Transportation Amendments
What changed between versions
Local option sales tax revenue that was previously directed to the Transit Transportation Investment Fund is now directed to the respective county for public transit purposes, giving counties more direct control over the funds.
A new provision increases bonding authorization related to commuter rail expansion, with a new code section 3B-31-101 added to the bill.
Section 57-1-48 (conveyance by deed to a public entity) now explicitly excludes the Department of Transportation from the definition of 'public entity,' meaning UDOT is not subject to the affidavit and voidability requirements in that section.
New code sections 72-2-302 and 3B-31-101 were added to the list of affected sections, indicating new statutory provisions beyond what was in Substitute #1.
In Section 57-1-48, the date after which a conveyance by deed is voidable by the public entity changed from July 1, 2025 to May 6, 2026.
In the towing dispatch section (53-1-106.2), the data retention limitation for personal information was narrowed from 'the administrative need to execute the towing dispatch service' to simply 'the administrative need,' removing the specific purpose qualifier.
New Section 11-56-106 allows a political subdivision to prohibit a mobile business (such as a food truck) from operating on a street or sidewalk that is temporarily closed for a mass gathering or special event, while maintaining existing protections against other types of mobile business restrictions.
The Active Transportation Investment Fund was expanded to cover Utah trail network projects, development of a plan for the Utah trail network, and preservation of future Utah trail network corridors, in addition to its existing paved pedestrian and nonmotorized trail projects.
New Section 41-6a-1406 establishes comprehensive rules for vehicle removal and impoundment, including reporting deadlines (before noon the next business day), fee collection restrictions (no fees until report is filed), release procedures, administrative impound fees ($425 plus $30 testing fee in certain cases), possessory lien provisions, and access to life essential items.
Towing dispatch privacy rules were tightened: towing entities may no longer require tow operators to enter owner information into the dispatch database, a new prohibition was added on requiring personally identifiable information about the owner, and vendors must delete any personally identifiable information they receive.
In the County of the First Class Highway Projects Fund, the allocation to South Jordan for Prosperity Road improvements increased from $1.7 million to $3.7 million, and a new $2 million allocation was added for West Valley City for a highway widening project on 1300 West between 3300 South and 3900 South.
A new Commuter Rail Subaccount is created within the Transit Transportation Investment Fund (Section 72-2-124(13)), funded by contributions, appropriations, private contributions, and donations, to be used for projects that improve commuter rail infrastructure including grade-separated crossings.
The Transit Transportation Investment Fund now explicitly allows the commission to prioritize money for corridor preservation (as defined in Section 72-5-401), subject to parameters requiring either commission prioritization or a finding that use will not delay already-prioritized projects.
For counties that are not first class with a large public transit district, revenue designated for public transit after the three-year phase-in period is now split 50/50 between the Commuter Rail Subaccount and the county legislative body (previously it went to the Transit Transportation Investment Fund generally), and the county's share is now described as being used for purposes 'determined by the county legislative body' rather than a fixed statutory purpose.
Section 72-2-124 now has two versions with different effective dates (May 6, 2026 and July 1, 2026), indicating a phased implementation of the Transportation Investment Fund amendments.
Section 11-56-106 (mobile business/food truck regulation) was removed entirely. This section had allowed political subdivisions to prohibit mobile businesses on streets temporarily closed for special events and contained various protections for food trucks.
Section 41-6a-1406 (vehicle removal and impoundment procedures) was removed entirely. This section contained detailed rules about towing reporting, notification, release of vehicles, fee structures, and possessory liens.
Section 63B-31-101 (general obligation bonds) was removed entirely. This section authorized up to $264 million in bonds, including $232 million specifically for double-tracking the FrontRunner commuter rail system, with repayment contingent on Utah Transit Authority paying $5 million per year for 15 years.
County option sales tax (Section 59-12-2220): After the initial three-year period, 50% of transit-designated revenue from first-class counties now goes to the broader Transit Transportation Investment Fund rather than specifically to the Commuter Rail Subaccount. The same change applies to non-first-class counties. This gives the commission more flexibility in how transit funds are used.
County option sales tax (Section 59-12-2220): The provision allowing second-class counties to use their share of the tax for public safety purposes was removed, narrowing allowable uses.
Section 72-2-124 now allows the Transit Transportation Investment Fund to be used for corridor preservation (as defined in Section 72-5-401), with parameters requiring commission approval and a finding that use will not delay prioritized projects.
Section 72-2-121 adds a new use: from fiscal year 2026 onward for 15 years, the County of the First Class Highway Projects Fund may pay debt service on $70 million in bonds issued under Section 63B-34-201 for Affordable Housing Infrastructure Grants.
Towing dispatch program (Section 53-1-106.2) now allows towing entities to require entry of owner information into the dispatch vendor's database, and removes the prior prohibition on requiring personally identifiable information about owners. The requirement to delete personally identifiable information was also removed, replaced with a simpler retention limit tied to administrative need.
Section 72-2-121 adds a new reporting requirement: local governments receiving allocations from the County of the First Class Highway Projects Fund must annually report to the Transportation and Infrastructure Appropriations Subcommittee on how money was spent and project status.
The Active Transportation Investment Fund (Section 72-2-124(12)) now explicitly references 'Utah trail network' projects, plans, and corridor preservation in addition to the existing paved pedestrian/nonmotorized trail provisions.
Bond reference in Section 72-2-124 changed from Section 63B-34-101 to Section 63B-34-201, reflecting a renumbered or new bonding authorization.
New Section 1 (11-56-106) regulates mobile business operations, prohibiting political subdivisions from banning food trucks near restaurants, limiting operating days, or requiring site plans for private property use under 10 hours/week, but allowing prohibition on streets temporarily closed for events.
Public transit vehicles may now temporarily impede parking or bike lanes not just to load/unload passengers but also to make a 'timepoint adjustment' (Section 41-6a-710).
New Section 5 (41-6a-1406) establishes detailed vehicle removal and impoundment procedures including electronic reporting requirements, notification rules, administrative impound fees ($425 plus $30 testing fee), release conditions, possessory liens on towing fees, and access to life essential items.
Bond authorization for FrontRunner commuter rail double tracking increased from $232 million to $530 million (Section 63B-31-101(4)(a)).
For non-first-class counties with large public transit districts, the language in Section 59-12-2220(11)(c)(i) adds 'determined by the county legislative body' after describing allowed uses of public transit revenue, giving counties broader discretion over fund allocation.
The municipal reimbursement fund in Section 72-2-121(4)(k) is extended by one fiscal year, now covering 2024-25 through 2027-28 instead of 2024-25 through 2026-27.
Towing dispatch database rules (53-1-106.2) now prohibit requiring tow operators to enter personally identifiable information about vehicle owners, require deletion of any such information received, and restrict all data entry to the database described in the new Section 41-6a-1406.
A new section (11-56-106) was added allowing political subdivisions to prohibit mobile businesses from operating on streets or sidewalks that are temporarily closed for mass gatherings or special events, while maintaining existing protections for mobile businesses in other contexts.
A new section (41-6a-1406) was added establishing detailed requirements for vehicle removal and impoundment, including electronic reporting to the Motor Vehicle Division within one business day, administrative impound fees of $425 plus a $30 testing fee, and possessory lien provisions for towing and storage fees.
A new section (53-1-106.2) was added creating a towing dispatch program framework that allows interlocal agencies, special service districts, political subdivisions, or state agencies to contract with vendors for technology that improves tow dispatch efficiency and transparency, with restrictions on vendor conflicts of interest.
Section 59-12-2220(10) was amended to allow second-class counties (not just first-class counties) to use a portion of their local option sales tax distribution for public safety purposes.
A new section (63B-31-101) was added authorizing up to $530 million in general obligation bonds (up from $232 million in the introduced version) for commuter rail double-tracking and other transportation projects, with a requirement that the Utah Transit Authority agree to pay $5 million per year for 15 years toward repayment.
In Section 59-12-2220, 50% of local option sales tax revenue that was previously directed to the general Transit Transportation Investment Fund is now specifically directed to a new Commuter Rail Subaccount within that fund, for both first-class and non-first-class counties.
The County of the First Class Highway Projects Fund reimbursement period in Section 72-2-121(4)(k) was extended by one fiscal year, from covering 2024-25 through 2026-27 to covering 2024-25 through 2027-28.
The road usage charge cap now applies to electric vehicles with a gross combined weight rating of 6,001 pounds or more that are commercial vehicles (previously 6,000 pounds gross vehicle weight rating). The annual cap was reduced from $505 to $500 and the six-month cap from $389 to $385.
The public transit vehicle exemption in Section 41-6a-710 was expanded: transit vehicles may now temporarily impede parking or bike lanes not just while operating along their planned route, but specifically while 'loading or unloading passengers, or making an operational adjustment' along that route.
The effective dates for Sections 59-12-104 (sales tax exemptions) and 59-12-2220 (county option sales tax) were changed from May 6, 2026 to July 1, 2026.
The definition of 'Utah trail network' in Section 72-1-102 was narrowed: trailheads and amenities must now be 'designated by the department' to qualify as part of the network (previously any contiguous or adjacent trailheads and amenities qualified).
Mobile businesses can now operate on streets or sidewalks temporarily closed for mass gatherings or special events, overriding previous prohibitions.
Road usage charge caps for heavy commercial electric vehicles are increased, and registration fees for electric and alternative fuel vehicles are adjusted.
Funding allocations for the County of the First Class Highway Projects Fund are expanded to include new reimbursement projects for specific municipalities.
Buses are now exempt from crossing lane lines to stop at bus stops, and the DOT is exempt from certain real property conveyance requirements.
New requirements mandate that towing dispatch vendors cannot require tow operators to enter personally identifiable information about vehicle owners into databases.
The DOT executive director gains authority to prioritize and fund disaster repair projects up to $10 million without waiting for a full commission meeting.
New definitions and study requirements are added for 'advanced air mobility,' 'vertiports,' and 'highway reduction strategies' in Salt Lake City.
Sales tax exemptions are expanded to include construction materials for public transit capital projects and rail rolling stock manufactured in Utah.
Increased the bonding authorization for commuter rail expansion from $232 million to $530 million to support doubling tracks on the FrontRunner system.
Repealed a requirement for a study on highway reduction strategies and codified requirements based on the findings of that study.
Updated vehicle registration fees to require higher road usage charges for commercial electric vehicles weighing 6,001 pounds or more.
Added a new definition for the 'Utah trail network' to formally designate a system of paved or hard-surface trails serving regional transportation purposes.
Modified traffic laws to explicitly exempt buses operating on their planned route from restrictions on temporarily crossing lane lines to stop at bus stops.
Granted the executive director of the Department of Transportation authority to determine project priorities and funding levels up to $10 million during natural disasters if the commission cannot meet in time.
Adjusted the phase-out schedule for local option sales taxes used for highways, directing revenue to counties for public transit purposes starting in 2026.
Amended the definition of 'resident' to include owners of vehicles with automated driving systems if the vehicle is present in the state for more than 30 consecutive days.
Updated vehicle registration fees to include specific charges for electric motor vehicles and commercial electric vehicles weighing 6,001 pounds or more.
Reallocated county option sales tax revenues to prioritize public transit funding in certain counties and established new transfer schedules for the County of the First Class Highway Projects Fund.
Modified exemptions for school buses and public transit vehicles operating in bike lanes to include temporary stops for loading/unloading passengers or making schedule adjustments.
Revised towing dispatch vendor rules to allow entities to require entry of owner information into databases while prohibiting the sharing or selling of that data.
Extended the sunset date for the highway reduction strategy study in Salt Lake City from 2027 to 2029.
Added new definitions for 'Utah trail network' and 'fixed guideway capital development' to clarify infrastructure planning.
Granted the executive director authority to determine project priorities and funding levels up to $10 million during natural disasters if the commission cannot meet immediately.
New rules were added requiring towing dispatch vendors to enter specific vehicle and towing information into their databases while prohibiting the sharing or selling of personally identifiable information about vehicle owners.
Funding allocations were updated to include new grants and loans for municipalities such as Draper, Herriman, Bluffdale, and others for projects like water pipeline renovations, rail crossings, and road improvements.
Definitions regarding public transit vehicles were updated to clarify exemptions for vehicles temporarily impeding parking or bike lanes while loading, unloading, or making timepoint adjustments.
The bill's version was updated from the 2nd Substitution to the 3rd Substitution, reflecting further legislative amendments and changes to the text.
Added a new provision defining the Utah trail network.
Delegated specific authority to the executive director of the Department of Transportation.
Restructured revenue distribution to split funds between the County of the First Class Highway Projects Fund and the Transit Transportation Investment Fund, including a new Commuter Rail Subaccount.
Changed the effective date trigger to require at least three counties to impose the tax first, or default to July 1, 2030, whichever comes first.
Updated rules for counties annexed into large public transit districts regarding how they must use collected tax revenue.
Amended the distribution rules for sales tax revenue in counties of the first class annexed into large public transit districts, ensuring 50% goes to the County of the First Class Highway Projects Fund and 50% goes to the Transit Transportation Investment Fund Commuter Rail Subaccount.
Expanded the definition of 'fixed guideway capital development' to explicitly include projects that strategically double-track commuter rail lines.
Enacted a new section granting the executive director of the Department of Transportation the authority to determine project priorities and funding levels during natural disasters if the commission cannot meet in time.
Adjusted the effective date for certain provisions and clarified the timeline for when specific sales tax revenue distributions begin based on the number of counties imposing the tax.
