2023 Utah Legislature General Session Summary

MAG staff would like to extend a huge thank you to the Legislators, legislative staff, state agency staff, our member cities and counties, and key partners at WFRC, ULCT, UAC, UDOT, UTA, UT Valley Chamber of Commerce, and GOPB! Thank you for all you do. We are thrilled for the partnership and coordinated efforts to make Utah and our regions a better place to live, work, and play.

TRANSPORTATION

PASSED

HB44 TRANSPORTATION CORRIDOR FUNDING AMENDMENTS, REP. CHRISTOFFERSON / SEN. HARPER

Allows UDOT to use corridor preservation funds to cover staff costs to administer the fund; Extends the use of funds from 30 years to 40 years.

HB51sub4 RAILROAD RIGHT OF WAY AMENDMENTS, REP. SNIDER / SEN. MCKELL

Authorizes a government entity to assess a railroad for any portion of the cost of a public infrastructure improvement, if the improvement: is partially or wholly in the railroad's right of way, benefits the railroad, and the assessment is proportional to the railroad's benefit; Infrastructure improvements may include water, electrical, sewer, telecommunications, signage, signaling, or other transportation infrastructure. Effective 3/31/24.

HB63sub2 OFFICE OF RAIL SAFETY, REP. SCHULTZ / SEN. MCKELL

Creates the Office of Rail Safety under UDOT (to be certified by the Federal Railroad Admin.); Office to assume inspection and investigative functions of certain RR operations; Office to regulate and monitor time limits on blocking of RR-highway grade crossings; Requires RR to pay a fee to cover inspection costs; UDOT have rulemaking related to walkways and clearances. Another railroad bill that provides railroad crossing responsibilities and requirements is HB232.

HB301sub3 TRANSPORTATION TAX AMENDMENTS, REP. SCHULTZ / SEN. HARPER

Increases vehicle registration fees by $7; Decreases gas tax rate from 16.5% to 14.2% (of statewide average rack price) and limits the rack price, provides gradual increase of tax through the year 2028 (7/1/23 - 12/31/23: 34.5%; Average rack prices may not exceed the following amounts beginning: 1/1/24: $2.57/gal.; 1/1/25: $2.71/gal.; 1/1/26: $2.82/gal.; 1/1/28 and after: $2.96/gal.); Imposes a 12.5% tax on the sale of electricity at an electric vehicle charging station or subscription and deposits revenue to the Transportation Fund.

SB27sub4 TRANSPORTATION REVISIONS, SEN. HARPER / REP. CHRISTOFFERSON

Requires municipality to send adopted/modified general plan and qualifying land use petition to AOG within 45 days of adoption; Changes Station Area Planning (SAP) qualifying land use “application” to “petition” and makes the following petition changes: requires that the city substantially promote each of the 4 objectives and to demonstrate that plans, ordinances, approved land use applications, and approved agreements/financing/investments are still relevant and make meaningful progress toward the objectives; and adopt a petition resolution; Clarifies percentage of acreage that must be within a station area; Clarifies SAP area; The bill also modifies the number of strategies required in Moderate Income Housing Plans; Reduces the TTIF match rate from 40% to 30%; Increases UTA Board of Trustees compensation based on cost-of-living adjustments; Allows UDOT to sell/transfer a property in a transit station area to UTA; Various changes to Utah Department of Transportation code; Amends license plate requirements for vintage cars; Amends transfer of real property provisions for UDOT and UTA; Amends fees related to tow truck dispatch services; Prohibits passing of 3+ snow plows in echelon.

SB84sub2 HOUSING AND TRANSIT REINVESTMENT ZONE AMENDMENTS, SEN. HARPER / REP. SNIDER

Defines Bus Rapid Transit (BRT), Light Rail, and Commuter Rail to include existing and proposed stations along an existing or extension of a transit line when that line is included in MPO's adopted long-range regional transportation plan; Adds additional HTRZ objectives to include fulfilling Moderate Income Housing Plans, improving efficiencies in parking and transportation, walkability, and overcoming development impediments; In Salt Lake Co, limits HTRZs to 3 at a BRT station; Requires HTRZ proposals to include certain radius and housing density maps; Requires the Governor's Office of Economic Opportunity to provide notice (within 14 days of the proposal) to taxing entities and MPOs upon receiving an HTRZ proposal; Clarifies HTRZ Committee membership to now include a member from Transportation Commission and a UTA Trustee; Clarifies that the HTRZ Committee may request changes to the HTRZ proposal based on the analysis, characteristics, and criteria; Requires HTRZ gap analysis to provide an opinion on the appropriate subsidy needed for the proposal, as opposed to the minimum; Due to not applying for an HTRZ as stated in their MIH Report, Summit County is in noncompliance and required to apply for an HTRZ and allow a certain developer to build mixed use development at transit hub with additional requirements.

SB125sub1 TRANSPORTATION INFRASTRUCTURE AMENDMENTS, SEN. WILSON / REP. MOSS

Designates USU’s ASPIRE Engineering Research Center as the state’s research center for strategic planning and electrification for transportation infrastructure; Creates a steering committee made up of the executive director of UDOT, DEQ, UTA, GOEO, major electrical power provider, and chair of industry advisory board; Steering committee to convene by 10/1/23; Creates an advisory board made up of relevant industry sectors to include the following electrical manufacturers or providers: power, bus, vehicle, passenger or freight rail, aircraft, freight truck, battery, fiber optic, transportation infrastructure, charging component systems, AI, and other sectors as determined necessary; Requires fulfillment of certain objectives and duties in consultation with a number of governmental, educational, and other partners; Requires certain reporting; Appropriates $2.1 million to Utah State University for these efforts.

SB175sub4 “RTIF” RURAL TRANSPORTATION INFRASTRUCTURE FUND, SEN. OWENS / REP. ALBRECHT

Creates the Rural Transportation Investment Fund (RTIF) within the TIF; RTIF provides transportation funding to 3 - 6 class counties if they’ve imposed the 3rd or 4th quarter local option transportation sales tax (excludes Summit County); Beginning 1/1/24, RTIF to receive ongoing funding from $2 of the vehicle registration fee (beginning 1/1/25 tied to CPI); Funds are distributed to cities and counties based on the B&C formula of weighted lane miles and population and may be used for B&C eligible projects and expenses. One-time appropriation of $40M (The one-time appropriation is available if counties impose either the 3rd or 4th quarter local option transportation sales tax no later than October 1, 2023.).

SB185sub4 “ATIF” TRANSPORTATION AMENDMENTS, SEN. HARPER / REP. CHRISTOFFERSON

Known as the Utah Trail Network; Creates the Active Transportation Investment Fund (ATIF) within the TIF; ATIF to receive 5% annual transfer from TIF (~$45M) and capped at $45M; Funds can be used for planning, design, construction, maintenance, reconstruction or renovation of paved pedestrian or non-motorized and regionally significant trails; Modifies the Road Usage Charge (RUC) account so that RUC revenues are divided using B&C road fund distribution formula (70% UDOT and 30% cities and counties). Check out this nice SB185 Bill Summary from WFRC.

SB260sub2 “5th 5th” TRANSPORTATION FUNDING REQUIREMENTS, SEN. CULLIMORE / REP. PETERSON

Modifies the .20% local option transportation sales tax, aka the 5th 5th; Eliminates the imposition deadline (was 6/30/23); Allows counties with and without transit service to impose the .20% and divides the funds based on transit availability and county class, see below. Refer to WFRC’s SB260 Bill Summary for more information.

• SLCo: .05 cities/towns, .05 county, .10 transit to CFCHPF (after 3yrs .05 to CFCHPF & .05 TTIF).\
• Davis/Utah/Weber: .05 cities/towns, .05 county, .10 transit provider (after 3yrs .05 transit & .05 TTIF).
• BoxElder/Tooele/Wasatch/Summit - Areas with Transit: .05 transit, .075 cities/towns, .075 county; Or Areas without Transit: .08 cities/towns, .12 county.
• Morgan (counties without transit): .08 cities/towns, .12 counties.

DID NOT PASS

Provides that a property owner near a certain transit hub has certain vested development rights if Summit County fails to apply for an HTRZ. Provisions of this bill were included in SB85.

HB500sub1 COUNTY SALES TAX AMENDMENTS, REP. CHRISTOFFERSON

Removes requirement for voter approval to change allocation for certain local option sales tax in Utah County; Modifies the .20% local option sales tax for transportation by eliminating the imposition deadline; Allows counties with transit service to impose the .20% to go all to transit or to divide the funds between transit, cities, and counties; Allows counties without transit service to impose the .20% and divide the funds between cities and counties for transportation purposes. Failed on House 3rd reading with vote of 30-40-5.

SB202 FUEL TAX AMENDMENTS, SEN. RIEBE

Reduces the motor fuel tax rate by the equivalent of 4.5 cents; Modifies the increases of the motor fuel tax rate based on changes to the Consumer Price Index. See Rep. Schultz HB301.

SB232 BICYCLE ROADWAY REQUIREMENTS, SEN. BLOUIN

Requires a person operating a motor vehicle to move the vehicle to the lane to the left of the lane the vehicle is traveling in when passing a bicycle under certain circumstances.

OTHER (LAND USE, HOUSING, HOMELESSNESS, TAX REVISIONS, WATER)

PASSED

HB32sub2 PROVO CANYON RESOURCE MANAGEMENT PLAN, REP. STRATTON / SEN. SANDALL

Authorizes Utah County and Wasatch County to prepare and adopt a recreational resources management plan for Provo Canyon; Stipulates that the Public Lands Policy Coordinating Office shall assist in the funding and preparation of the plan at the request of the counties; Plan shall inventory recreation assets, risks, present and future recreational needs, and establish objectives and guidelines. $225,000 one-time appropriation.

HB364sub6 HOUSING AFFORDABILITY AMENDMENTS, REP. WHYTE / SEN. FILLMORE

Modifies Moderate Income Housing Plan (MIHP) and Reporting (MIHR) requirements; Cities without BRT, Light Rail, Commuter Rail to implement 3+ MIH strategies; Cities with BRT, Light Rail, Commuter Rail to implement 5+ MIH strategies; Certain cities to create a 5-year implementation plan; Certain cities to report on MIHP implementation annually to DWS on or before August 1 using DWS form; the Report shall describe the actions taken over the last 12 months identified in the initial report; DWS shall notify the Transportation Commission of standing (priority consideration, eligible, not eligible) so that the Commission may give priority consideration to transportation projects located within the boundaries of the city; Cities with noncompliant MIHR can: 1) cure each deficiency within 90 days, or 2) request an appeal; the Bill also requires DWS to report Housing Preservation Fund expenditures; Increases the aggregate amount of low-income housing tax credits to be allocated. Stay tuned for training on HB364 from ULCT.

HB406sub5 LAND USE DEVELOPMENT AND MANAGEMENT ACT, REP. WHYTE / SEN. FILLMORE

Modifies the definition of rural real property of the annexation code; Modifies provisions relating to a municipality's annexation of unincorporated private property; Modifies the process by which a boundary commission considers competing petitions for annexation of unincorporated private property; Clarifies the circumstances under which a municipality may adopt temporary land use restrictions; Clarifies use of development agreements.

HB499sub3 HOMELESS SERVICES AMENDMENTS, REP. ELIASON / SEN. ANDEREGG

Modifies Homeless Shelter Cities Mitigation Restricted Account fund formula; Prohibits a city from receiving funds from above Account if they do not enforce an ordinance that prohibits camping; Modifies annual local contribution that certain local governments provide from their sales tax revenue to the Account; Tax Commission to subtract certain amount from local government’s contribution based on availability of homeless shelter beds in their boundaries; requires certain counties to covenant a winter response task force (describes membership) to prepare a county winter response plan, now includes 2nd class counties, and describes consequences of noncompliance; Requires the DHHS to issue a code blue alert for certain weather events that may pose a danger to individuals experiencing homelessness; Provides for certain requirements and limitations to take effect within a county that is impacted by a code blue alert.

SB174sub2 LOCAL LAND USE AND DEVELOPMENT REVISIONS, SEN. FILLMORE / REP. WHYTE

Requires cities and counties that do not submit or properly report on their Moderate Income Housing Plan (MIHP) to cure deficiencies in 90 days (or fined $250/day to OWHLF ($500/day beginning 2025)); Adds habitable space garage to IADU definition if shares a wall w/primary residence, and provides parking requirements; Cities cannot prohibit newly constructed IADUs after 10/1/21; Allows city subdivision review and approval process to be administrative and not legislative; City and county transportation projects can be given priority consideration from the Transportation Commission for the fiscal year immediately following the fiscal year the MIHR is required; Removes language giving priority consideration to Local Assist. Matching Grant Program financial grants to cities.

SB199 LOCAL LAND USE AMENDMENTS, SEN. MCKELL / REP. SCHULTZ

Disallows referral of a referendum to voters for municipal land use lanes that passed by a unanimous vote of the legislative body, or transit area land use law passed by a two-thirds vote of the local legislative body.

SB240sub1 FIRST TIME HOMEBUYER ASSISTANCE PROGRAM, SEN. ADAMS / REP. WHYTE

Creates First-Time Homebuyer Assistance Program within Utah Housing Corp. for certain homebuyers and certain housing units; Housing units to include new construction or a newly constructed unit that is financed by qualifying mortgage loan and owner-occupied and purchased for no more than $450,000 or max purchase price established by UHC.; Maximum amount of funds a homebuyer may receive is $20,000; Funds may be used to pay for down payment, closing costs, reduction in interest rate; Provides for repayment of program funds. $50M one-time appropriation.

SB76sub3 WATER AMENDMENTS, SEN. SANDALL / REP. SNIDER

Requires cities and counties to consult with the Division of Water Resources in preparing the Water element of their General Plan and for information and technical resources for water conservation goals and its impact on the Great Salt Lake; Requires counties to also consult with community water systems, Dept. Agriculture and Food, and canal companies; Requires a number of other water resource and conservation studies by state agencies and water providers. 

HB54sub4 TAX REVISIONS, REP. ELIASON / SEN. MCCAY

Reduces income tax from 4.85% to 4.65%; Adds personal exemption for dependent; Expands eligibility for social security benefits tax credit by increasing thresholds for income based phaseout; Modifies earned income tax credit calculation; Modifies Tourism Marketing Performance Account; Removes state sales and use tax imposed on food and food ingredients. For most provisions, the bill takes effect 5/3/23.

APPROPRIATIONS

• $45M one-time and $45M ongoing, Active Transportation Investment Fund and Utah Trail Network
• $200M FrontRunner new station at The Point and strategic double tracking - TTIF (SB2)
• $150M one-time, Cottonwood Canyons enhanced bus service and hub, tolling, resort bus stops
• $1M one-time, Heber Valley Railroad Infrastructure debt relief - GOEO (SB3)
• $60M one-time Marda Dillree Corridor Preservation
• Cedar Valley Freeway ROW Preservation (Eagle Mtn) - portion of $60M UDOT one-time to M.D. Corridor Preservation Fund (SB2)
• SR92 Westward Extension ROW Preservation (Lehi) - portion of $60M UDOT one-time to M.D. Corridor Preservation Fund (SB2)
• FrontRunner preservation between Provo and Payson - portion of $60M UDOT one-time to M.D. Corridor Preservation Fund (SB3)
• $100M one-time, Payson I-15 Interchange and West Davis Corridor EIS - TIF (SB2)
• $17M one-time, Provo Canyon Trail - ATIF (SB3)
• $977,800 one-time, Regional Roadway Grid Network Study - GF (SB3)
• Create an optimal street, transit, active transportation grid network for 4 MPO regions; Analyze jurisdictional ownership needs; Prioritize corridor preservation needs.
• $4M one-time, Santaquin I-15 Main Street EIS - TIF (SB3
• $1,584,300 ongoing, Shared Local Administrative Advisor
• F/T staff at ULCT (2), MAG (1), and at each of the other AOGs to support local governments.
• $108M one-time, The Point backbone infrastructure
• Extend Porter Rockwell Blvd, construct major roadways, construct the “River-to-Range” regional trail, and install major utilities.
• $50M one-time, The Point Convergence Hall
• Construct the building that will house the Innovation District.
• $3M one-time, Tintic Branch Rehabilitation (south Utah Co) - GOEO (SB3)
• $1.2B one-time and $334M ongoing, Transportation debt service

LaNiece Davenport

O: 801.229.3837
E: ldavenport@magutah.org