Transportation, Infrastructure, and Housing Amendments

283
59-12-2214
63A-2-412
63B-34-101
63L-12-102
63N-3-1801
63N-3-1802
63N-3-1803
63N-3-1804
63N-3-1805
67-16-4
72-2-121
72-2-124
72-2-124
72-2-136
72-2-501
72-2-502
72-2-503
72-5-111
72-5-117
78B-6-521
0
Transportation, Infrastructure, and Housing Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Calvin Roberts
Senate Sponsor: Kirk A. Cullimore
LONG TITLE
General Description:
This bill modifies transportation, infrastructure, and housing provisions.
Highlighted Provisions:
This bill:
defines terms;
creates the State Housing Infrastructure Partnership Fund (fund) and provides for the use
of fund money;
creates the State Housing Infrastructure Partnership Board (infrastructure loan board) and
describes the infrastructure loan board's membership and duties;
requires the Governor's Office of Economic Opportunity to provide staff support to the
infrastructure loan board;
authorizes the infrastructure loan board to make loans from the fund to qualifying
political subdivisions to finance system improvements that will facilitate the
construction of housing;
establishes terms and requirements for infrastructure loans awarded by the infrastructure
loan board;
directs the state treasurer to complete a study that analyzes the economic effect of the
infrastructure loan program;
exempts conduct arising from the provision of affordable housing, if the housing benefits
are provided to all qualified residents, from certain ethics requirements for public
officers;
modifies the membership of the Affordable Housing Infrastructure Grant Board (grant
board) for the provision of affordable housing infrastructure grants;
limits to owner-occupied the affordable housing for which public entities in certain
counties may qualify for an affordable housing infrastructure grant;
allows the grant board, in relation to awarding affordable housing infrastructure grants, to:
determine whether an owner-occupied dwelling qualifies as an affordable housing
unit; and
waive certain preliminary cost estimate requirements;
increases the maximum amount of bonds the Utah Department of Transportation
(department) may authorize for affordable housing infrastructure grants;
allows the department to use certain local option sales tax revenue to pay for affordable
housing infrastructure grants, subject to repayment from bond proceeds;
diverts a certain portion of revenue from the County of the First Class Highway Projects
Fund for revitalization of a convention center;
establishes expenditure requirements for revenue in the County of the First Class
Highway Projects Fund;
establishes requirements in relation to a public transit hub project for the Cottonwood
Canyons;
reduces the amount of revenue the department may allocate from the Transportation
Investment Fund to pay for a certain roadway project;
establishes the Convention Center Reserves Restricted Account (account);
requires the Division of Finance to transfer a certain amount of revenue from the
Transportation Investment Fund to the account;
limits the use of money deposited into the account for revitalization of a convention
center;
establishes requirements for the department to coordinate and assist on certain projects,
subject to availability of funding;
allows state agencies to sell surplus real property at pre-entitlement appraised value to
certain qualifying entities and defer payment for the purchase of such property;
addresses the sale or disposal of real property by the department and other state agencies;
and
makes technical and conforming changes.
Money Appropriated in this Bill:
This bill appropriates
$100,000,000
in restricted fund and account transfers for fiscal year
2027, all of which is from the various sources as detailed in this bill.
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
59-12-2214
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 29
63B-34-101
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 502
63L-12-102
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
67-16-4
Effective
05/06/26
, as last amended by Laws of Utah 2018, Chapter 415
72-2-121
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
72-2-124
Effective
05/06/26
Superseded
07/01/26
, as last amended by Laws of Utah
2025, First Special Session, Chapter 15
72-2-124
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
72-2-501
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 502
72-2-502
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 502
72-2-503
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 502
72-5-111
Effective
05/06/26
, as last amended by Laws of Utah 2022, Chapter 101
72-5-117
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
78B-6-521
Effective
05/06/26
, as last amended by Laws of Utah 2022, Chapter 101
ENACTS:
63A-2-412
Effective
05/06/26
, Utah Code Annotated 1953
63N-3-1801
Effective
05/06/26
, Utah Code Annotated 1953
63N-3-1802
Effective
05/06/26
, Utah Code Annotated 1953
63N-3-1803
Effective
05/06/26
, Utah Code Annotated 1953
63N-3-1804
Effective
05/06/26
, Utah Code Annotated 1953
63N-3-1805
Effective
05/06/26
, Utah Code Annotated 1953
72-2-136
Effective
05/06/26
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
59-12-2214
is amended to read:
59-12-2214
Effective
05/06/26
. County, city, or town option sales and use tax to
fund a system for public transit, an airport facility, a water conservation project, or to be
deposited into the County of the First Class Highway Projects Fund -- Base -- Rate.
(1)
Subject to the other provisions of this part, a county, city, or town may impose a sales
and use tax of .25% on the transactions described in Subsection
59-12-103(1)
located
within the county, city, or town.
(2)
Notwithstanding Section
59-12-2212.2
, and subject to Subsections
(3)
and
(4)
, a county,
city, or town that imposes a sales and use tax under this section shall expend the
revenues collected from the sales and use tax:
(a)
to fund a system for public transit;
(b)
to fund a project or service related to an airport facility for the portion of the project
or service that is performed within the county, city, or town within which the sales
and use tax is imposed:
(i)
for a county that imposes the sales and use tax, if the airport facility is part of the
regional transportation plan of the area metropolitan planning organization if a
metropolitan planning organization exists for the area; or
(ii)
for a city or town that imposes the sales and use tax, if:
(A)
that city or town is located within a county of the second class;
(B)
that city or town owns or operates the airport facility; and
(C)
an airline is headquartered in that city or town; or
(c)
for a combination of Subsections
(2)(a)
and
(b)
.
(3)
After application of Subsection
59-12-2206(5)
, a county of the first class that imposes a
sales and use tax under this section shall expend the revenues collected from the sales
and use tax as follows:
(a)
80% of the revenues collected from the sales and use tax shall be expended to fund a
system for public transit; and
(b)
except as provided in Subsection
(5)
,
20% of the revenues collected from the sales
and use tax shall be deposited into the County of the First Class Highway Projects
Fund created by Section
72-2-121
.
(4)
(a)
A county of the third class that has a portion of the county annexed into a large
public transit district and that has imposed a sales and use tax under this section as of
January 1, 2020, may change the list of purposes for which the sales and use tax
revenue may be expended if:
(i)
the proposed uses of the sales and use tax revenue are allowed uses described in
this section; and
(ii)
in coordination with a relevant large public transit district, the county legislative
body passes an ordinance describing the allowed uses of the sales and use tax
revenue.
(b)
Notwithstanding Section
59-12-2208
, and regardless of whether the imposition of the
sales and use tax imposed under this section was submitted to the voters as described
in Section
59-12-2208
, the county legislative body is not required to submit an
opinion question to the county's registered voters to change the allowed uses as
described in Subsection
(4)(a)
.
(5)
(a)
For a fiscal year beginning on or after July 1, 2030, but beginning on or before
July 1, 2060, $5,000,000 of the revenue described in Subsection
(3)(b)
shall be
distributed to a county of the first class.
(b)
A county of the first class may expend the revenue described in Subsection
(5)(a)
for
revitalization of a convention center owned by the county within a city of the first
class and surrounding revitalization projects related to the convention center.
Section 2. Section
63A-2-412
is enacted to read:
63A-2-412
Effective
05/06/26
. Sale of surplus real property by state agency to
qualifying entity for pre-entitlement appraised value -- Deferred payment.
(1)
As used in this section, "qualifying entity" means a state agency or an independent
entity, as defined in Section
63E-1-102
, that administers public interests in housing.
(2)
A state agency may provide for the sale of the state's surplus real property to a
qualifying entity for a pre-entitlement appraised value, payment of which may be
deferred, as determined by the state agency and subject to state and federal law.
Section 3. Section
63B-34-101
is amended to read:
63B-34-101
Effective
05/06/26
. Transportation bonds -- Maximum amount --
Use for transportation projects related to affordable housing initiatives.
(1)
(a)
Subject to the restriction in Subsection
(1)(c)
, the total amount of bonds issued
under this section may not exceed
$70,000,000
$150,0
0
0,000
.
(b)
When the Department of Transportation certifies to the commission the amount of
bond proceeds that the commission needs to provide funding for the projects
described in Subsection
(2)
, the commission may issue and sell general obligation
bonds in an amount equal to the certified amount plus costs of issuance.
(c)
The commission may not issue general obligation bonds authorized under this
section if the issuance for general obligation bonds would result in the total current
outstanding general obligation debt of the state exceeding 50% of the limitation
described in Utah Constitution, Article XIV, Section 1.
(2)
(a)
Proceeds from the bonds issued under this section shall be provided to the
Department of Transportation through the Transportation Investment Fund of 2005
created in Section
72-2-124
to pay for or to provide funds to public entities for costs
related to affordable housing initiatives as described in Subsection
(2)(b)
.
(b)
Bond proceeds described under Subsection
(2)(a)
shall be used to pay for
infrastructure to assist in affordable housing related grants and allocated as described
in Title 72, Chapter 2, Part 5, Affordable Housing Infrastructure Grants.
(c)
The costs under this Subsection
(2)
may include the costs of acquiring land, interests
in land, easements and rights-of-way, the costs of improving sites, making all
improvements necessary, incidental, or convenient to the facilities, and the costs of
interest estimated to accrue on these bonds during the period to be covered by
construction of the projects plus a period of six months after the end of the
construction period, interest estimated to accrue on any bond anticipation notes
issued under the authority of this title, and all related engineering, architectural, and
legal fees.
(3)
The executive director of the Department of Transportation may allocate bond proceeds
under this section as provided in Title 72, Chapter 2, Part 5, Affordable Housing
Infrastructure Grants.
Section 4. Section
63L-12-102
is amended to read:
63L-12-102
Effective
05/06/26
. Grant or lease of real property for moderate
income housing.
(1)
Subject to the requirements of this section, a governmental entity may grant
or lease
real
property owned by the governmental entity to an entity for the development of moderate
income housing on the real property.
(2)
A governmental entity shall ensure that real property granted
or leased
under Subsection
(1)
is deed restricted for moderate income housing for at least 30 years after the day on
which each moderate income housing unit is completed and occupied.
(3)
If applicable, a governmental entity granting real property under this section shall
comply with:
(a)
the provisions of
Title 78B, Chapter 6, Part 5, Eminent Domain
;
(b)
Subsection
10-8-2(4)
, if a municipality is granting real property under this section;
(c)
Subsection
17-78-103(4)
, if a county is granting real property under this section; and
(d)
except as provided in Subsection
(4)
, any other applicable provisions of law that
govern the granting of real property by the governmental entity.
(4)
A municipality granting real property under this section is not subject to the provisions
of Subsection
10-8-2(3)
.
Section 5. Section
63N-3-1801
is enacted to read:
18. State Housing Infrastructure Partnership
63N-3-1801
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Board" means the State Housing Infrastructure Partnership Board created in Section
63N-3-1803
.
(2)
"Development agreement" means the same as that term is defined in Section
10-20-102
.
(3)
"Fund" means the State Housing Infrastructure Partnership Fund created in Section
63N-3-1802
.
(4)
"Housing development" means a land development proposal to construct new housing
that a municipality or a county approves with a land use application, development
agreement, or zone change.
(5)
"Infrastructure facility" means a facility used in connection with system-level
infrastructure, including:
(a)
a drinking water facility;
(b)
a wastewater facility;
(c)
a sewer lift station;
(d)
a stormwater system;
(e)
a water drainage system;
(f)
a secondary water system;
(g)
power transmission and distribution lines, including burying of the lines; or
(h)
a regional transportation facility.
(6)
"Infrastructure loan" means a loan of fund money to finance a system improvement.
(7)
"Land use application" means the same as that term is defined in Section
10-20-102
.
(8)
"Qualifying political subdivision" means:
(a)
a municipality;
(b)
a county;
(c)
a special district;
(d)
a special service district;
(e)
an agency as defined in Section
17C-1-102
; or
(f)
the Point of the Mountain State Land Authority created in Section
11-59-201
.
(9)
"Special district" means the same as that term is defined in Section
17B-1-102
.
(10)
"Special service district" means the same as that term is defined in Section
17D-1-102
.
(11)
(a)
"System improvement" means a project to construct or improve a publicly
owned:
(i)
highway, public transit facility, or paved pedestrian or non-motorized trail that is a
part of:
(A)
the statewide long-range transportation plan;
(B)
a regional transportation plan of a metropolitan planning organization; or
(C)
a municipal or county general plan, transportation master plan, or economic
development initiative; or
(ii)
infrastructure facility that is part of:
(A)
a municipal or county general plan, infrastructure plan, or economic
development initiative; or
(B)
a special district infrastructure plan or strategic plan.
(b)
"System improvement" may include the costs of:
(i)
designing a project described in Subsection
(11)(a)
;
(ii)
acquiring property for a project described in Subsection
(11)(a)
; or
(iii)
environmental remediation for a project described in Subsection
(11
)(a)
.
Section 6. Section
63N-3-1802
is enacted to read:
63N-3-1802
Effective
05/06/26
. State Housing Infrastructure Partnership Fund.
(1)
There is created a revolving loan fund known as the "State Housing Infrastructure
Partnership Fund."
(2)
The fund consists of money generated from the following revenue sources:
(a)
appropriations made to the fund by the Legislature;
(b)
amounts received for the repayment of infrastructure loans made by the board under
this part;
(c)
grants, gifts, loans, or other funding from:
(i)
the federal government; or
(ii)
other public or private sources; and
(d)
interest or other earnings deposited under Subsection
(3)
.
(3)
The state treasurer shall:
(a)
invest the money in the fund by following the procedures and requirements of Title
51, Chapter 7, State Money Management Act; and
(b)
deposit all interest or other earnings derived from those investments into the fund.
(4)
Money in the fund may only be used for:
(a)
infrastructure loans made by the board under this part; and
(b)
the administrative costs incurred by the office, in an amount that does not exceed 1%
of the revenues of the fund, including any appropriation to the fund, from:
(i)
implementing this part; and
(ii)
facilitating the implementation of Section
63A-2-412
and Subsection
72-5-117(2)(f)
.
Section 7. Section
63N-3-1803
is enacted to read:
63N-3-1803
Effective
05/06/26
. State Housing Infrastructure Partnership
Board.
(1)
There is created within the office the State Housing Infrastructure Partnership Board
composed of:
(a)
five voting members as follows:
(i)
the executive director of the office or the executive director's designee;
(ii)
the executive director of the Department of Transportation or the executive
director's designee;
(iii)
one member appointed by the governor;
(iv)
one member appointed by the president of the Senate; and
(v)
one member appointed by the speaker of the House of Representatives; and
(b)
any number of nonvoting members appointed by the chair and vice chair of the board.
(2)
(a)
The members described in Subsections
(1)(a)(iv)
and
(v)
shall serve a four-year
term.
(b)
When a vacancy occurs in a position described in Subsections
(1)(a)(iv)
and
(v)
, the
person that appointed the member shall appoint a new member for the unexpired term.
(c)
If a member described in Subsections
(1)(a)(iv)
and
(v)
leaves elected office, the
appointing entity shall appoint a new member for the unexpired term.
(3)
(a)
The voting members of the board shall elect a chair and vice chair from the
board's voting members.
(b)
The chair and vice chair of the board shall serve a term of one year.
(c)
The chair of the board is responsible for the call and conduct of board meetings.
(4)
(a)
A majority of the voting members of the board constitutes a quorum.
(b)
Action by a majority vote of a quorum of the board constitutes action by the
board
.
(5)
(a)
A voting member of the board who is a legislator shall be paid salary and
expenses in accordance with Section
36-2-2
and Legislative Joint Rules, Title 5,
Chapter 3, Legislator Compensation.
(b)
A voting member of the board who is not a legislator may not receive compensation
or benefits for the member's service, but may receive per diem and travel expenses in
accordance with:
(i)
Section
63A-3-106
;
(ii)
Section
63A-3-107
; and
(iii)
rules made by the Division of Finance in accordance with Sections
63A-3-106

and
63A-3-107
.
(6)
A voting member of the board shall comply with the conflict of interest provisions
described in Title 63G, Chapter 24, Part 3, Conflicts of Interest.
(7)
The office shall provide staff support to the board.
Section 8. Section
63N-3-1804
is enacted to read:
63N-3-1804
Effective
05/06/26
. Board duties -- Annual report -- Rulemaking --
Study of economic effect by
state
t
r
e
a
s
u
r
e
r
.
(1)
The board shall:
(a)
make infrastructure loans to qualifying political subdivisions for system
improvements that will facilitate the construction of housing in accordance with
Section
63N-3-1805
;
(b)
for the infrastructure loans described in Subsection
(1)(a)
:
(i)
establish criteria for determining infrastructure loan eligibility;
(ii)
establish criteria by which an infrastructure loan will be made and repaid; and
(iii)
determine the order in which system improvements will be funded; and
(c)
administer the fund in a manner that will keep a portion of the fund revolving.
(2)
On or before September 1 of each year, the board shall submit a written report to the
Economic Development and Workforce Services Interim Committee and the Political
Subdivisions Interim Committee that includes:
(a)
information regarding the activities of the board, including any rules made under
Subsection
(3)
;
(b)
the number and types of infrastructure loans made;
(c)
a list of qualifying political subdivisions that received an infrastructure loan;
(d)
the number of constructed housing units that each infrastructure loan facilitated; and
(e)
any recommendations for legislation.
(3)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
subject to any recommendations provided by the Economic Development and
Workforce Services Interim Committee and the Political Subdivisions Interim
Committee, the board may make rules governing:
(a)
management of the fund; and
(b)
infrastructure loan application requirements and eligibility review criteria.
(4)
(a)
Beginning after June 30, 2028, the state treasurer shall conduct a study that
analyzes whether the lending activity under this part resulted in measurable local
economic benefits.
(b)
On or before October 1, 2028, the state treasurer shall submit a report summarizing
the results of the study to the Legislative Management Committee and the governor.
(c)
The state treasurer may contract with a third party to complete the study and report
described in this Subsection
(4)
.
Section 9. Section
63N-3-1805
is enacted to read:
63N-3-1805
Effective
05/06/26
. Infrastructure loans to qualifying political
subdivisions -- Application -- Loan requirements.
(1)
A qualifying political subdivision may receive an infrastructure loan under this part to
finance a system improvement that will facilitate the construction of a housing
development.
(2)
To receive an infrastructure loan, a qualifying political subdivision shall submit an
application to the board that:
(a)
demonstrates:
(i)
the qualifying political subdivision has approved or will approve a housing
development;
(ii)
the infrastructure loan will accelerate the completion of the housing development;
(iii)
the builder or developer of the housing development has agreed to, or will agree
to, a specific timeline to complete the housing development if the board approves
the infrastructure loan;
(iv)
the qualifying political subdivision will provide matching funds for the system
improvement in an amount determined by the board;
(v)
the qualifying political subdivision has a primary revenue source for repaying the
infrastructure loan; and
(vi)
if the qualifying political subdivision is a municipality or county, the qualifying
political subdivision has adopted a moderate income housing plan that complies
with Section
10-21-202
or
17-80-202
;
(b)
identifies the qualifying political subdivision's current bonding capacity; and
(c)
includes any other information the board requires.
(3)
In considering an application for an infrastructure loan, the board shall:
(a)
give preference to a housing development that includes, as a substantial component,
the construction of detached single-family owner-occupied starter homes; and
(b)
consider criteria including:
(i)
the number of housing units that may be built compared to the requested
infrastructure loan amount;
(ii)
geographic diversity, including whether the applicant is urban or rural;
(iii)
the inclusion of affordable housing in the housing development;
(iv)
the inclusion of for-sale owner-occupied housing units in the housing
development;
(v)
the likelihood that the housing development will be completed in accordance with
the timeline described in Subsection
(2)(a)(iii)
;
(vi)
the amount of matching funds the qualifying political subdivision will provide
for the system improvement;
(vii)
other available sources of funding that may be used to construct the system
improvement; and
(viii)
existing public facilities and services nearby the housing development.
(4)
The board shall ensure that each infrastructure loan:
(a)
is secured by any combination of revenue sources for the loan recipient, whether the
revenue is actualized or anticipated, and which may include revenue the loan
recipient receives from:
(i)
the imposition of property taxes;
(ii)
the collection of impact fees;
(iii)
the issuance of bonds; or
(iv)
any other revenue source the board determines to be sufficient for securing the
infrastructure loan;
(b)
has a term that does not exceed 20 years, except as provided in Subsection
(5)(b)(ii)
;
(c)
charges interest:
(i)
to a presumed repayment date established by the board, regardless of the actual
repayment date; and
(ii)
at a rate that is within 1.5% of the federal funds rate target:
(A)
established by the Federal Open Market Committee; and
(B)
in effect on January 1 of the year in which the loan is made; and
(d)
specifies the terms and revenue sources for the loan recipient's repayment of the loan.
(5)
(a)
The board may make one infrastructure loan to the Point of the Mountain State
Land Authority created in Section
11-59-201
.
(b)
The infrastructure loan described in Subsection
(5)(a)
may not exceed:
(i)
an amount of $18,000,000; and
(ii)
a term of three years.
(6)
In making infrastructure loans, the board may:
(a)
restructure all or part of a loan recipient's liability to repay an infrastructure loan for
extenuating circumstances, subject to the requirements of Subsections
(4)
and
(5)
; and
(b)
condition approval of an infrastructure loan on whatever assurances the board
considers necessary to ensure that loan proceeds are used in accordance with this part.
Section 10. Section
67-16-4
is amended to read:
67-16-4
Effective
05/06/26
. Improperly disclosing or using private, controlled,
or protected information -- Using position to secure privileges or exemptions -- Accepting
employment that would impair independence of judgment or ethical performance --
Exception.
(1)
Except as provided in
Subsection
(3)
Subsections
(3)
and
(4)
, it is an offense for a
public officer, public employee, or legislator to:
(a)
accept employment or engage in any business or professional activity that he might
reasonably expect would require or induce him to improperly disclose controlled
information that he has gained by reason of his official position;
(b)
disclose or improperly use controlled, private, or protected information acquired by
reason of his official position or in the course of official duties in order to further
substantially the officer's or employee's personal economic interest or to secure
special privileges or exemptions for himself or others;
(c)
use or attempt to use his official position to:
(i)
further substantially the officer's or employee's personal economic interest;
or
(ii)
secure special privileges or exemptions for himself or others;
or
(iii)
coerce another person to secure special privileges or exemptions for himself or
others;
(d)
accept other employment that he might expect would impair his independence of
judgment in the performance of his public duties; or
(e)
accept other employment that he might expect would interfere with the ethical
performance of his public duties.
(2)
(a)
Subsection
(1)
does not apply to the provision of education-related services to
public school students by public education employees acting outside their regular
employment.
(b)
The conduct referred to in Subsection
(2)(a)
is subject to Section
53E-3-512
.
(3)
This section does not apply to a public officer, public employee, or legislator who
engages in conduct that constitutes a violation of this section to the extent that the public
officer, public employee, or legislator is chargeable, for the same conduct, under Section
63G-6a-2404
or Section
76-8-105
.
(4)
Subsections
(1)(c)(i)
and
(ii)
do not apply to conduct relating to the construction or
operation of affordable housing, as authorized by Title 10, Chapter 9a, Municipal Land
Use, Development, and Management Act, or Title 17, Chapter 27a, County Land Use,
Development, and Management Act, if the benefits are provided to all qualified
residents.
Section 11. Section
72-2-121
is amended to read:
72-2-121
Effective
05/06/26
. County of the First Class Highway Projects Fund.
(1)
There is created a special revenue fund within the Transportation Fund known as the
"County of the First Class Highway Projects Fund."
(2)
The fund consists of money generated from the following revenue sources:
(a)
any voluntary contributions received for new construction, major renovations, and
improvements to highways within a county of the first class;
(b)
the portion of the sales and use tax described in Subsection
59-12-2214(3)(b)

deposited into or transferred to the fund;
(c)
the portion of the sales and use tax described in Section
59-12-2217
deposited into or
transferred to the fund;
(d)
a portion of the local option highway construction and transportation corridor
preservation fee imposed in a county of the first class under Section
41-1a-1222

deposited into or transferred to the fund;
and
(e)
the portion of the sales and use tax transferred into the fund as described in
Subsections
59-12-2220(4)(a)
and
59-12-2220(11)(b)
.
; and
(f)
revenue from bond proceeds described in Section
63B-34-101
for repayment of
grants paid from fund money in accordance with Subsection
(4)(m)
.
(3)
(a)
The fund shall earn interest.
(b)
All interest earned on fund money shall be deposited into the fund.
(4)
Subject to Subsection
(11)
, the executive director shall use the fund money only:
(a)
to pay debt service and bond issuance costs for bonds issued under Sections
63B-16-102
,
63B-18-402
, and
63B-27-102
;
(b)
for right-of-way acquisition, new construction, major renovations, and improvements
to highways within a county of the first class and to pay any debt service and bond
issuance costs related to those projects, including improvements to a highway located
within a municipality in a county of the first class where the municipality is located
within the boundaries of more than a single county;
(c)
for the construction, acquisition, use, maintenance, or operation of:
(i)
an active transportation facility for nonmotorized vehicles;
(ii)
multimodal transportation that connects an origin with a destination; or
(iii)
a facility that may include a:
(A)
pedestrian or nonmotorized vehicle trail;
(B)
nonmotorized vehicle storage facility;
(C)
pedestrian or vehicle bridge; or
(D)
vehicle parking lot or parking structure;
(d)
to transfer to the 2010 Salt Lake County Revenue Bond Sinking Fund created by
Section
72-2-121.3
the amount required in Subsection
72-2-121.3(4)(c)
minus the
amounts transferred in accordance with Subsection
72-2-124(4)(a)(v)
;
(e)
for a fiscal year beginning on or after July 1, 2013, to pay debt service and bond
issuance costs for $30,000,000 of the bonds issued under Section
63B-18-401
for the
projects described in Subsection
63B-18-401(4)(a)
;
(f)
for a fiscal year beginning on or after July 1, 2013, and after the department has
verified that the amount required under Subsection
72-2-121.3(4)(c)
is available in
the fund, to transfer an amount equal to 50% of the revenue generated by the local
option highway construction and transportation corridor preservation fee imposed
under Section
41-1a-1222
in a county of the first class:
(i)
to the legislative body of a county of the first class; and
(ii)
to be used by a county of the first class for:
(A)
highway construction, reconstruction, or maintenance projects; or
(B)
the enforcement of state motor vehicle and traffic laws;
(g)
for a fiscal year beginning on or after July 1, 2015, after the department has verified
that the amount required under Subsection
72-2-121.3(4)(c)
is available in the fund
and the transfer under Subsection
(4)(e)
has been made, to annually transfer an
amount of the sales and use tax revenue imposed in a county of the first class and
deposited into the fund in accordance with Subsection
59-12-2214(3)(b)
equal to an
amount needed to cover the debt to:
(i)
the appropriate debt service or sinking fund for the repayment of bonds issued
under Section
63B-27-102
; and
(ii)
the appropriate debt service or sinking fund for the repayment of bonds issued
under Sections
63B-31-102
and
63B-31-103
;
(h)
after the department has verified that the amount required under Subsection
72-2-121.3(4)(c)
is available in the fund and after the transfer under Subsection
(4)(d)
,
the payment under Subsection
(4)(e)
, and the transfer under Subsection
(4)(g)(i)
has
been made, to annually transfer $2,000,000 to a public transit district in a county of
the first class to fund a system for public transit;
(i)
for a fiscal year beginning on or after July 1, 2018, after the department has verified
that the amount required under Subsection
72-2-121.3(4)(c)
is available in the fund
and after the transfer under Subsection
(4)(d)
, the payment under Subsection
(4)(e)
,
and the transfer under Subsection
(4)(g)(i)
has been made, through fiscal year 2027,
to annually transfer 20%, and beginning with fiscal year 2028, and each year
thereafter for 20 years, to annually transfer 33% of the amount deposited into the
fund under Subsection
(2)(b)
to the legislative body of a county of the first class for
the following purposes:
(i)
to fund parking facilities in a county of the first class that facilitate significant
economic development and recreation and tourism within the state; and
(ii)
to be used for purposes allowed in Section
17-78-702
;
(j)
subject to Subsection
(5)
, for a fiscal year beginning on or after July 1, 2021, and for
15 years thereafter, to annually transfer the following amounts to the following cities
and the county of the first class for priority projects to mitigate congestion and
improve transportation safety:
(i)
$2,000,000 to Sandy;
(ii)
$2,300,000 to Taylorsville;
(iii)
$1,100,000 to Salt Lake City;
(iv)
$1,100,000 to West Jordan;
(v)
$1,100,000 to West Valley City;
(vi)
$800,000 to Herriman;
(vii)
$700,000 to Draper;
(viii)
$700,000 to Riverton;
(ix)
$700,000 to South Jordan;
(x)
$500,000 to Bluffdale;
(xi)
$500,000 to Midvale;
(xii)
$500,000 to Millcreek;
(xiii)
$500,000 to Murray;
(xiv)
$400,000 to Cottonwood Heights; and
(xv)
$300,000 to Holladay;
(k)
for the 2024-25, 2025-26, and 2026-27 fiscal years, and subject to revenue balances
after the distributions under Subsection
(4)(j)
, to reimburse the following
municipalities for the amounts and projects indicated, as each project progresses and
as revenue balances allow:
(i)
$3,200,000 to South Jordan for improvements to Bingham Rim Road from
Grandville Avenue to Mountain View Corridor;
(ii)
$1,960,000 to Midvale for improvements to Center Street between State Street
and 700 West;
(iii)
$3,500,000 to Salt Lake City for first and last mile public transit improvements
throughout Salt Lake City;
(iv)
$1,500,000 to Cottonwood Heights for improvements to Fort Union Boulevard
and 2300 East;
(v)
$3,450,000 to Draper for improvements to Bangerter Highway between 13800
South and I-15;
(vi)
$10,500,000 to Herriman to construct a road between U-111 and 13200 South;
(vii)
$3,000,000 to West Jordan for improvements to 1300 West;
(viii)
$1,050,000 to Riverton for improvements to the Welby Jacob Canal Trail
between 11800 South and 13800 South;
(ix)
$3,500,000 to Taylorsville for improvements to Bangerter Highway and 4700
South;
(x)
$470,000 to the department for construction of a sound wall on Bangerter
Highway at approximately 11200 South;
(xi)
$1,250,000 to Murray for improvements to Murray Boulevard between 4800
South and 5300 South;
(xii)
$1,840,000 to Magna for construction and improvements to 8400 West and 4100
South;
(xiii)
$1,000,000 to South Jordan for construction of arterial roads connecting U-111
and Old Bingham Highway;
(xiv)
$1,200,000 to Millcreek for reconstruction of and improvements to 2000 East
between 3300 South and Atkin Avenue;
(xv)
$1,230,000 to Holladay for improvements to Highland Drive between Van
Winkle Expressway and Arbor Lane;
(xvi)
$1,000,000 to Taylorsville for improvements to 4700 South at the I-215
interchange;
(xvii)
$3,750,000 to West Valley City for improvements to 4000 West between 4100
South and 4700 South and improvements to 4700 South from 4000 West to
Bangerter Highway;
(xviii)
$1,700,000 to South Jordan for improvements to Prosperity Road between
Crimson View Drive and Copper Hawk Drive;
(xix)
$2,300,000 to West Valley City for a road connecting U-111 at approximately
6200 South, then east and turning north and connecting to 5400 South;
(xx)
$1,400,000 to Magna for improvements to 8000 West between 3500 South to
4100 South;
(xxi)
$1,300,000 to Taylorsville for improvements on 4700 South between Redwood
Road and 2700 West; and
(xxii)
$3,000,000 to West Jordan for improvements to 1300 West between 6600
South and 7800 South;
and
(l)
for a fiscal year beginning on or after July 1, 2026, and for 15 years thereafter, to pay
debt service and bond issuance costs for
$70,000,000
$150,000,000
of the bonds
issued under Section
63B-34-201
63B-34-101
for the grants awarded under Part
5,
Affordable Housing Infrastructure Grants
.
; and
(m)
for a fiscal year beginning on or after July 1, 2026, and only until June 30, 2028, to
pay for grants awarded under Part 5, Affordable Housing Infrastructure Grants,
subject to repayment to the fund from bond proceeds described in Section
63B-34-101
,
if the executive director finds that providing the grant money will not delay a project
prioritized by the commission.
(5)
(a)
If revenue in the fund is insufficient to satisfy all of the transfers described in
Subsection
(4)(j)
, the executive director shall proportionately reduce the amounts
transferred as described in Subsection
(4)(j)
.
(b)
A local government may not use revenue described in Subsection
(4)(j)
to supplant
existing class B or class C road funds that a local government has budgeted for
transportation projects.
(6)
The revenues described in Subsections
(2)(b)
,
(c)
, and
(d)
that are deposited into the
fund and bond proceeds from bonds issued under Sections
63B-16-102
,
63B-18-402
,
and
63B-27-102
are considered a local matching contribution for the purposes described
under Section
72-2-123
.
(7)
The department may expend up to $3,000,000 of revenue deposited into the account as
described in Subsection
59-12-2220(11)(b)
for public transit innovation grants, as
provided in Part
4, Public Transit Innovation Grants
.
(8)
The additional administrative costs of the department to administer this fund shall be
paid from money in the fund.
(9)
Subject to Subsection
(11)
, and notwithstanding any statutory or other restrictions on
the use or expenditure of the revenue sources deposited into this fund, the Department of
Transportation may use the money in this fund for any of the purposes detailed in
Subsection
(4)
.
(10)
Subject to Subsection
(11)
, any revenue deposited into the fund as described in
Subsection
(2)(e)
shall be used to provide funding or loans for public transit projects,
operations, and supporting infrastructure in the county of the first class.
(11)
For the first three years after a county of the first class imposes a sales and use tax
authorized in Section
59-12-2220
, revenue deposited into the fund as described in
Subsection
(2)(e)
shall be allocated as follows:
(a)
10% to the department to construct an express bus facility on 5600 West; and
(b)
90% into the County of the First Class Infrastructure Bank Fund created in Section
72-2-302
.
Section 12. Section
72-2-124
is amended to read:
72-2-124
Effective
05/06/26
Superseded
07/01/26
. Transportation Investment
Fund of 2005.
(1)
There is created a capital projects fund entitled the Transportation Investment Fund of
2005.
(2)
The fund consists of money generated from the following sources:
(a)
any voluntary contributions received for the maintenance, construction,
reconstruction, or renovation of state and federal highways;
(b)
appropriations made to the fund by the Legislature;
(c)
registration fees designated under Section
41-1a-1201
;
(d)
the sales and use tax revenues deposited into the fund in accordance with Section
59-12-103
;
(e)
revenues transferred to the fund in accordance with Section
72-2-106
;
(f)
revenues transferred into the fund in accordance with Subsection
72-2-121(4)(l)
; and
(g)
revenue from bond proceeds described in Section
63B-34-101
.
(3)
(a)
The fund shall earn interest.
(b)
All interest earned on fund money shall be deposited into the fund.
(4)
(a)
Except as provided in Subsection
(4)(b)
, the executive director may only use fund
money to pay:
(i)
the costs of maintenance, construction, reconstruction, or renovation to state and
federal highways prioritized by the Transportation Commission through the
prioritization process for new transportation capacity projects adopted under
Section
72-1-304
;
(ii)
the costs of maintenance, construction, reconstruction, or renovation to the
highway projects described in Subsections
63B-18-401(2)
,
(3)
, and
(4)
;
(iii)
subject to Subsection
(9)
, costs of corridor preservation, as that term is defined in
Section
72-5-401
;
(iv)
principal, interest, and issuance costs of bonds authorized by Section
63B-18-401

minus the costs paid from the County of the First Class Highway Projects Fund in
accordance with Subsection
72-2-121(4)(e)
;
(v)
for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
Lake County Revenue Bond Sinking Fund created by Section
72-2-121.3
the
amount certified by Salt Lake County in accordance with Subsection
72-2-121.3(4)(c)
as necessary to pay the debt service on $30,000,000 of the
revenue bonds issued by Salt Lake County;
(vi)
principal, interest, and issuance costs of bonds authorized by Section
63B-16-101

for projects prioritized in accordance with Section
72-2-125
;
(vii)
for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
Class Highway Projects Fund created in Section
72-2-121
to be used for the
purposes described in Section
72-2-121
;
(viii)
if a political subdivision provides a contribution equal to or greater than 40% of
the costs needed for construction, reconstruction, or renovation of paved
pedestrian or paved nonmotorized transportation for projects that:
(A)
mitigate traffic congestion on the state highway system;
(B)
are part of an active transportation plan approved by the department; and
(C)
are prioritized by the commission through the prioritization process for new
transportation capacity projects adopted under Section
72-1-304
;
(ix)
$705,000,000 for the costs of right-of-way acquisition, construction,
reconstruction, or renovation of or improvement to the following projects:
(A)
the connector road between Main Street and 1600 North in the city of
Vineyard;
(B)
Geneva Road from University Parkway to 1800 South;
(C)
the SR-97 interchange at 5600 South on I-15;
(D)
subject to Subsection
(4)(c)
, two lanes on U-111 from Herriman Parkway to
South Jordan Parkway;
(E)
widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
(F)
improvements to 1600 North in Orem from 1200 West to State Street;
(G)
widening I-15 between mileposts 6 and 8;
(H)
widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
(I)
widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197
in Spanish Fork Canyon;
(J)
I-15 northbound between mileposts 43 and 56;
(K)
a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts
43 and 45.1;
(L)
east Zion SR-9 improvements;
(M)
Toquerville Parkway;
(N)
an environmental study on Foothill Boulevard in the city of Saratoga Springs;
(O)
using funds allocated in this Subsection
(4)(a)(ix)
, and other sources of funds,
for construction of an interchange on Bangerter Highway at 13400 South; and
(P)
an environmental impact study for Kimball Junction in Summit County;
(x)
$28,000,000 as pass-through funds, to be distributed as necessary to pay project
costs based upon a statement of cash flow that the local jurisdiction where the
project is located provides to the department demonstrating the need for money
for the project, for the following projects in the following amounts:
(A)
$5,000,000 for Payson Main Street repair and replacement;
(B)
$8,000,000 for a Bluffdale 14600 South railroad bypass;
(C)
$5,000,000 for improvements to 4700 South in Taylorsville; and
(D)
$10,000,000 for improvements to the west side frontage roads adjacent to U.S.
40 between mile markers 7 and 10;
(xi)
$13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way
acquisition, construction, reconstruction, or renovation to connect Fingerhut Road
over the railroad and to U.S. Highway 6;
(xii)
for a fiscal year beginning on July 1, 2025, only, as pass-through funds from
revenue deposited into the fund in accordance with Section
59-12-103
, for the
following projects:
(A)
$3,000,000 for the department to perform an environmental study for the I-15
Salem and Benjamin project; and
(B)
$2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand
Dunes Road project;
and
(xiii)
for a fiscal year beginning on July 1, 2025, up to
$300,000,000
$250,000,000

for the costs of right-of-way acquisition and construction for improvements on
and connections to
SR-89
and surrounding transportation facilities
in a county of
the first class
.
; and
(xiv)
for grants awarded under Part 5, Affordable Housing Infrastructure Grants,
subject to repayment to the fund from bond proceeds described in Section
63B-34-101
, if the executive director finds that providing the grant money will not
delay a project prioritized by the commission.
(b)
The executive director may use fund money to exchange for an equal or greater
amount of federal transportation funds to be used as provided in Subsection
(4)(a)
.
(c)
(i)
Construction related to the project described in Subsection
(4)(a)(ix)(D)
may
not commence until a right-of-way not owned by a federal agency that is required
for the realignment and extension of U-111, as described in the department's 2023
environmental study related to the project, is dedicated to the department.
(ii)
Notwithstanding Subsection
(4)(c)(i)
, if a right-of-way is not dedicated for the
project as described in Subsection
(4)(c)(i)
on or before October 1, 2024, the
department may proceed with the project, except that the project will be limited to
two lanes on U-111 from Herriman Parkway to 11800 South.
(d)
For a fiscal year beginning on July 1, 2026, the Division of Finance shall transfer
$50,000,000 of the revenue deposited into the fund to the Convention Center
Reserves Restricted Account created in Section
72-2-136
.
(5)
(a)
Except as provided in Subsection
(5)(b)
, if the department receives a notice of
ineligibility for a municipality as described in Subsection
10-21-202(8)
, the executive
director may not program fund money to a project prioritized by the commission
under Section
72-1-304
, including fund money from the Transit Transportation
Investment Fund, within the boundaries of the municipality until the department
receives notification from the Housing and Community Development Division within
the Department of Workforce Services that ineligibility under this Subsection
(5)
no
longer applies to the municipality.
(b)
Within the boundaries of a municipality described in Subsection
(5)(a)
, the executive
director:
(i)
may program fund money in accordance with Subsection
(4)(a)
for a
limited-access facility or interchange connecting limited-access facilities;
(ii)
may not program fund money for the construction, reconstruction, or renovation
of an interchange on a limited-access facility;
(iii)
may program Transit Transportation Investment Fund money for a
multi-community fixed guideway public transportation project; and
(iv)
may not program Transit Transportation Investment Fund money for the
construction, reconstruction, or renovation of a station that is part of a fixed
guideway public transportation project.
(c)
Subsections
(5)(a)
and
(b)
do not apply to a project programmed by the executive
director before July 1, 2022, for projects prioritized by the commission under Section
72-1-304
.
(6)
(a)
Except as provided in Subsection
(6)(b)
, if the department receives a notice of
ineligibility for a county as described in Subsection
17-80-202(8)
, the executive
director may not program fund money to a project prioritized by the commission
under Section
72-1-304
, including fund money from the Transit Transportation
Investment Fund, within the boundaries of the unincorporated area of the county until
the department receives notification from the Housing and Community Development
Division within the Department of Workforce Services that ineligibility under this
Subsection
(6)
no longer applies to the county.
(b)
Within the boundaries of the unincorporated area of a county described in Subsection
(6)(a)
, the executive director:
(i)
may program fund money in accordance with Subsection
(4)(a)
for a
limited-access facility to a project prioritized by the commission under Section
72-1-304
;
(ii)
may not program fund money for the construction, reconstruction, or renovation
of an interchange on a limited-access facility;
(iii)
may program Transit Transportation Investment Fund money for a
multi-community fixed guideway public transportation project; and
(iv)
may not program Transit Transportation Investment Fund money for the
construction, reconstruction, or renovation of a station that is part of a fixed
guideway public transportation project.
(c)
Subsections
(6)(a)
and
(b)
do not apply to a project programmed by the executive
director before July 1, 2022, for projects prioritized by the commission under Section
72-1-304
.
(7)
(a)
Before bonds authorized by Section
63B-18-401
or
63B-27-101
may be issued in
any fiscal year, the department and the commission shall appear before the Executive
Appropriations Committee of the Legislature and present the amount of bond
proceeds that the department needs to provide funding for the projects identified in
Subsections
63B-18-401(2)
,
(3)
, and
(4)
or Subsection
63B-27-101(2)
for the current
or next fiscal year.
(b)
The Executive Appropriations Committee of the Legislature shall review and
comment on the amount of bond proceeds needed to fund the projects.
(8)
The Division of Finance shall, from money deposited into the fund, transfer the amount
of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
Section
63B-18-401
or
63B-27-101
in the current fiscal year to the appropriate debt
service or sinking fund.
(9)
The executive director may only use money in the fund for corridor preservation as
described in Subsection
(4)(a)(iii)
:
(a)
if the project has been prioritized by the commission, including the use of fund
money for corridor preservation; or
(b)
for a project that has not been prioritized by the commission, if the commission:
(i)
approves the use of fund money for the corridor preservation; and
(ii)
finds that the use of fund money for corridor preservation will not result in any
delay to a project that has been prioritized by the commission.
(10)
(a)
There is created in the Transportation Investment Fund of 2005 the Transit
Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
contributions deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature;
(iii)
deposits of sales and use tax increment related to a housing and transit
reinvestment zone as described in Section
63N-3-610
;
(iv)
transfers of local option sales and use tax revenue as described in Subsection
59-12-2220(11)(b)
or
(c)
;
(v)
private contributions; and
(vi)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
Subject to Subsection
(10)(e)
, the commission may prioritize money from the fund:
(i)
for public transit capital development of new capacity projects and fixed guideway
capital development projects to be used as prioritized by the commission through
the prioritization process adopted under Section
72-1-304
;
(ii)
to the department for oversight of a fixed guideway capital development project
for which the department has responsibility; or
(iii)
up to $500,000 per year, to be used for a public transit study.
(e)
(i)
Subject to Subsections
(10)(g)
,
(h)
, and
(i)
, the commission may only prioritize
money from the fund for a public transit capital development project or pedestrian
or nonmotorized transportation project that provides connection to the public
transit system if the public transit district or political subdivision provides funds of
equal to or greater than 30% of the costs needed for the project.
(ii)
A public transit district or political subdivision may use money derived from a
loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide
all or part of the 30% requirement described in Subsection
(10)(e)(i)
if:
(A)
the loan is approved by the commission as required in

Part 2, State
Infrastructure Bank Fund; and
(B)
the proposed capital project has been prioritized by the commission pursuant
to Section
72-1-303
.
(f)
Before July 1, 2022, the department and a large public transit district shall enter into
an agreement for a large public transit district to pay the department $5,000,000 per
year for 15 years to be used to facilitate the purchase of zero emissions or low
emissions rail engines and trainsets for regional public transit rail systems.
(g)
For any revenue transferred into the fund in accordance with Subsection
59-12-2220(11)(b)
:
(i)
the commission may prioritize money from the fund for public transit projects,
operations, or maintenance within the county of the first class; and
(ii)
Subsection
(10)(e)
does not apply.
(h)
For any revenue transferred into the fund in accordance with Subsection
59-12-2220(11)(c)
:
(i)
the commission may prioritize public transit projects, operations, or maintenance
in the county from which the revenue was generated; and
(ii)
Subsection
(10)(e)
does not apply.
(i)
The requirement to provide funds equal to or greater than 30% of the costs needed for
the project described in Subsection
(10)(e)
does not apply to a public transit capital
development project or pedestrian or nonmotorized transportation project that the
department proposes.
(j)
In accordance with Part 4, Public Transit Innovation Grants, the commission may
prioritize money from the fund for public transit innovation grants, as defined in
Section
72-2-401
, for public transit capital development projects requested by a
political subdivision within a public transit district.
(11)
(a)
There is created in the Transportation Investment Fund of 2005 the Cottonwood
Canyons Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
money deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature;
(iii)
private contributions; and
(iv)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
The Legislature may appropriate money from the fund for public transit or
transportation projects in the Cottonwood Canyons of Salt Lake County.
(e)
The department may use up to 2% of the revenue deposited into the account under
Subsection
59-12-103(7)(b)
to contract with local governments as necessary for
public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
(f)
Beginning with fiscal year beginning on July 1, 2025, the department shall use any
sales and use tax growth over sales and use tax collections during the 2025 fiscal year
to fund projects to provide ingress and egress for a public transit hub, including
construction of the public transit hub, in the Big Cottonwood Canyon area.
(12)
(a)
There is created in the Transportation Investment Fund of 2005 the Active
Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
money deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature; and
(iii)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
The executive director may only use fund money to pay the costs needed for:
(i)
the planning, design, construction, maintenance, reconstruction, or renovation of
paved pedestrian or paved nonmotorized trail projects that:
(A)
are prioritized by the commission through the prioritization process for new
transportation capacity projects adopted under Section
72-1-304
;
(B)
serve a regional purpose; and
(C)
are part of an active transportation plan approved by the department or the
plan described in Subsection
(12)(d)(ii)
;
(ii)
the development of a plan for a statewide network of paved pedestrian or paved
nonmotorized trails that serve a regional purpose; and
(iii)
the administration of the fund, including staff and overhead costs.
(13)
(a)
As used in this Subsection
(13)
, "commuter rail" means the same as that term is
defined in Section
63N-3-602
.
(b)
There is created in the Transit Transportation Investment Fund the Commuter Rail
Subaccount.
(c)
The subaccount shall be funded by:
(i)
contributions deposited into the subaccount in accordance with Section
59-12-103
;
(ii)
appropriations into the subaccount by the Legislature;
(iii)
private contributions; and
(iv)
donations or grants from public or private entities.
(d)
(i)
The subaccount shall earn interest.
(ii)
All interest earned on money in the subaccount shall be deposited into the
subaccount.
(e)
As prioritized by the commission through the prioritization process adopted under
Section
72-1-304
or as directed by the Legislature, the department may only use
money from the subaccount for projects that improve the state's commuter rail
infrastructure, including the building or improvement of grade-separated crossings
between commuter rail lines and public highways.
(f)
Appropriations made in accordance with this section are nonlapsing in accordance
with Section
63J-1-602.1
.
Section 13. Section
72-2-124
is amended to read:
72-2-124
Effective
07/01/26
. Transportation Investment Fund of 2005.
(1)
There is created a capital projects fund entitled the Transportation Investment Fund of
2005.
(2)
The fund consists of money generated from the following sources:
(a)
any voluntary contributions received for the maintenance, construction,
reconstruction, or renovation of state and federal highways;
(b)
appropriations made to the fund by the Legislature;
(c)
registration fees designated under Section
41-1a-1201
;
(d)
the sales and use tax revenues deposited into the fund in accordance with Section
59-12-103
;
(e)
revenues transferred to the fund in accordance with Section
72-2-106
;
(f)
revenues transferred into the fund in accordance with Subsection
72-2-121(4)(l)
; and
(g)
revenue from bond proceeds described in Section
63B-34-201
63B-34-101
.
(3)
(a)
The fund shall earn interest.
(b)
All interest earned on fund money shall be deposited into the fund.
(4)
(a)
Except as provided in Subsection
(4)(b)
, the executive director may only use fund
money to pay:
(i)
the costs of maintenance, construction, reconstruction, or renovation to state and
federal highways prioritized by the Transportation Commission through the
prioritization process for new transportation capacity projects adopted under
Section
72-1-304
;
(ii)
the costs of maintenance, construction, reconstruction, or renovation to the
highway projects described in Subsections
63B-18-401(2)
,
(3)
, and
(4)
;
(iii)
subject to Subsection
(9)
, costs of corridor preservation, as that term is defined in
Section
72-5-401
;
(iv)
principal, interest, and issuance costs of bonds authorized by Section
63B-18-401

minus the costs paid from the County of the First Class Highway Projects Fund in
accordance with Subsection
72-2-121(4)(e)
;
(v)
for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
Lake County Revenue Bond Sinking Fund created by Section
72-2-121.3
the
amount certified by Salt Lake County in accordance with Subsection
72-2-121.3(4)(c)
as necessary to pay the debt service on $30,000,000 of the
revenue bonds issued by Salt Lake County;
(vi)
principal, interest, and issuance costs of bonds authorized by Section
63B-16-101

for projects prioritized in accordance with Section
72-2-125
;
(vii)
for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
Class Highway Projects Fund created in Section
72-2-121
to be used for the
purposes described in Section
72-2-121
;
(viii)
if a political subdivision provides a contribution equal to or greater than 40% of
the costs needed for construction, reconstruction, or renovation of paved
pedestrian or paved nonmotorized transportation for projects that:
(A)
mitigate traffic congestion on the state highway system;
(B)
are part of an active transportation plan approved by the department; and
(C)
are prioritized by the commission through the prioritization process for new
transportation capacity projects adopted under Section
72-1-304
;
(ix)
$705,000,000 for the costs of right-of-way acquisition, construction,
reconstruction, or renovation of or improvement to the following projects:
(A)
the connector road between Main Street and 1600 North in the city of
Vineyard;
(B)
Geneva Road from University Parkway to 1800 South;
(C)
the SR-97 interchange at 5600 South on I-15;
(D)
subject to Subsection
(4)(c)
, two lanes on U-111 from Herriman Parkway to
South Jordan Parkway;
(E)
widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
(F)
improvements to 1600 North in Orem from 1200 West to State Street;
(G)
widening I-15 between mileposts 6 and 8;
(H)
widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
(I)
widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197
in Spanish Fork Canyon;
(J)
I-15 northbound between mileposts 43 and 56;
(K)
a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts
43 and 45.1;
(L)
east Zion SR-9 improvements;
(M)
Toquerville Parkway;
(N)
an environmental study on Foothill Boulevard in the city of Saratoga Springs;
(O)
using funds allocated in this Subsection
(4)(a)(ix)
, and other sources of funds,
for construction of an interchange on Bangerter Highway at 13400 South; and
(P)
an environmental impact study for Kimball Junction in Summit County;
(x)
$28,000,000 as pass-through funds, to be distributed as necessary to pay project
costs based upon a statement of cash flow that the local jurisdiction where the
project is located provides to the department demonstrating the need for money
for the project, for the following projects in the following amounts:
(A)
$5,000,000 for Payson Main Street repair and replacement;
(B)
$8,000,000 for a Bluffdale 14600 South railroad bypass;
(C)
$5,000,000 for improvements to 4700 South in Taylorsville; and
(D)
$10,000,000 for improvements to the west side frontage roads adjacent to U.S.
40 between mile markers 7 and 10;
(xi)
$13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way
acquisition, construction, reconstruction, or renovation to connect Fingerhut Road
over the railroad and to U.S. Highway 6;
(xii)
for a fiscal year beginning on July 1, 2025, only, as pass-through funds from
revenue deposited into the fund in accordance with Section
59-12-103
, for the
following projects:
(A)
$3,000,000 for the department to perform an environmental study for the I-15
Salem and Benjamin project; and
(B)
$2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand
Dunes Road project;
and
(xiii)
for a fiscal year beginning on July 1, 2025, up to
$300,000,000
$250,000,000

for the costs of right-of-way acquisition and construction for improvements on
and connections to
SR-89
and surrounding transportation facilities
in a county of
the first class
.
; and
(xiv)
for grants awarded under Part 5, Affordable Housing Infrastructure Grants,
subject to repayment to the fund from bond proceeds described in Section
63B-34-101
, if the executive director finds that providing the grant money will not
delay a project prioritized by the commission.
(b)
The executive director may use fund money to exchange for an equal or greater
amount of federal transportation funds to be used as provided in Subsection
(4)(a)
.
(c)
(i)
Construction related to the project described in Subsection
(4)(a)(ix)(D)
may
not commence until a right-of-way not owned by a federal agency that is required
for the realignment and extension of U-111, as described in the department's 2023
environmental study related to the project, is dedicated to the department.
(ii)
Notwithstanding Subsection
(4)(c)(i)
, if a right-of-way is not dedicated for the
project as described in Subsection
(4)(c)(i)
on or before October 1, 2024, the
department may proceed with the project, except that the project will be limited to
two lanes on U-111 from Herriman Parkway to 11800 South.
(d)
For a fiscal year beginning on July 1, 2026, the Division of Finance shall transfer
$50,000,000 of the revenue deposited into the fund to the Convention Center
Reserves Restricted Account created in Section
72-2-136
.
(5)
(a)
Except as provided in Subsection
(5)(b)
, if the department receives a notice of
ineligibility for a municipality as described in Subsection
10-21-202(8)
, the executive
director may not program fund money to a project prioritized by the commission
under Section
72-1-304
, including fund money from the Transit Transportation
Investment Fund, within the boundaries of the municipality until the department
receives notification from the Housing and Community Development Division within
the Department of Workforce Services that ineligibility under this Subsection
(5)
no
longer applies to the municipality.
(b)
Within the boundaries of a municipality described in Subsection
(5)(a)
, the executive
director:
(i)
may program fund money in accordance with Subsection
(4)(a)
for a
limited-access facility or interchange connecting limited-access facilities;
(ii)
may not program fund money for the construction, reconstruction, or renovation
of an interchange on a limited-access facility;
(iii)
may program Transit Transportation Investment Fund money for a
multi-community fixed guideway public transportation project; and
(iv)
may not program Transit Transportation Investment Fund money for the
construction, reconstruction, or renovation of a station that is part of a fixed
guideway public transportation project.
(c)
Subsections
(5)(a)
and
(b)
do not apply to a project programmed by the executive
director before July 1, 2022, for projects prioritized by the commission under Section
72-1-304
.
(6)
(a)
Except as provided in Subsection
(6)(b)
, if the department receives a notice of
ineligibility for a county as described in Subsection
17-80-202(8)
, the executive
director may not program fund money to a project prioritized by the commission
under Section
72-1-304
, including fund money from the Transit Transportation
Investment Fund, within the boundaries of the unincorporated area of the county until
the department receives notification from the Housing and Community Development
Division within the Department of Workforce Services that ineligibility under this
Subsection
(6)
no longer applies to the county.
(b)
Within the boundaries of the unincorporated area of a county described in Subsection
(6)(a)
, the executive director:
(i)
may program fund money in accordance with Subsection
(4)(a)
for a
limited-access facility to a project prioritized by the commission under Section
72-1-304
;
(ii)
may not program fund money for the construction, reconstruction, or renovation
of an interchange on a limited-access facility;
(iii)
may program Transit Transportation Investment Fund money for a
multi-community fixed guideway public transportation project; and
(iv)
may not program Transit Transportation Investment Fund money for the
construction, reconstruction, or renovation of a station that is part of a fixed
guideway public transportation project.
(c)
Subsections
(6)(a)
and (b) do not apply to a project programmed by the executive
director before July 1, 2022, for projects prioritized by the commission under Section
72-1-304
.
(7)
(a)
Before bonds authorized by Section
63B-18-401
or
63B-27-101
may be issued in
any fiscal year, the department and the commission shall appear before the Executive
Appropriations Committee of the Legislature and present the amount of bond
proceeds that the department needs to provide funding for the projects identified in
Subsections
63B-18-401(2)
,
(3)
, and
(4)
or Subsection
63B-27-101(2)
for the current
or next fiscal year.
(b)
The Executive Appropriations Committee of the Legislature shall review and
comment on the amount of bond proceeds needed to fund the projects.
(8)
The Division of Finance shall, from money deposited into the fund, transfer the amount
of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
Section
63B-18-401
or
63B-27-101
in the current fiscal year to the appropriate debt
service or sinking fund.
(9)
The executive director may only use money in the fund for corridor preservation as
described in Subsection
(4)(a)(iii)
:
(a)
if the project has been prioritized by the commission, including the use of fund
money for corridor preservation; or
(b)
for a project that has not been prioritized by the commission, if the commission:
(i)
approves the use of fund money for the corridor preservation; and
(ii)
finds that the use of fund money for corridor preservation will not result in any
delay to a project that has been prioritized by the commission.
(10)
(a)
There is created in the Transportation Investment Fund of 2005 the Transit
Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
contributions deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature;
(iii)
deposits of sales and use tax increment related to a housing and transit
reinvestment zone as described in Section
63N-3-610
;
(iv)
transfers of local option sales and use tax revenue as described in Subsection
59-12-2220(11)(b)
or
(c)
;
(v)
private contributions; and
(vi)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
Subject to Subsection
(10)(e)
, the commission may prioritize money from the fund:
(i)
for public transit capital development of new capacity projects and fixed guideway
capital development projects to be used as prioritized by the commission through
the prioritization process adopted under Section
72-1-304
;
(ii)
to the department for oversight of a fixed guideway capital development project
for which the department has responsibility; or
(iii)
up to $500,000 per year, to be used for a public transit study.
(e)
(i)
Subject to Subsections
(10)(g)
,
(h)
, and
(i)
, the commission may only prioritize
money from the fund for a public transit capital development project or pedestrian
or nonmotorized transportation project that provides connection to the public
transit system if the public transit district or political subdivision provides funds of
equal to or greater than 30% of the costs needed for the project.
(ii)
A public transit district or political subdivision may use money derived from a
loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide
all or part of the 30% requirement described in Subsection
(10)(e)(i)
if:
(A)
the loan is approved by the commission as required in Part 2, State
Infrastructure Bank Fund; and
(B)
the proposed capital project has been prioritized by the commission pursuant
to Section
72-1-303
.
(f)
Before July 1, 2022, the department and a large public transit district shall enter into
an agreement for a large public transit district to pay the department $5,000,000 per
year for 15 years to be used to facilitate the purchase of zero emissions or low
emissions rail engines and trainsets for regional public transit rail systems.
(g)
For any revenue transferred into the fund in accordance with Subsection
59-12-2220(11)(b)
:
(i)
the commission may prioritize money from the fund for public transit projects,
operations, or maintenance within the county of the first class; and
(ii)
Subsection
(10)(e)
does not apply.
(h)
For any revenue transferred into the fund in accordance with Subsection
59-12-2220(11)(c)
:
(i)
the commission may prioritize public transit projects, operations, or maintenance
in the county from which the revenue was generated; and
(ii)
Subsection
(10)(e)
does not apply.
(i)
The requirement to provide funds equal to or greater than 30% of the costs needed for
the project described in Subsection
(10)(e)
does not apply to a public transit capital
development project or pedestrian or nonmotorized transportation project that the
department proposes.
(j)
In accordance with Part 4, Public Transit Innovation Grants, the commission may
prioritize money from the fund for public transit innovation grants, as defined in
Section
72-2-401
, for public transit capital development projects requested by a
political subdivision within a public transit district.
(11)
(a)
There is created in the Transportation Investment Fund of 2005 the Cottonwood
Canyons Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
money deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature;
(iii)
private contributions; and
(iv)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
The Legislature may appropriate money from the fund for public transit or
transportation projects in the Cottonwood Canyons of Salt Lake County.
(e)
The department may use up to 2% of the revenue deposited into the account under
Subsection
59-12-103(4)(f)
to contract with local governments as necessary for
public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
(f)
Beginning with fiscal year beginning on July 1, 2025, the department shall use any
sales and use tax growth over sales and use tax collections during the 2025 fiscal year
to fund projects to provide ingress and egress for a public transit hub, including
construction of the public transit hub, in the Big Cottonwood Canyon area.
(12)
(a)
There is created in the Transportation Investment Fund of 2005 the Active
Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
money deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature; and
(iii)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
The executive director may only use fund money to pay the costs needed for:
(i)
the planning, design, construction, maintenance, reconstruction, or renovation of
paved pedestrian or paved nonmotorized trail projects that:
(A)
are prioritized by the commission through the prioritization process for new
transportation capacity projects adopted under Section
72-1-304
;
(B)
serve a regional purpose; and
(C)
are part of an active transportation plan approved by the department or the
plan described in Subsection
(12)(d)(ii)
;
(ii)
the development of a plan for a statewide network of paved pedestrian or paved
nonmotorized trails that serve a regional purpose; and
(iii)
the administration of the fund, including staff and overhead costs.
(13)
(a)
As used in this Subsection
(13)
, "commuter rail" means the same as that term is
defined in Section
63N-3-602
.
(b)
There is created in the Transit Transportation Investment Fund the Commuter Rail
Subaccount.
(c)
The subaccount shall be funded by:
(i)
contributions deposited into the subaccount in accordance with Section
59-12-103
;
(ii)
appropriations into the subaccount by the Legislature;
(iii)
private contributions; and
(iv)
donations or grants from public or private entities.
(d)
(i)
The subaccount shall earn interest.
(ii)
All interest earned on money in the subaccount shall be deposited into the
subaccount.
(e)
As prioritized by the commission through the prioritization process adopted under
Section
72-1-304
or as directed by the Legislature, the department may only use
money from the subaccount for projects that improve the state's commuter rail
infrastructure, including the building or improvement of grade-separated crossings
between commuter rail lines and public highways.
(f)
Appropriations made in accordance with this section are nonlapsing in accordance
with Section
63J-1-602.1
.
Section 14. Section
72-2-136
is enacted to read:
72-2-136
Effective
05/06/26
. Convention Center Reserves Restricted Account.
(1)
As used in this section, "convention center" means a convention center owned by a
county of the first class within a city of the first class.
(2)
There is created within the Transportation Fund a restricted account known as the
"Convention Center Reserves Restricted Account."
(3)
The account consists of:
(a)
revenue transferred to the account in accordance with Subsection
72-2-124(4)(d)
; and
(b)
amounts appropriated by the Legislature.
(4)
Subject to appropriation, money in the account may be used:
(a)
for revitalization of a convention center and surrounding revitalization projects
related to the convention center; or
(b)
for securing the issuance of the debt of a county of the first class for a convention
center
in
an

amount that does not exceed $1,600,000,000.
Section 15. Section
72-2-501
is amended to read:
72-2-501
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Affordable housing unit" means a dwelling that
:
(a)
is offered for rent at a rental price affordable to a household with a gross income of
no more than 80% of the area median income for the county in which the residential
unit is offered for rent; or
(b)

is offered for sale to an owner-occupier at a purchase price
that the board
determines is
affordable
to a household with a gross income of no more than 120%
of the area median income
for the county in which the residential unit is offered for
sale and is deed restricted for
no fewer than
up to
five years.
(2)
"Board" means the
affordable housing infrastructure grant board
Affordable Housing
Infrastructure Grant Board
created in Section
72-2-503
.
(3)
"Grant" means a grant issued to a public entity in a county of the first class
, as classified
in Section
17-60-104
,
as provided in this part.
Section 16. Section
72-2-502
is amended to read:
72-2-502
Effective
05/06/26
. Affordable housing infrastructure grant funding
sources.
(1)
In accordance with Section
72-2-503
, the board may rank, prioritize, and award
affordable housing infrastructure grants to public entities within a county of the first
class with money derived from the following sources:
(a)
bond proceeds deposited into the Transportation Investment Fund of 2005 created in
Section
72-2-124
in accordance with a bond issued under Section
63B-34-201
63B-34-101
;
(b)
for a fiscal year beginning on or after July 1, 2026, and only until June 30, 2028,
revenue deposited into the County of the First Class Highway Projects Fund created
in Section
72-2-121
;
(b)
(c)
appropriations by the Legislature; and
(c)
(d)
any other transfers or contributions.
(2)
Administrative costs of the department to administer affordable housing infrastructure
grants under this part shall be paid from the funds described in Subsection
(1)
.
Section 17. Section
72-2-503
is amended to read:
72-2-503
Effective
05/06/26
. Board creation -- Duties -- Grant administration.
(1)
(a)
There is created the
affordable housing infrastructure grant board
Affordable
Housing Infrastructure Grant Board
consisting of
:

(i)
the following
five voting
members:
(a)
the executive director of the department, or the executive director's designee;
(b)
(A)
the executive director of the Governor's Office of Economic Opportunity
appointed under Section
63N-1a-302
, or the executive director's designee;
and
(B)
two individuals from a county of the first class, as classified in Section
17-60-104
, appointed by the speaker of the House of Representatives; and
(C)
two individuals from a county of the first class, as classified in Section
17-60-104
, appointed by the president of the Senate; and
(c)
an employee of the governor's office that is an expert or advisor on housing strategy,
appointed by the governor.
(ii)
the following two nonvoting members:
(A)
the executive director of the department, or the executive director's designee;
and
(B)
the legislative fiscal analyst, or the legislative fiscal analyst's designee.
(b)
In accordance with this section, the board shall award grants to public entities in a
county of the first class, as classified in Section
17-60-104
, for infrastructure that will
facilitate the development of affordable housing units.
(2)
(a)
The Governor's Office of Economic Opportunity shall provide staff support for
the board and the grant program.
(b)
The Governor's Office of Economic Opportunity may use and the department shall
transfer grant funds for the costs of the Governor's Office of Economic Opportunity
to administer the grant program under this part.
(c)
The Governor's Office of Economic Opportunity and the department shall enter into
a memorandum of understanding to facilitate the calculation and transfer of funds for
the administrative costs described in Subsection
(2)(b)
.
(3)
The
Governor's Office of Economic Opportunity
department
, in consultation with the
board, shall develop a process for the prioritization of grant proposals that includes:
(a)
instructions on making and submitting a grant proposal;
(b)
methodology for selecting grants; and
(c)
methodology for awarding grants.
(4)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
Governor's Office of Economic Opportunity
department
shall make rules to establish the
process described in Subsection
(3)
and as otherwise necessary to implement this part.
(5)
The board shall:
(a)
accept grant applications;
(b)
rank grant proposals; and
(c)
award grants in accordance with this part.
(6)
A grant applicant shall ensure that each grant proposal includes:
(a)
information about the proposed project, including the projected number of affordable
housing units, which may not be less than 50 units of affordable housing;
(b)
the projected time line of the proposed project;
(c)
data and information regarding the proposed types of affordable housing; and
(d)
information about the public infrastructure and other improvements needed.
(7)
(a)
In considering a grant proposal, the board shall
:

(i)
give priority to a project that includes, as a substantial component, the
construction of detached single-family owner-occupied starter homes; and
(ii)
consider criteria including:
(i)
(A)
the value and number of housing units the project will produce;
(ii)
(B)
the value of any matching contribution from the grant applicant,
including information about how the public entity determined the value of the
matching assets; and
(iii)
(C)
any other criteria the board determines relevant.
(b)
For a grant proposal including highway infrastructure, the board may not award a
grant unless the grant applicant provides a minimum matching contribution of the
right-of-way needed for the highway improvements.
(c)
If a grant proposal includes highway infrastructure, the board shall give priority to
the construction of public highways that are highways of regional significance that
connect to other highways or points of regional significance.
(8)
(a)
Subject to available funding, and subject to Subsection
(8)(b)
, the board may
award a grant to a recipient that the board determines advisable.
(b)
For every $20,000 of grant funding awarded to a recipient, the infrastructure shall
support at least one unit of affordable housing.
(c)
The board may not award a grant to a recipient if the board determines that the
recipient will not be able to satisfy the requirement under Subsection
(8)(b)
.
(9)
If the board approves the award of a grant as provided in this part, the department shall
transfer the money to the grant recipient in accordance with Subsection
(10)
.
(10)
(a)
(a)
(i)
Before
Except as provided in Subsection
(10)(b)
, before
the
department may provide grant money to a public entity for a project related to a
grant awarded by the board, the public entity shall provide a detailed cost estimate
of costs to complete the planning and design of the project.
(b)
(ii)
If the executive director approves the cost estimate described in Subsection
(10)(a)
(10)(a)(i)
, the department may provide to the public entity grant money
reasonably necessary to complete the planning and design of the project.
(c)
(iii)
After completion of the planning and design of a project related to a grant
awarded by the board, the public entity shall provide to the department a detailed
estimate of the costs to construct and complete the project described in Subsection
(10)(b)
(10)(a)(ii)
.
(d)
(iv)
If the executive director approves the cost estimates described in Subsection
(10)(c)
(10)(a)(iii)
, the department may provide grant money to a public entity to
construct and complete the project described in Subsection
(10)(b)
(10)(a)(ii)
.
(b)
The board may, in relation to a grant awarded by the board:
(i)
waive the requirements of Subsection
(10)(a)
; and
(ii)
direct the department to transfer grant money to the grant recipient.
Section 18. Section
72-5-111
is amended to read:
72-5-111
Effective
05/06/26
. Disposal of real property.
(1)
(a)
If the department determines that any real property or interest in real property,
acquired for a state transportation purpose, is no longer necessary for the purpose, the
department may lease, sell, exchange, or otherwise dispose of the real property or
interest in the real property.
(b)
(i)
Real property or an interest in real property may be sold at private or public
sale.
(ii)
Except as provided in Subsection
(1)(c)
related to exchanges and Subsection
(1)(d)
related to the proceeds of any sale of real property from a maintenance
facility, proceeds of any sale shall be deposited with the state treasurer and
credited to the Transportation Fund.
(c)
(i)
Except as provided in Subsection
(1)(c)(ii)
, if approved by the commission, real
property or an interest in real property may be exchanged by the department for
other real property or interest in real property, including improvements, for a state
transportation purpose.
(ii)
The department may exchange an interest in real property for another interest in
real property for a project that is part of a statewide transportation improvement
program approved by the commission.
(d)
Proceeds from the sale of real property or an interest in real property from a
maintenance facility may be used by the department for the purchase or improvement
of another maintenance facility, including real property.
(2)
(a)
In disposing of real property or an interest in real property described in Subsection
(1)
, the department shall give the right of first refusal for the highest offer, as defined
in Section
78B-6-521
, to:
(i)
for real property, the original grantor if, since the date of the original transfer to
the department, the original grantor has owned real property adjacent to the
transferred real property; or
(ii)
for an interest in real property that is an easement:
(A)
if the original grantor owns the servient estate subject to the easement, the
original grantor; or
(B)
if a subsequent bona fide purchaser owns the servient estate subject to the
easement, the subsequent bona fide purchaser.
(b)
Notwithstanding Subsection
(2)(a)
and Section
78B-6-521
, if the department
acquires real property or an easement and does not use any portion of the real
property or easement for a state transportation purpose, the department shall give the
original grantor the opportunity to purchase the real property or easement at the
original purchase price if, since the date of the original transfer to the department, the
original grantor has owned real property adjacent to the transferred real property or
the servient estate subject to the easement.
(c)
In accordance with Section
72-5-404
, this Subsection
(2)
does not apply to property
rights acquired in proposed transportation corridors using funds from the Marda
Dillree Corridor Preservation Fund created in Section
72-2-117
.
(d)
(i)
The right of first refusal described in this Subsection
(2)
is subject to the same
terms and may be assigned by the original grantor or subsequent bona fide
purchaser in the manner described in Subsection
78B-6-521(3)
.
(ii)
The original grantor or subsequent bona fide purchaser, or the original grantor's
or subsequent bona fide purchaser's assignee, shall notify the department of an
assignment by certified mail to the current office address of the executive director
of the department.
(i)
If an original grantor or subsequent bona fide purchaser fails to purchase real
property or an easement described in this Subsection
(2)
, the department may
reject all bids and dispose of the real property or easement in accordance with
Subsection
78B-6-521(3)
.
(iii)
(ii)
An exchange of real property
as provided in
under
Subsection
(1)(c)
or
Section
72-5-113
does not entitle the original grantor or subsequent bona fide
purchaser to exercise the right of first refusal described in this Subsection
(2)
.
(iv)
(iii)
The right of first refusal described in this Subsection
(2)
terminates upon an
exchange of the acquired real property
as provided in
under
Subsection
(1)(c)
or
Section
72-5-113
.
(3)
(a)
Any sale, exchange, or disposal of real property or interest in real property made
by the department under this section, is exempt from the mineral reservation
provisions of
Title 65A, Chapter 6, Mineral Leases
.
(b)
Any deed made and delivered by the department under this section without specific
reservations in the deed is a conveyance of all the state's right, title, and interest in the
real property or interest in the real property.
Section 19. Section
72-5-117
is amended to read:
72-5-117
Effective
05/06/26
. Rulemaking for sale of real property -- Licensed
or certified appraisers -- Exceptions.
(1)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, if the
department buys, sells, or exchanges real property, the department shall make rules to
ensure that the value of the real property is congruent with the proposed price and other
terms of the purchase, sale, or exchange.
(2)
The rules:
(a)
shall establish procedures for determining the value of the real property;
(b)
may provide that an appraisal, as defined under Section
61-2g-102
, demonstrates the
real property's value;
(c)
may require that the appraisal be completed by a state-certified general appraiser, as
defined under Section
61-2g-102
;
(d)
may provide for the sale or exchange of real property, with or without charge, to a
large public transit district if the executive director enters into an agreement with the
large public transit district and determines that the real property:
(i)
is within the boundaries of a station area that has a station area plan certified by a
metropolitan planning organization in accordance with Section
10-21-203
;
(ii)
is part of a transit-oriented development or transit-supportive development as
defined in Section
17B-2a-802
;
(iii)
is adjacent to a completed fixed guideway capital development that was overseen
by the department; or
(iv)
will only be used by the large public transit district in a manner that the executive
director determines will provide a benefit to the state transportation system;
and
(e)
may provide for the disposal of surplus real property for a purpose described in
Section
63L-12-102
; and
(e)
(f)
may provide for a sale of surplus real property to a state agency or an
independent entity, as defined in Section
63E-1-102
, that administers public interests
in housing for a pre-entitlement appraised value
,
the payment of which may be
deferred
until after the development of owner-occupied housing
, as determined by
the department and subject to state and federal law
.
(3)
Subsection
(1)
does not apply to the purchase, sale, or exchange of real property, or to
an interest in real property:
(a)
that is under a contract or other written agreement before May 5, 2008; or
(b)
with a value of less than $100,000, as estimated by the state agency.
Section 20. Section
78B-6-521
is amended to read:
78B-6-521
Effective
05/06/26
. Sale of property acquired by eminent domain.
(1)
As used in this section:
(a)
"Condemnation" or "threat of condemnation" means:
(i)
acquisition through an eminent domain proceeding; or
(ii)
an official body of the state or a subdivision of the state, having the power of
eminent domain, has specifically authorized the use of eminent domain to acquire
the real property.
(b)
(i)
"Highest offer" means all material terms of the best bona fide offer received by
the state or one of the state's subdivisions, including:
(A)
purchase price;
(B)
conditions; and
(C)
terms of performance.
(ii)
"Highest offer" does not mean the terms and conditions of an agreement to
exchange real property or an interest in real property for other real property or an
interest in real property.
(2)
If the state or one of the state's subdivisions, at the state's or the state subdivision's sole
discretion, declares real property or an easement the state or state subdivision acquires
through condemnation or threat of condemnation to be surplus real property, the state or
state subdivision may not sell the real property or easement at a private or public sale
unless:
(a)
(i)
for real property, the state or state subdivision gives the right of first refusal to
the original grantor for the highest offer if, since the date of the original transfer to
the state or state subdivision, the original grantor has owned real property adjacent
to the transferred real property; or
(ii)
for an easement, the state or state subdivision gives the right of first refusal to:
(A)
if the original grantor owns the servient estate subject to the easement, the
original grantor for the highest offer; or
(B)
if a subsequent bona fide purchaser owns the servient estate subject to the
easement, the subsequent bona fide purchaser for the highest offer;
(b)
the original grantor or subsequent bona fide purchaser described in Subsection
(2)(a)
:
(i)
expressly waives in writing the right of first refusal on the offer; or
(ii)
fails to accept the offer within 90 days after the day on which the original grantor
or subsequent bona fide purchaser receives notification by registered mail to the
original grantor's or subsequent bona fide purchaser's last-known address; and
(c)
neither the state nor the state subdivision selling the property is involved in the
rezoning of the property or the acquisition of additional property to enhance the value
of the real property to be sold.
(3)
If an original grantor or subsequent bona fide purchaser fails to purchase surplus real
property or an easement described in Subsection
(2)
, the state or the state subdivision
that owns the real property or easement may reject all bids and sell the real property or
easement in accordance with applicable provisions of law that govern the granting of
real property or an interest in real property by the state or the state subdivision.
(3)
(a)
If the original grantor or subsequent bona fide purchaser has not waived the right
of first refusal as described in Subsection
(2)(b)
, an original grantor or subsequent
bona fide purchaser may assign the right of first refusal.
(b)
The assignment of a right of first refusal in accordance with Subsection
(3)(a)
does
not extend the time for acceptance of an offer as described in Subsection
(2)(b)
.
(4)
(a)
Real property acquired through condemnation or the threat of condemnation is not
considered surplus if the real property is approved for use in an exchange for other
real property.
(b)
An exchange of real property for other real property is not a private or public sale.
(c)
The right of first refusal described in Subsection
(2)(a)
shall terminate upon an
exchange of the acquired real property.
(5)
This section shall only apply to property acquired after July 1, 1983.
Section 21.
FY 2027 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1,
2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
fiscal year 2027.
Subsection 21(a).
Restricted Fund and Account Transfers
The Legislature authorizes the State Division of Finance to transfer the following
amounts between the following funds or accounts as indicated. Expenditures and outlays from
the funds to which the money is transferred must be authorized by an appropriation.
ECONOMIC AND COMMUNITY DEVELOPMENT
ITEM 1
State Housing Infrastructure Partnership Fund
From Transportation Infrastructure General Fund
Support Subfund, One-time
100,000,000
State Housing Infrastructure Partnership Fund
100,000,000
Section 22.
Effective Date.
This bill takes effect on May 6, 2026.
3-12-26 1:10 PM