Utah House Bill HB0454 Latest Draft

                            03-06 09:12	2nd Sub. (Gray) H.B. 454
Brady Brammer proposes the following substitute bill:
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Local Government Fees Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Karen M. Peterson
Senate Sponsor: Brady Brammer
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LONG TITLE
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General Description:
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This bill modifies and enacts provisions related to municipal and county fees.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ prohibits a city from imposing a fee on the general public for broadband or public safety
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service, with exceptions;
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▸ prohibits a town from imposing a fee on the general public for public safety service, with
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exceptions;
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▸ authorizes a municipality or county to impose a transportation utility fee if the
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municipality or county complies with certain requirements;
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▸ establishes a process and requirements for a municipality or county to impose a
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transportation utility fee;
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▸ provides that property owned by a religious organization may, under certain
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circumstances, be exempt from a transportation utility fee;
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▸ provides a process to hold a referendum on the imposition of a transportation utility fee or
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an increase to an existing transportation utility fee; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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10-1-406, as enacted by Laws of Utah 2003, Chapter 253
2nd Sub. H.B. 454 2nd Sub. (Gray) H.B. 454	03-06 09:12
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20A-7-101, as last amended by Laws of Utah 2024, Third Special Session, Chapter 3
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20A-7-607, as last amended by Laws of Utah 2023, Chapters 107, 116
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20A-7-609.5, as last amended by Laws of Utah 2020, Chapter 31
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ENACTS:
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10-5-133, Utah Code Annotated 1953
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10-5-134, Utah Code Annotated 1953
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10-5-135, Utah Code Annotated 1953
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10-6-134.3, Utah Code Annotated 1953
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10-6-134.5, Utah Code Annotated 1953
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10-6-134.6, Utah Code Annotated 1953
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17-36-56, Utah Code Annotated 1953
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17-36-57, Utah Code Annotated 1953
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20A-7-613.1, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.  Section 10-1-406 is amended to read:
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10-1-406 . Limitation of other telecommunications taxes or fees.
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(1) As used in this section:
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(a) "Broadband" means facilities and services used to make high-capacity, high-speed
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Internet service available to users.
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(b) "General fee" means the same as that term is defined in Section 10-6-134.3.
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(2)(a) Except as provided in Subsection (2)(b), a city may not impose a general fee for
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broadband.
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(b)(i) Subject to Subsection (2)(b)(ii), a city that, before May 7, 2025, imposes a
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general fee for broadband shall repeal the general fee no later than July 1, 2027.
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(ii)(A) A city that, before May 7, 2025, issues a bond secured by revenue from a
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general fee for broadband shall repeal the general fee within 60 days after the
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bond is paid.
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(B) A city that, before May 7, 2025, imposes a general fee to pay for a bond the
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city issued before January 1, 2025, to pay for broadband shall repeal the
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general fee within 60 days after the bond is paid.
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(3) Subject to the other provisions of this section, a municipality may not levy or collect a
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telecommunications tax or fee on a person except for a telecommunications tax or fee
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imposed by the municipality:
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(a) on a telecommunications provider to recover the management costs of the
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municipality caused by the activities of the telecommunications provider in the
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right-of-way of a municipality if the telecommunications tax or fee:
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(i) is imposed in accordance with Section 72-7-102; and
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(ii) is not related to:
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(A) a municipality's loss of use of a highway as a result of the activities of the
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telecommunications provider in a right-of-way; or
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(B) increased deterioration of a highway as a result of the activities of the
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telecommunications provider in a right-of-way; or
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(b) on a person that:
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(i) is not subject to a municipal telecommunications license tax under this part; and
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(ii) locates telecommunications facilities, as defined in Section 72-7-108, in the
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municipality.
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[(2)] (4) Subsection [(1)(a)] (3)(a) may not be interpreted as exempting a
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telecommunications provider from complying with any ordinance:
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(a) related to excavation, construction, or installation of a telecommunications facility;
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and
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(b) that addresses the safety and quality standards of the municipality for excavation,
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construction, or installation.
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[(3)] (5) A telecommunications tax or fee imposed under Subsection [(1)(b)] (3)(b) shall be
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imposed:
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(a) by ordinance; and
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(b) on a competitively neutral basis.
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Section 2.  Section 10-5-133 is enacted to read:
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10-5-133 . General fee for public safety service prohibited -- Exception.
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(1) As used in this section:
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(a)(i) "General fee" means a fee imposed generally on the public at large or on a
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segment of the public.
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(ii) "General fee" does not include:
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(A) a fee that a town charges an identifiable user of a town-provided service or a
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town facility to cover the town's cost of the user's use of the service or facility;
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or
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(B) a registration or similar fee that a town charges a participant in an activity or
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program sponsored by the town to offset the town's administrative cost of
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sponsoring the activity or program.
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(b) "Public safety service" means law enforcement service, fire protection service,
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ambulance or paramedic service, or emergency service.
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(2) Except as provided in Subsection (3), a town may not impose a general fee for a public
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safety service.
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(3) A town may impose a general fee for a public safety service if:
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(a)(i) the fee is imposed before January 1, 2025;
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(ii) the fee is to generate revenue to pay for the town's obligation under an agreement
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with one or more other political subdivisions for a public safety service provided
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to the town; and
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(iii) after January 1, 2025, the fee is reauthorized by a vote of the town council at
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least every three years; or
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(b) the public safety service is volunteer public safety service.
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(4) A town that, before May 7, 2025, imposes a general fee for a public safety service that
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is prohibited under Subsection (2) shall repeal the general fee no later than July 1, 2027.
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Section 3.  Section 10-5-134 is enacted to read:
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10-5-134 . Transportation utility fee.
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(1) As used in this section:
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(a) "Religious organization"  means the same as that term is defined in Section
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10-6-134.5.
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(b) "Transportation facility" means any of the items listed in Subsection 59-12-2212.2(1)
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as purposes for which revenue from a local option sales and use tax under Section
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59-12-2212.2 may be expended.
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(c) "Transportation fund" means a fund described in and established under Subsection
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(8).
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(d) "Transportation utility fee" means the same as that term is defined in Section
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10-6-134.5.
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(e) "User segment" means a segment of the town's population based on a classification
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established under Subsection (7).
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(2)(a) A town may impose and collect a transportation utility fee:
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(i) if the town establishes a reasonable relationship between:
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(A) the amount of the transportation utility fee; and
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(B) the services provided to, the benefits received by, or the need created by those
130 
who pay the transportation utility fee; and
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(ii) only as provided in this section.
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(b) A town may impose a transportation utility fee to provide funding for any number of
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transportation facilities but may not have more than a single transportation utility fee
134 
in effect at a time.
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(c)(i) A person's ownership of property within the town may not alone be a basis for
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imposing a transportation utility fee on the person.
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(ii) The size of a parcel of real property may not alone be a basis for the amount of a
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transportation utility fee imposed on the owner of the parcel.
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(3) To impose or increase a transportation utility fee, a town shall:
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(a) conduct a study as provided in Subsection (4);
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(b) follow the process described in Subsection (5); and
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(c) adopt an ordinance imposing or increasing a transportation utility fee, as provided in
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Subsection (6).
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(4)(a) A town may not impose or increase a transportation utility fee unless the city first
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conducts a study as described in this Subsection (4).
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(b) A study under Subsection (4)(a) shall:
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(i) determine and provide a reasonable estimate of the need for a new transportation
148 
facility or for maintaining, operating, repairing, upgrading, or replacing an
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existing transportation facility;
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(ii) identify and provide a reasonable estimate of existing funding sources that could
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be used to pay for a new transportation facility or for maintaining, operating,
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repairing, upgrading, or replacing an existing transportation facility;
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(iii) explain and provide a reasonable calculation showing how existing town funding
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sources are inadequate to cover the cost of constructing a new transportation
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facility or maintaining, operating, repairing, upgrading, or replacing an existing
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transportation facility;
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(iv) determine whether the proposed transportation utility fee is reasonably related to:
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(A) the services provided to those who pay the transportation utility fee;
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(B) the benefits received by persons who pay the transportation utility fee; or
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(C) the need created by those who pay the transportation utility fee;
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(v) explain the reasonable relationship determined under Subsection (4)(a)(iv); and
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(vi) determine whether there is a reasonable basis for different rates within a
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proposed transportation utility fee based on different levels of services provided
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to, benefit received by, or need created by those who pay the transportation utility
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fee, as described in Subsection (7), and, if so, explain the basis for the proposed
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different rates.
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(c) A town that conducts a study under Subsection (4)(a) shall post a copy of the study
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on the town's website, if the town has a website.
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(5)(a) Subject to Subsection (5)(b), before adopting an ordinance imposing or increasing
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a transportation utility fee, the governing body shall comply with the notice and
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public hearing requirements established in Sections 10-5-107 and 10-5-108.
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(b)(i) The governing body of a town that proposes to impose or increase a
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transportation utility fee shall, in addition to the notice required under Section
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10-5-107, provide notice of the proposed fee and the public hearing:
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(A) in a notice with the city's monthly utility bill, if the town mails or emails
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residents a monthly utility bill; or
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(B) through another primary means of communicating with residents, if the town
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does not provide residents a monthly utility bill.
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(ii) The public hearing required for a proposal to impose or increase a transportation
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utility fee may be held in conjunction with a budget hearing under Section
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10-5-108 but shall be separate and distinct from the budget hearing.
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(6)(a) A transportation utility fee may be imposed or increased only by an ordinance
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adopted by the town's governing body.
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(b)(i) Subject to Subsection (6)(b)(ii), the governing body may adopt an ordinance
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imposing or increasing a transportation utility fee at the same meeting in which
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the public body adopts the town budget.
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(ii) The governing body vote on the imposition or increase of a transportation utility
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fee shall be separate from the governing body vote on the town budget or any
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other item.
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(c) The amount of a transportation utility fee for the town's population or for any user
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segment shall be reasonably related to the services provided to, benefits received by,
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or need created by those within the town's population or user segment who pay the
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transportation utility fee, as determined in the study under Subsection (4).
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(d)(i) Revenue from a transportation utility fee may not supplant existing general
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fund appropriations that the town has budgeted for transportation facilities as of
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the date the transportation utility fee becomes effective.
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(ii) The limitation under Subsection (6)(d)(i) does not apply to a designated
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transportation facilities capital or reserve account established before the effective
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date of a transportation utility fee under this section.
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(7)(a) A town shall establish different rates within a transportation utility fee for
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different classifications of users of a transportation facility if the rates and
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classifications have a reasonable basis.
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(b)(i) A reasonable basis under Subsection (7)(a) may include:
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(A) different levels of benefit received by users of a transportation utility fee;
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(B) different impacts on or usage of transportation facilities by those who pay the
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transportation utility fee;
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(C) a difference in the cost of providing a transportation facility to different
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classifications of users;
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(D) a difference in levels of risk to the operation of a transportation facility for
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different classifications of users;
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(E) except as provided in Subsection (7)(b)(iii), differing contributions that
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different classifications of users make, separate from a transportation utility
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fee, to the cost of constructing, maintaining, or operating a transportation
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facility; and
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(F) distinguishable differences in the needs or conditions of different
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classifications of users based on economic, public policy, or other identifiable
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elements.
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(ii) A reasonable basis under Subsection (7)(a) does not include:
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(A) whether a user resides inside or outside the town boundary; or
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(B) a consideration of the age of development within areas with the same zoning
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designation.
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(iii) Subsection (7)(b)(i)(E) may not be construed to result in, or require, a higher fee
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with respect to property owned or operated by a nonprofit organization that:
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(A) is or has been exempt historically from taxes used to pay for transportation
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facilities; or
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(B) owns or operates other properties in the town that are or have been exempt
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from transportation utility fees.
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(c)(i) A town shall exempt property owned by a religious organization from a fee
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established under this section if the property meets the requirements of Section
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10-5-135.
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(ii) An exemption under Subsection (7)(c)(i) is for transportation utility fees only and
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creates no precedent or expectation that a religious organization, or property
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owned by a religious organization, be exempt from other user or utility fees
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imposed by the town.
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(8)(a) A town that imposes a transportation utility fee shall establish a fund as provided
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in this Subsection (8).
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(b) A town shall deposit into the transportation fund all revenue from a transportation
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utility fee.
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(c) A town may not:
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(i) deposit into or commingle with a transportation fund any money from any other
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source; or
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(ii) use money in a transportation fund for any purpose other than to pay for the cost
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of:
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(A) the development or construction of a new transportation facility;
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(B) upgrading or replacing an existing transportation facility;
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(C) the maintenance, operation, or repair of an existing transportation facility; or
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(D) reasonable administrative costs associated with the transportation fund or with
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activities described in Subsections (8)(c)(ii)(A), (B), and (C).
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(d) Notwithstanding any other provision in this chapter, a town may not transfer money
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into a transportation fund to any other fund or to a separate account.
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(9) A town that imposes a transportation utility fee may charge the fee to a user annually or
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monthly.
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(10)(a) A town that imposes a transportation utility fee shall conduct an annual review of
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the transportation utility fee as provided in this Subsection (10) and prepare a written
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report of the annual review.
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(b) In an annual review under Subsection 10, the governing body shall:
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(i) review the balance of the transportation fund;
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(ii) review the current amount of the transportation utility fee;
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(iii) demonstrate that there is still a reasonable relationship between the amount of the
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transportation utility fee and the transportation services provided to, benefits
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received by, or need created by those who pay the fee;
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(iv) consider other possible revenue sources that the town could use for transportation
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facilities instead of a transportation utility fee;
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(v) ensure that Subsection (6)(d) is being complied with; and
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(vi) demonstrate that revenue from the transportation utility fee continues to be
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needed to provide a transportation facility that the town could not otherwise
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provide from other existing revenue sources.
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(c)(i) A town shall submit a copy of the written report under Subsection (10)(a) to the
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state auditor.
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(ii) A town may fulfill the requirement of Subsection (10)(c)(i) by submitting the
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written report as part of the town's annual financial reports submitted to the state
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auditor under Section 10-6-150.
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(11)(a) A transportation utility fee imposed under this section expires 10 years after the
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effective date of the ordinance imposing the transportation utility fee.
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(b) The 10-year period described in Subsection (11)(a) begins again with any subsequent
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adoption of any ordinance imposing a transportation utility fee after the initial
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adoption of an ordinance imposing a transportation utility fee.
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(12) An ordinance imposing a transportation utility fee is subject to local referendum as
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provided in Title 20A, Chapter 7, Part 6, Local Referenda - Procedures.
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(13) A town that, before May 7, 2025, imposes a fee to pay for a transportation facility
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shall, no later than July 1, 2027:
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(a) ensure that requirements of this section have been complied with for the fee that the
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town imposes; or
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(b) repeal the fee.
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Section 4.  Section 10-5-135 is enacted to read:
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10-5-135 . Exempt property owned by a religious organization.
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(1) As used in this section:
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(a) "Transportation utility fee" means the same as that term is defined in Section
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10-6-134.5.
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(b) "Religious organization" means the same as that term is defined in Section
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10-6-134.5.
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(2) A town may not impose or charge a transportation utility fee for a property owned by a
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religious organization if:
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(a) the property is used to:
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(i) hold or carry out religious worship, practices, rites, ceremonies, gatherings, or
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meetings on a regular basis, whether or not such property is used for other
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purposes;
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(ii) administer or oversee directly the operations, activities, or finances, of the
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religious organization;
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(iii) promulgate directly or support the advancement of the beliefs and practices of
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the religious organization; or
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(iv) produce, provide, or distribute welfare or humanitarian aid consistent with the
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tenets of the religious organization; and
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(b) the property is exempt from taxation under Subsection 59-2-1101(1)(d).
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(3) A town may impose and charge a transportation utility fee for a property owned by a
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religious organization if the property is:
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(a) a cemetery;
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(b) held primarily for natural resource purposes, including water, coal, oil, or gas;
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(c) a facility operated primarily for the receipt of second-hand donations and retail sales;
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(d) an agricultural farm leased to a third-party that is not a religious organization;
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(e) a historic property, unless the historic property currently is, or ever has been listed on
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a register of historic places or similar register at the city, county, state, or national
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level;
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(f) a warehouse held primarily for commercial or industrial purposes;
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(g) a motion picture studio;
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(h) a stadium for outdoor athletic events;
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(i) a recreational property held primarily for youth conferences and events;
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(j) a residential development;
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(k) a commercial office building that is primarily leased for investment purposes;
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(l) a home, apartment, or condominium building, unless the home, apartment, or
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condominium building is primarily used as a residence for an ecclesiastical leader,
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officer, manager, or volunteer who is employed, engaged by, or serves the religious
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organization;
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(m) a stand-alone distribution center of religious materials;
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(n) stand-alone central utilities plant; or
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(o) a parcel of vacant, unimproved land.
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Section 5.  Section 10-6-134.3 is enacted to read:
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10-6-134.3 . General fee for public safety service prohibited -- Exception.
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(1) As used in this section:
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(a)(i) "General fee" means a fee imposed generally on the public at large or on a
331 
segment of the public.
332 
(ii) "General fee" does not include:
333 
(A) a fee that a city charges an identifiable user of a city-provided service or a city
334 
facility to cover the city's cost of the user's use of the service or facility; or
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(B) a registration or similar fee that a city charges a participant in an activity or
336 
program sponsored by the city to offset the city's administrative cost of
337 
sponsoring the activity or program.
338 
(b) "Public safety service" means law enforcement service, fire protection service,
339 
ambulance or paramedic service, or emergency service.
340 
(2) Except as provided in Subsection (3), a city may not impose a general fee for a public
341 
safety service.
342 
(3) A city of the third, fourth, or fifth class may impose a general fee for a public safety
343 
service if:
344 
(a)(i) the fee is imposed before January 1, 2025;
345 
(ii) the fee is to generate revenue to pay for the city's obligation under an agreement
346 
with one or more other political subdivisions for a public safety service provided
347 
to the city; and
348 
(iii) after January 1, 2025, the fee is reauthorized by a vote of the city council at least
349 
every three years; or
350 
(b) the public safety service is volunteer public safety service.
351 
(4) A city that, before May 7, 2025, imposes a general fee for a public safety service that is
352 
prohibited under Subsection (2) shall repeal the general fee no later than July 1, 2027.
353 
Section 6.  Section 10-6-134.5 is enacted to read:
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10-6-134.5 . Transportation utility fee.
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(1) As used in this section:
356 
(a) "Religious organization" means a group, mission, order, convention, church with
357 
nonprofit status, or any organization described in 26 U.S.C. Sec. 6033(a)(3)(A)(i) or
358 
(iii).
359 
(b) "Transportation facility" means any of the items listed in Subsection 59-12-2212.2(1)
360 
as purposes for which revenue from a local option sales and use tax under Section
361 
59-12-2212.2 may be expended.
362 
(c) "Transportation fund" means a fund described in and established under Subsection
363 
(8).
364 
(d) "Transportation utility fee" means a fee imposed to generate revenue to pay for costs
365 
associated with developing, constructing, maintaining, operating, repairing,
366 
upgrading, or replacing a transportation facility.
367 
(e) "User segment" means a segment of the city's population based on a classification
368 
established under Subsection (7).
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(2)(a) A city may impose and collect a transportation utility fee:
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(i) if the city establishes a reasonable relationship between:
371 
(A) the amount of the transportation utility fee; and
372 
(B) the services provided to, the benefits received by, or the need created by those
373 
who pay the transportation utility fee; and
374 
(ii) only as provided in this section.
375 
(b) A city may impose a transportation utility fee to provide funding for any number of
376 
transportation facilities but may not have more than a single transportation utility fee
377 
in effect at a time.
378 
(c)(i) A person's ownership of property within the city may not alone be a basis for
379 
imposing a transportation utility fee on the person.
380 
(ii) The size of a parcel of real property may not alone be a basis for the amount of a
381 
transportation utility fee imposed on the owner of the parcel.
382 
(3) To impose or increase a transportation utility fee, a city shall:
383 
(a) conduct a study as provided in Subsection (4);
384 
(b) follow the process described in Subsection (5); and
385 
(c) adopt an ordinance imposing or increasing a transportation utility fee, as provided in
386 
Subsection (6).
387 
(4)(a) A city may not impose or increase a transportation utility fee unless the city first
388 
conducts a study as described in this Subsection (4).
389 
(b) A study under Subsection (4)(a) shall:
390 
(i) determine and provide a reasonable estimate of the need for a new transportation
391 
facility or for maintaining, operating, repairing, upgrading, or replacing an
392 
existing transportation facility;
393 
(ii) identify and provide a reasonable estimate of existing funding sources that could
394 
be used to pay for a new transportation facility or for maintaining, operating,
395 
repairing, upgrading, or replacing an existing transportation facility;
396 
(iii) explain and provide a reasonable calculation showing how existing city funding
397 
sources are inadequate to cover the cost of constructing a new transportation
398 
facility or maintaining, operating, repairing, upgrading, or replacing an existing
399 
transportation facility;
400 
(iv) determine whether the proposed transportation utility fee is reasonably related to:
401 
(A) the services provided to those who pay the transportation utility fee;
402 
(B) the benefits received by persons who pay the transportation utility fee; or
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(C) the need created by those who pay the transportation utility fee;
404 
(v) explain the reasonable relationship determined under Subsection (4)(a)(iv); and
405 
(vi) determine whether there is a reasonable basis for different rates within a
406 
proposed transportation utility fee based on different levels of services provided
407 
to, benefit received by, or need created by those who pay the transportation utility
408 
fee, as described in Subsection (7), and, if so, explain the basis for the proposed
409 
different rates.
410 
(c) A city that conducts a study under Subsection (4)(a) shall post a copy of the study on
411 
the city's website, if the city has a website.
412 
(5)(a) Subject to Subsection (5)(b), before adopting an ordinance imposing or increasing
413 
a transportation utility fee, the governing body shall comply with the notice and
414 
public hearing requirements established in Sections 10-6-113 and 10-6-114.
415 
(b)(i) The governing body of a city that proposes to impose or increase a
416 
transportation utility fee shall, in addition to the notice required under Section
417 
10-6-113, provide notice of the proposed fee and the public hearing:
418 
(A) in a notice with the city's monthly utility bill, if the city mails or emails
419 
residents a monthly utility bill; or
420 
(B) through another primary means of communicating with residents, if the city
421 
does not provide residents a monthly utility bill.
422 
(ii) The public hearing required for a proposal to impose or increase a transportation
423 
utility fee may be held in conjunction with a budget hearing under Section
424 
10-6-114 but shall be separate and distinct from the budget hearing.
425 
(6)(a) A transportation utility fee may be imposed or increased only by an ordinance
426 
adopted by the city's governing body.
427 
(b)(i) Subject to Subsection (6)(b)(ii), the governing body may adopt an ordinance
428 
imposing or increasing a transportation utility fee at the same meeting in which
429 
the public body adopts the city budget.
430 
(ii) The governing body vote on the imposition or increase of a transportation utility
431 
fee shall be separate from the governing body vote on the city budget or any other
432 
item.
433 
(c) The amount of a transportation utility fee for the city's population or for any user
434 
segment shall be reasonably related to the services provided to, benefits received by,
435 
or need created by those within the city's population or user segment who pay the
436 
transportation utility fee, as determined in the study under Subsection (4).
- 13 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
437 
(d)(i) Revenue from a transportation utility fee may not supplant existing general
438 
fund appropriations that the city has budgeted for transportation facilities as of the
439 
date the transportation utility fee becomes effective.
440 
(ii) The limitation under Subsection (6)(d)(i) does not apply to a designated
441 
transportation facilities capital or reserve account established before the effective
442 
date of a transportation utility fee under this section.
443 
(7)(a) A city shall establish different rates within a transportation utility fee for different
444 
classifications of users of a transportation facility if the rates and classifications have
445 
a reasonable basis.
446 
(b)(i) A reasonable basis under Subsection (7)(a) may include:
447 
(A) different levels of benefit received by users of a transportation utility fee;
448 
(B) different impacts on or usage of transportation facilities by those who pay the
449 
transportation utility fee;
450 
(C) a difference in the cost of providing a transportation facility to different
451 
classifications of users;
452 
(D) a difference in levels of risk to the operation of a transportation facility for
453 
different classifications of users;
454 
(E) except as provided in Subsection (7)(b)(iii), differing contributions that
455 
different classifications of users make, separate from a transportation utility
456 
fee, to the cost of constructing, maintaining, or operating a transportation
457 
facility; and
458 
(F) distinguishable differences in the needs or conditions of different
459 
classifications of users based on economic, public policy, or other identifiable
460 
elements.
461 
(ii) A reasonable basis under Subsection (7)(a) does not include:
462 
(A) whether a user resides inside or outside the city boundary; or
463 
(B) a consideration of the age of development within areas with the same zoning
464 
designation.
465 
(iii) Subsection (7)(b)(i)(E) may not be construed to result in, or require, a higher fee
466 
with respect to property owned or operated by a nonprofit organization that:
467 
(A) is or has been exempt historically from taxes used to pay for transportation
468 
facilities; or
469 
(B) owns or operates other properties in the city that are or have been exempt
470 
from transportation utility fees.
- 14 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
471 
(c)(i) A city shall exempt property owned by a religious organization from a fee
472 
established under this section if the property meets the requirements of Section
473 
10-6-143.6.
474 
(ii) An exemption under Subsection (7)(c)(i) is for transportation utility fees only and
475 
creates no precedent or expectation that a religious organization, or property
476 
owned by a religious organization, be exempt from other user or utility fees
477 
imposed by the city.
478 
(8)(a) A city that imposes a transportation utility fee shall establish a fund as provided in
479 
this Subsection (8).
480 
(b) A city shall deposit into the transportation fund all revenue from a transportation
481 
utility fee.
482 
(c) A city may not:
483 
(i) deposit into or commingle with a transportation fund any money from any other
484 
source; or
485 
(ii) use money in a transportation fund for any purpose other than to pay for the cost
486 
of:
487 
(A) the development or construction of a new transportation facility;
488 
(B) upgrading or replacing an existing transportation facility;
489 
(C) the maintenance, operation, or repair of an existing transportation facility; or
490 
(D) reasonable administrative costs associated with the transportation fund or with
491 
activities described in Subsections (8)(c)(ii)(A), (B), and (C).
492 
(d) Notwithstanding Sections 10-6-124, 10-6-125, and 10-6-135.5, a city may not
493 
transfer money into a transportation fund to any other fund or to a separate account.
494 
(9) A city that imposes a transportation utility fee may charge the fee to a user annually or
495 
monthly.
496 
(10)(a) A city that imposes a transportation utility fee shall conduct an annual review of
497 
the transportation utility fee as provided in this Subsection (10) and prepare a written
498 
report of the annual review.
499 
(b) In an annual review under Subsection (10), the governing body shall:
500 
(i) review the balance of the transportation fund;
501 
(ii) review the current amount of the transportation utility fee;
502 
(iii) demonstrate that there is still a reasonable relationship between the amount of the
503 
transportation utility fee and the transportation services provided to, benefits
504 
received by, or need created by those who pay the fee;
- 15 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
505 
(iv) consider other possible revenue sources that the city could use for transportation
506 
facilities instead of a transportation utility fee;
507 
(v) ensure that Subsection (6)(d) is being complied with; and
508 
(vi) demonstrate that revenue from the transportation utility fee continues to be
509 
needed to provide a transportation facility that the city could not otherwise
510 
provide from other existing revenue sources.
511 
(c)(i) A city shall submit a copy of the written report under Subsection (10)(a) to the
512 
state auditor.
513 
(ii) A city may fulfill the requirement of Subsection (10)(c)(i) by submitting the
514 
written report as part of the city's annual financial reports submitted to the state
515 
auditor under Section 10-6-150.
516 
(11)(a) A transportation utility fee imposed under this section expires 10 years after the
517 
effective date of the ordinance imposing the transportation utility fee.
518 
(b) The 10-year period described in Subsection (11)(a) begins again with any subsequent
519 
adoption of any ordinance imposing a transportation utility fee after the initial
520 
adoption of an ordinance imposing a transportation utility fee.
521 
(12) An ordinance imposing a transportation utility fee is subject to local referendum as
522 
provided in Title 20A, Chapter 7, Part 6, Local Referenda - Procedures.
523 
(13) A city that, before May 7, 2025, imposes a fee to pay for a transportation facility shall,
524 
no later than July 1, 2027:
525 
(a) ensure that requirements of this section have been complied with for the fee that the
526 
city imposes; or
527 
(b) repeal the fee.
528 
Section 7.  Section 10-6-134.6 is enacted to read:
529 
10-6-134.6 . Exempt property owned by a religious organization.
530 
(1) As used in this section:
531 
(a) "Transportation utility fee" means the same as that term is defined in Section
532 
10-6-134.5.
533 
(b) "Religious organization" means the same as that term is defined in Section
534 
10-6-134.5.
535 
(2) A city may not impose or charge a transportation utility fee for a property owned by a
536 
religious organization if:
537 
(a) the property is used to:
538 
(i) hold or carry out religious worship, practices, rites, ceremonies, gatherings, or
- 16 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
539 
meetings on a regular basis, whether or not such property is used for other
540 
purposes;
541 
(ii) administer or oversee directly the operations, activities, or finances, of the
542 
religious organization;
543 
(iii) promulgate directly or support the advancement of the beliefs and practices of
544 
the religious organization; or
545 
(iv) produce, provide, or distribute welfare or humanitarian aid consistent with the
546 
tenets of the religious organization; and
547 
(b) the property is exempt from taxation under Subsection 59-2-1101(1)(d).
548 
(3) A city may impose and charge a transportation utility fee for a property owned by a
549 
religious organization if the property is:
550 
(a) a cemetery;
551 
(b) held primarily for natural resource purposes, including water, coal, oil, or gas;
552 
(c) a facility operated primarily for the receipt of second-hand donations and retail sales;
553 
(d) an agricultural farm leased to a third-party that is not a religious organization;
554 
(e) a historic property, unless the historic property currently is, or ever has been listed on
555 
a register of historic places or similar register at the city, county, state, or national
556 
level;
557 
(f) a warehouse held primarily for commercial or industrial purposes;
558 
(g) a motion picture studio;
559 
(h) a stadium for outdoor athletic events;
560 
(i) a recreational property held primarily for youth conferences and events;
561 
(j) a residential development;
562 
(k) a commercial office building that is primarily leased for investment purposes;
563 
(l) a home, apartment, or condominium building, unless the home, apartment, or
564 
condominium building is primarily used as a residence for an ecclesiastical leader,
565 
officer, manager, or volunteer who is employed, engaged by, or serves the religious
566 
organization;
567 
(m) a stand-alone distribution center of religious materials;
568 
(n) stand-alone central utilities plant; or
569 
(o) a parcel of vacant, unimproved land.
570 
Section 8.  Section 17-36-56 is enacted to read:
571 
17-36-56 . Transportation utility fee.
572 
(1) As used in this section:
- 17 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
573 
(a) "Religious organization" means the same as that term is defined in Section 10-6-134.5.
574 
(b) "Transportation facility" means any of the items listed in Subsection 59-12-2212.2(1)
575 
as purposes for which revenue from a local option sales and use tax under Section
576 
59-12-2212.2 may be expended.
577 
(c) "Transportation fund" means a fund described in and established under Subsection
578 
(8).
579 
(d) "Transportation utility fee" means a fee imposed to generate revenue to pay for costs
580 
associated with developing, constructing, maintaining, operating, repairing,
581 
upgrading, or replacing a transportation facility owned and operated by a county.
582 
(e) "User segment" means a segment of the county's population, or a segment of the
583 
county's industrial or commercial operations, based on a classification established
584 
under Subsection (7).
585 
(2)(a) A county may impose and collect a transportation utility fee:
586 
(i) if the county establishes a reasonable relationship between:
587 
(A) the amount of the transportation utility fee; and
588 
(B) the services provided to, the benefits received by, or the need created by those
589 
who pay the transportation utility fee; and
590 
(ii) only as provided in this section.
591 
(b) A county may impose a transportation utility fee to provide funding for any number
592 
of transportation facilities but may not have more than a single transportation utility
593 
fee in effect at a time.
594 
(c)(i) A person's ownership of property on unincorporated county land may not alone
595 
be a basis for imposing a transportation utility fee on the person.
596 
(ii) The size of a parcel of real property may not alone be a basis for the amount of a
597 
transportation utility fee imposed on the owner of the parcel.
598 
(3) To impose or increase a transportation utility fee, a county shall:
599 
(a) conduct a study as provided in Subsection (4);
600 
(b) follow the process described in Subsection (5); and
601 
(c) adopt an ordinance imposing or increasing a transportation utility fee, as provided in
602 
Subsection (6).
603 
(4)(a) A county may not impose or increase a transportation utility fee unless the county
604 
first conducts a study as described in this Subsection (4).
605 
(b) A study under Subsection (4)(a) shall:
606 
(i) determine and provide a reasonable estimate of the need for a new transportation
- 18 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
607 
facility or for maintaining, operating, repairing, upgrading, or replacing an
608 
existing transportation facility;
609 
(ii) identify and provide a reasonable estimate of existing funding sources that could
610 
be used to pay for a new transportation facility or for maintaining, operating,
611 
repairing, upgrading, or replacing an existing transportation facility;
612 
(iii) explain and provide a reasonable calculation showing how existing county
613 
funding sources are inadequate to cover the cost of constructing a new
614 
transportation facility or maintaining, operating, repairing, upgrading, or replacing
615 
an existing transportation facility;
616 
(iv) determine whether the proposed transportation utility fee is reasonably related to:
617 
(A) the services provided to those who pay the transportation utility fee;
618 
(B) the benefits received by persons who pay the transportation utility fee; or
619 
(C) the need created by those who pay the transportation utility fee;
620 
(v) explain the reasonable relationship determined under Subsection (4)(a)(iv); and
621 
(vi) determine whether there is a reasonable basis for different rates within a
622 
proposed transportation utility fee based on different levels of services provided
623 
to, benefits received by, or need created by those who pay the transportation
624 
utility fee, as described in Subsection (7), and, if so, explain the basis for the
625 
proposed different rates.
626 
(c) A county that conducts a study under Subsection (4)(a) shall post a copy of the study
627 
on the county's website, if the county has a website.
628 
(5)(a) Subject to Subsection (5)(b), before adopting an ordinance imposing or increasing
629 
a transportation utility fee, the governing body shall comply with the notice and
630 
public hearing requirements established in Sections 17-36-11 through 17-36-13.
631 
(b)(i) The governing body of a county that proposes to impose or increase a
632 
transportation utility fee shall, in addition to the notice required under Section
633 
17-36-12, provide notice of the proposed fee and the public hearing:
634 
(A) in a notice with the county's monthly utility bill, if the county mails or emails
635 
residents a monthly utility bill; or
636 
(B) through another primary means of communicating, if the county does not
637 
provide residents a monthly utility bill.
638 
(ii) The public hearing required for a proposal to impose or increase a transportation
639 
utility fee may be held in conjunction with a budget hearing under Section
640 
17-36-13 but shall be separate and distinct from the budget hearing.
- 19 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
641 
(6)(a) A transportation utility fee may be imposed or increased only by an ordinance
642 
adopted by the county's governing body.
643 
(b)(i) Subject to Subsection (6)(b)(ii), the governing body may adopt an ordinance
644 
imposing or increasing a transportation utility fee at the same meeting in which
645 
the public body adopts the county budget.
646 
(ii) The governing body vote on the imposition or increase of a transportation utility
647 
fee shall be separate from the governing body vote on the county budget or any
648 
other item.
649 
(c) The amount of a transportation utility fee for any user segment shall be reasonably
650 
related to the services provided to, benefits received by, or need created by the user
651 
segment that pays the transportation utility fee, as determined in the study under
652 
Subsection (4).
653 
(d)(i) Revenue from a transportation utility fee may not supplant existing general
654 
fund appropriations that the county has budgeted for transportation facilities as of
655 
the date the transportation utility fee becomes effective.
656 
(ii) The limitation under Subsection (6)(d)(i) does not apply to a designated
657 
transportation facilities capital or reserve account established before the effective
658 
date of a transportation utility fee under this section.
659 
(7)(a) A county shall establish different rates within a transportation utility fee for
660 
different classifications of users of a transportation facility if the rates and
661 
classifications have a reasonable basis.
662 
(b) The different types of classifications of users of a transportation facility under
663 
Subsection (7)(a) shall include, at a minimum:
664 
(i) residential users;
665 
(ii) commercial users;
666 
(iii) agricultural users; and
667 
(iv) industrial users.
668 
(c)(i) A reasonable basis under Subsection (7)(a) may include:
669 
(A) different levels of benefit received by users of a transportation utility fee;
670 
(B) different impacts on or usage of transportation facilities by those who pay the
671 
transportation utility fee;
672 
(C) a difference in the cost of providing a transportation facility to different
673 
classifications of users;
674 
(D) a difference in levels of risk to the operation of a transportation facility for
- 20 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
675 
different classifications of users;
676 
(E) except as provided in Subsection (7)(c)(iii), differing contributions that
677 
different classifications of users make, separate from a transportation utility
678 
fee, to the cost of constructing, maintaining, or operating a transportation
679 
facility; and
680 
(F) distinguishable differences in the needs or conditions of different
681 
classifications of users based on economic, public policy, or other identifiable
682 
elements.
683 
(ii) A reasonable basis under Subsection (7)(a) does not include:
684 
(A) whether a user resides inside or outside the county boundary or on
685 
unincorporated land; or
686 
(B) a consideration of the age of development within areas with the same zoning
687 
designation.
688 
(iii) Subsection (7)(c)(i)(E) may not be construed to result in, or require, a higher fee
689 
with respect to property owned or operated by a nonprofit organization that:
690 
(A) is or has been exempt historically from taxes used to pay for transportation
691 
facilities; or
692 
(B) owns or operates other properties in the county that are or have been exempt
693 
from transportation utility fees.
694 
(d)(i) A county shall exempt property owned by a religious organization from a fee
695 
established under this section if the property meets the requirements of Section
696 
17-36-57.
697 
(ii) An exemption under Subsection (7)(d)(i) is for transportation utility fees only and
698 
creates no precedent or expectation that a religious organization, or property
699 
owned by a religious organization, be exempt from other user or utility fees
700 
imposed by the county.
701 
(8)(a) A county that imposes a transportation utility fee shall establish a fund as
702 
provided in this Subsection (8).
703 
(b) A county shall deposit into the transportation fund all revenue from a transportation
704 
utility fee.
705 
(c) A county may not:
706 
(i) deposit into or commingle with a transportation fund any money from any other
707 
source; or
708 
(ii) use money in a transportation fund for any purpose other than to pay for the cost
- 21 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
709 
of:
710 
(A) the development or construction of a new transportation facility;
711 
(B) upgrading or replacing an existing transportation facility;
712 
(C) the maintenance, operation, or repair of an existing transportation facility; or
713 
(D) reasonable administrative costs associated with the transportation fund or with
714 
activities described in Subsections (8)(c)(ii)(A), (B), and (C).
715 
(d) Notwithstanding any other provision of this chapter, a county may not transfer
716 
money into a transportation fund to any other fund or to a separate account.
717 
(9) A county that imposes a transportation utility fee may charge the fee to a user annually
718 
or monthly.
719 
(10)(a) A county that imposes a transportation utility fee shall conduct an annual review
720 
of the transportation utility fee as provided in this Subsection (10) and prepare a
721 
written report of the annual review.
722 
(b) In an annual review under Subsection (10)(a), the governing body shall:
723 
(i) review the balance of the transportation fund;
724 
(ii) review the current amount of the transportation utility fee;
725 
(iii) demonstrate that there is still a reasonable relationship between the amount of the
726 
transportation utility fee and the transportation services provided to, benefits
727 
received by, or need created by those who pay the fee;
728 
(iv) consider other possible revenue sources that the county could use for
729 
transportation facilities instead of a transportation utility fee;
730 
(v) ensure that Subsection (6)(d) is being complied with; and
731 
(vi) demonstrate that revenue from the transportation utility fee continues to be
732 
needed to provide a transportation facility that the county could not otherwise
733 
provide from other existing revenue sources.
734 
(c)(i) A county shall submit a copy of the written report under Subsection (10)(a) to
735 
the state auditor.
736 
(ii) A county may fulfill the requirement of Subsection (10)(c)(i) by submitting the
737 
written report as part of the county's annual financial reports submitted to the state
738 
auditor under Section 10-6-150.
739 
(11)(a) A transportation utility fee imposed under this section expires 10 years after the
740 
effective date of the ordinance imposing the transportation utility fee.
741 
(b) The 10-year period described in Subsection (11)(a) begins again with any subsequent
742 
adoption of any ordinance imposing a transportation utility fee after the initial
- 22 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
743 
adoption of an ordinance imposing a transportation utility fee.
744 
(12) An ordinance imposing a transportation utility fee is subject to local referendum as
745 
provided in Title 20A, Chapter 7, Part 6, Local Referenda - Procedures.
746 
(13) A county that, before May 7, 2025, imposes a fee to pay for a transportation facility
747 
shall, no later than July 1, 2027:
748 
(a) ensure that requirements of this section have been complied with for the fee that the
749 
city imposes; or
750 
(b) repeal the fee.
751 
Section 9.  Section 17-36-57 is enacted to read:
752 
17-36-57 . Exempt property owned by a religious organization.
753 
(1) As used in this section:
754 
(a) "Transportation utility fee" means the same as that term is defined in Section
755 
17-36-56.
756 
(b) "Religious organization" means the same as that term is defined in Section
757 
10-6-134.5.
758 
(2) A county may not impose or charge a transportation utility fee for a property owned by
759 
a religious organization if:
760 
(a) the property is used to:
761 
(i) hold or carry out religious worship, practices, rites, ceremonies, gatherings, or
762 
meetings on a regular basis, whether or not the property is used for other purposes;
763 
(ii) administer or oversee directly the operations, activities, or finances, of the
764 
religious organization;
765 
(iii) promulgate directly or support the advancement of the beliefs and practices of
766 
the religious organization; or
767 
(iv) produce, provide, or distribute welfare or humanitarian aid consistent with the
768 
tenets of the religious organization; and
769 
(b) the property is exempt from taxation under Subsection 59-2-1101(1)(d).
770 
(3) A county may impose and charge a transportation utility fee for a property owned by a
771 
religious organization if the property is:
772 
(a) a cemetery;
773 
(b) held primarily for natural resource purposes, including water, coal, oil, or gas;
774 
(c) a facility operated primarily for the receipt of second-hand donations and retail sales;
775 
(d) an agricultural farm leased to a third-party that is not a religious organization;
776 
(e) a historic property, unless the historic property currently is, or ever has been listed on
- 23 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
777 
a register of historic places or similar register at the city, county, state, or national
778 
level;
779 
(f) a warehouse held primarily for commercial or industrial purposes;
780 
(g) a motion picture studio;
781 
(h) a stadium for outdoor athletic events;
782 
(i) a recreational property held primarily for youth conferences and events;
783 
(j) a residential development;
784 
(k) a commercial office building that is primarily leased for investment purposes;
785 
(l) a home, apartment, or condominium building, unless the home, apartment, or
786 
condominium building is primarily used as a residence for an ecclesiastical leader,
787 
officer, manager, or volunteer who is employed, engaged by, or serves the religious
788 
organization;
789 
(m) a stand-alone distribution center of religious materials;
790 
(n) stand-alone central utilities plant; or
791 
(o) a parcel of vacant, unimproved land.
792 
Section 10.  Section 20A-7-101 is amended to read:
793 
20A-7-101 . Definitions.
794 
      As used in this chapter:
795 
(1) "Approved device" means a device described in Subsection 20A-21-201(4) used to
796 
gather signatures for the electronic initiative process, the electronic referendum process,
797 
or the electronic candidate qualification process.
798 
(2) "Budget officer" means:
799 
(a) for a county, the person designated as finance officer as defined in Section 17-36-3;
800 
(b) for a city, the person designated as budget officer in Subsection 10-6-106(4); or
801 
(c) for a town, the town council.
802 
(3) "Certified" means that the county clerk has acknowledged a signature as being the
803 
signature of a registered voter.
804 
(4) "Circulation" means the process of submitting an initiative petition or a referendum
805 
petition to legal voters for their signature.
806 
(5) "Electronic initiative process" means:
807 
(a) as it relates to a statewide initiative, the process, described in Sections 20A-7-215
808 
and 20A-21-201, for gathering signatures; or
809 
(b) as it relates to a local initiative, the process, described in Sections 20A-7-514 and
810 
20A-21-201, for gathering signatures.
- 24 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
811 
(6) "Electronic referendum process" means:
812 
(a) as it relates to a statewide referendum, the process, described in Sections 20A-7-313
813 
and 20A-21-201, for gathering signatures; or
814 
(b) as it relates to a local referendum, the process, described in Sections 20A-7-614 and
815 
20A-21-201, for gathering signatures.
816 
(7) "Eligible voter" means a legal voter who resides in the jurisdiction of the county, city, or
817 
town that is holding an election on a ballot proposition.
818 
(8) "Final fiscal impact statement" means a financial statement prepared after voters
819 
approve an initiative that contains the information required by Subsection 20A-7-202.5
820 
(2) or 20A-7-502.5(2).
821 
(9) "Initial fiscal impact statement" means a financial statement prepared under Section
822 
20A-7-202.5 after the filing of a statewide initiative application.
823 
(10) "Initial fiscal impact and legal statement" means a financial and legal statement
824 
prepared under Section 20A-7-502.5 or 20A-7-602.5 for a local initiative or a local
825 
referendum.
826 
(11) "Initiative" means a new law proposed for adoption by the public as provided in this
827 
chapter.
828 
(12) "Initiative application" means:
829 
(a) for a statewide initiative, an application described in Subsection 20A-7-202(2) that
830 
includes all the information, statements, documents, and notarized signatures
831 
required under Subsection 20A-7-202(2); or
832 
(b) for a local initiative, an application described in Subsection 20A-7-502(2) that
833 
includes all the information, statements, documents, and notarized signatures
834 
required under Subsection 20A-7-502(2).
835 
(13) "Initiative packet" means a copy of the initiative petition, a copy of the proposed law,
836 
and the signature sheets, all of which have been bound together as a unit.
837 
(14) "Initiative petition":
838 
(a) as it relates to a statewide initiative, using the manual initiative process:
839 
(i) means the form described in Subsection 20A-7-203(2)(a), petitioning for
840 
submission of the initiative to the Legislature or the legal voters; and
841 
(ii) if the initiative proposes a tax increase, includes the statement described in
842 
Subsection 20A-7-203(2)(b);
843 
(b) as it relates to a statewide initiative, using the electronic initiative process:
844 
(i) means the form described in Subsections 20A-7-215(2) and (3), petitioning for
- 25 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
845 
submission of the initiative to the Legislature or the legal voters; and
846 
(ii) if the initiative proposes a tax increase, includes the statement described in
847 
Subsection 20A-7-215(5)(b);
848 
(c) as it relates to a local initiative, using the manual initiative process:
849 
(i) means the form described in Subsection 20A-7-503(2)(a), petitioning for
850 
submission of the initiative to the legislative body or the legal voters; and
851 
(ii) if the initiative proposes a tax increase, includes the statement described in
852 
Subsection 20A-7-503(2)(b); or
853 
(d) as it relates to a local initiative, using the electronic initiative process:
854 
(i) means the form described in Subsection 20A-7-514(2)(a), petitioning for
855 
submission of the initiative to the legislative body or the legal voters; and
856 
(ii) if the initiative proposes a tax increase, includes the statement described in
857 
Subsection 20A-7-514(4)(a).
858 
(15)(a) "Land use law" means a law of general applicability, enacted based on the
859 
weighing of broad, competing policy considerations, that relates to the use of land,
860 
including land use regulation, a general plan, a land use development code, an
861 
annexation ordinance, the rezoning of a single property or multiple properties, or a
862 
comprehensive zoning ordinance or resolution.
863 
(b) "Land use law" does not include a land use decision, as defined in Section 10-9a-103
864 
or 17-27a-103.
865 
(16) "Legal signatures" means the number of signatures of legal voters that:
866 
(a) meet the numerical requirements of this chapter; and
867 
(b) have been obtained, certified, and verified as provided in this chapter.
868 
(17) "Legal voter" means an individual who is registered to vote in Utah.
869 
(18) "Legally referable to voters" means:
870 
(a) for a proposed local initiative, that the proposed local initiative is legally referable to
871 
voters under Section 20A-7-502.7; or
872 
(b) for a proposed local referendum, that the proposed local referendum is legally
873 
referable to voters under Section 20A-7-602.7.
874 
(19) "Local attorney" means the county attorney, city attorney, or town attorney in whose
875 
jurisdiction a local initiative or referendum petition is circulated.
876 
(20) "Local clerk" means the county clerk, city recorder, or town clerk in whose jurisdiction
877 
a local initiative or referendum petition is circulated.
878 
(21) "Local fiscal law" means a local transportation fee law.
- 26 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
879 
[(21)] (22)(a) "Local law" includes:
880 
(i) an ordinance;
881 
(ii) a resolution;
882 
(iii) a land use law;
883 
(iv) a land use regulation, as defined in Section 10-9a-103; or
884 
(v) other legislative action of a local legislative body.
885 
(b) "Local law" does not include a land use decision, as defined in Section 10-9a-103.
886 
[(22)] (23) "Local legislative body" means the legislative body of a county, city, or town.
887 
[(23)] (24) "Local obligation law" means a local law passed by the local legislative body
888 
regarding a bond that was approved by a majority of qualified voters in an election.
889 
[(24)] (25) "Local tax law" means a law, passed by a political subdivision with an annual or
890 
biannual calendar fiscal year, that increases a tax or imposes a new tax.
891 
(26) "Local transportation fee law" means an ordinance adopted under Section 10-5-134,
892 
10-6-134.5 or 17-36-56, imposing or increasing a transportation utility fee.
893 
[(25)] (27) "Manual initiative process" means the process for gathering signatures for an
894 
initiative using paper signature packets that a signer physically signs.
895 
[(26)] (28) "Manual referendum process" means the process for gathering signatures for a
896 
referendum using paper signature packets that a signer physically signs.
897 
[(27)] (29)(a) "Measure" means a proposed constitutional amendment, an initiative, or
898 
referendum.
899 
(b) "Measure" does not include a ballot proposition for the creation of a new school
900 
district under Section 53G-3-301.1, 53G-3-301.3, or 53G-3-301.4.
901 
[(28)] (30) "Presiding officers" means the president of the Senate and the speaker of the
902 
House of Representatives.
903 
[(29)] (31) "Referendum" means a process by which a law passed by the Legislature or by a
904 
local legislative body is submitted or referred to the voters for their approval or rejection.
905 
[(30)] (32) "Referendum application" means:
906 
(a) for a statewide referendum, an application described in Subsection 20A-7-302(2) that
907 
includes all the information, statements, documents, and notarized signatures
908 
required under Subsection 20A-7-302(2); or
909 
(b) for a local referendum, an application described in Subsection 20A-7-602(2) that
910 
includes all the information, statements, documents, and notarized signatures
911 
required under Subsection 20A-7-602(2).
912 
[(31)] (33) "Referendum packet" means a copy of the referendum petition, a copy of the law
- 27 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
913 
being submitted or referred to the voters for their approval or rejection, and the signature
914 
sheets, all of which have been bound together as a unit.
915 
[(32)] (34) "Referendum petition" means:
916 
(a) as it relates to a statewide referendum, using the manual referendum process, the
917 
form described in Subsection 20A-7-303(2)(a), petitioning for submission of a law
918 
passed by the Legislature to legal voters for their approval or rejection;
919 
(b) as it relates to a statewide referendum, using the electronic referendum process, the
920 
form described in Subsection 20A-7-313(2), petitioning for submission of a law
921 
passed by the Legislature to legal voters for their approval or rejection;
922 
(c) as it relates to a local referendum, using the manual referendum process, the form
923 
described in Subsection 20A-7-603(2)(a), petitioning for submission of a local law to
924 
legal voters for their approval or rejection; or
925 
(d) as it relates to a local referendum, using the electronic referendum process, the form
926 
described in Subsection 20A-7-614(2), petitioning for submission of a local law to
927 
legal voters for their approval or rejection.
928 
[(33)] (35) "Signature":
929 
(a) for a statewide initiative:
930 
(i) as it relates to the electronic initiative process, means an electronic signature
931 
collected under Section 20A-7-215 and Subsection 20A-21-201(6)(c); or
932 
(ii) as it relates to the manual initiative process:
933 
(A) means a holographic signature collected physically on a signature sheet
934 
described in Section 20A-7-203;
935 
(B) as it relates to an individual who, due to a qualifying disability under the
936 
Americans with Disabilities Act, is unable to fill out the signature sheet or to
937 
sign the voter's name consistently, the initials "AV," indicating that the voter's
938 
identity will be verified by an alternate verification process described in
939 
Section 20A-7-106; and
940 
(C) does not include an electronic signature;
941 
(b) for a statewide referendum:
942 
(i) as it relates to the electronic referendum process, means an electronic signature
943 
collected under Section 20A-7-313 and Subsection 20A-21-201(6)(c); or
944 
(ii) as it relates to the manual referendum process:
945 
(A) means a holographic signature collected physically on a signature sheet
946 
described in Section 20A-7-303;
- 28 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
947 
(B) as it relates to an individual who, due to a qualifying disability under the
948 
Americans with Disabilities Act, is unable to fill out the signature sheet or to
949 
sign the voter's name consistently, the initials "AV," indicating that the voter's
950 
identity will be verified by an alternate verification process described in
951 
Section 20A-7-106; and
952 
(C) does not include an electronic signature;
953 
(c) for a local initiative:
954 
(i) as it relates to the electronic initiative process, means an electronic signature
955 
collected under Section 20A-7-514 and Subsection 20A-21-201(6)(c); or
956 
(ii) as it relates to the manual initiative process:
957 
(A) means a holographic signature collected physically on a signature sheet
958 
described in Section 20A-7-503;
959 
(B) as it relates to an individual who, due to a qualifying disability under the
960 
Americans with Disabilities Act, is unable to fill out the signature sheet or to
961 
sign the voter's name consistently, the initials "AV," indicating that the voter's
962 
identity will be verified by an alternate verification process described in
963 
Section 20A-7-106; and
964 
(C) does not include an electronic signature; or
965 
(d) for a local referendum:
966 
(i) as it relates to the electronic referendum process, means an electronic signature
967 
collected under Section 20A-7-614 and Subsection 20A-21-201(6)(c); or
968 
(ii) as it relates to the manual referendum process:
969 
(A) means a holographic signature collected physically on a signature sheet
970 
described in Section 20A-7-603;
971 
(B) as it relates to an individual who, due to a qualifying disability under the
972 
Americans with Disabilities Act, is unable to fill out the signature sheet or to
973 
sign the voter's name consistently, the initials "AV," indicating that the voter's
974 
identity will be verified by an alternate verification process described in
975 
Section 20A-7-106; and
976 
(C) does not include an electronic signature.
977 
[(34)] (36) "Signature sheets" means sheets in the form required by this chapter that are used
978 
under the manual initiative process or the manual referendum process to collect
979 
signatures in support of an initiative or referendum.
980 
[(35)] (37) "Special local ballot proposition" means a local ballot proposition that is not a
- 29 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
981 
standard local ballot proposition.
982 
[(36)] (38) "Sponsors" means the legal voters who support the initiative or referendum and
983 
who sign the initiative application or referendum application.
984 
[(37)] (39)(a) "Standard local ballot proposition" means a local ballot proposition for an
985 
initiative or a referendum.
986 
(b) "Standard local ballot proposition" does not include:
987 
(i) a property tax referendum described in Section 20A-7-613[.] ; or
988 
(ii) a local fiscal law referendum described in Section 20A-7-613.1.
989 
[(38)] (40) "Tax percentage difference" means the difference between the tax rate proposed
990 
by an initiative or an initiative petition and the current tax rate.
991 
[(39)] (41) "Tax percentage increase" means a number calculated by dividing the tax
992 
percentage difference by the current tax rate and rounding the result to the nearest
993 
thousandth.
994 
[(40)] (42) "Verified" means acknowledged by the person circulating the petition as required
995 
in Section 20A-7-105.
996 
Section 11.  Section 20A-7-607 is amended to read:
997 
20A-7-607 . Evaluation by the local clerk -- Determination of election for vote on
998 
referendum.
999 
(1) In relation to the manual referendum process, when the local clerk receives a
1000 
referendum packet from a county clerk, the local clerk shall record the number of the
1001 
referendum packet received.
1002 
(2) The county clerk shall:
1003 
(a) in relation to the manual referendum process:
1004 
(i) post the names, voter identification numbers, and dates of signatures described in
1005 
Subsection 20A-7-105(6)(a)(iii) on the lieutenant governor's website, in a
1006 
conspicuous location designated by the lieutenant governor, for at least 45 days;
1007 
and
1008 
(ii) update on the local clerk's website the number of signatures certified as of the
1009 
date of the update; or
1010 
(b) in relation to the electronic referendum process:
1011 
(i) post the names, voter identification numbers, and dates of signatures described in
1012 
Subsection 20A-7-616(3) on the lieutenant governor's website, in a conspicuous
1013 
location designated by the lieutenant governor, for at least 45 days; and
1014 
(ii) update on the lieutenant governor's website the number of signatures certified as
- 30 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
1015 
of the date of the update.
1016 
(3) The local clerk:
1017 
(a) shall, except as provided in Subsection (3)(b), declare the referendum petition to be
1018 
sufficient or insufficient:
1019 
(i) in relation to the manual referendum process, no later than 111 days after the day
1020 
of the deadline, described in Subsection 20A-7-105(5)(a)(iv), to submit a
1021 
referendum packet to the county clerk; or
1022 
(ii) in relation to the electronic referendum process, no later than 111 days after the
1023 
day of the deadline, described in Subsection 20A-7-616(2), to collect a signature;
1024 
or
1025 
(b) may declare the referendum petition to be insufficient before the day described in
1026 
Subsection (3)(a) if:
1027 
(i) in relation to the manual referendum process, the total of all valid signatures on
1028 
timely and lawfully submitted referendum packets that have been certified by the
1029 
county clerk, plus the number of signatures on timely and lawfully submitted
1030 
referendum packets that have not yet been evaluated for certification, is less than
1031 
the number of names required under Section 20A-7-601;
1032 
(ii) in relation to the electronic referendum process, the total of all timely and
1033 
lawfully submitted valid signatures that have been certified by the county clerks,
1034 
plus the number of timely and lawfully submitted valid signatures received under
1035 
Subsection 20A-21-201(6)(b) that have not yet been evaluated for certification, is
1036 
less than the number of names required under Section 20A-7-601; or
1037 
(iii) a requirement of this part has not been met.
1038 
(4)(a) If the total number of names certified under Subsection (3) equals or exceeds the
1039 
number of names required under Section 20A-7-601, and the requirements of this
1040 
part are met, the local clerk shall mark upon the front of the referendum petition the
1041 
word "sufficient."
1042 
(b) If the total number of names certified under Subsection (3) does not equal or exceed
1043 
the number of names required under Section 20A-7-601 or a requirement of this part
1044 
is not met, the local clerk shall mark upon the front of the referendum petition the
1045 
word "insufficient."
1046 
(c) The local clerk shall immediately notify any one of the sponsors of the local clerk's
1047 
finding.
1048 
(d) After a referendum petition is declared insufficient, a person may not submit
- 31 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
1049 
additional signatures to qualify the referendum for the ballot.
1050 
(5)(a) If the local clerk refuses to declare a referendum petition sufficient, any voter
1051 
may, no later than 10 days after the day on which the local clerk declares the
1052 
referendum petition insufficient, apply to the appropriate court for an order finding
1053 
the referendum petition legally sufficient.
1054 
(b) If the court determines that the referendum petition is legally sufficient, the local
1055 
clerk shall mark the referendum petition "sufficient" and consider the declaration of
1056 
sufficiency effective as of the date on which the referendum petition should have
1057 
been declared sufficient by the local clerk's office.
1058 
(c) If the court determines that a referendum petition filed is not legally sufficient, the
1059 
court may enjoin the local clerk and all other officers from:
1060 
(i) certifying or printing the ballot title and numbers of that referendum on the official
1061 
ballot for the next election; or
1062 
(ii) as it relates to a local tax law or a local fiscal law that is conducted entirely by
1063 
mail, certifying, printing, or mailing the ballot title and numbers of that
1064 
referendum under Section 20A-7-609.5.
1065 
(6) A referendum petition determined to be sufficient in accordance with this section is
1066 
qualified for the ballot.
1067 
(7)(a) Except as provided in Subsection (7)(b) or (c), if a referendum relates to
1068 
legislative action taken after April 15, the election officer may not place the
1069 
referendum on an election ballot until a primary election, a general election, or a
1070 
special election the following year.
1071 
(b) The election officer may place a referendum described in Subsection (7)(a) on the
1072 
ballot for a special, primary, or general election held during the year that the
1073 
legislative action was taken if the following agree, in writing, on a timeline to place
1074 
the referendum on that ballot:
1075 
(i) the local clerk;
1076 
(ii) the county clerk; and
1077 
(iii) the attorney for the county or municipality that took the legislative action.
1078 
(c) For a referendum on a land use law, if, before August 30, the local clerk or a court
1079 
determines that the total number of certified names equals or exceeds the number of
1080 
signatures required in Section 20A-7-601, the election officer shall place the
1081 
referendum on the election ballot for:
1082 
(i) the next general election; or
- 32 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
1083 
(ii) another election, if the following agree, in writing, on a timeline to place the
1084 
referendum on that ballot:
1085 
(A) the affected owners, as defined in Section 10-9a-103 or 17-27a-103, as
1086 
applicable;
1087 
(B) the local clerk;
1088 
(C) the county clerk; and
1089 
(D) the attorney for the county or municipality that took the legislative action.
1090 
Section 12.  Section 20A-7-609.5 is amended to read:
1091 
20A-7-609.5 . Election on referendum challenging local tax law or local fiscal law
1092 
conducted entirely by mail.
1093 
(1) An election officer may administer an election on a referendum challenging a local tax
1094 
law or local fiscal law entirely by mail.
1095 
(2) For purposes of an election conducted under this section, the election officer shall:
1096 
(a) designate as the election day the day that is 30 days after the day on which the
1097 
election officer complies with Subsection (2)(b); and
1098 
(b) within 30 days after the day on which the referendum described in Subsection (1)
1099 
qualifies for the ballot, mail to each registered voter within the voting precincts to
1100 
which the local tax law or local fiscal law applies:
1101 
(i) a manual ballot;
1102 
(ii) a statement that there will be no polling place for the election;
1103 
(iii) a statement specifying the election day described in Subsection (2)(a);
1104 
(iv) a business reply mail envelope;
1105 
(v) instructions for returning the ballot that include an express notice about any
1106 
relevant deadlines that the voter must meet in order for the voter's vote to be
1107 
counted;
1108 
(vi) a warning, on a separate page of colored paper in boldface print, indicating that if
1109 
the voter fails to follow the instructions included with the manual ballot, the voter
1110 
will be unable to vote in that election because there will be no polling place for the
1111 
election; and
1112 
(vii)(A) a copy of the proposition information pamphlet relating to the referendum
1113 
if a proposition information pamphlet relating to the referendum was published
1114 
under Section 20A-7-401.5; or
1115 
(B) a website address where an individual may view a copy of the proposition
1116 
information pamphlet described in Subsection (2)(b)(vii)(A).
- 33 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
1117 
(3) An election officer who administers an election under this section shall:
1118 
(a)(i) obtain, in person, the signatures of each voter within that voting precinct before
1119 
the election; or
1120 
(ii) obtain the signature of each voter within the voting precinct from the county
1121 
clerk; and
1122 
(b) maintain the signatures on file in the election officer's office.
1123 
(4)(a) Upon receiving a returned manual ballot under this section, the election officer
1124 
shall compare the signature on each return envelope with the voter's signature that is
1125 
maintained on file and verify that the signatures are the same.
1126 
(b) If the election officer questions the authenticity of the signature on the return
1127 
envelope, the election officer shall immediately contact the voter to verify the
1128 
signature.
1129 
(c) If there is not a signature on the return envelope or if the election officer determines
1130 
that the signature on the return envelope does not match the voter's signature that is
1131 
maintained on file, the election officer shall:
1132 
(i) disqualify the ballot; and
1133 
(ii) notify the voter of the disqualification and the reason for the disqualification.
1134 
Section 13.  Section 20A-7-613.1 is enacted to read:
1135 
20A-7-613.1 . Local fiscal law referendum petition.
1136 
(1) Except as provided in this section, the requirements of this part apply to a referendum
1137 
petition challenging a taxing entity's legislative body's vote to impose a transportation
1138 
utility fee, or increase an existing transportation utility fee, under Section 10-5-134,
1139 
10-6-134.5, or 17-36-56.
1140 
(2) Notwithstanding Subsection 20A-7-105(5)(a)(iv), the sponsors or an agent of the
1141 
sponsors shall deliver a signed and verified referendum packet to the county clerk of the
1142 
county in which the packet was circulated before 5 p.m. no later than the earlier of:
1143 
(a) 30 days after the day on which the first individual signs the packet; or
1144 
(b) 40 days after the day on which the local clerk complies with Subsection
1145 
20A-7-604(3).
1146 
(3) Notwithstanding Subsections 20A-7-105(6)(a) and (9), the county clerk shall take the
1147 
actions required in Subsections 20A-7-105(6)(a) and (9) within 10 working days after
1148 
the day on which the county clerk receives the signed and verified referendum packet as
1149 
described in Subsection (2).
1150 
(4) The local clerk shall take the actions required by Section 20A-7-607 within two
- 34 - 03-06 09:12	2nd Sub. (Gray) H.B. 454
1151 
working days after:
1152 
(a) in relation to the manual referendum process, the day on which the local clerk
1153 
receives the referendum packets from the county clerk; or
1154 
(b) in relation to the electronic referendum process, the deadline described in Subsection
1155 
20A-7-616(2).
1156 
(5) Notwithstanding Subsection 20A-7-608(2), the local attorney shall prepare the ballot
1157 
title within two working days after the day on which the referendum petition is declared
1158 
sufficient for submission to a vote of the people.
1159 
(6) Notwithstanding Subsection 20A-7-609(2)(c), a referendum that qualifies for the ballot
1160 
under this section shall appear on the ballot for the earlier of the next regular general
1161 
election or the next municipal general election unless a special election is called.
1162 
(7) The election officer shall mail manual ballots on a referendum under this section the
1163 
later of:
1164 
(a) the time provided in Section 20A-3a-202 or 20A-16-403; or
1165 
(b) the time that ballots are prepared for mailing under this section.
1166 
(8) Section 20A-7-402 does not apply to a referendum described in this section.
1167 
(9)(a) If a majority of voters does not vote against imposing a transportation utility fee,
1168 
or increasing an existing transportation utility fee, the imposition of the transportation
1169 
utility fee or the increase to an existing transportation utility fee is valid.
1170 
(b) If a majority of voters votes against imposing a transportation utility fee, or
1171 
increasing an existing transportation utility fee, the taxing entity's legislative body
1172 
shall repeal the imposition of the transportation utility fee or the increase to the
1173 
existing transportation utility fee, as applicable.
1174 
(10) The ballot title shall, at a minimum, include in substantially this form the following:
1175 
"Shall the [name of the taxing entity] be authorized to impose a transportation utility fee
1176 
in amounts sufficient to generate [amount] for fiscal year [year] as budgeted, adopted,
1177 
and approved by the [name of the taxing entity]?".
1178 
(11) A taxing entity shall pay the county the costs incurred by the county that are directly
1179 
related to meeting the requirements of this section and that the county would not have
1180 
incurred but for compliance with this section.
1181 
(12)(a) An election officer shall include on a ballot a referendum that has not yet
1182 
qualified for placement on the ballot, if:
1183 
(i) sponsors file an application for a referendum described in this section;
1184 
(ii) the ballot will be used for the election for which the sponsors are attempting to
- 35 - 2nd Sub. (Gray) H.B. 454	03-06 09:12
1185 
qualify the referendum; and
1186 
(iii) the deadline for qualifying the referendum for placement on the ballot occurs
1187 
after the day on which the ballot will be printed.
1188 
(b) If an election officer includes on a ballot a referendum described in Subsection
1189 
(12)(a), the ballot title shall comply with Subsection (10).
1190 
(c) If an election officer includes on a ballot a referendum described in Subsection
1191 
(12)(a) that does not qualify for placement on the ballot, the election officer shall
1192 
inform the voters by any practicable method that the referendum has not qualified for
1193 
the ballot and that votes cast in relation to the referendum will not be counted.
1194 
Section 14.  Effective Date.
1195 
This bill takes effect on May 7, 2025.
- 36 -