownership, make, model, horsepower or displacement, and serial
1904  number;
1905  (b) the past registration card; or
1906  (c) the fee for a duplicate.
1907     (4)(a)(i) [Beginning on January 1, 2023, except ] Except as provided in Subsection
1908  (4)(e), the first time an off-highway vehicle is registered, the Motor Vehicle
1909  Division shall issue one off-highway vehicle license plate, a registration decal,
1910  and a registration card.
1911  (ii) If an off-highway vehicle has been registered previously in this state but has not
1912  been issued an off-highway vehicle license plate, [beginning on January 1, 2023, ]
1913  upon application for registration renewal, the Motor Vehicle Division shall issue
1914  one off-highway vehicle license plate, a registration decal, and a registration card.
1915  (b) Upon each annual registration, the Motor Vehicle Division shall issue a registration
1916  decal and a registration card for each off-highway vehicle registered.
1917  (c) The off-highway vehicle license plate:
1918  (i) shall contain a unique five-digit number, using numbers, letters, or a combination
1919  of numbers and letters, to identify the off-highway vehicle for which it is issued;
1920  (ii) shall be affixed to the rear of the off-highway vehicle for which it is issued in a
1921  plainly visible and upright position as prescribed by rule of the division under
1922  Section 41-22-5.1;
1923  (iii) shall be maintained free of foreign materials and in a condition to be clearly
1924  legible;
1925  (iv) shall be a distinct tan color with black lettering to identify the license plate as an
1926  off-highway vehicle license plate;
1927  (v) shall have a location to attach the registration decal; and
                                                       - 57 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1928  (vi) may not be a personalized license plate or a special group license plate.
1929  (d)(i) At all times, proof of registration shall be kept with the off-highway vehicle
1930  and shall be available for inspection by a law enforcement officer.
1931  (ii) An individual may show proof of registration by displaying:
1932  (A) a digital copy or photograph of the registration card on a mobile electronic
1933  device;
1934  (B) proof of registration on a mobile electronic device through a mobile
1935  application approved by the relevant state agency; or
1936  (C) an original registration card issued by the Motor Vehicle Division.
1937  (e) An off-highway vehicle that is an off-highway motorcycle or a snowmobile is:
1938  (i) not required to obtain or display an off-highway vehicle license plate; and
1939  (ii) required to obtain and display an off-highway vehicle registration sticker.
1940     (5)(a) Except as provided by Subsection (5)(c), an applicant for a registration card and
1941  registration decal shall provide the Motor Vehicle Division a certificate, described
1942  under Subsection (5)(b), from the county assessor of the county in which the
1943  off-highway vehicle has situs for taxation.
1944  (b) The certificate required under Subsection (5)(a) shall state one of the following:
1945  (i) the property tax on the off-highway vehicle for the current year has been paid;
1946  (ii) in the county assessor's opinion, the tax is a lien on real property sufficient to
1947  secure the payment of the tax; or
1948  (iii) the off-highway vehicle is exempt by law from payment of property tax for the
1949  current year.
1950  (c) An off-highway vehicle for which an off-highway implement of husbandry sticker
1951  has been issued in accordance with Section 41-22-5.5 is:
1952  (i) exempt from the requirement under this Subsection (5);
1953  (ii) not required to obtain or purchase an off-highway vehicle license plate; and
1954  (iii) required to obtain and display an off-highway vehicle registration sticker.
1955     (6)(a) All records of the division made or kept under this section shall be classified by
1956  the Motor Vehicle Division in the same manner as motor vehicle records are
1957  classified under Section 41-1a-116.
1958  (b) Division records are available for inspection in the same manner as motor vehicle
1959  records under Section 41-1a-116.
1960     (7) A violation of this section is an infraction.
1961  Section 38. Section 41-22-8 is amended to read:
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       02-25 17:18  1st Sub. (Buff) H.B. 505
1962  41-22-8 (Effective 01/01/27) (Partially Repealed 07/01/29). Registration fees.
1963     (1) Subject to Subsection (4), the division, after notifying the commission, shall establish
1964  the fees that shall be paid in accordance with this chapter, subject to the following:
1965  (a)(i) Except as provided in Subsection (1)(a)(ii) or (iii), the [fee] vehicle tax for each
1966  off-highway vehicle registration may not exceed $35.
1967  (ii) The [fee] vehicle tax for each snowmobile registration may not exceed $26.
1968  (iii) The [fee] vehicle tax for each street-legal all-terrain vehicle may not exceed $72.
1969  [(b) The fee for each duplicate registration card may not exceed $3.]
1970  [(c) The fee for each duplicate registration sticker may not exceed $5.]
1971  (b) In accordance with Section 63J-1-504, the division shall establish service fees for
1972  obtaining a duplicate registration card and a duplicate registration sticker.
1973     (2) A fee may not be charged for an off-highway vehicle that is owned and operated by the
1974  United States Government, this state, or its political subdivisions.
1975     (3)(a) In addition to the taxes and fees under this section, Section 41-22-33, and Section
1976  41-22-34, the Motor Vehicle Division shall require a person to pay one dollar [to
1977  register] at the time of registration as a regulatory fee an off-highway vehicle under
1978  Section 41-22-3.
1979  (b) The Motor Vehicle Division shall deposit the [fees] regulatory fee the Motor Vehicle
1980  Division collects under Subsection (3)(a) into the Brain and Spinal Cord Injury Fund
1981  described in Section 26B-1-318.
1982     (4) For a vehicle registered for a 24-month period as provided in Section 41-1a-215.5, the
1983  vehicle tax and fee amounts are double the amounts due for the same vehicle registered
1984  for a 12-month period.
1985  Section 39. Section 41-22-9 is amended to read:
1986  41-22-9 (Effective 01/01/27). Vehicles exempt from registration.
1987     (1) The following off-highway vehicles are exempt from the registration requirements of
1988  this chapter:
1989  (a) vehicles that are currently registered for highway use, have a valid motor vehicle
1990  safety inspection sticker or certificate, and on which the required safety equipment
1991  has not been subsequently modified;
1992  (b) except as provided in Subsection (2), a street-legal all-terrain vehicle registered in
1993  accordance with Section 41-6a-1509;
1994  (c) off-highway vehicles that are owned by a nonresident and that are displaying a
1995  current annual off-highway vehicle user decal in accordance with Section 41-22-35;
                                                       - 59 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
1996  (d) off-highway vehicles sold by a dealer to a person who is not a resident of this state;
1997  (e) off-highway implements of husbandry operated in the manner prescribed by
1998  Subsections 41-22-5.5(3) through (5); and
1999  (f) new off-highway vehicles being transported to an off-highway vehicle dealership by
2000  the dealer, employee of the dealership, or agent for the dealership.
2001     (2) In addition to the registration requirements imposed under Section 41-6a-1509, a
2002  street-legal all-terrain vehicle is subject to the vehicle taxes and fees under Sections
2003  41-22-8, 41-22-33, 41-22-34, and 41-22-36.
2004  Section 40. Section 41-22-19 is amended to read:
2005  41-22-19 (Effective 01/01/27). Off-highway Vehicle Account -- Deposit and use of
2006     funds -- Grants and matching funds.
2007     (1)(a) Except as provided under Subsections (3) through (5) and Sections 41-22-34 and
2008  41-22-36, [registration] vehicle taxes and fees and related money collected by the
2009  Motor Vehicle Division or any agencies designated to act for the Motor Vehicle
2010  Division under this chapter shall be deposited as restricted revenue into the
2011  Off-highway Vehicle Account in the General Fund less the costs incurred by the
2012  Motor Vehicle Division for collecting off-highway vehicle [registration ] taxes and
2013  fees.
2014  (b) The balance of the money may be used by the division:
2015  (i) for the construction, improvement, operation, acquisition, or maintenance of
2016  publicly owned or administered off-highway vehicle facilities, including public
2017  access facilities;
2018  (ii) for the mitigation of impacts associated with off-highway vehicle use;
2019  (iii) for the education of off-highway vehicle users;
2020  (iv) for off-highway vehicle access protection;
2021  (v) to support off-highway vehicle search and rescue activities and programs;
2022  (vi) to promote and encourage off-highway vehicle tourism;
2023  (vii) for other uses that further the policy set forth in Section 41-22-1;
2024  (viii) as grants or matching funds with a federal agency, state agency, political
2025  subdivision of the state, or organized user group for any of the uses described in
2026  Subsections (1)(b)(i) through (vii); and
2027  (ix) for the administration and enforcement of this chapter.
2028     (2)(a) An agency or political subdivision requesting matching funds shall submit plans
2029  for proposed off-highway vehicle facilities to the division for review and approval.
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       02-25 17:18  1st Sub. (Buff) H.B. 505
2030  (b) The division may award an upfront grant from the Off-highway Vehicle Account to
2031  cover the entire projected cost of a project or program to:
2032  (i) a political subdivision of the state that:
2033  (A) is a county of the third through sixth class; and
2034  (B) submits a plan for a project or program consistent with a use described in
2035  Subsection (1)(b); and
2036  (ii) an organized user group or agency that submits a plan for a project or program:
2037  (A) located in a county of the third through sixth class; and
2038  (B) consistent with a use described in Subsection (1)(b).
2039  (c) In awarding a grant under Subsection (2)(b), the division may evaluate a grant
2040  application submitted on or after January 1, 2025.
2041     (3)(a) One dollar and 50 cents of each annual [registration fee] vehicle tax collected
2042  under Subsection 41-22-8(1) and each off-highway vehicle user fee collected under
2043  Subsection 41-22-35(2) shall be deposited into the Land Grant Management Fund
2044  created under Section 53C-3-101.
2045  (b) The Utah School and Institutional Trust Lands Administration shall use the money
2046  deposited under Subsection (3)(a) for costs associated with off-highway vehicle use
2047  of legally accessible lands within its jurisdiction as follows:
2048  (i) to improve recreational opportunities on trust lands by constructing, improving,
2049  maintaining, or perfecting access for off-highway vehicle trails; and
2050  (ii) to mitigate impacts associated with off-highway vehicle use.
2051  (c) An unused balance of the money deposited under Subsection (3)(a) exceeding
2052  $350,000 at the end of each fiscal year shall be deposited into the Off-highway
2053  Vehicle Account under Subsection (1).
2054     (4) One dollar of each off-highway vehicle registration fee collected under Subsection
2055  41-22-8(1) shall be deposited into the Utah Highway Patrol Aero Bureau Restricted
2056  Account created in Section 53-8-303.
2057     (5)(a) The Motor Vehicle Division shall collect a fee for any new or replacement license
2058  plate issued under this chapter.
2059  (b) The fee described in Subsection (5)(a) shall be an amount equal to the fee for a new
2060  or replacement license plate as established in accordance with Section 63J-1-504.
2061  (c) The Motor Vehicle Division shall deposit the fee described in Subsection (5)(a) into
2062  the License Plate Restricted Account created under Section 41-1a-122.
2063     (6) For a vehicle registered for a 24-month period as provided in Section 41-1a-215.5, the
                                                        - 61 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
2064  deposited amounts described in this section shall be double the amount for the same
2065  vehicle registered for a 12-month period.
2066     (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2067  division, after notifying the commission, shall make rules as necessary to implement this
2068  section.
2069  Section 41. Section 41-22-33 is amended to read:
2070  41-22-33 (Effective 01/01/27). Fees for safety and education program -- Penalty
2071     -- Unlawful acts.
2072     (1) A fee set by the division, after notifying the commission, in accordance with Section
2073  63J-1-504 shall be added to the [registration fee] vehicle tax required to register an
2074  off-highway vehicle under Section 41-22-8 to help fund the off-highway vehicle safety
2075  and education program.
2076     (2) If the division modifies the fee under Subsection (1), the modification shall take effect
2077  on the first day of the calendar quarter after 90 days from the day on which the division
2078  provides the State Tax Commission:
2079  (a) notice from the division stating that the division will modify the fee; and
2080  (b) a copy of the fee modification.
2081     (3) The division shall require a person registering an off-highway vehicle or a street-legal
2082  all-terrain vehicle registered for a 24-month period as provided in Section 41-1a-215.5
2083  to pay double the amount of the fee described in Subsection (1) for the same vehicle
2084  registered for a 12-month period.
2085  Section 42. Section 41-22-34 is amended to read:
2086  41-22-34 (Effective 01/01/27). Search and rescue fee -- Amount -- Deposition.
2087     (1) In addition to the vehicle taxes and fees imposed under Sections 41-22-8 and 41-22-33, [
2088  there is imposed a search and rescue fee of 50 cents on each off-highway vehicle] the
2089  division shall, in accordance with Section 63J-1-504, establish and collect a search and
2090  rescue regulatory fee on each off-highway vehicle required to be registered or renewed
2091  under Section 41-22-3.
2092     (2) The fees imposed under this section shall be collected in the same manner and by the
2093  same agency designated to collect the fees imposed under this chapter.
2094     (3) The fees collected under this section shall be deposited into the General Fund as
2095  dedicated credits for the Search and Rescue Financial Assistance Program created under
2096  Section 53-2a-1101.
2097     (4) The division shall require a person registering an off-highway vehicle or a street-legal
                                                       - 62 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
2098  all-terrain vehicle registered for a 24-month period as provided in Section 41-1a-215.5
2099  to pay double the amount of the fee described in Subsection (1) for the same vehicle
2100  registered for a 12-month period.
2101  Section 43. Section 41-27-201 is amended to read:
2102  41-27-201 (Effective 01/01/27). Novel vehicle registration.
2103     (1) An owner registering a vehicle shall provide the VIN, if applicable.
2104     (2) The division shall identify a vehicle category based on the VIN.
2105     (3) If the vehicle does not have a VIN, or if the division is unable to determine the vehicle
2106  category based on the VIN:
2107  (a) the owner shall provide the division with a description of the vehicle, including the
2108  vehicle's purpose; and
2109  (b) if the description of the vehicle fits with an existing category of vehicle, the vehicle
2110  shall be registered in accordance with that vehicle category.
2111     (4) The vehicle shall be registered as a novel vehicle if:
2112  (a) the vehicle is not expressly exempt from registration; and
2113  (b)(i) the vehicle does not fit within a vehicle category;
2114  (ii) the unique characteristics of the vehicle make it unclear whether the vehicle fits
2115  within a vehicle category; or
2116  (iii) a reasonable person would not consider the vehicle to be clearly included in an
2117  existing vehicle category.
2118     (5) A person registering a novel vehicle shall pay:
2119  (a) in accordance with Section 59-2-405, an annual $1 fee in lieu of property tax; and
2120  (b) an annual $1 [registration fee] vehicle tax, to be deposited into the Transportation
2121  Fund.
2122     (6) The division shall issue a registration sticker or license plate for a vehicle that is
2123  registered as a novel vehicle, as appropriate.
2124     (7) A vehicle registered as a street-legal novel vehicle is subject to the requirements
2125  described in Section 41-6a-1509.
2126     (8) The division may provide title to a novel vehicle.
2127     (9) Except as expressly provided in this chapter:
2128  (a) a novel vehicle that is not a watercraft is subject to the provisions applicable to an
2129  off-highway vehicle under Chapter 22, Off-Highway Vehicles; and
2130  (b) a novel vehicle that is a watercraft is subject to the provisions applicable to a
2131  motorboat under Title 73, Chapter 18, State Boating Act.
                                                        - 63 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
2132  Section 44. Section 53-3-905 is amended to read:
2133  53-3-905 (Effective 01/01/27). Dedication of fees.
2134     (1) The following shall be deposited as dedicated credits [in] into the Transportation Fund to
2135  be used by the division for the program:
2136  (a) $5 of the annual [registration fee] vehicle tax imposed for each registered motorcycle
2137  under Subsection [41-1a-1206(1)(a);] 41-1a-1206(3)(b); and
2138  [(b) $4 of the six-month registration fee imposed for each registered motorcycle under
2139  Subsection 41-1a-1206(2)(a); and]
2140  [(c)] (b) $2.50 of the fee imposed under Section 53-3-105 for an original, renewal, or
2141  extension of a motorcycle endorsement.
2142     (2) Appropriations to the program are nonlapsing.
2143     (3) Appropriations may not be used for assistance to, advocacy of, or lobbying for any
2144  legislation unless the legislation would enhance or affect the financial status of the
2145  program or the program's continuation.
2146  Section 45. Section 53-8-214 is amended to read:
2147  53-8-214 (Effective 01/01/27). Creation of the Motor Vehicle Safety Impact
2148     Restricted Account.
2149     (1) There is created a restricted account within the General Fund known as the Motor
2150  Vehicle Safety Impact Restricted Account.
2151     (2) The account includes:
2152  (a) deposits made to the restricted account from [registration] vehicle taxes and fees as
2153  described in [Subsection 41-1a-1201(7)] Section 41-1a-1201;
2154  (b) deposits into the account as described in Section 41-1a-1211;
2155  (c) donations or deposits made to the account; and
2156  (d) any interest earned on the account.
2157     (3) Upon appropriation, the division may use funds in the account to improve motor vehicle
2158  safety, mitigate impacts, and enforce safety provisions, including the following:
2159  (a) hiring new Highway Patrol troopers;
2160  (b) payment of overtime for Highway Patrol troopers; and
2161  (c) acquisition of equipment to improve motor vehicle safety impacts and enforcement.
2162     (4) The division shall annually report to the Criminal Justice Appropriations Subcommittee
2163  to justify expenditures and use of funds in the account.
2164  Section 46. Section 53G-10-503 is amended to read:
2165  53G-10-503 (Effective 01/01/27). Driver education funding -- Reimbursement of
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       02-25 17:18  1st Sub. (Buff) H.B. 505
2166     a local education agency for driver education class expenses -- Limitations -- Excess
2167     funds -- Student fees.
2168     (1)(a) Except as provided in Subsection (1)(b), a local education agency that provides
2169  driver education shall fund the program through:
2170  (i) funds provided from the Automobile Driver Education Tax Account in the
2171  Uniform School Fund as [created under Section 41-1a-1205] described in Section
2172  41-1a-1201; and
2173  (ii) student fees collected by each school.
2174  (b) In determining the cost of driver education, a local education agency may exclude:
2175  (i) the full-time equivalent cost of a teacher for a driver education class taught during
2176  regular school hours; and
2177  (ii) classroom space and classroom maintenance.
2178  (c) A local education agency may use additional school funds beyond those allowed
2179  under Subsection (1)(b) to subsidize driver education.
2180     (2)(a) The state superintendent shall, [prior to] before September 2nd following the
2181  school year during which it was expended, or may at earlier intervals during that
2182  school year, reimburse each local education agency that applied for reimbursement in
2183  accordance with this section.
2184  (b) A local education agency that maintains driver education classes that conform to this
2185  part and the rules prescribed by the state board may apply for reimbursement for the
2186  actual cost of providing the behind-the-wheel and observation training incidental to
2187  those classes.
2188     (3) Under the state board's supervision for driver education, a local education agency may:
2189  (a) employ personnel who are not licensed by the state board under Section 53E-6-201;
2190  or
2191  (b) contract with private parties or agencies licensed under Section 53-3-504 for the
2192  behind-the-wheel phase of the driver education program.
2193     (4) The reimbursement amount shall be paid [out of] from the Automobile Driver Education
2194  Tax Account in the Uniform School Fund and may not exceed:
2195  (a) $150 per student who has completed driver education during the school year;
2196  (b) $45 per student who has only completed the classroom portion in the school during
2197  the school year; or
2198  (c) $105 per student who has only completed the behind-the-wheel and observation
2199  portion in the school during the school year.
                                                      - 65 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
2200     (5) If the amount of money in the account at the end of a school year is less than the total of
2201  the reimbursable costs, the state superintendent shall allocate the money to each local
2202  education agency in the same proportion that the local education agency's reimbursable
2203  costs bear to the total reimbursable costs of all local education agencies.
2204     (6) If the amount of money in the account at the end of any school year is more than the
2205  total of the reimbursement costs provided under Subsection (4), the state superintendent
2206  may allocate the excess funds to local education agencies:
2207  (a) to reimburse each local education agency that applies for reimbursement of the cost
2208  of a fee waived under Section 53G-7-504 for driver education; and
2209  (b) to aid in the procurement of equipment and facilities which reduce the cost of
2210  behind-the-wheel instruction.
2211     (7)(a) A local school board shall, in accordance with Chapter 7, Part 5, Student Fees,
2212  establish the student fee for driver education for the local education agency.
2213  (b) Student fees shall be reasonably associated with the costs of driver education that are
2214  not otherwise covered by reimbursements and allocations made under this section.
2215  Section 47. Section 59-2-405.1 is amended to read:
2216  59-2-405.1 (Effective 01/01/27). Uniform fee on certain vehicles with a gross
2217     vehicle weight rating of 14,000 pounds or less -- Distribution of revenues -- Appeals.
2218     (1) The property described in Subsection (2) is exempt from ad valorem property taxes [
2219  pursuant to] in accordance with Utah Constitution Article XIII, Section 2, Subsection (6).
2220     (2)(a) Except as provided in Subsection (2)(b), there is levied as provided in this part a
2221  statewide uniform fee in lieu of the ad valorem tax on:
2222  (i) motor vehicles as defined in Section 41-1a-102 that:
2223  (A) are required to be registered with the state; and
2224  (B) have a gross vehicle weight rating of 14,000 pounds or less; and
2225  (ii) state-assessed commercial vehicles required to be registered with the state that
2226  have a gross vehicle weight rating of 14,000 pounds or less.
2227  (b) The following tangible personal property is exempt from the statewide uniform fee
2228  imposed by this section:
2229  (i) aircraft;
2230  (ii) tangible personal property subject to a uniform fee imposed by:
2231  (A) Section 59-2-405;
2232  (B) Section 59-2-405.2; or
2233  (C) Section 59-2-405.3; and
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        02-25 17:18  1st Sub. (Buff) H.B. 505
2234  (iii) tangible personal property that is exempt from state or county ad valorem
2235  property taxes under the laws of this state or of the federal government.
2236      (3)(a) Except as provided in [Subsections (3)(b) and (c), beginning on January 1, 1999]
2237  Subsection (3)(b), the uniform fee for purposes of this section is as follows:
 2238  Age of Vehicle  Uniform Fee
 2239      12 or more years  $10
 2240      9 or more years but less than 12 years  $50
 2241      6 or more years but less than 9 years  $80
 2242      3 or more years but less than 6 years  $110
 2243      Less than 3 years  $150
2244  [(b) For registrations under Section 41-1a-215.5, the uniform fee for purposes of this
2245  section is as follows:]
 2246  [Age of Vehicle  Uniform Fee
 2247      12 or more years  $7.75
 2248      9 or more years but less than 12 years  $38.50
 2249      6 or more years but less than 9 years  $61.50
 2250      3 or more years but less than 6 years  $84.75
 2251      Less than 3 years  $115.50]
2252  [(c)] (b) Notwithstanding [Subsections (3)(a) and (b), beginning on September 1, 2001]
2253  Subsection (3)(a), for a motor vehicle issued a temporary sports event registration
2254  certificate in accordance with Section 41-3-306, the uniform fee for purposes of this
2255  section is $5 for the event period specified on the temporary sports event registration
2256  certificate regardless of the age of the motor vehicle.
2257  [(d)] (c)(i) Subject to Subsection [(3)(d)(ii)] (3)(c)(ii), for a vehicle registered for a
2258  24-month period as provided in Section 41-1a-215.5, the uniform statewide fee
2259  amounts imposed by this section are double the amounts due for the same vehicle
2260  registered for a 12-month period.
2261  (ii) For a vehicle registered for a 24-month period as provided in Section 41-1a-215.5,
2262  if the 24-month term extends from one age bracket to another age bracket as
2263  described in this section, the person shall pay the sum of:
2264  (A) the uniform statewide fee amount for the first year corresponding to the age
                                                         - 67 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
2265  bracket applicable for the first 12 months of the registration period; and
2266  (B) the uniform statewide fee amount for the second year corresponding to the age
2267  bracket applicable for the second 12 months of the registration period.
2268     (4) Notwithstanding Section 59-2-407, property subject to the uniform fee that is brought
2269  into the state and is required to be registered in Utah shall, as a condition of registration,
2270  be subject to the uniform fee unless all property taxes or uniform fees imposed by the
2271  state of origin have been paid for the current calendar year.
2272     (5)(a) The revenues collected in each county from the uniform fee shall be distributed by
2273  the county to each taxing entity in which the property described in Subsection (2) is
2274  located in the same proportion in which revenue collected from ad valorem real
2275  property tax is distributed.
2276  (b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in
2277  the same proportion in which revenue collected from ad valorem real property tax is
2278  distributed.
2279  Section 48. Section 59-2-405.2 is amended to read:
2280  59-2-405.2 (Effective 01/01/27). Definitions -- Uniform statewide fee on certain
2281     tangible personal property -- Distribution of revenues -- Rulemaking authority --
2282     Determining the length of a vessel.
2283     (1) As used in this section:
2284  (a)(i) Except as provided in Subsection (1)(a)(ii), "all-terrain vehicle" means a motor
2285  vehicle that:
2286  (A) is an[:] all-terrain type I vehicle, an all-terrain type II vehicle, or an all-terrain
2287  type III vehicle, as those terms are defined in Section 41-22-2;
2288  [(I) all-terrain type I vehicle as defined in Section 41-22-2;]
2289  [(II) all-terrain type II vehicle as defined in Section 41-22-2; or]
2290  [(III) all-terrain type III vehicle as defined in Section 41-22-2;]
2291  (B) is required to be registered in accordance with Title 41, Chapter 22,
2292  Off-highway Vehicles; and
2293  (C) has[:]
2294  [(I)] an engine with more than 150 cubic centimeters displacement[;] ,
2295  [(II)] a motor that produces more than five horsepower[;] , or
2296  [(III)] an electric motor; and
2297  (ii) notwithstanding Subsection (1)(a)(i), "all-terrain vehicle" does not include a
2298  snowmobile.
                                                        - 68 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
2299        (b) "Camper" means a camper:
2300  (i) as defined in Section 41-1a-102; and
2301  (ii) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
2302  Registration.
2303        (c)(i) "Canoe" means a vessel that:
2304  (A) is long and narrow;
2305  (B) has curved sides; and
2306  (C) is tapered[:]
2307  [(I)] to two pointed ends[;] or
2308  [(II)] to one pointed end and is blunt on the other end; and
2309  (ii) "canoe" includes:
2310  (A) a collapsible inflatable canoe;
2311  (B) a kayak;
2312  (C) a racing shell;
2313  (D) a rowing scull; or
2314  (E) notwithstanding the definition of vessel in Subsection (1)(cc), a canoe with an
2315  outboard motor.
2316        (d) "Dealer" means the same as that term is defined in Section 41-1a-102.
2317        (e) "Jon boat" means a vessel that:
2318  (i) has a square bow; and
2319  (ii) has a flat bottom.
2320        (f) "Motor vehicle" means the same as that term is defined in Section 41-22-2.
2321        (g) "Other motorcycle" means a motor vehicle that:
2322  (i) is:
2323  (A) a motorcycle as defined in Section 41-1a-102; and
2324  (B) designed primarily for use and operation over unimproved terrain;
2325  (ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
2326  Registration; and
2327  (iii) has:
2328  (A) an engine with more than 150 cubic centimeters displacement; or
2329  (B) a motor that produces more than five horsepower.
2330        (h)(i) "Other trailer" means a portable vehicle without motive power that is primarily
2331  used:
2332  (A) to transport tangible personal property; and
                                                      - 69 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
2333  (B) for a purpose other than a commercial purpose; and
2334  (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2335  for purposes of Subsection (1)(h)(i)(B), the commission may by rule define what
2336  constitutes a purpose other than a commercial purpose.
2337  (i) "Outboard motor" means the same as that term is defined in Section 41-1a-102.
2338  (j) "Park model recreational vehicle" means the same as that term is defined in Section
2339  41-1a-102.
2340  (k) "Personal watercraft" means a personal watercraft:
2341  (i) as defined in Section 73-18-2; and
2342  (ii) that is required to be registered in accordance with Title 73, Chapter 18, State
2343  Boating Act.
2344  (l)(i) "Pontoon" means a vessel that:
2345  (A) is[:]
2346  [(I)] supported by one or more floats[;] and
2347  [(II)] propelled by either inboard or outboard power; and
2348  (B) is not[:]
2349  [(I)] a houseboat[;] or
2350  [(II)] a collapsible inflatable vessel; and
2351  (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2352  the commission may by rule define the term "houseboat."
2353  (m) "Qualifying adjustment, exemption, or reduction" means an adjustment, exemption,
2354  or reduction:
2355  (i) of all or a portion of a qualifying payment;
2356  (ii) granted by a county during the refund period; and
2357  (iii) received by a qualifying person.
2358  (n)(i) "Qualifying payment" means the payment made:
2359  (A) of a uniform statewide fee in accordance with this section[:]
2360  [(I)] by a qualifying person[;] ,
2361  [(II)] to a county[;] , and
2362  [(III)] during the refund period; and
2363  (B) on an item of qualifying tangible personal property; and
2364  (ii) if a qualifying person received a qualifying adjustment, exemption, or reduction
2365  for an item of qualifying tangible personal property, the qualifying payment for
2366  that qualifying tangible personal property is equal to the difference between:
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       02-25 17:18  1st Sub. (Buff) H.B. 505
2367  (A) the payment described in this Subsection (1)(n) for that item of qualifying
2368  tangible personal property; and
2369  (B) the amount of the qualifying adjustment, exemption, or reduction.
2370        (o) "Qualifying person" means a person that paid a uniform statewide fee:
2371  (i) during the refund period;
2372  (ii) in accordance with this section; and
2373  (iii) on an item of qualifying tangible personal property.
2374        (p) "Qualifying tangible personal property" means a:
2375  (i) qualifying vehicle; or
2376  (ii) qualifying watercraft.
2377        (q) "Qualifying vehicle" means:
2378  (i) an all-terrain vehicle with an engine displacement that is 100 or more cubic
2379  centimeters but 150 or less cubic centimeters;
2380  (ii) an other motorcycle with an engine displacement that is 100 or more cubic
2381  centimeters but 150 or less cubic centimeters;
2382  (iii) a small motor vehicle with an engine displacement that is 100 or more cubic
2383  centimeters but 150 or less cubic centimeters;
2384  (iv) a snowmobile with an engine displacement that is 100 or more cubic centimeters
2385  but 150 or less cubic centimeters; or
2386  (v) a street motorcycle with an engine displacement that is 100 or more cubic
2387  centimeters but 150 or less cubic centimeters.
2388        (r) "Qualifying watercraft" means a:
2389  (i) canoe;
2390  (ii) collapsible inflatable vessel;
2391  (iii) jon boat;
2392  (iv) pontoon;
2393  (v) sailboat; or
2394  (vi) utility boat.
2395        (s) "Refund period" means the time period:
2396  (i) beginning on January 1, 2006; and
2397  (ii) ending on December 29, 2006.
2398        (t) "Sailboat" means a sailboat as defined in Section 73-18-2.
2399        (u)(i) "Small motor vehicle" means a motor vehicle that:
2400  (A) is required to be registered in accordance with Title 41, Motor Vehicles; and
                                                      - 71 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
2401  (B) has[:]
2402  [(I)] an engine with 150 or less cubic centimeters displacement[;] or
2403  [(II)] a motor that produces five or less horsepower; and
2404  (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2405  the commission may by rule develop a process for an owner of a motor vehicle to
2406  certify whether the motor vehicle has:
2407  (A) an engine with 150 or less cubic centimeters displacement; or
2408  (B) a motor that produces five or less horsepower.
2409  (v) "Snowmobile" means a motor vehicle that:
2410  (i) is a snowmobile as defined in Section 41-22-2;
2411  (ii) is required to be registered in accordance with Title 41, Chapter 22, Off-highway
2412  Vehicles; and
2413  (iii) has:
2414  (A) an engine with more than 150 cubic centimeters displacement; or
2415  (B) a motor that produces more than five horsepower.
2416  (w) "Street-legal all-terrain vehicle" means the same as that term is defined in Section
2417  41-6a-102.
2418  (x) "Street motorcycle" means a motor vehicle that:
2419  (i) is:
2420  (A) a motorcycle as defined in Section 41-1a-102; and
2421  (B) designed primarily for use and operation on highways;
2422  (ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
2423  Registration; and
2424  (iii) has:
2425  (A) an engine with more than 150 cubic centimeters displacement; or
2426  (B) a motor that produces more than five horsepower.
2427  (y) "Tangible personal property owner" means a person that owns an item of qualifying
2428  tangible personal property.
2429  (z) "Tent trailer" means a portable vehicle without motive power that:
2430  (i) is constructed with collapsible side walls that:
2431  (A) fold for towing by a motor vehicle; and
2432  (B) unfold at a campsite;
2433  (ii) is designed as a temporary dwelling for travel, recreational, or vacation use;
2434  (iii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
                                                       - 72 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
2435  Registration; and
2436  (iv) does not require a special highway movement permit when drawn by a
2437  self-propelled motor vehicle.
2438  (aa)(i) Except as provided in Subsection (1)(aa)(ii), "travel trailer" means a travel
2439  trailer:
2440  (A) as defined in Section 41-1a-102; and
2441  (B) that is required to be registered in accordance with Title 41, Chapter 1a, Part
2442  2, Registration; and
2443  (ii) notwithstanding Subsection (1)(aa)(i), "travel trailer" does not include:
2444  (A) a camper; or
2445  (B) a tent trailer.
2446  (bb)(i) "Utility boat" means a vessel that:
2447  (A) has[:]
2448  [(I)] two or three bench seating[;] ,
2449  [(II)] an outboard motor[;] , and
2450  [(III)] a hull made of aluminum, fiberglass, or wood; and
2451  (B) does not have[:]
2452  [(I)] decking[;] ,
2453  [(II)] a permanent canopy[;] , or
2454  [(III)] a floor other than the hull; and
2455  (ii) notwithstanding Subsection (1)(bb)(i), "utility boat" does not include a collapsible
2456  inflatable vessel.
2457  (cc) "Vessel" means a vessel:
2458  (i) as defined in Section 73-18-2, including an outboard motor of the vessel; and
2459  (ii) that is required to be registered in accordance with Title 73, Chapter 18, State
2460  Boating Act.
2461     (2)(a) In accordance with Utah Constitution, Article XIII, Section 2, Subsection (6), [
2462  beginning on January 1, 2006, ]the tangible personal property described in
2463  Subsection (2)(b) is:
2464  (i) exempt from the tax imposed by Section 59-2-103; and
2465  (ii) in lieu of the tax imposed by Section 59-2-103, subject to uniform statewide fees
2466  as provided in this section.
2467  (b) The following tangible personal property applies to Subsection (2)(a) if that tangible
2468  personal property is required to be registered with the state:
                                                          - 73 -
        1st Sub. (Buff) H.B. 505  02-25 17:18
2469  (i) an all-terrain vehicle;
2470  (ii) a camper;
2471  (iii) an other motorcycle;
2472  (iv) an other trailer;
2473  (v) a personal watercraft;
2474  (vi) a small motor vehicle;
2475  (vii) a snowmobile;
2476  (viii) a street motorcycle;
2477  (ix) a tent trailer;
2478  (x) a travel trailer;
2479  (xi) a park model recreational vehicle; and
2480  (xii) a vessel if that vessel is less than 31 feet in length as determined under
2481  Subsection [(8)] (7).
2482      (3) Except as provided in Subsection (4) and for purposes of this section, the uniform
2483  statewide fees are:
2484  (a) for a snowmobile:
 2485      Age of Snowmobile  Uniform Statewide Fee
 2486      12 or more years  $10
 2487      9 or more years but less than 12 years  $20
 2488      6 or more years but less than 9 years  $30
 2489      3 or more years but less than 6 years  $35
 2490      Less than 3 years  $45
2491  (b) for an all-terrain vehicle that is not a street-legal all-terrain vehicle or another
2492  motorcycle:
 2493      Age of All-Terrain Vehicle or Other Motorcycle Uniform Statewide  Uniform Statewide Fee
           Fee
 2494      12 or more years  $4
 2495      9 or more years but less than 12 years  $8
 2496      6 or more years but less than 9 years  $12
 2497      3 or more years but less than 6 years  $14
 2498      Less than 3 years  $18
                                                         - 74 -
        02-25 17:18  1st Sub. (Buff) H.B. 505
2499  (c) for a street-legal all-terrain vehicle:
 2500      Age of Street-Legal All-Terrain Vehicle  Uniform Statewide Fee
 2501      12 or more years  $4
 2502      9 or more years but less than 12 years  $14
 2503      6 or more years but less than 9 years  $20
 2504      3 or more years but less than 6 years  $28
 2505      Less than 3 years  $38
2506  (d) for a camper or a tent trailer:
 2507  Age of Camper or Tent Trailer  Uniform Statewide Fee
 2508      12 or more years  $10
 2509      9 or more years but less than 12 years  $25
 2510      6 or more years but less than 9 years  $35
 2511      3 or more years but less than 6 years  $50
 2512      Less than 3 years  $70
2513  (e) for an other trailer:
 2514  Age of Other Trailer  Uniform Statewide Fee
 2515      12 or more years  $10
 2516      9 or more years but less than 12 years  $15
 2517      6 or more years but less than 9 years  $20
 2518      3 or more years but less than 6 years  $25
 2519      Less than 3 years  $30
2520  (f) for a personal watercraft:
 2521  Age of Personal Watercraft  Uniform Statewide Fee
 2522      12 or more years  $5
 2523      9 or more years but less than 12 years  $13
 2524      6 or more years but less than 9 years  $18
 2525      3 or more years but less than 6 years  $23
 2526      Less than 3 years  $28
2527  (g) for a small motor vehicle:
                                                           - 75 -
        1st Sub. (Buff) H.B. 505  02-25 17:18
 2528  Age of Small Motor Vehicle  Uniform Statewide Fee
 2529      6 or more years  $10
 2530      3 or more years but less than 6 years  $15
 2531      Less than 3 years  $25
2532  (h) for a street motorcycle:
 2533  Age of Street Motorcycle  Uniform Statewide Fee
 2534      12 or more years  $10
 2535      9 or more years but less than 12 years  $35
 2536      6 or more years but less than 9 years  $50
 2537      3 or more years but less than 6 years  $70
 2538      Less than 3 years  $95
2539  (i) for a travel trailer or park model recreational vehicle:
 2540  Age of Travel Trailer or Park Model Recreational Vehicle  Uniform Statewide Fee
 2541      12 or more years  $20
 2542      9 or more years but less than 12 years  $65
 2543      6 or more years but less than 9 years  $90
 2544      3 or more years but less than 6 years  $135
 2545      Less than 3 years  $175
2546  (j) $5 regardless of the age of the vessel if the vessel is:
2547  (i) less than 15 feet in length;
2548  (ii) a canoe;
2549  (iii) a jon boat; or
2550  (iv) a utility boat;
2551  (k) for a collapsible inflatable vessel, pontoon, or sailboat, regardless of age:
 2552  Length of Vessel  Uniform Statewide Fee
 2553      15 feet or more in length but less than 19 feet in length  $8
 2554      19 feet or more in length but less than 23 feet in length  $13
 2555      23 feet or more in length but less than 27 feet in length  $20
 2556      27 feet or more in length but less than 31 feet in length  $38
                                                         - 76 -
        02-25 17:18  1st Sub. (Buff) H.B. 505
2557  (l) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
2558  sailboat, or utility boat, that is 15 feet or more in length but less than 19 feet in length:
 2559  Age of Vessel  Uniform Statewide Fee
 2560      12 or more years  $13
 2561      9 or more years but less than 12 years  $33
 2562      6 or more years but less than 9 years  $40
 2563      3 or more years but less than 6 years  $55
 2564      Less than 3 years  $75
2565  (m) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
2566  sailboat, or utility boat, that is 19 feet or more in length but less than 23 feet in length:
 2567  Age of Vessel  Uniform Statewide Fee
 2568      12 or more years  $25
 2569      9 or more years but less than 12 years  $60
 2570      6 or more years but less than 9 years  $88
 2571      3 or more years but less than 6 years  $110
 2572      Less than 3 years  $138
2573  (n) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
2574  sailboat, or utility boat, that is 23 feet or more in length but less than 27 feet in length:
 2575  Age of Vessel  Uniform Statewide Fee
 2576      12 or more years  $50
 2577      9 or more years but less than 12 years  $90
 2578      6 or more years but less than 9 years  $120
 2579      3 or more years but less than 6 years  $155
 2580      Less than 3 years  $200
2581  (o) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
2582  sailboat, or utility boat, that is 27 feet or more in length but less than 31 feet in length:
 2583  Age of Vessel  Uniform Statewide Fee
 2584      12 or more years  $60
 2585      9 or more years but less than 12 years  $125
                                                        - 77 -
        1st Sub. (Buff) H.B. 505  02-25 17:18
 2586      6 or more years but less than 9 years  $175
 2587      3 or more years but less than 6 years  $250
 2588      Less than 3 years  $350
2589      [(4) For registrations under Section 41-1a-215.5, the uniform fee for purposes of this
2590  section is as follows:]
2591  [(a) for a street motorcycle:]
 2592  [Age of Street Motorcycle  Uniform Statewide Fee
 2593      12 or more years  $7.75
 2594      9 or more years but less than 12 years  $27
 2595      6 or more years but less than 9 years  $38.50
 2596      3 or more years but less than 6 years  $54
 2597      Less than 3 years  $73]
2598  [(b) for a small motor vehicle:]
 2599  [Age of Small Motor Vehicle  Uniform Statewide Fee
 2600      6 or more years  $7.75
 2601      3 or more years but less than 6 years  $11.50
 2602      Less than 3 years  $19.25]
2603      [(5)] (4) Notwithstanding Section 59-2-407, tangible personal property subject to the
2604  uniform statewide fees imposed by this section that is brought into the state shall, as a
2605  condition of registration, be subject to the uniform statewide fees unless all property
2606  taxes or uniform fees imposed by the state of origin have been paid for the current
2607  calendar year.
2608      [(6)] (5)(a) Subject to Subsection [(6)(b)] (5)(b), for a vehicle registered for a 24-month
2609  period as provided in Section 41-1a-215.5, the uniform statewide fee amounts
2610  imposed by this section are double the amounts due for the same vehicle registered
2611  for a 12-month period.
2612  (b) For a vehicle registered for a 24-month period as provided in Section 41-1a-215.5, if
2613  the 24-month term extends from one age bracket to another age bracket as described
2614  in this section, the person shall pay the sum of:
2615  (i) the uniform statewide fee amount for the first year corresponding to the age
2616  bracket applicable for the first 12 months of the registration period; and
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       02-25 17:18  1st Sub. (Buff) H.B. 505
2617  (ii) the uniform statewide fee amount for the second year corresponding to the age
2618  bracket applicable for the second 12 months of the registration period.
2619     [(7)] (6)(a) The revenues collected in each county from the uniform statewide fees
2620  imposed by this section shall be distributed by the county to each taxing entity in
2621  which each item of tangible personal property subject to the uniform statewide fees is
2622  located in the same proportion in which revenues collected from the ad valorem
2623  property tax are distributed.
2624  (b) Each taxing entity described in Subsection [(7)(a)] (6)(a) that receives revenues from
2625  the uniform statewide fees imposed by this section shall distribute the revenues in the
2626  same proportion in which revenues collected from the ad valorem property tax are
2627  distributed.
2628     [(8)] (7)(a) For purposes of the uniform statewide fee imposed by this section, the length
2629  of a vessel shall be determined as provided in this Subsection [(8)] (7).
2630  (b)(i) Except as provided in Subsection [(8)(b)(ii)] (7)(b)(ii), the length of a vessel
2631  shall be measured as follows:
2632  (A) the length of a vessel shall be measured in a straight line; and
2633  (B) the length of a vessel is equal to the distance between the bow of the vessel
2634  and the stern of the vessel.
2635  (ii) Notwithstanding Subsection [(8)(b)(i)] (7)(b)(i), the length of a vessel may not
2636  include the length of:
2637  (A) a swim deck;
2638  (B) a ladder;
2639  (C) an outboard motor; or
2640  (D) an appurtenance or attachment similar to Subsections [(8)(b)(ii)(A)]
2641  (7)(b)(ii)(A) through (C) as determined by the commission by rule.
2642  (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
2643  the commission may by rule define what constitutes an appurtenance or
2644  attachment similar to Subsections [(8)(b)(ii)(A)] (7)(b)(ii)(A) through (C).
2645  (c) The length of a vessel:
2646  (i)(A) for a new vessel, is the length[:]
2647  [(I)] listed on the manufacturer's statement of origin if the length of the vessel
2648  measured under Subsection [(8)(b)] (7)(b) is equal to the length of the vessel
2649  listed on the manufacturer's statement of origin[;] or
2650  [(II)] listed on a form submitted to the commission by a dealer in accordance
                                                         - 79 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
2651  with Subsection [(8)(d)] (7)(d) if the length of the vessel measured under
2652  Subsection [(8)(b)] (7)(b) is not equal to the length of the vessel listed on the
2653  manufacturer's statement of origin; or
2654  (B) for a vessel other than a new vessel, is the length[:]
2655  [(I)] corresponding to the model number if the length of the vessel measured
2656  under Subsection [(8)(b)] (7)(b) is equal to the length of the vessel
2657  determined by reference to the model number[;] or
2658  [(II)] listed on a form submitted to the commission by an owner of the vessel in
2659  accordance with Subsection [(8)(d)] (7)(d) if the length of the vessel
2660  measured under Subsection [(8)(b)] (7)(b) is not equal to the length of the
2661  vessel determined by reference to the model number; and
2662  (ii)(A) is determined at the time of the[:]
2663  [(I)] first registration as defined in Section 41-1a-102 that occurs on or after
2664  January 1, 2006[;] , or
2665  [(II)] first renewal of registration that occurs on or after January 1, 2006; and
2666  (B) may be determined after the time described in Subsection [(8)(c)(ii)(A)]
2667  (7)(c)(ii)(A) only if the commission requests that a dealer or an owner submit a
2668  form to the commission in accordance with Subsection [(8)(d)] (7)(d).
2669  (d)(i) A form under Subsection [(8)(c)] (7)(c) shall:
2670  (A) be developed by the commission;
2671  (B) be provided by the commission to[:]
2672  [(I)] a dealer[;] or
2673  [(II)] an owner of a vessel;
2674  (C) provide for the reporting of the length of a vessel;
2675  (D) be submitted to the commission at the time the length of the vessel is
2676  determined in accordance with Subsection [(8)(c)(ii)] (7)(c)(ii);
2677  (E) be signed by[:] ,
2678  [(I)] if the form is submitted by a dealer, that dealer[;] , or
2679  [(II)] if the form is submitted by an owner of the vessel, an owner of the vessel;
2680  and
2681  (F) include a certification that the information set forth in the form is true.
2682  (ii) A certification made under Subsection [(8)(d)(i)(F)] (7)(d)(i)(F) is considered as if
2683  made under oath and subject to the same penalties as provided by law for perjury.
2684  (iii)(A) A dealer or an owner that submits a form to the commission under
                                                        - 80 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
2685  Subsection [(8)(c)] (7)(c) is considered to have given the dealer's or owner's
2686  consent to an audit or review by[:] the commission, the county assessor, or the
2687  commission and the county assessor.
2688  [(I) the commission;]
2689  [(II) the county assessor; or]
2690  [(III) the commission and the county assessor.]
2691  (B) The consent described in Subsection [(8)(d)(iii)(A)] (7)(d)(iii)(A) is a
2692  condition to the acceptance of any form.
2693     [(9)(a) A county that collected a qualifying payment from a qualifying person during
2694  the refund period shall issue a refund to the qualifying person as described in
2695  Subsection (9)(b) if:]
2696  [(i) the difference described in Subsection (9)(b) is $1 or more; and]
2697  [(ii) the qualifying person submitted a form in accordance with Subsections (9)(c)
2698  and (d).]
2699  [(b) The refund amount shall be calculated as follows:]
2700  [(i) for a qualifying vehicle, the refund amount is equal to the difference between:]
2701  [(A) the qualifying payment the qualifying person paid on the qualifying vehicle
2702  during the refund period; and]
2703  [(B) the amount of the statewide uniform fee:]
2704  [(I) for that qualifying vehicle; and]
2705  [(II) that the qualifying person would have been required to pay:]
2706  [(Aa) during the refund period; and]
2707  [(Bb) in accordance with this section had Laws of Utah 2006, Fifth Special
2708  Session, Chapter 3, Section 1, been in effect during the refund period;
2709  and]
2710  [(ii) for a qualifying watercraft, the refund amount is equal to the difference between:]
2711  [(A) the qualifying payment the qualifying person paid on the qualifying
2712  watercraft during the refund period; and]
2713  [(B) the amount of the statewide uniform fee:]
2714  [(I) for that qualifying watercraft;]
2715  [(II) that the qualifying person would have been required to pay:]
2716  [(Aa) during the refund period; and]
2717  [(Bb) in accordance with this section had Laws of Utah 2006, Fifth Special
2718  Session, Chapter 3, Section 1, been in effect during the refund period.]
                                                       - 81 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
2719  [(c) Before the county issues a refund to the qualifying person in accordance with
2720  Subsection (9)(a) the qualifying person shall submit a form to the county to verify the
2721  qualifying person is entitled to the refund.]
2722  [(d)(i) A form under Subsection (9)(c) or (10) shall:]
2723  [(A) be developed by the commission;]
2724  [(B) be provided by the commission to the counties;]
2725  [(C) be provided by the county to the qualifying person or tangible personal
2726  property owner;]
2727  [(D) provide for the reporting of the following:]
2728  [(I) for a qualifying vehicle:]
2729  [(Aa) the type of qualifying vehicle; and]
2730  [(Bb) the amount of cubic centimeters displacement;]
2731  [(II) for a qualifying watercraft:]
2732  [(Aa) the length of the qualifying watercraft;]
2733  [(Bb) the age of the qualifying watercraft; and]
2734  [(Cc) the type of qualifying watercraft;]
2735  [(E) be signed by the qualifying person or tangible personal property owner; and]
2736  [(F) include a certification that the information set forth in the form is true.]
2737  [(ii) A certification made under Subsection (9)(d)(i)(F) is considered as if made under
2738  oath and subject to the same penalties as provided by law for perjury.]
2739  [(iii)(A) A qualifying person or tangible personal property owner that submits a
2740  form to a county under Subsection (9)(c) or (10) is considered to have given
2741  the qualifying person's consent to an audit or review by:]
2742  [(I) the commission;]
2743  [(II) the county assessor; or]
2744  [(III) the commission and the county assessor.]
2745  [(B) The consent described in Subsection (9)(d)(iii)(A) is a condition to the
2746  acceptance of any form.]
2747  [(e) The county shall make changes to the commission's records with the information
2748  received by the county from the form submitted in accordance with Subsection (9)(c).]
2749     [(10) A county shall change its records regarding an item of qualifying tangible personal
2750  property if the tangible personal property owner submits a form to the county in
2751  accordance with Subsection (9)(d).]
2752     [(11)(a) For purposes of this Subsection (11), "owner of tangible personal property"
                                                       - 82 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
2753  means a person that was required to pay a uniform statewide fee:]
2754  [(i) during the refund period;]
2755  [(ii) in accordance with this section; and]
2756  [(iii) on an item of tangible personal property subject to the uniform statewide fees
2757  imposed by this section.]
2758  [(b) A county that collected revenues from uniform statewide fees imposed by this
2759  section during the refund period shall notify an owner of tangible personal property:]
2760  [(i) of the tangible personal property classification changes made to this section
2761  pursuant to Laws of Utah 2006, Fifth Special Session, Chapter 3, Section 1;]
2762  [(ii) that the owner of tangible personal property may obtain and file a form to
2763  modify the county's records regarding the owner's tangible personal property; and]
2764  [(iii) that the owner may be entitled to a refund pursuant to Subsection (9).]
2765  Section 49. Section 59-12-103 is amended to read:
2766  59-12-103 [(Effective 07/01/26) ] (Effective 01/01/27). Sales and use tax base --
2767     Rates -- Effective dates -- Use of sales and use tax revenue.
2768     (1) A tax is imposed on the purchaser as provided in this part on the purchase price or sales
2769  price for amounts paid or charged for the following transactions:
2770  (a) retail sales of tangible personal property made within the state;
2771  (b) amounts paid for:
2772  (i) telecommunications service, other than mobile telecommunications service, that
2773  originates and terminates within the boundaries of this state;
2774  (ii) mobile telecommunications service that originates and terminates within the
2775  boundaries of one state only to the extent permitted by the Mobile
2776  Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
2777  (iii) an ancillary service associated with a:
2778  (A) telecommunications service described in Subsection (1)(b)(i); or
2779  (B) mobile telecommunications service described in Subsection (1)(b)(ii);
2780  (c) sales of the following for commercial use:
2781  (i) gas;
2782  (ii) electricity;
2783  (iii) heat;
2784  (iv) coal;
2785  (v) fuel oil; or
2786  (vi) other fuels;
                                                       - 83 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
2787  (d) sales of the following for residential use:
2788  (i) gas;
2789  (ii) electricity;
2790  (iii) heat;
2791  (iv) coal;
2792  (v) fuel oil; or
2793  (vi) other fuels;
2794  (e) sales of prepared food;
2795  (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
2796  user fees for theaters, movies, operas, museums, planetariums, shows of any type or
2797  nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
2798  menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling
2799  matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling
2800  lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts,
2801  ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
2802  river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or
2803  any other amusement, entertainment, recreation, exhibition, cultural, or athletic
2804  activity;
2805  (g) amounts paid or charged for services for repairs or renovations of tangible personal
2806  property, unless Section 59-12-104 provides for an exemption from sales and use tax
2807  for:
2808  (i) the tangible personal property; and
2809  (ii) parts used in the repairs or renovations of the tangible personal property described
2810  in Subsection (1)(g)(i), regardless of whether:
2811  (A) any parts are actually used in the repairs or renovations of that tangible
2812  personal property; or
2813  (B) the particular parts used in the repairs or renovations of that tangible personal
2814  property are exempt from a tax under this chapter;
2815  (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted
2816  cleaning or washing of tangible personal property;
2817  (i) amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer
2818  court accommodations and services;
2819  (j) amounts paid or charged for laundry or dry cleaning services;
2820  (k) amounts paid or charged for leases or rentals of tangible personal property if within
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       02-25 17:18  1st Sub. (Buff) H.B. 505
2821  this state the tangible personal property is:
2822  (i) stored;
2823  (ii) used; or
2824  (iii) otherwise consumed;
2825  (l) amounts paid or charged for tangible personal property if within this state the tangible
2826  personal property is:
2827  (i) stored;
2828  (ii) used; or
2829  (iii) consumed;
2830  (m) amounts paid or charged for a sale:
2831  (i)(A) of a product transferred electronically; or
2832  (B) of a repair or renovation of a product transferred electronically; and
2833  (ii) regardless of whether the sale provides:
2834  (A) a right of permanent use of the product; or
2835  (B) a right to use the product that is less than a permanent use, including a right:
2836  (I) for a definite or specified length of time; and
2837  (II) that terminates upon the occurrence of a condition; and
2838  (n) sales of leased tangible personal property from the lessor to the lessee made in the
2839  state.
2840     (2)(a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are
2841  imposed on a transaction described in Subsection (1) equal to the sum of:
2842  (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
2843  (A) 4.70%;
2844  (B) the rate specified in Subsection (6)(a); and
2845  (C) the tax rate the state imposes in accordance with Part 20, Supplemental State
2846  Sales and Use Tax Act, if the location of the transaction as determined under
2847  Sections 59-12-211 through 59-12-215 is in a city, town, or the unincorporated
2848  area of a county in which the state imposes the tax under Part 20, Supplemental
2849  State Sales and Use Tax Act; and
2850  (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2851  transaction under this chapter other than this part.
2852  (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state
2853  tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal
2854  to the sum of:
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       1st Sub. (Buff) H.B. 505  02-25 17:18
2855  (i) a state tax imposed on the transaction at a tax rate of 2%; and
2856  (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2857  transaction under this chapter other than this part.
2858  (c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed
2859  on amounts paid or charged for food and food ingredients equal to the sum of:
2860  (i) a state tax imposed on the amounts paid or charged for food and food ingredients
2861  at a tax rate of 1.75%; and
2862  (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
2863  amounts paid or charged for food and food ingredients under this chapter other
2864  than this part.
2865  (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid
2866  or charged for fuel to a common carrier that is a railroad for use in a locomotive
2867  engine at a rate equal to the sum of the rates described in Subsections (2)(a)(i)(A) and
2868  (2)(a)(i)(B).
2869  (e)(i)(A) The rates described in Subsections (2)(a)(i)(A) and (2)(a)(i)(B) do not
2870  apply to car sharing, a car sharing program, a shared vehicle driver, or a shared
2871  vehicle owner, for a car sharing or shared vehicle transaction if a shared
2872  vehicle owner certifies to the commission, on a form prescribed by the
2873  commission, that the shared vehicle is an individual-owned shared vehicle.
2874  (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
2875  required once during the time that the shared vehicle owner owns the shared
2876  vehicle.
2877  (C) The commission shall verify that a shared vehicle is an individual-owned
2878  shared vehicle by verifying that the applicable Utah taxes imposed under this
2879  chapter were paid on the purchase of the shared vehicle.
2880  (D) The exception under Subsection (2)(e)(i)(A) applies to a certified
2881  individual-owned shared vehicle shared through a car-sharing program even if
2882  non-certified shared vehicles are also available to be shared through the same
2883  car-sharing program.
2884  (ii) A tax imposed under Subsection (2)(a)(i)(C) or (2)(a)(ii) applies to car sharing.
2885  (iii)(A) A car-sharing program may rely in good faith on a shared vehicle owner's
2886  representation that the shared vehicle is an individual-owned shared vehicle
2887  certified with the commission as described in Subsection (2)(e)(i).
2888  (B) If a car-sharing program relies in good faith on a shared vehicle owner's
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       02-25 17:18  1st Sub. (Buff) H.B. 505
2889  representation that the shared vehicle is an individual-owned shared vehicle
2890  certified with the commission as described in Subsection (2)(e)(i), the
2891  car-sharing program is not liable for any tax, penalty, fee, or other sanction
2892  imposed on the shared vehicle owner.
2893  (iv) If all shared vehicles shared through a car-sharing program are certified as
2894  described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has
2895  no obligation to collect and remit the tax under Subsections (2)(a)(i)(A) and
2896  (2)(a)(i)(B) for that tax period.
2897  (v) A car-sharing program is not required to list or otherwise identify an
2898  individual-owned shared vehicle on a return or an attachment to a return.
2899  (vi) A car-sharing program shall:
2900  (A) retain tax information for each car-sharing program transaction; and
2901  (B) provide the information described in Subsection (2)(e)(vi)(A) to the
2902  commission at the commission's request.
2903        (f)(i) For a bundled transaction that is attributable to food and food ingredients and
2904  tangible personal property other than food and food ingredients, a state tax and a
2905  local tax is imposed on the entire bundled transaction equal to the sum of:
2906  (A) the tax rates described in Subsection (2)(a)(i); and
2907  (B) a local tax imposed on the entire bundled transaction at the sum of the tax
2908  rates described in Subsection (2)(a)(ii).
2909  (ii) If an optional computer software maintenance contract is a bundled transaction
2910  that consists of taxable and nontaxable products that are not separately itemized
2911  on an invoice or similar billing document, the purchase of the optional computer
2912  software maintenance contract is 40% taxable under this chapter and 60%
2913  nontaxable under this chapter.
2914  (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
2915  transaction described in Subsection (2)(f)(i) or (ii):
2916  (A) if the sales price of the bundled transaction is attributable to tangible personal
2917  property, a product, or a service that is subject to taxation under this chapter
2918  and tangible personal property, a product, or service that is not subject to
2919  taxation under this chapter, the entire bundled transaction is subject to taxation
2920  under this chapter unless:
2921  (I) the seller is able to identify by reasonable and verifiable standards the
2922  tangible personal property, product, or service that is not subject to taxation
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       1st Sub. (Buff) H.B. 505  02-25 17:18
2923  under this chapter from the books and records the seller keeps in the seller's
2924  regular course of business; or
2925  (II) state or federal law provides otherwise; or
2926  (B) if the sales price of a bundled transaction is attributable to two or more items
2927  of tangible personal property, products, or services that are subject to taxation
2928  under this chapter at different rates, the entire bundled transaction is subject to
2929  taxation under this chapter at the higher tax rate unless:
2930  (I) the seller is able to identify by reasonable and verifiable standards the
2931  tangible personal property, product, or service that is subject to taxation
2932  under this chapter at the lower tax rate from the books and records the seller
2933  keeps in the seller's regular course of business; or
2934  (II) state or federal law provides otherwise.
2935  (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
2936  seller's regular course of business includes books and records the seller keeps in
2937  the regular course of business for nontax purposes.
2938  (g)(i) Except as otherwise provided in this chapter and subject to Subsections
2939  (2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible
2940  personal property, a product, or a service that is subject to taxation under this
2941  chapter, and the sale, lease, or rental of tangible personal property, other property,
2942  a product, or a service that is not subject to taxation under this chapter, the entire
2943  transaction is subject to taxation under this chapter unless the seller, at the time of
2944  the transaction:
2945  (A) separately states the portion of the transaction that is not subject to taxation
2946  under this chapter on an invoice, bill of sale, or similar document provided to
2947  the purchaser; or
2948  (B) is able to identify by reasonable and verifiable standards, from the books and
2949  records the seller keeps in the seller's regular course of business, the portion of
2950  the transaction that is not subject to taxation under this chapter.
2951  (ii) A purchaser and a seller may correct the taxability of a transaction if:
2952  (A) after the transaction occurs, the purchaser and the seller discover that the
2953  portion of the transaction that is not subject to taxation under this chapter was
2954  not separately stated on an invoice, bill of sale, or similar document provided
2955  to the purchaser because of an error or ignorance of the law; and
2956  (B) the seller is able to identify by reasonable and verifiable standards, from the
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       02-25 17:18  1st Sub. (Buff) H.B. 505
2957  books and records the seller keeps in the seller's regular course of business, the
2958  portion of the transaction that is not subject to taxation under this chapter.
2959  (iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller
2960  keeps in the seller's regular course of business includes books and records the
2961  seller keeps in the regular course of business for nontax purposes.
2962        (h)(i) If the sales price of a transaction is attributable to two or more items of tangible
2963  personal property, products, or services that are subject to taxation under this
2964  chapter at different rates, the entire purchase is subject to taxation under this
2965  chapter at the higher tax rate unless the seller, at the time of the transaction:
2966  (A) separately states the items subject to taxation under this chapter at each of the
2967  different rates on an invoice, bill of sale, or similar document provided to the
2968  purchaser; or
2969  (B) is able to identify by reasonable and verifiable standards the tangible personal
2970  property, product, or service that is subject to taxation under this chapter at the
2971  lower tax rate from the books and records the seller keeps in the seller's regular
2972  course of business.
2973  (ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
2974  seller's regular course of business includes books and records the seller keeps in
2975  the regular course of business for nontax purposes.
2976        (i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate
2977  imposed under the following shall take effect on the first day of a calendar quarter:
2978  (i) Subsection (2)(a)(i)(A);
2979  (ii) Subsection (2)(a)(i)(B);
2980  (iii) Subsection (2)(b)(i);
2981  (iv) Subsection (2)(c)(i); or
2982  (v) Subsection (2)(f)(i)(A).
2983        (j)(i) A tax rate increase takes effect on the first day of the first billing period that
2984  begins on or after the effective date of the tax rate increase if the billing period for
2985  the transaction begins before the effective date of a tax rate increase imposed
2986  under:
2987  (A) Subsection (2)(a)(i)(A);
2988  (B) Subsection (2)(a)(i)(B);
2989  (C) Subsection (2)(b)(i);
2990  (D) Subsection (2)(c)(i); or
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       1st Sub. (Buff) H.B. 505  02-25 17:18
2991  (E) Subsection (2)(f)(i)(A).
2992  (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
2993  statement for the billing period is rendered on or after the effective date of the
2994  repeal of the tax or the tax rate decrease imposed under:
2995  (A) Subsection (2)(a)(i)(A);
2996  (B) Subsection (2)(a)(i)(B);
2997  (C) Subsection (2)(b)(i);
2998  (D) Subsection (2)(c)(i); or
2999  (E) Subsection (2)(f)(i)(A).
3000  (k)(i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
3001  is computed on the basis of sales and use tax rates published in the catalogue, a
3002  tax rate repeal or change in a tax rate takes effect:
3003  (A) on the first day of a calendar quarter; and
3004  (B) beginning 60 days after the effective date of the tax rate repeal or tax rate
3005  change.
3006  (ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
3007  (A) Subsection (2)(a)(i)(A);
3008  (B) Subsection (2)(a)(i)(B);
3009  (C) Subsection (2)(b)(i);
3010  (D) Subsection (2)(c)(i); or
3011  (E) Subsection (2)(f)(i)(A).
3012  (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3013  the commission may by rule define the term "catalogue sale."
3014  (l)(i) For a location described in Subsection (2)(l)(ii), the commission shall determine
3015  the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
3016  based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other
3017  fuel at the location.
3018  (ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
3019  or other fuel is furnished through a single meter for two or more of the following
3020  uses:
3021  (A) a commercial use;
3022  (B) an industrial use; or
3023  (C) a residential use.
3024     (3)(a) The commission shall deposit the following state taxes into the General Fund:
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3025  (i) the tax imposed by Subsection (2)(a)(i)(A);
3026  (ii) the tax imposed by Subsection (2)(b)(i);
3027  (iii) the tax imposed by Subsection (2)(c)(i);
3028  (iv) the tax imposed by Subsection (2)(d); and
3029  (v) the tax imposed by Subsection (2)(f)(i)(A).
3030  (b) The commission shall distribute the following local taxes to a county, city, or town
3031  as provided in this chapter:
3032  (i) the tax imposed by Subsection (2)(a)(ii);
3033  (ii) the tax imposed by Subsection (2)(b)(ii);
3034  (iii) the tax imposed by Subsection (2)(c)(ii); and
3035  (iv) the tax imposed by Subsection (2)(f)(i)(B).
3036     (4)(a) Notwithstanding Subsection (3)(a), for each fiscal year the commission shall make
3037  the deposits described in Subsections (4)(b) through (4)(h) from the revenue from the
3038  taxes imposed by:
3039  (i) Subsection (2)(a)(i)(A);
3040  (ii) Subsection (2)(b)(i);
3041  (iii) Subsection (2)(c)(i); and
3042  (iv) Subsection (2)(f)(i)(A).
3043  (b) The commission shall deposit 15% of the difference between 1.4543% of the
3044  revenue described in Subsection (4)(a) and the deposits made under Subsection (5)(b),
3045  into the Water Rights Restricted Account created in Section 73-2-1.6.
3046  (c) The commission shall deposit 85% of the difference between 1.4543% of the revenue
3047  described in Subsection (4)(a) and the deposits made under Subsection (5)(b), into
3048  the Water Resources Conservation and Development Fund created in Section
3049  73-10-24 for use by the Division of Water Resources for:
3050  (i) preconstruction costs:
3051  (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73,
3052  Chapter 26, Bear River Development Act; and
3053  (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
3054  authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
3055  (ii) the cost of employing a civil engineer to oversee any project authorized by Title
3056  73, Chapter 26, Bear River Development Act;
3057  (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline
3058  project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development
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       1st Sub. (Buff) H.B. 505  02-25 17:18
3059  Act; and
3060  (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
3061  Subsection (5)(b)(iv)(B) after funding the uses specified in Subsections (4)(c)(i)
3062  through (iii).
3063  (d) The commission shall deposit 1.4543% of the revenue described in Subsection (4)(a)
3064  into the Water Infrastructure Restricted Account created in Section 73-10g-103.
3065  (e)(i) Subject to Subsection (4)(e)(ii), the commission shall deposit 26.24% of the
3066  revenue described in Subsection (4)(a) into the Transportation Investment Fund of
3067  2005 created in Section 72-2-124.
3068  (ii) The commission shall annually reduce the deposit described in Subsection
3069  (4)(e)(i) by the sum of:
3070  (A) $1,813,400;
3071  (B) the earmark described in Subsection (5)(c); and
3072  (C) an amount equal to 35% of the revenue generated in the current fiscal year by
3073  the portion of the tax imposed on motor and special fuel that is sold, used, or
3074  received in the state that exceeds 29.4 cents per gallon.
3075  (iii) The amount described in Subsection (4)(e)(ii)(C) shall be annually deposited into
3076  the Transit Transportation Investment Fund created in Section 72-2-124.
3077  (f) The commission shall deposit .44% of the revenue described in Subsection (4)(a) into
3078  the Cottonwood Canyons Transportation Investment Fund created in Section
3079  72-2-124.
3080  (g) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into
3081  the Commuter Rail Subaccount created in Section 72-2-124.
3082  (h) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into
3083  the Outdoor Adventure Infrastructure Restricted Account created in Section 51-9-902
3084  as follows:
3085  (i) into the Outdoor Adventure Infrastructure Restricted Account created in Section
3086  51-9-902, an amount equal to the amount that was deposited into the Outdoor
3087  Adventure Infrastructure Restricted Account in fiscal year 2025; and
3088  (ii) for any amount exceeding the amount described in Subsection (4)(h)(i), 50% into
3089  the Outdoor Adventure Infrastructure Restricted Account and 50% to the Utah
3090  Fairpark Area Investment and Restoration District created in Section 11-70-201.
3091     (5)(a) Notwithstanding Subsection (3)(a), each fiscal year the commission shall make
3092  the deposits described in this Subsection (5).
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       02-25 17:18  1st Sub. (Buff) H.B. 505
3093        (b)(i)(A) The commission shall deposit $500,000 to the Department of Natural
3094  Resources to be used for watershed rehabilitation or restoration.
3095  (B) At the end of each fiscal year, 100% of any unexpended amount described in
3096  Subsection (5)(b)(i)(A) shall lapse into the Water Resources Conservation and
3097  Development Fund created in Section 73-10-24.
3098  (ii) The commission shall deposit $150,000 to the Division of Water Resources for
3099  cloud-seeding projects authorized by Title 73, Chapter 15, Modification of
3100  Weather.
3101  (iii) The commission shall deposit $525,000 into the Division of Conservation
3102  created in Section 4-46-401 to implement water related programs.
3103  (iv) The commission shall deposit $7,175,000 into the Water Resources Conservation
3104  and Development Fund created in Section 73-10-24 for use by the Division of
3105  Water Resources:
3106  (A) for the uses allowed of the Water Resources Conservation and Development
3107  Fund under Section 73-10-24;
3108  (B) to conduct hydrologic and geotechnical investigations by the Division of
3109  Water Resources in a cooperative effort with other state, federal, or local
3110  entities, for the purpose of quantifying surface and ground water resources and
3111  describing the hydrologic systems of an area in sufficient detail so as to enable
3112  local and state resource managers to plan for and accommodate growth in
3113  water use without jeopardizing the resource;
3114  (C) to fund state required dam safety improvements; and
3115  (D) to protect the state's interest in interstate water compact allocations, including
3116  the hiring of technical and legal staff.
3117  (v) The commission shall deposit $3,587,500 into the Utah Wastewater Loan
3118  Program Subaccount created in Section 73-10c-5 for use by the Water Quality
3119  Board to fund wastewater projects.
3120  (vi) The commission shall deposit $3,587,500 into the Drinking Water Loan Program
3121  Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water
3122  to:
3123  (A) provide for the installation and repair of collection, treatment, storage, and
3124  distribution facilities for any public water system, as defined in Section
3125  19-4-102;
3126  (B) develop underground sources of water, including springs and wells; and
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       1st Sub. (Buff) H.B. 505  02-25 17:18
3127  (C) develop surface water sources.
3128  (vii) The commission shall deposit $2,450,000 to the Division of Wildlife Resources
3129  to:
3130  (A) implement the measures described in Subsections 23A-3-214(3)(a) through
3131  (d) to protect sensitive plant and animal species; or
3132  (B) award grants, up to the amount authorized by the Legislature in an
3133  appropriations act, to political subdivisions of the state to implement the
3134  measures described in Subsections 23A-3-214(3)(a) through (d) to protect
3135  sensitive plant and animal species.
3136  (viii) Funds transferred to the Division of Wildlife Resources under Subsection
3137  (5)(b)(vii)(A) may not be used to assist the United States Fish and Wildlife
3138  Service or any other person to list or attempt to have listed a species as threatened
3139  or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531, et
3140  seq.
3141  (ix) At the end of each fiscal year, any unexpended amounts described in Subsections
3142  (5)(b)(vii)(A) and (B) shall lapse:
3143  (A) 50% into the Water Resources Conservation and Development Fund created
3144  in Section 73-10-24;
3145  (B) 25% into the Utah Wastewater Loan Program Subaccount created in Section
3146  73-10c-5; and
3147  (C) 25% into the Drinking Water Loan Program Subaccount created in Section
3148  73-10c-5.
3149  (x) The commission shall allocate $175,000 to the Division of Water Rights to cover
3150  the costs incurred in hiring legal and technical staff for the adjudication of water
3151  rights.
3152  (xi) At the end of each fiscal year, any unexpended amounts described in Subsection
3153  (5)(b)(x) shall lapse:
3154  (A) 50% into the Water Resources Conservation and Development Fund created
3155  in Section 73-10-24;
3156  (B) 25% into the Utah Wastewater Loan Program Subaccount created in Section
3157  73-10c-5; and
3158  (C) 25% into the Drinking Water Loan Program Subaccount created in Section
3159  73-10c-5.
3160  (c) The commission shall deposit $45,000,000 into the Active Transportation Investment
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       02-25 17:18  1st Sub. (Buff) H.B. 505
3161  Fund created in Section 72-2-124.
3162  (d) The commission shall deposit $533,750 into the Qualified Emergency Food
3163  Agencies Fund created by and expended in accordance with Section 35A-8-1009.
3164  (e) The commission shall deposit $200,000 into the General Fund as a dedicated credit
3165  for the sole use of the Search and Rescue Financial Assistance Program created by
3166  and to be expended in accordance with Title 53, Chapter 2a, Part 11, Search and
3167  Rescue Act.
3168     (6)(a) The rate specified in this Subsection (6) is 0.15%.
3169  (b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning
3170  on or after July 1, 2019, annually transfer the amount of revenue collected from the
3171  rate described in Subsection (6)(a) on the transactions that are subject to the sales and
3172  use tax under Subsection (2)(a)(i)(B) into the Medicaid ACA Fund created in Section
3173  26B-1-315.
3174     (7)(a) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11),
3175  (12), and (13), and as described in Section 63N-3-610, beginning the first day of a
3176  calendar quarter one year after the sales and use tax boundary for a housing and
3177  transit reinvestment zone is established under Title 63N, Chapter 3, Part 6, Housing
3178  and Transit Reinvestment Zone Act, the commission, at least annually, shall transfer
3179  an amount equal to 15% of the sales and use tax increment from the sales and use tax
3180  imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within
3181  an established sales and use tax boundary, as defined in Section 63N-3-602, into the
3182  Transit Transportation Investment Fund created in Section 72-2-124.
3183  (b) Beginning no sooner than January 1, 2026, notwithstanding Subsection (3)(a), and
3184  except as provided in Subsections (11), (12), and (13), and as described in Section
3185  63N-3-610.1, beginning the first day of a calendar quarter after the year set in the
3186  proposal and after the sales and use tax boundary for a convention center
3187  reinvestment zone is established in a capital city under Title 63N, Chapter 3, Part 6,
3188  Housing and Transit Reinvestment Zone Act, the commission, at least annually, shall
3189  transfer an amount equal to 50% of the sales and use tax increment as defined in
3190  Section 63N-3-602 from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a
3191  4.7% rate, on transactions occurring within an established sales and use tax boundary,
3192  as defined in Section 63N-3-602, to a convention center public infrastructure district
3193  created in accordance with Section 17D-4-202.1 and specified in the convention
3194  center reinvestment zone proposal submitted [pursuant to] in accordance with Title
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       1st Sub. (Buff) H.B. 505  02-25 17:18
3195  63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
3196     (8) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and
3197  (13), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark Area
3198  Investment and Restoration District, created in Section 11-70-201, the revenue from the
3199  sales and use tax imposed by Subsection (2)(a)(i)(A), on transactions occurring within
3200  the district sales tax area, as defined in Section 11-70-101.
3201     (9)(a) As used in this Subsection (9):
3202  (i) "Additional land" means point of the mountain state land described in Subsection
3203  11-59-102(6)(b) that the point of the mountain authority acquires after the point of
3204  the mountain authority provides the commission a map under Subsection (9)(c).
3205  (ii) "Point of the mountain authority" means the Point of the Mountain State Land
3206  Authority, created in Section 11-59-201.
3207  (iii) "Point of the mountain state land" means the same as that term is defined in
3208  Section 11-59-102.
3209  (b) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12),
3210  and (13), the commission shall distribute to the point of the mountain authority 50%
3211  of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A), on
3212  transactions occurring on the point of the mountain state land.
3213  (c) The distribution under Subsection (9)(b) shall begin the next calendar quarter that
3214  begins at least 90 days after the point of the mountain authority provides the
3215  commission a map that:
3216  (i) accurately describes the point of the mountain state land; and
3217  (ii) the point of the mountain authority certifies as accurate.
3218  (d) A distribution under Subsection (9)(b) with respect to additional land shall begin the
3219  next calendar quarter that begins at least 90 days after the point of the mountain
3220  authority provides the commission a map of point of the mountain state land that:
3221  (i) accurately describes the point of the mountain state land, including the additional
3222  land; and
3223  (ii) the point of the mountain authority certifies as accurate.
3224  (e)(i) Upon the payment in full of bonds secured by the sales and use tax revenue
3225  distributed to the point of the mountain authority under Subsection (9)(b), the
3226  point of the mountain authority shall immediately notify the commission in
3227  writing that the bonds are paid in full.
3228  (ii) The commission shall discontinue distributions of sales and use tax revenue under
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       02-25 17:18  1st Sub. (Buff) H.B. 505
3229  Subsection (9)(b) at the beginning of the calendar quarter that begins at least 90
3230  days after the date that the commission receives the written notice under
3231  Subsection (9)(e)(i).
3232     (10) Notwithstanding Subsection (3)(a), the amount of state sales tax revenues described in
3233  Section 63N-2-503.5 is deposited into the Convention Incentive Fund created in Section
3234  63N-2-503.5.
3235     (11)(a) As used in this Subsection (11):
3236  (i) "Applicable percentage" means:
3237  (A) for a housing and transit reinvestment zone created under Title 63N, Chapter
3238  3, Part 6, Housing and Transit Reinvestment Zone Act, 15% of the revenue
3239  from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate
3240  for sales occurring within the qualified development zone described in
3241  Subsection (11)(a)(ii)(A);
3242  (B) for the Utah Fairpark Area Investment and Restoration District created in
3243  Section 11-70-201, the revenue from the sales and use tax imposed by
3244  Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified
3245  development zone described in Subsection (11)(a)(ii)(B); and
3246  (C) for the Point of the Mountain State Land Authority created in Section
3247  11-59-201, 50% of the revenue from sales and use tax imposed by Subsection
3248  (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development
3249  zone described in Subsection (11)(a)(ii)(C).
3250  (ii) "Qualified development zone" means:
3251  (A) the sales and use tax boundary of a housing and transit reinvestment zone
3252  created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment
3253  Act;
3254  (B) the district sales tax boundary as defined in Section 11-70-101 for the Utah
3255  Fairpark Area Investment and Restoration District, created in Section
3256  11-70-201; or
3257  (C) the sales and use tax boundary of point of the mountain state land, as defined
3258  in Section 11-59-102, under the Point of the Mountain State Land Authority
3259  created in Section 11-59-201.
3260  (iii) "Schedule J sale" means a sale reported on State Tax Commission Form
3261  TC-62M, Schedule J or a substantially similar form as designated by the
3262  commission.
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       1st Sub. (Buff) H.B. 505  02-25 17:18
3263  (b) Revenue generated from the applicable percentage by a Schedule J sale within a
3264  qualified development zone shall be deposited into the General Fund.
3265     (12)(a) As used in Subsections (12) and (13):
3266  (i) "Applicable percentage" means, for a convention center reinvestment zone created
3267  in a capital city under Title 63N, Chapter 3, Part 6, Housing and Transit
3268  Reinvestment Zone Act, an amount equal to 50% of the sales and use tax
3269  increment, as that term is defined in Section 63N-3-602, from the sales and use tax
3270  imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the
3271  qualified development zone described in Subsection (12)(a)(ii).
3272  (ii) "Qualified development zone" means the sales and use tax boundary of a
3273  convention center reinvestment zone created in a capital city under Title 63N,
3274  Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
3275  (iii) "Qualifying construction materials" means construction materials that are:
3276  (A) delivered to a delivery outlet within a qualified development zone; and
3277  (B) intended to be permanently attached to real property within the qualified
3278  development zone.
3279  (b) For a sale of qualifying construction materials, the commission shall distribute the
3280  product calculated in Subsection (12)(c) to a qualified development zone if the seller
3281  of the construction materials:
3282  (i) establishes a delivery outlet with the commission within the qualified development
3283  zone;
3284  (ii) reports the sales of the construction materials to the delivery outlet described in
3285  Subsection (12)(b)(i); and
3286  (iii) does not report the sales of the construction materials on a simplified electronic
3287  return.
3288  (c) For the purposes of Subsection (12)(b), the product is equal to:
3289  (i) the sales price or purchase price of the qualifying construction materials; and
3290  (ii) the applicable percentage.
3291     (13)(a) As used in this Subsection (13), "Schedule J sale" means a sale reported on State
3292  Tax Commission Form TC-62M, Schedule J, or a substantially similar form as
3293  designated by the commission.
3294  (b) Revenue generated from the applicable percentage by a Schedule J sale within a
3295  qualified development zone shall be distributed into the General Fund.
3296  Section 50. Section 72-1-213.1 is amended to read:
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       02-25 17:18  1st Sub. (Buff) H.B. 505
3297  72-1-213.1 (Effective 01/01/27). Road usage charge program.
3298     (1) As used in this section:
3299  (a) "Account manager" means an entity under contract with the department to administer
3300  and manage the road usage charge program.
3301  (b) "Alternative fuel vehicle" means:
3302  (i) an electric motor vehicle as defined in Section 41-1a-102; or
3303  (ii) a motor vehicle powered exclusively by a fuel other than:
3304  (A) motor fuel;
3305  (B) diesel fuel;
3306  (C) natural gas; or
3307  (D) propane.
3308  (c) "Payment period" means the interval during which an owner is required to report
3309  mileage and pay the appropriate road usage charge according to the terms of the
3310  program.
3311  (d) "Program" means the road usage charge program established and described in this
3312  section.
3313  (e) "Road usage charge cap" means the maximum fee charged to a participant in the
3314  program for a registration period.
3315  (f) "Road usage charge rate" means the per-mile usage fee charged to a participant in the
3316  program.
3317     (2) There is established a road usage charge program as described in this section.
3318     (3)(a) The department shall implement and oversee the administration of the program,
3319  which shall begin on January 1, 2020.
3320  (b) To implement and administer the program, the department may contract with an
3321  account manager.
3322     (4)(a) The owner or lessee of an alternative fuel vehicle may apply for enrollment of the
3323  alternative fuel vehicle in the program.
3324  (b) If an application for enrollment into the program is approved by the department, the
3325  owner or lessee of an alternative fuel vehicle may participate in the program in lieu of
3326  paying the fee described in Subsection [41-1a-1206(1)(h) or (2)(b)] 41-1a-1206(3)(h).
3327     (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
3328  consistent with this section, the department:
3329  (a) shall make rules to establish:
3330  (i) processes and terms for enrollment into and withdrawal or removal from the
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       1st Sub. (Buff) H.B. 505  02-25 17:18
3331  program;
3332  (ii) payment periods and other payment methods and procedures for the program;
3333  (iii) standards for mileage reporting mechanisms for an owner or lessee of an
3334  alternative fuel vehicle to report mileage as part of participation in the program;
3335  (iv) standards for program functions for mileage recording, payment processing,
3336  account management, and other similar aspects of the program;
3337  (v) contractual terms between an owner or lessee of an alternative fuel vehicle owner
3338  and an account manager for participation in the program;
3339  (vi) contractual terms between the department and an account manager, including
3340  authority for an account manager to enforce the terms of the program;
3341  (vii) procedures to provide security and protection of personal information and data
3342  connected to the program, and penalties for account managers for violating
3343  privacy protection rules;
3344  (viii) penalty procedures for a program participant's failure to pay a road usage
3345  charge or tampering with a device necessary for the program; and
3346  (ix) department oversight of an account manager, including privacy protection of
3347  personal information and access and auditing capability of financial and other
3348  records related to administration of the program; and
3349  (b) may make rules to establish:
3350  (i) an enrollment cap for certain alternative fuel vehicle types to participate in the
3351  program;
3352  (ii) a process for collection of an unpaid road usage charge or penalty; or
3353  (iii) integration of the program with other similar programs, such as tolling.
3354     (6) Revenue generated by the road usage charge program and relevant penalties shall be
3355  deposited into the Road Usage Charge Program Special Revenue Fund.
3356     (7)(a) The department may:
3357  (i)(A) impose a penalty for failure to timely pay a road usage charge according to
3358  the terms of the program or tampering with a device necessary for the program;
3359  and
3360  (B) request that the Division of Motor Vehicles place a hold on the registration of
3361  the owner's or lessee's alternative fuel vehicle for failure to pay a road usage
3362  charge or penalty according to the terms of the program;
3363  (ii) send correspondence to the owner of an alternative fuel vehicle to inform the
3364  owner or lessee of:
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       02-25 17:18  1st Sub. (Buff) H.B. 505
3365  (A) the road usage charge program, implementation, and procedures;
3366  (B) an unpaid road usage charge and the amount of the road usage charge to be
3367  paid to the department;
3368  (C) the penalty for failure to pay a road usage charge within the time period
3369  described in Subsection (7)(a)(iii); and
3370  (D) a hold being placed on the owner's or lessee's registration for the alternative
3371  fuel vehicle, if the road usage charge and penalty are not paid within the time
3372  period described in Subsection (7)(a)(iii), which would prevent the renewal of
3373  the alternative fuel vehicle's registration; and
3374  (iii) require that the owner or lessee of the alternative fuel vehicle pay the road usage
3375  charge to the department within 30 days of the date when the department sends
3376  written notice of the road usage charge to the owner or lessee.
3377  (b) The department shall send the correspondence and notice described in Subsection
3378  (7)(a) to the owner of the alternative fuel vehicle according to the terms of the
3379  program.
3380     (8)(a) The Division of Motor Vehicles and the department shall share and provide access
3381  to information pertaining to an alternative fuel vehicle and participation in the
3382  program including:
3383  (i) registration and ownership information pertaining to an alternative fuel vehicle;
3384  (ii) information regarding the failure of an alternative fuel vehicle owner or lessee to
3385  pay a road usage charge or penalty imposed under this section within the time
3386  period described in Subsection (7)(a)(iii); and
3387  (iii) the status of a request for a hold on the registration of an alternative fuel vehicle.
3388  (b) If the department requests a hold on the registration in accordance with this section,
3389  the Division of Motor Vehicles may not renew the registration of a motor vehicle
3390  under Title 41, Chapter 1a, Part 2, Registration, until the department withdraws the
3391  hold request.
3392     (9) The owner of an alternative fuel vehicle may apply for enrollment in the program or
3393  withdraw from the program according to the terms established by the department [
3394  pursuant to] in accordance with rules made under Subsection (5).
3395     (10) If enrolled in the program, the owner or lessee of an alternative fuel vehicle shall:
3396  (a) report mileage driven as required by the department [pursuant to] in accordance with
3397  Subsection (5);
3398  (b) pay the road usage fee for each payment period in accordance with Subsection (5);
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       1st Sub. (Buff) H.B. 505  02-25 17:18
3399  and
3400  (c) comply with all other provisions of this section and other requirements of the
3401  program.
3402     (11) The department shall submit annually, on or before October 1, to the Transportation
3403  Interim Committee, an electronic report that:
3404  (a) states for the preceding fiscal year:
3405  (i) the amount of revenue collected from the program;
3406  (ii) the participation rate in the program; and
3407  (iii) the department's costs to administer the program; and
3408  (b) provides for the current fiscal year, an estimate of:
3409  (i) the revenue that will be collected from the program;
3410  (ii) the participation rate in the program; and
3411  (iii) the department's costs to administer the program.
3412     (12)[(a) Beginning on January 1, 2023:]
3413  [(i) the road usage charge rate is 1.0 cent per mile; and]
3414  [(ii) the road usage charge cap is:]
3415  [(A) $130.25 for an annual registration period; and]
3416  [(B) $100.75 for a six-month registration period.]
3417  [(b)] (a) Beginning on January 1, [2026] 2027:
3418  (i) the road usage charge rate is 1.25 cents per mile; and
3419  (ii) the road usage charge cap is[:]
3420  [(A) $180 ] $185.25 for an annual registration period[; and] .
3421  [(B) $139 for a six-month registration period.]
3422  [(c)] (b) Beginning on January 1, 2032:
3423  (i) the road usage charge rate is 1.5 cents per mile, unless the commission establishes
3424  a different road usage charge rate in accordance with Subsection (13); and
3425  (ii) the road usage charge cap is[:]
3426  [(A)] $240 for an annual registration period[; and] .
3427  [(B) $185 for a six-month registration period.]
3428  [(d)] (c) Beginning in [2024] 2028, the department shall, on January 1, annually adjust the
3429  road usage charge rates described in this Subsection (12) by taking the road usage
3430  charge rate for the previous year and adding an amount equal to the greater of:
3431  (i) an amount calculated by multiplying the road usage charge rate of the previous
3432  year by the actual percentage change during the previous fiscal year in the
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       02-25 17:18  1st Sub. (Buff) H.B. 505
3433  Consumer Price Index as determined by the State Tax Commission; and
3434  (ii) 0.
3435  [(e)] (d) Beginning in [2024] 2028, the State Tax Commission shall, on January 1,
3436  annually adjust the road usage charge caps described in this Subsection (12) by
3437  taking the road usage charge cap for the previous year and adding an amount equal to
3438  the greater of:
3439  (i) an amount calculated by multiplying the road usage charge cap of the previous
3440  year by the actual percentage change during the previous fiscal year in the
3441  Consumer Price Index; and
3442  (ii) 0.
3443  [(f)] (e) The amounts calculated as described in Subsection [(12)(d)] (12)(c) shall be
3444  rounded up to the nearest .01 cent.
3445  [(g)] (f) The amounts calculated as described in Subsection [(12)(e)] (12)(d) shall be
3446  rounded up to the nearest 25 cents.
3447  [(h)] (g) On or before January 1 of each year, the department shall publish:
3448  (i) the adjusted road usage charge rate described in Subsection [(12)(d)] (12)(c); and
3449  (ii) adjusted road usage charge cap described in Subsection [(12)(e)] (12)(d).
3450     (13)(a) Beginning January 1, 2032, the commission may establish by rule made in
3451  accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the road
3452  usage charge rate for each type of alternative fuel vehicle.
3453  (b)(i) Before making rules in accordance with Subsection (13)(a), the commission
3454  shall consult with the department regarding the road usage charge rate for each
3455  type of alternative fuel vehicle.
3456  (ii) The department shall cooperate with and make recommendations to the
3457  commission regarding the road usage charge rate for each type of alternative fuel
3458  vehicle.
3459  Section 51. Section 72-1-213.2 is amended to read:
3460  72-1-213.2 (Effective 01/01/27). Road Usage Charge Program Special Revenue
3461     Fund -- Revenue.
3462     (1) There is created an expendable special revenue fund within the Transportation Fund
3463  known as the "Road Usage Charge Program Special Revenue Fund."
3464     (2)(a) The fund shall be funded from the following sources:
3465  (i) revenue collected by the department under Section 72-1-213.1;
3466  (ii) appropriations made to the fund by the Legislature;
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       1st Sub. (Buff) H.B. 505  02-25 17:18
3467  (iii) contributions from other public and private sources for deposit into the fund;
3468  (iv) interest earnings on cash balances; and
3469  (v) money collected for repayments and interest on fund money.
3470  (b) If the revenue derived from the sources described in Subsection (2)(a) is insufficient
3471  to cover the costs of administering the road usage charge program, subject to
3472  Subsection 72-2-107(1), the department may transfer into the fund revenue deposited
3473  into the Transportation Fund from the fee described in [Subsections 41-1a-1206(1)(h)
3474  and (2)(b)] Subsection 41-1a-1206(3)(h) in an amount sufficient to enable the
3475  department to administer the road usage charge program.
3476     (3)(a) Revenue generated by the road usage charge program and relevant penalties shall
3477  be deposited into the Road Usage Charge Program Special Revenue Fund.
3478  (b) Revenue in the Road Usage Charge Program Special Revenue Fund is nonlapsing.
3479     (4) The department may use revenue deposited into the Road Usage Charge Program
3480  Special Revenue Fund:
3481  (a) to cover the costs of administering the program; and
3482  (b) for the purposes described in Subsection (5).
3483     (5) If revenue collected by the department under Section 72-1-213.1 in a fiscal year is
3484  sufficient to cover all costs related to administering the road usage charge program in
3485  that fiscal year, the department shall deposit any excess revenue collected by the
3486  department under Section 72-1-213.1 from the Road Usage Charge Program Special
3487  Revenue Fund into the Transportation Fund for appropriation and apportionment in
3488  accordance with Section 72-2-107.
3489  Section 52. Section 72-2-117.5 is amended to read:
3490  72-2-117.5 (Effective 01/01/27). Definitions -- Local Highway and
3491     Transportation Corridor Preservation Fund -- Disposition of fund money.
3492     (1) As used in this section:
3493  (a) "Council of governments" means a decision-making body in each county composed
3494  of membership including the county governing body and the mayors of each
3495  municipality in the county.
3496  (b) "Metropolitan planning organization" has the same meaning as defined in Section
3497  72-1-208.5.
3498     (2) There is created the Local Highway and Transportation Corridor Preservation Fund
3499  within the Transportation Fund.
3500     (3) The fund shall be funded from the following sources:
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       02-25 17:18  1st Sub. (Buff) H.B. 505
3501  (a) a local option highway construction and transportation corridor preservation [fee] tax
3502  imposed under Section 41-1a-1222;
3503  (b) appropriations made to the fund by the Legislature;
3504  (c) contributions from other public and private sources for deposit into the fund;
3505  (d) all money collected from rents and sales of real property acquired with fund money;
3506  (e) proceeds from general obligation bonds, revenue bonds, or other obligations issued
3507  as authorized by Title 63B, Bonds; and
3508  (f) sales and use tax revenues deposited into the fund in accordance with Title 59,
3509  Chapter 12, Part 22, Local Option Sales and Use Taxes for Transportation Act.
3510     (4)(a) The fund shall earn interest.
3511  (b) All interest earned on fund money shall be deposited into the fund.
3512  (c) The State Tax Commission shall allocate the revenues:
3513  (i) provided under Subsection (3)(a) to each county imposing a local option highway
3514  construction and transportation corridor preservation [fee] tax under Section
3515  41-1a-1222;
3516  (ii) provided under Subsection 59-12-2217(2) to each county imposing a county
3517  option sales and use tax for transportation; and
3518  (iii) provided under Subsection (3)(f) to each county of the second class or city or
3519  town within a county of the second class that imposes the sales and use tax
3520  authorized by Section 59-12-2218.
3521  (d) The department shall distribute the funds allocated to each county, city, or town
3522  under Subsection (4)(c) to each county, city, or town.
3523  (e) The money allocated and distributed under this Subsection (4):
3524  (i) shall be used for the purposes provided in this section for each county, city, or
3525  town;
3526  (ii) is allocated to each county, city, or town as provided in this section with the
3527  condition that the state will not be charged for any asset purchased with the money
3528  allocated and distributed under this Subsection (4), unless there is a written
3529  agreement in place with the department [prior to] before the purchase of the asset
3530  stipulating a reimbursement by the state to the county, city, or town of no more
3531  than the original purchase price paid by the county, city, or town; and
3532  (iii) is considered a local matching contribution for the purposes described under
3533  Section 72-2-123 if used on a state highway.
3534  (f) Administrative costs of the department to implement this section shall be paid from
                                                      - 105 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
3535  the fund.
3536     (5)(a) A highway authority may acquire real property or any interests in real property for
3537  state, county, and municipal transportation corridors subject to:
3538  (i) money available in the fund to each county under Subsection (4); and
3539  (ii) the provisions of this section.
3540  (b) Fund money may be used to pay interest on debts incurred in accordance with this
3541  section.
3542  (c)(i)(A) Fund money may be used to pay maintenance costs of properties
3543  acquired under this section but limited to a total of 5% of the purchase price of
3544  the property.
3545  (B) Any additional maintenance cost shall be paid from funds other than under
3546  this section.
3547  (C) Revenue generated by any property acquired under this section is excluded
3548  from the limitations under this Subsection (5)(c)(i).
3549  (ii) Fund money may be used to pay direct costs of acquisition of properties acquired
3550  under this section.
3551  (d) Fund money allocated and distributed under Subsection (4) may be used by a county
3552  highway authority for countywide transportation or public transit planning if:
3553  (i) the county's planning focus area is outside the boundaries of a metropolitan
3554  planning organization;
3555  (ii) the transportation planning is part of the county's continuing, cooperative, and
3556  comprehensive process for transportation or public transit planning, transportation
3557  corridor preservation, right-of-way acquisition, and project programming;
3558  (iii) no more than four years allocation every 20 years to each county is used for
3559  transportation planning under this Subsection (5)(d); and
3560  (iv) the county otherwise qualifies to use the fund money as provided under this
3561  section.
3562  (e)(i) Subject to Subsection (11), fund money allocated and distributed under
3563  Subsection (4) may be used by a county highway authority for transportation
3564  corridor planning that is part of the transportation corridor elements of an ongoing
3565  work program of transportation or public transit projects.
3566  (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
3567  direction of:
3568  (A) the metropolitan planning organization if the county is within the boundaries
                                                        - 106 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
3569  of a metropolitan planning organization; or
3570  (B) the department if the county is not within the boundaries of a metropolitan
3571  planning organization.
3572  (f)(i) A county, city, or town that imposes a local option highway construction and
3573  transportation corridor preservation [fee] tax under Section 41-1a-1222 may elect
3574  to administer the funds allocated and distributed to that county, city, or town
3575  under Subsection (4) as a revolving loan fund.
3576  (ii) If a county, city, or town elects to administer the funds allocated and distributed
3577  to that county, city, or town under Subsection (4) as a revolving loan fund, a local
3578  highway authority shall repay the fund money authorized for the project to the
3579  fund.
3580  (iii) A county, city, or town that elects to administer the funds allocated and
3581  distributed to that county, city, or town under Subsection (4) as a revolving loan
3582  fund shall establish repayment conditions of the money to the fund from the
3583  specified project funds.
3584  (g)(i) Subject to the restrictions in Subsections (5)(g)(ii) and (iii), fund money may be
3585  used by a county of the third, fourth, fifth, or sixth class or by a city or town
3586  within a county of the third, fourth, fifth, or sixth class for:
3587  (A) the construction, operation, or maintenance of a class B road or class C road;
3588  or
3589  (B) the restoration or repair of survey monuments associated with transportation
3590  infrastructure.
3591  (ii) A county, city, or town may not use more than 50% of the current balance of fund
3592  money allocated to the county, city, or town for the purposes described in
3593  Subsection (5)(g)(i).
3594  (iii) A county, city, or town may not use more than 50% of the fund revenue
3595  collections allocated to a county, city, or town in the current fiscal year for the
3596  purposes described in Subsection (5)(g)(i).
3597     (6)(a)(i) The Local Highway and Transportation Corridor Preservation Fund shall be
3598  used to preserve transportation corridors, promote long-term statewide
3599  transportation planning, save on acquisition costs, and promote the best interests
3600  of the state in a manner which minimizes impact on prime agricultural land.
3601  (ii) The Local Highway and Transportation Corridor Preservation Fund shall only be
3602  used to preserve a transportation corridor that is right-of-way:
                                                        - 107 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
3603  (A) in a county of the first or second class for:
3604  (I) a state highway;
3605  (II) a principal arterial highway as defined in Section 72-4-102.5;
3606  (III) a minor arterial highway as defined in Section 72-4-102.5;
3607  (IV) a collector highway in an urban area as defined in Section 72-4-102.5; or
3608  (V) a transit facility as defined in Section 17B-2a-802; or
3609  (B) in a county of the third, fourth, fifth, or sixth class for:
3610  (I) a state highway;
3611  (II) a principal arterial highway as defined in Section 72-4-102.5;
3612  (III) a minor arterial highway as defined in Section 72-4-102.5;
3613  (IV) a major collector highway as defined in Section 72-4-102.5;
3614  (V) a minor collector road as defined in Section 72-4-102.5; or
3615  (VI) a transit facility as defined in Section 17B-2a-802.
3616  (iii) The Local Highway and Transportation Corridor Preservation Fund may not be
3617  used for a transportation corridor that is primarily a recreational trail as defined
3618  under Section 79-5-102.
3619  (b) A highway authority shall authorize the expenditure of fund money after determining
3620  that the expenditure is being made in accordance with this section from applications
3621  that are:
3622  (i) endorsed by the council of governments; and
3623  (ii) for a right-of-way purchase for a transportation corridor authorized under
3624  Subsection (6)(a)(ii).
3625     (7)(a)(i) A council of governments shall establish a council of governments
3626  endorsement process which includes prioritization and application procedures for
3627  use of the money allocated to each county under this section.
3628  (ii) The endorsement process under Subsection (7)(a)(i) may include review or
3629  endorsement of the preservation project by:
3630  (A) the metropolitan planning organization if the county is within the boundaries
3631  of a metropolitan planning organization; or
3632  (B) the department if the county is not within the boundaries of a metropolitan
3633  planning organization.
3634  (b) All fund money shall be prioritized by each highway authority and council of
3635  governments based on considerations, including:
3636  (i) areas with rapidly expanding population;
                                                         - 108 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
3637  (ii) the willingness of local governments to complete studies and impact statements
3638  that meet department standards;
3639  (iii) the preservation of transportation corridors by the use of local planning and
3640  zoning processes;
3641  (iv) the availability of other public and private matching funds for a project;
3642  (v) the cost-effectiveness of the preservation projects;
3643  (vi) long and short-term maintenance costs for property acquired; and
3644  (vii) whether the transportation corridor is included as part of:
3645  (A) the county and municipal master plan; and
3646  (B)(I) the statewide long range plan; or
3647  (II) the regional transportation plan of the area metropolitan planning
3648  organization if one exists for the area.
3649  (c) The council of governments shall:
3650  (i) establish a priority list of transportation corridor preservation projects within the
3651  county;
3652  (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body
3653  for approval; and
3654  (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the
3655  members of the county legislative body.
3656  (d) A county's council of governments may only submit one priority list described in
3657  Subsection (7)(c)(i) per calendar year.
3658  (e) A county legislative body may only consider and approve one priority list described
3659  in Subsection (7)(c)(i) per calendar year.
3660     (8)(a) Unless otherwise provided by written agreement with another highway authority
3661  or public transit district, the highway authority that holds the deed to the property is
3662  responsible for maintenance of the property.
3663  (b) The transfer of ownership for property acquired under this section from one highway
3664  authority to another shall include a recorded deed for the property and a written
3665  agreement between the highway authorities or public transit district.
3666     (9)(a) The proceeds from any bonds or other obligations secured by revenues of the
3667  Local Highway and Transportation Corridor Preservation Fund shall be used for the
3668  purposes authorized for funds under this section.
3669  (b) The highway authority shall pledge the necessary part of the revenues of the Local
3670  Highway and Transportation Corridor Preservation Fund to the payment of principal
                                                       - 109 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
3671  and interest on the bonds or other obligations.
3672     (10)(a) A highway authority may not expend money under this section to purchase a
3673  right-of-way for a state highway unless the highway authority has:
3674  (i) a transportation corridor property acquisition policy or ordinance in effect that
3675  meets department requirements for the acquisition of real property or any interests
3676  in real property under this section; and
3677  (ii) an access management policy or ordinance in effect that meets the requirements
3678  under Subsection 72-2-117(8).
3679  (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
3680  written agreement with the department for the department to acquire real property or
3681  any interests in real property on behalf of the local highway authority under this
3682  section.
3683     (11) The county shall ensure, to the extent possible, that the fund money allocated and
3684  distributed to a city or town in accordance with Subsection (4) is expended:
3685  (a) to fund a project or service as allowed by this section within the city or town to
3686  which the fund money is allocated;
3687  (b) to pay debt service, principal, or interest on a bond or other obligation as allowed by
3688  this section if that bond or other obligation is:
3689  (i) secured by money allocated to the city or town; and
3690  (ii) issued to finance a project or service as allowed by this section within the city or
3691  town to which the fund money is allocated;
3692  (c) to fund transportation planning as allowed by this section within the city or town to
3693  which the fund money is allocated; or
3694  (d) for another purpose allowed by this section within the city or town to which the fund
3695  money is allocated.
3696     (12) Notwithstanding any other provision in this section, any amounts within the fund
3697  allocated to a public transit district or for a public transit corridor may only be derived
3698  from the portion of the fund that does not include constitutionally restricted sources
3699  related to the operation of a motor vehicle on a public highway or proceeds from an
3700  excise tax on liquid motor fuel to propel a motor vehicle.
3701  Section 53. Section 72-2-121 is amended to read:
3702  72-2-121 (Effective 01/01/27). County of the First Class Highway Projects Fund.
3703     (1) There is created a special revenue fund within the Transportation Fund known as the
3704  "County of the First Class Highway Projects Fund."
                                                       - 110 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
3705     (2) The fund consists of money generated from the following revenue sources:
3706  (a) any voluntary contributions received for new construction, major renovations, and
3707  improvements to highways within a county of the first class;
3708  (b) the portion of the sales and use tax described in Subsection 59-12-2214(3)(b)
3709  deposited into or transferred to the fund;
3710  (c) the portion of the sales and use tax described in Section 59-12-2217 deposited into or
3711  transferred to the fund;
3712  (d) a portion of the local option highway construction and transportation corridor
3713  preservation [fee] tax imposed in a county of the first class under Section 41-1a-1222
3714  deposited into or transferred to the fund; and
3715  (e) the portion of the sales and use tax transferred into the fund as described in
3716  Subsections 59-12-2220(4)(a) and 59-12-2220(11)(b).
3717     (3)(a) The fund shall earn interest.
3718  (b) All interest earned on fund money shall be deposited into the fund.
3719     (4) Subject to Subsection (11), the executive director shall use the fund money only:
3720  (a) to pay debt service and bond issuance costs for bonds issued under Sections
3721  63B-16-102, 63B-18-402, and 63B-27-102;
3722  (b) for right-of-way acquisition, new construction, major renovations, and improvements
3723  to highways within a county of the first class and to pay any debt service and bond
3724  issuance costs related to those projects, including improvements to a highway located
3725  within a municipality in a county of the first class where the municipality is located
3726  within the boundaries of more than a single county;
3727  (c) for the construction, acquisition, use, maintenance, or operation of:
3728  (i) an active transportation facility for nonmotorized vehicles;
3729  (ii) multimodal transportation that connects an origin with a destination; or
3730  (iii) a facility that may include a:
3731  (A) pedestrian or nonmotorized vehicle trail;
3732  (B) nonmotorized vehicle storage facility;
3733  (C) pedestrian or vehicle bridge; or
3734  (D) vehicle parking lot or parking structure;
3735  (d) to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
3736  Section 72-2-121.3 the amount required in Subsection 72-2-121.3(4)(c) minus the
3737  amounts transferred in accordance with Subsection 72-2-124(4)(a)(v);
3738  (e) for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
                                                        - 111 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
3739  issuance costs for $30,000,000 of the bonds issued under Section 63B-18-401 for the
3740  projects described in Subsection 63B-18-401(4)(a);
3741  (f) for a fiscal year beginning on or after July 1, 2013, and after the department has
3742  verified that the amount required under Subsection 72-2-121.3(4)(c) is available in
3743  the fund, to transfer an amount equal to 50% of the revenue generated by the local
3744  option highway construction and transportation corridor preservation [fee] tax
3745  imposed under Section 41-1a-1222 in a county of the first class:
3746  (i) to the legislative body of a county of the first class; and
3747  (ii) to be used by a county of the first class for:
3748  (A) highway construction, reconstruction, or maintenance projects; or
3749  (B) the enforcement of state motor vehicle and traffic laws;
3750  (g) for a fiscal year beginning on or after July 1, 2015, after the department has verified
3751  that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
3752  and the transfer under Subsection (4)(e) has been made, to annually transfer an
3753  amount of the sales and use tax revenue imposed in a county of the first class and
3754  deposited into the fund in accordance with Subsection 59-12-2214(3)(b) equal to an
3755  amount needed to cover the debt to:
3756  (i) the appropriate debt service or sinking fund for the repayment of bonds issued
3757  under Section 63B-27-102; and
3758  (ii) the appropriate debt service or sinking fund for the repayment of bonds issued
3759  under Sections 63B-31-102 and 63B-31-103;
3760  (h) after the department has verified that the amount required under Subsection
3761  72-2-121.3(4)(c) is available in the fund and after the transfer under Subsection (4)(d),
3762  the payment under Subsection (4)(e), and the transfer under Subsection (4)(g)(i) has
3763  been made, to annually transfer $2,000,000 to a public transit district in a county of
3764  the first class to fund a system for public transit;
3765  (i) for a fiscal year beginning on or after July 1, 2018, after the department has verified
3766  that the amount required under Subsection 72-2-121.3(4)(c) is available in the fund
3767  and after the transfer under Subsection (4)(d), the payment under Subsection (4)(e),
3768  and the transfer under Subsection (4)(g)(i) has been made, through fiscal year 2027,
3769  to annually transfer 20%, and beginning with fiscal year 2028, and each year
3770  thereafter for 20 years, to annually transfer 33% of the amount deposited into the
3771  fund under Subsection (2)(b) to the legislative body of a county of the first class for
3772  the following purposes:
                                                       - 112 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
3773  (i) to fund parking facilities in a county of the first class that facilitate significant
3774  economic development and recreation and tourism within the state; and
3775  (ii) to be used for purposes allowed in Section 17-78-702;
3776        (j) subject to Subsection (5), for a fiscal year beginning on or after July 1, 2021, and for
3777  15 years thereafter, to annually transfer the following amounts to the following cities
3778  and the county of the first class for priority projects to mitigate congestion and
3779  improve transportation safety:
3780  (i) $2,000,000 to Sandy;
3781  (ii) $2,300,000 to Taylorsville;
3782  (iii) $1,100,000 to Salt Lake City;
3783  (iv) $1,100,000 to West Jordan;
3784  (v) $1,100,000 to West Valley City;
3785  (vi) $800,000 to Herriman;
3786  (vii) $700,000 to Draper;
3787  (viii) $700,000 to Riverton;
3788  (ix) $700,000 to South Jordan;
3789  (x) $500,000 to Bluffdale;
3790  (xi) $500,000 to Midvale;
3791  (xii) $500,000 to Millcreek;
3792  (xiii) $500,000 to Murray;
3793  (xiv) $400,000 to Cottonwood Heights; and
3794  (xv) $300,000 to Holladay;
3795        (k) for the 2024-25, 2025-26, and 2026-27 fiscal years, and subject to revenue balances
3796  after the distributions under Subsection (4)(j), to reimburse the following
3797  municipalities for the amounts and projects indicated, as each project progresses and
3798  as revenue balances allow:
3799  (i) $3,200,000 to South Jordan for improvements to Bingham Rim Road from
3800  Grandville Avenue to Mountain View Corridor;
3801  (ii) $1,960,000 to Midvale for improvements to Center Street between State Street
3802  and 700 West;
3803  (iii) $3,500,000 to Salt Lake City for first and last mile public transit improvements
3804  throughout Salt Lake City;
3805  (iv) $1,500,000 to Cottonwood Heights for improvements to Fort Union Boulevard
3806  and 2300 East;
                                                       - 113 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
3807  (v) $3,450,000 to Draper for improvements to Bangerter Highway between 13800
3808  South and I-15;
3809  (vi) $10,500,000 to Herriman to construct a road between U-111 and 13200 South;
3810  (vii) $3,000,000 to West Jordan for improvements to 1300 West;
3811  (viii) $1,050,000 to Riverton for improvements to the Welby Jacob Canal Trail
3812  between 11800 South and 13800 South;
3813  (ix) $3,500,000 to Taylorsville for improvements to Bangerter Highway and 4700
3814  South;
3815  (x) $470,000 to the department for construction of a sound wall on Bangerter
3816  Highway at approximately 11200 South;
3817  (xi) $1,250,000 to Murray for improvements to Murray Boulevard between 4800
3818  South and 5300 South;
3819  (xii) $1,840,000 to Magna for construction and improvements to 8400 West and 4100
3820  South;
3821  (xiii) $1,000,000 to South Jordan for construction of arterial roads connecting U-111
3822  and Old Bingham Highway;
3823  (xiv) $1,200,000 to Millcreek for reconstruction of and improvements to 2000 East
3824  between 3300 South and Atkin Avenue;
3825  (xv) $1,230,000 to Holladay for improvements to Highland Drive between Van
3826  Winkle Expressway and Arbor Lane;
3827  (xvi) $1,000,000 to Taylorsville for improvements to 4700 South at the I-215
3828  interchange;
3829  (xvii) $3,750,000 to West Valley City for improvements to 4000 West between 4100
3830  South and 4700 South and improvements to 4700 South from 4000 West to
3831  Bangerter Highway;
3832  (xviii) $1,700,000 to South Jordan for improvements to Prosperity Road between
3833  Crimson View Drive and Copper Hawk Drive;
3834  (xix) $2,300,000 to West Valley City for a road connecting U-111 at approximately
3835  6200 South, then east and turning north and connecting to 5400 South;
3836  (xx) $1,400,000 to Magna for improvements to 8000 West between 3500 South to
3837  4100 South;
3838  (xxi) $1,300,000 to Taylorsville for improvements on 4700 South between Redwood
3839  Road and 2700 West; and
3840  (xxii) $3,000,000 to West Jordan for improvements to 1300 West between 6600
                                                    - 114 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
3841  South and 7800 South; and
3842  (l) for a fiscal year beginning on or after July 1, 2026, and for 15 years thereafter, to pay
3843  debt service and bond issuance costs for $70,000,000 of the bonds issued under
3844  Section 63B-34-201 for the grants awarded under Part 5, Affordable Housing
3845  Infrastructure Grants.
3846     (5)(a) If revenue in the fund is insufficient to satisfy all of the transfers described in
3847  Subsection (4)(j), the executive director shall proportionately reduce the amounts
3848  transferred as described in Subsection (4)(j).
3849  (b) A local government may not use revenue described in Subsection (4)(j) to supplant
3850  existing class B or class C road funds that a local government has budgeted for
3851  transportation projects.
3852     (6) The revenues described in Subsections (2)(b), (c), and (d) that are deposited into the
3853  fund and bond proceeds from bonds issued under Sections 63B-16-102, 63B-18-402,
3854  and 63B-27-102 are considered a local matching contribution for the purposes described
3855  under Section 72-2-123.
3856     (7) The department may expend up to $3,000,000 of revenue deposited into the account as
3857  described in Subsection 59-12-2220(11)(b) for public transit innovation grants, as
3858  provided in Part 4, Public Transit Innovation Grants.
3859     (8) The additional administrative costs of the department to administer this fund shall be
3860  paid from money in the fund.
3861     (9) Subject to Subsection (11), and notwithstanding any statutory or other restrictions on
3862  the use or expenditure of the revenue sources deposited into this fund, the Department of
3863  Transportation may use the money in this fund for any of the purposes detailed in
3864  Subsection (4).
3865     (10) Subject to Subsection (11), any revenue deposited into the fund as described in
3866  Subsection (2)(e) shall be used to provide funding or loans for public transit projects,
3867  operations, and supporting infrastructure in the county of the first class.
3868     (11) For the first three years after a county of the first class imposes a sales and use tax
3869  authorized in Section 59-12-2220, revenue deposited into the fund as described in
3870  Subsection (2)(e) shall be allocated as follows:
3871  (a) 10% to the department to construct an express bus facility on 5600 West; and
3872  (b) 90% into the County of the First Class Infrastructure Bank Fund created in Section
3873  72-2-302.
3874  Section 54. Section 72-2-124 is amended to read:
                                                        - 115 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
3875  72-2-124 [(Effective 07/01/26) ] (Effective 01/01/27). Transportation Investment
3876     Fund of 2005.
3877     (1) There is created a capital projects fund entitled the Transportation Investment Fund of
3878  2005.
3879     (2) The fund consists of money generated from the following sources:
3880  (a) any voluntary contributions received for the maintenance, construction,
3881  reconstruction, or renovation of state and federal highways;
3882  (b) appropriations made to the fund by the Legislature;
3883  (c) [registration fees designated under ] revenues transferred into the fund as described in
3884  Section 41-1a-1201;
3885  (d) the sales and use tax revenues deposited into the fund in accordance with Section
3886  59-12-103;
3887  (e) revenues transferred to the fund in accordance with Section 72-2-106;
3888  (f) revenues transferred into the fund in accordance with Subsection 72-2-121(4)(l); and
3889  (g) revenue from bond proceeds described in Section 63B-34-201.
3890     (3)(a) The fund shall earn interest.
3891  (b) All interest earned on fund money shall be deposited into the fund.
3892     (4)(a) Except as provided in Subsection (4)(b), the executive director may only use fund
3893  money to pay:
3894  (i) the costs of maintenance, construction, reconstruction, or renovation to state and
3895  federal highways prioritized by the Transportation Commission through the
3896  prioritization process for new transportation capacity projects adopted under
3897  Section 72-1-304;
3898  (ii) the costs of maintenance, construction, reconstruction, or renovation to the
3899  highway projects described in Subsections 63B-18-401(2), (3), and (4);
3900  (iii) subject to Subsection (9), costs of corridor preservation, as that term is defined in
3901  Section 72-5-401;
3902  (iv) principal, interest, and issuance costs of bonds authorized by Section 63B-18-401
3903  minus the costs paid from the County of the First Class Highway Projects Fund in
3904  accordance with Subsection 72-2-121(4)(e);
3905  (v) for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
3906  Lake County Revenue Bond Sinking Fund created by Section 72-2-121.3 the
3907  amount certified by Salt Lake County in accordance with Subsection
3908  72-2-121.3(4)(c) as necessary to pay the debt service on $30,000,000 of the
                                                      - 116 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
3909  revenue bonds issued by Salt Lake County;
3910  (vi) principal, interest, and issuance costs of bonds authorized by Section 63B-16-101
3911  for projects prioritized in accordance with Section 72-2-125;
3912  (vii) for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
3913  Class Highway Projects Fund created in Section 72-2-121 to be used for the
3914  purposes described in Section 72-2-121;
3915  (viii) if a political subdivision provides a contribution equal to or greater than 40% of
3916  the costs needed for construction, reconstruction, or renovation of paved
3917  pedestrian or paved nonmotorized transportation for projects that:
3918  (A) mitigate traffic congestion on the state highway system;
3919  (B) are part of an active transportation plan approved by the department; and
3920  (C) are prioritized by the commission through the prioritization process for new
3921  transportation capacity projects adopted under Section 72-1-304;
3922  (ix) $705,000,000 for the costs of right-of-way acquisition, construction,
3923  reconstruction, or renovation of or improvement to the following projects:
3924  (A) the connector road between Main Street and 1600 North in the city of
3925  Vineyard;
3926  (B) Geneva Road from University Parkway to 1800 South;
3927  (C) the SR-97 interchange at 5600 South on I-15;
3928  (D) subject to Subsection (4)(c), two lanes on U-111 from Herriman Parkway to
3929  South Jordan Parkway;
3930  (E) widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
3931  (F) improvements to 1600 North in Orem from 1200 West to State Street;
3932  (G) widening I-15 between mileposts 6 and 8;
3933  (H) widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
3934  (I) widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197
3935  in Spanish Fork Canyon;
3936  (J) I-15 northbound between mileposts 43 and 56;
3937  (K) a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts
3938  43 and 45.1;
3939  (L) east Zion SR-9 improvements;
3940  (M) Toquerville Parkway;
3941  (N) an environmental study on Foothill Boulevard in the city of Saratoga Springs;
3942  (O) using funds allocated in this Subsection (4)(a)(ix), and other sources of funds,
                                                     - 117 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
3943  for construction of an interchange on Bangerter Highway at 13400 South; and
3944  (P) an environmental impact study for Kimball Junction in Summit County;
3945  (x) $28,000,000 as pass-through funds, to be distributed as necessary to pay project
3946  costs based upon a statement of cash flow that the local jurisdiction where the
3947  project is located provides to the department demonstrating the need for money
3948  for the project, for the following projects in the following amounts:
3949  (A) $5,000,000 for Payson Main Street repair and replacement;
3950  (B) $8,000,000 for a Bluffdale 14600 South railroad bypass;
3951  (C) $5,000,000 for improvements to 4700 South in Taylorsville; and
3952  (D) $10,000,000 for improvements to the west side frontage roads adjacent to U.S.
3953  40 between mile markers 7 and 10;
3954  (xi) $13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way
3955  acquisition, construction, reconstruction, or renovation to connect Fingerhut Road
3956  over the railroad and to U.S. Highway 6;
3957  (xii) for a fiscal year beginning on July 1, 2025, only, as pass-through funds from
3958  revenue deposited into the fund in accordance with Section 59-12-103, for the
3959  following projects:
3960  (A) $3,000,000 for the department to perform an environmental study for the I-15
3961  Salem and Benjamin project; and
3962  (B) $2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand
3963  Dunes Road project; and
3964  (xiii) for a fiscal year beginning on July 1, 2025, up to $300,000,000 for the costs of
3965  right-of-way acquisition and construction for improvements on SR-89 in a county
3966  of the first class.
3967  (b) The executive director may use fund money to exchange for an equal or greater
3968  amount of federal transportation funds to be used as provided in Subsection (4)(a).
3969  (c)(i) Construction related to the project described in Subsection (4)(a)(ix)(D) may
3970  not commence until a right-of-way not owned by a federal agency that is required
3971  for the realignment and extension of U-111, as described in the department's 2023
3972  environmental study related to the project, is dedicated to the department.
3973  (ii) Notwithstanding Subsection (4)(c)(i), if a right-of-way is not dedicated for the
3974  project as described in Subsection (4)(c)(i) on or before October 1, 2024, the
3975  department may proceed with the project, except that the project will be limited to
3976  two lanes on U-111 from Herriman Parkway to 11800 South.
                                                     - 118 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
3977     (5)(a) Except as provided in Subsection (5)(b), if the department receives a notice of
3978  ineligibility for a municipality as described in Subsection 10-21-202(8), the executive
3979  director may not program fund money to a project prioritized by the commission
3980  under Section 72-1-304, including fund money from the Transit Transportation
3981  Investment Fund, within the boundaries of the municipality until the department
3982  receives notification from the Housing and Community Development Division within
3983  the Department of Workforce Services that ineligibility under this Subsection (5) no
3984  longer applies to the municipality.
3985  (b) Within the boundaries of a municipality described in Subsection (5)(a), the executive
3986  director:
3987  (i) may program fund money in accordance with Subsection (4)(a) for a
3988  limited-access facility or interchange connecting limited-access facilities;
3989  (ii) may not program fund money for the construction, reconstruction, or renovation
3990  of an interchange on a limited-access facility;
3991  (iii) may program Transit Transportation Investment Fund money for a
3992  multi-community fixed guideway public transportation project; and
3993  (iv) may not program Transit Transportation Investment Fund money for the
3994  construction, reconstruction, or renovation of a station that is part of a fixed
3995  guideway public transportation project.
3996  (c) Subsections (5)(a) and (b) do not apply to a project programmed by the executive
3997  director before July 1, 2022, for projects prioritized by the commission under Section
3998  72-1-304.
3999     (6)(a) Except as provided in Subsection (6)(b), if the department receives a notice of
4000  ineligibility for a county as described in Subsection 17-80-202(8), the executive
4001  director may not program fund money to a project prioritized by the commission
4002  under Section 72-1-304, including fund money from the Transit Transportation
4003  Investment Fund, within the boundaries of the unincorporated area of the county until
4004  the department receives notification from the Housing and Community Development
4005  Division within the Department of Workforce Services that ineligibility under this
4006  Subsection (6) no longer applies to the county.
4007  (b) Within the boundaries of the unincorporated area of a county described in Subsection
4008  (6)(a), the executive director:
4009  (i) may program fund money in accordance with Subsection (4)(a) for a
4010  limited-access facility to a project prioritized by the commission under Section
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       1st Sub. (Buff) H.B. 505  02-25 17:18
4011  72-1-304;
4012  (ii) may not program fund money for the construction, reconstruction, or renovation
4013  of an interchange on a limited-access facility;
4014  (iii) may program Transit Transportation Investment Fund money for a
4015  multi-community fixed guideway public transportation project; and
4016  (iv) may not program Transit Transportation Investment Fund money for the
4017  construction, reconstruction, or renovation of a station that is part of a fixed
4018  guideway public transportation project.
4019  (c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive
4020  director before July 1, 2022, for projects prioritized by the commission under Section
4021  72-1-304.
4022     (7)(a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued in
4023  any fiscal year, the department and the commission shall appear before the Executive
4024  Appropriations Committee of the Legislature and present the amount of bond
4025  proceeds that the department needs to provide funding for the projects identified in
4026  Subsections 63B-18-401(2), (3), and (4) or Subsection 63B-27-101(2) for the current
4027  or next fiscal year.
4028  (b) The Executive Appropriations Committee of the Legislature shall review and
4029  comment on the amount of bond proceeds needed to fund the projects.
4030     (8) The Division of Finance shall, from money deposited into the fund, transfer the amount
4031  of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
4032  Section 63B-18-401 or 63B-27-101 in the current fiscal year to the appropriate debt
4033  service or sinking fund.
4034     (9) The executive director may only use money in the fund for corridor preservation as
4035  described in Subsection (4)(a)(iii):
4036  (a) if the project has been prioritized by the commission, including the use of fund
4037  money for corridor preservation; or
4038  (b) for a project that has not been prioritized by the commission, if the commission:
4039  (i) approves the use of fund money for the corridor preservation; and
4040  (ii) finds that the use of fund money for corridor preservation will not result in any
4041  delay to a project that has been prioritized by the commission.
4042     (10)(a) There is created in the Transportation Investment Fund of 2005 the Transit
4043  Transportation Investment Fund.
4044  (b) The fund shall be funded by:
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       02-25 17:18  1st Sub. (Buff) H.B. 505
4045  (i) contributions deposited into the fund in accordance with Section 59-12-103;
4046  (ii) appropriations into the account by the Legislature;
4047  (iii) deposits of sales and use tax increment related to a housing and transit
4048  reinvestment zone as described in Section 63N-3-610;
4049  (iv) transfers of local option sales and use tax revenue as described in Subsection
4050  59-12-2220(11)(b) or (c);
4051  (v) private contributions; and
4052  (vi) donations or grants from public or private entities.
4053        (c)(i) The fund shall earn interest.
4054  (ii) All interest earned on fund money shall be deposited into the fund.
4055        (d) Subject to Subsection (10)(e), the commission may prioritize money from the fund:
4056  (i) for public transit capital development of new capacity projects and fixed guideway
4057  capital development projects to be used as prioritized by the commission through
4058  the prioritization process adopted under Section 72-1-304;
4059  (ii) to the department for oversight of a fixed guideway capital development project
4060  for which the department has responsibility; or
4061  (iii) up to $500,000 per year, to be used for a public transit study.
4062        (e)(i) Subject to Subsections (10)(g), (h), and (i), the commission may only prioritize
4063  money from the fund for a public transit capital development project or pedestrian
4064  or nonmotorized transportation project that provides connection to the public
4065  transit system if the public transit district or political subdivision provides funds of
4066  equal to or greater than 30% of the costs needed for the project.
4067  (ii) A public transit district or political subdivision may use money derived from a
4068  loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide
4069  all or part of the 30% requirement described in Subsection (10)(e)(i) if:
4070  (A) the loan is approved by the commission as required in Part 2, State
4071  Infrastructure Bank Fund; and
4072  (B) the proposed capital project has been prioritized by the commission [pursuant
4073  to] in accordance with Section 72-1-303.
4074        (f) Before July 1, 2022, the department and a large public transit district shall enter into
4075  an agreement for a large public transit district to pay the department $5,000,000 per
4076  year for 15 years to be used to facilitate the purchase of zero emissions or low
4077  emissions rail engines and trainsets for regional public transit rail systems.
4078        (g) For any revenue transferred into the fund in accordance with Subsection
                                                      - 121 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
4079  59-12-2220(11)(b):
4080  (i) the commission may prioritize money from the fund for public transit projects,
4081  operations, or maintenance within the county of the first class; and
4082  (ii) Subsection (10)(e) does not apply.
4083  (h) For any revenue transferred into the fund in accordance with Subsection
4084  59-12-2220(11)(c):
4085  (i) the commission may prioritize public transit projects, operations, or maintenance
4086  in the county from which the revenue was generated; and
4087  (ii) Subsection (10)(e) does not apply.
4088  (i) The requirement to provide funds equal to or greater than 30% of the costs needed for
4089  the project described in Subsection (10)(e) does not apply to a public transit capital
4090  development project or pedestrian or nonmotorized transportation project that the
4091  department proposes.
4092  (j) In accordance with Part 4, Public Transit Innovation Grants, the commission may
4093  prioritize money from the fund for public transit innovation grants, as defined in
4094  Section 72-2-401, for public transit capital development projects requested by a
4095  political subdivision within a public transit district.
4096     (11)(a) There is created in the Transportation Investment Fund of 2005 the Cottonwood
4097  Canyons Transportation Investment Fund.
4098  (b) The fund shall be funded by:
4099  (i) money deposited into the fund in accordance with Section 59-12-103;
4100  (ii) appropriations into the account by the Legislature;
4101  (iii) private contributions; and
4102  (iv) donations or grants from public or private entities.
4103  (c)(i) The fund shall earn interest.
4104  (ii) All interest earned on fund money shall be deposited into the fund.
4105  (d) The Legislature may appropriate money from the fund for public transit or
4106  transportation projects in the Cottonwood Canyons of Salt Lake County.
4107  (e) The department may use up to 2% of the revenue deposited into the account under
4108  Subsection 59-12-103(4)(f) to contract with local governments as necessary for
4109  public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
4110  (f) Beginning with fiscal year beginning on July 1, 2025, the department shall use any
4111  sales and use tax growth over sales and use tax collections during the 2025 fiscal year
4112  to fund projects to provide ingress and egress for a public transit hub, including
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       02-25 17:18  1st Sub. (Buff) H.B. 505
4113  construction of the public transit hub, in the Big Cottonwood Canyon area.
4114     (12)(a) There is created in the Transportation Investment Fund of 2005 the Active
4115  Transportation Investment Fund.
4116  (b) The fund shall be funded by:
4117  (i) money deposited into the fund in accordance with Section 59-12-103;
4118  (ii) appropriations into the account by the Legislature; and
4119  (iii) donations or grants from public or private entities.
4120  (c)(i) The fund shall earn interest.
4121  (ii) All interest earned on fund money shall be deposited into the fund.
4122  (d) The executive director may only use fund money to pay the costs needed for:
4123  (i) the planning, design, construction, maintenance, reconstruction, or renovation of
4124  paved pedestrian or paved nonmotorized trail projects that:
4125  (A) are prioritized by the commission through the prioritization process for new
4126  transportation capacity projects adopted under Section 72-1-304;
4127  (B) serve a regional purpose; and
4128  (C) are part of an active transportation plan approved by the department or the
4129  plan described in Subsection (12)(d)(ii);
4130  (ii) the development of a plan for a statewide network of paved pedestrian or paved
4131  nonmotorized trails that serve a regional purpose; and
4132  (iii) the administration of the fund, including staff and overhead costs.
4133     (13)(a) As used in this Subsection (13), "commuter rail" means the same as that term is
4134  defined in Section 63N-3-602.
4135  (b) There is created in the Transit Transportation Investment Fund the Commuter Rail
4136  Subaccount.
4137  (c) The subaccount shall be funded by:
4138  (i) contributions deposited into the subaccount in accordance with Section 59-12-103;
4139  (ii) appropriations into the subaccount by the Legislature;
4140  (iii) private contributions; and
4141  (iv) donations or grants from public or private entities.
4142  (d)(i) The subaccount shall earn interest.
4143  (ii) All interest earned on money in the subaccount shall be deposited into the
4144  subaccount.
4145  (e) As prioritized by the commission through the prioritization process adopted under
4146  Section 72-1-304 or as directed by the Legislature, the department may only use
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       1st Sub. (Buff) H.B. 505  02-25 17:18
4147  money from the subaccount for projects that improve the state's commuter rail
4148  infrastructure, including the building or improvement of grade-separated crossings
4149  between commuter rail lines and public highways.
4150  (f) Appropriations made in accordance with this section are nonlapsing in accordance
4151  with Section 63J-1-602.1.
4152  Section 55. Section 72-2-133 is amended to read:
4153  72-2-133 (Effective 01/01/27). Rural Transportation Infrastructure Fund --
4154     Creation -- Uses.
4155     (1) As used in this section:
4156  (a) "Graveled road" means the same as that term is defined in Section 72-2-108.
4157  (b) "Paved road" means the same as that term is defined in Section 72-2-108.
4158  (c)(i) "Qualifying county" means a county that:
4159  (A) is a county of the third through sixth class, as classified in Section 17-60-104,
4160  except as provided in Subsection (1)(c)(ii);
4161  (B) has imposed a local option sales and use tax [pursuant to:] in accordance with
4162  Section 59-12-2217, Section 59-12-2218, or Section 59-12-2219; and
4163  [(I) Section 59-12-2217;]
4164  [(II) Section 59-12-2218; or]
4165  [(III) Section 59-12-2219; and]
4166  (C) has not imposed a local option sales and use tax [pursuant to] in accordance
4167  with Section 59-12-2220 on or before January 1, 2023.
4168  (ii) "Qualifying county" does not include a county of the third class, as classified in
4169  Section 17-60-104, with an airport facilitating commercial flights to three or more
4170  airports outside of the state.
4171  (d) "Qualifying municipality" means a municipality located within a qualifying county.
4172  (e) "Qualifying recipient" means qualifying county or a qualifying municipality.
4173  (f) "Road mile" means the same as that term is defined in Section 72-2-108.
4174  (g) "Weighted mileage" means the same as that term is defined in Section 72-2-108.
4175     (2) There is created in the Transportation Fund an expendable special revenue fund called
4176  the Rural Transportation Infrastructure Fund.
4177     (3) The Rural Transportation Infrastructure Fund shall be funded by:
4178  (a) deposits into the fund as described in [Subsection 41-1a-1201(9)] Section 41-1a-1201;
4179  (b) appropriations by the Legislature; and
4180  (c) other deposits into the fund.
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       02-25 17:18  1st Sub. (Buff) H.B. 505
4181     (4) The department shall administer the fund.
4182     (5)(a) Beginning on January 1, 2024, and subject to Subsection (5)(b), the department
4183  shall annually distribute revenue in the fund among qualifying recipients in the
4184  following manner:
4185  (i) 50% in the ratio that the class B roads weighted mileage within each county and
4186  class C roads weighted mileage within each municipality bear to the total class B
4187  and class C roads weighted mileage within the state; and
4188  (ii) 50% in the ratio that the population of a county or municipality bears to the total
4189  population of the state.
4190  (b) To the extent not otherwise required by federal law, population shall be based on:
4191  (i) the most recent estimate from the Utah Population Committee created in Section
4192  63C-20-103; or
4193  (ii) if the Utah Population Committee estimate is not available for each municipality
4194  and unincorporated area, the adjusted sub-county population estimate provided by
4195  the Utah Population Committee in accordance with Section 63C-20-104.
4196     (6) A qualifying recipient may only use funds distributed as described in this section in the
4197  same manner as class B and class C road funds distributed in accordance with Section
4198  72-2-108.
4199     (7)(a)(i) Before October 1 of each year, the department shall inform the State Tax
4200  Commission which counties, if any, have an airport described in Subsection
4201  (1)(c)(ii).
4202  (ii) Before November 1 of each year, the State Tax Commission shall notify the
4203  department and indicate which counties are qualifying counties.
4204  (b) After receiving the notification described in Subsection (7)(a)(ii), the department
4205  shall distribute funds for the following year to the municipalities and counties that
4206  were identified as qualifying recipients in the notification described in Subsection
4207  (7)(a).
4208  Section 56. Section 73-18-7 is amended to read:
4209  73-18-7 (Effective 01/01/27). Registration requirements -- Exemptions -- Fee --
4210     Agents -- Records -- Period of registration and renewal -- Expiration -- Notice of transfer
4211     of interest or change of address -- Duplicate registration card -- Invalid registration --
4212     Powers of division.
4213     (1)(a) Except as provided by Section 73-18-9, the owner of each motorboat and sailboat
4214  on the waters of this state shall register it with the division as provided in this chapter.
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       1st Sub. (Buff) H.B. 505  02-25 17:18
4215  (b) A person may not place, give permission for the placement of, operate, or give
4216  permission for the operation of a motorboat or sailboat on the waters of this state,
4217  unless the motorboat or sailboat is registered as provided in this chapter.
4218     (2)(a) The owner of a motorboat or sailboat required to be registered shall file an
4219  application for registration with the division on forms approved by the division.
4220  (b) The owner of the motorboat or sailboat shall sign the application, pay the vehicle tax
4221  and fee set by the division, and pay the Boating Grant Tax as described in Section
4222  59-34-103, after notifying the commission, in accordance with Section 63J-1-504.
4223  (c) Before receiving a registration card and registration decals, the applicant shall
4224  provide the division with a certificate from the county assessor of the county in
4225  which the motorboat or sailboat has situs for taxation, stating that:
4226  (i) the property tax on the motorboat or sailboat for the current year has been paid;
4227  (ii) in the county assessor's opinion, the property tax is a lien on real property
4228  sufficient to secure the payment of the property tax; or
4229  (iii) the motorboat or sailboat is exempt by law from payment of property tax for the
4230  current year.
4231  (d) If the division modifies the fee under Subsection (2)(b), the modification shall take
4232  effect on the first day of the calendar quarter after 90 days from the day on which the
4233  division provides the State Tax Commission:
4234  (i) notice from the division stating that the division will modify the fee; and
4235  (ii) a copy of the fee modification.
4236  (e)(i) The division may enter into an agreement with the Motor Vehicle Division
4237  created in Section 41-1a-106 to administer the registration requirements described
4238  in this chapter.
4239  (ii) An individual may request automatic registration renewal as described in Section
4240  41-1a-216.
4241     (3)(a) Upon receipt of the application in the approved form, the division shall record the
4242  receipt and issue to the applicant registration decals and a registration card that state
4243  the number assigned to the motorboat or sailboat and the name and address of the
4244  owner.
4245  (b) The registration card shall be available for inspection on the motorboat or sailboat
4246  for which it was issued, whenever that motorboat or sailboat is in operation.
4247     (4) The assigned number shall:
4248  (a) be painted or permanently attached to each side of the forward half of the motorboat
                                                        - 126 -
       02-25 17:18  1st Sub. (Buff) H.B. 505
4249  or sailboat;
4250  (b) consist of plain vertical block characters not less than three inches in height;
4251  (c) contrast with the color of the background and be distinctly visible and legible;
4252  (d) have spaces or hyphens equal to the width of a letter between the letter and numeral
4253  groupings; and
4254  (e) read from left to right.
4255     (5) A motorboat or sailboat with a valid marine document issued by the United States Coast
4256  Guard is exempt from the number display requirements of Subsection (4).
4257     (6) The nonresident owner of any motorboat or sailboat already covered by a valid number
4258  that has been assigned to it according to federal law or a federally approved numbering
4259  system of the owner's resident state is exempt from registration while operating the
4260  motorboat or sailboat on the waters of this state unless the owner is operating in excess
4261  of the reciprocity period provided for in Subsection 73-18-9(1).
4262     (7)(a) If the ownership of a motorboat or sailboat changes, the new owner shall file a
4263  new application form and fee with the division, and the division shall issue a new
4264  registration card and registration decals in the same manner as provided for in
4265  Subsections (2) and (3).
4266  (b) The division shall reassign the current number assigned to the motorboat or sailboat
4267  to the new owner to display on the motorboat or sailboat.
4268     (8) If the United States Coast Guard has in force an overall system of identification
4269  numbering for motorboats or sailboats within the United States, the numbering system
4270  employed under this chapter by the division shall conform with that system.
4271     (9)(a) The division may authorize any person to act as its agent for the registration of
4272  motorboats and sailboats.
4273  (b) A number assigned, a registration card, and registration decals issued by an agent of
4274  the division in conformity with this chapter and rules of the division are valid.
4275     (10)(a) The Motor Vehicle Division shall classify all records of the division made or
4276  kept according to this section in the same manner that motor vehicle records are
4277  classified under Section 41-1a-116.
4278  (b) Division records are available for inspection in the same manner as motor vehicle
4279  records [pursuant to] in accordance with Section 41-1a-116.
4280     (11)(a)(i) Each registration, registration card, and decal issued under this chapter
4281  shall continue in effect for 12 months, beginning with the first day of the calendar
4282  month of registration.
                                                      - 127 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
4283  (ii) A registration may be renewed by the owner in the same manner provided for in
4284  the initial application.
4285  (iii) The division shall reassign the current number assigned to the motorboat or
4286  sailboat when the registration is renewed.
4287  (b) Each registration, registration card, and registration decal expires the last day of the
4288  month in the year following the calendar month of registration.
4289  (c) If the last day of the registration period falls on a day in which the appropriate state
4290  or county offices are not open for business, the registration of the motorboat or
4291  sailboat is extended to 12 midnight of the next business day.
4292  (d) The division may receive applications for registration renewal and issue new
4293  registration cards at any time before the expiration of the registration, subject to the
4294  availability of renewal materials.
4295  (e) The new registration shall retain the same expiration month as recorded on the
4296  original registration even if the registration has expired.
4297  (f) The year of registration shall be changed to reflect the renewed registration period.
4298  (g) If the registration renewal application is an application generated by the division
4299  through its automated system, the owner is not required to surrender the last
4300  registration card or duplicate.
4301     (12)(a) An owner shall notify the division of:
4302  (i) the transfer of all or any part of the owner's interest, other than creation of a
4303  security interest, in a motorboat or sailboat registered in this state under
4304  Subsections (2) and (3); and
4305  (ii) the destruction or abandonment of the owner's motorboat or sailboat.
4306  (b) Notification must take place within 15 days of the transfer, destruction, or
4307  abandonment.
4308  (c)(i) The transfer, destruction, or abandonment of a motorboat or sailboat terminates
4309  its registration.
4310  (ii) Notwithstanding Subsection (12)(c)(i), a transfer of a part interest that does not
4311  affect the owner's right to operate a motorboat or sailboat does not terminate the
4312  registration.
4313     (13)(a) A registered owner shall notify the division within 15 days if the owner's address
4314  changes from the address appearing on the registration card and shall, as a part of this
4315  notification, furnish the division with the owner's new address.
4316  (b) The division may provide in the division's rules for:
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       02-25 17:18  1st Sub. (Buff) H.B. 505
4317  (i) the surrender of the registration card bearing the former address; and
4318  (ii)(A) the replacement of the card with a new registration card bearing the new
4319  address; or
4320  (B) the alteration of an existing registration card to show the owner's new address.
4321     (14)(a) If a registration card is lost or stolen, the division may collect a fee of $4 for the
4322  issuance of a duplicate card.
4323  (b) If a registration decal is lost or stolen, the division may collect a fee of $3 for the
4324  issuance of a duplicate decal.
4325     (15) A number other than the number assigned to a motorboat or sailboat or a number for a
4326  motorboat or sailboat granted reciprocity under this chapter may not be painted,
4327  attached, or otherwise displayed on either side of the bow of a motorboat or sailboat.
4328     (16) A motorboat or sailboat registration and number are invalid if obtained by knowingly
4329  falsifying an application for registration.
4330     (17) The division may designate the suffix to assigned numbers, and by following the
4331  procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking
4332  Act, make rules for:
4333  (a) the display of registration decals;
4334  (b) the issuance and display of dealer numbers and registrations; and
4335  (c) the issuance and display of temporary registrations.
4336     (18) A violation of this section is an infraction.
4337  Section 57. Section 73-18-25.3 is amended to read:
4338  73-18-25.3 (Effective 01/01/27). Collection of the aquatic invasive species fee.
4339     (1)(a) A person who applies for a vessel registration or registration renewal under
4340  Section 73-18-7 may pay the aquatic invasive species fee required under Section
4341  23A-10-304 at the time of registration or registration renewal.
4342  (b) If the Division of Motor Vehicles collects the [registration] vehicle tax and fee and a
4343  person elects to pay the aquatic invasive species fee at the same time, the payment of
4344  the aquatic invasive species fee under this section shall be:
4345  [(a)] (i) collected by the Division of Motor Vehicles;
4346  [(b)] (ii) treated as a separate fee and not part of the [registration] vehicle tax or fee;
4347  and
4348  [(c)] (iii) deposited into the Aquatic Invasive Species Interdiction Account created in
4349  Section 23A-3-211, less actual administrative costs associated with collecting and
4350  transferring the aquatic invasive species fee by the Division of Motor Vehicles.
                                                        - 129 -
       1st Sub. (Buff) H.B. 505  02-25 17:18
4351     (2) Notwithstanding Section 41-1a-116, the Division of Motor Vehicles shall report to the
4352  Division of Wildlife Resources identifying information regarding a person who pays the
4353  aquatic invasive species fee so that the Division of Wildlife Resources may provide a
4354  decal to that person in accordance with Subsection 23A-10-201(6).
4355  Section 58. Repealer.
4356  This bill repeals:
4357  Section 41-1a-123, License Plate Restricted Account.
4358  Section 41-1a-1205, Disposition of driver education tax -- Expense appropriation.
4359  Section 41-1a-1208, Fees for duplicate certificates of registration.
4360  Section 41-1a-1210, Fees for original and duplicate certificates of title.
4361  Section 41-1a-1212, Fee for replacement of license plate decals.
4362  Section 59. FY 2027 Appropriations.
4363  The following sums of money are appropriated for the fiscal year beginning July 1,
4364     2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
4365     fiscal year 2027.
4366  Subsection 59(a). Operating and Capital Budgets
4367  Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
4368     Legislature appropriates the following sums of money from the funds or accounts indicated for
4369     the use and support of the government of the state of Utah.
4370     ITEM 1       To Utah State Tax Commission - Tax Administration
4371  From General Fund  (19,767,800)
4372  From General Fund, One-time  9,883,900
4373  From Transportation Fund  (4,232,200)
4374  From Transportation Fund, One-time  2,116,100
4375  From Motor Vehicle Division Restricted Account  24,000,000
4376  From Motor Vehicle Division Restricted Account,
4377  One-time  (12,000,000)
4378  Subsection 59(b). Capital Project Funds
4379  The Legislature has reviewed the following capital project funds. The Legislature
4380     authorizes the State Division of Finance to transfer amounts between funds and accounts as
4381     indicated.
4382     ITEM 2       To Transportation - Transportation Investment Fund of 2005
4383  From General Fund  19,767,800
4384  From General Fund, One-time  (9,883,900)
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       02-25 17:18  1st Sub. (Buff) H.B. 505
4385  Schedule of Programs:
4386  Transportation Investment Fund  9,883,900
4387  Section 60. Effective Date.
4388     This bill takes effect on January 1, 2027.
                                                      - 131 -