All Roll Calls
Yes: 183 • No: 7
UtahS.B. 1972026 General SessionSenateWALLET
Transportation Funding and Governance Amendments
Sponsored By: Wayne A. Harper (Republican)
Signed by Governor
Legislative OperationsLegislative Committees and Task ForcesSales and Use TaxState Tax CommissionRevenue and TaxationTransportationPublic Transit DistrictsPublic TransitTransit Transportation Investment FundTransportation Funding
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Bill Overview
Analyzed Economic Effects
15 provisions identified: 9 benefits, 1 costs, 5 mixed.
Shifts in transit and road funding
Starting May 6, 2026, the state deposits $45 million each year into the Active Transportation Investment Fund for walking and biking projects. It also sends 0.44% of a named revenue to the Cottonwood Canyons fund, 1% to a Commuter Rail subaccount, and 1% to the Outdoor Adventure account, with any amount above the 2025 baseline split 50/50 with the Utah Fairpark Area district. Each year, 26.24% of a named revenue goes to the Transportation Investment Fund of 2005, but that deposit is reduced by $1,813,400, a statutory earmark, and 35% of fuel‑tax revenue above 29.4¢ per gallon; that 35% goes to the Transit Transportation Investment Fund. For fiscal years on or after July 1, 2028, an extra transit deposit happens only when General Fund revenue growth exceeds a base amount, and is capped at the smaller of 5% of the growth or the defined total transit amount.
New rider help and mobility office
Effective May 6, 2026, large transit districts must run a constituent services office with a central phone line, complaint logging, and reports to managers. They must also run an office of coordinated mobility with a central number to help human‑services transportation, take vehicle requests, and support local funding applications. These offices are meant to help seniors, people with disabilities, and caregivers get rides and answers faster.
Limits on transit taxes and takings
Beginning May 6, 2026, public transit districts cannot take property by eminent domain. They also may levy property tax only to pay bond principal and interest, or to pay a final court judgment that insurance does not cover and a court orders them to levy. This protects homeowners from most new transit property taxes and forced sales.
Transit run by new oversight commission
Large transit districts move to a seven‑member transit commission on July 1, 2026; boards may serve until June 30, 2026, and those members get severance and benefits through December 31, 2026. The Governor appoints the executive director (with Senate consent), and the internal auditor must be a licensed internal auditor or CPA with 5+ years of experience. The executive director must submit a budget 60 days before the fiscal year and cannot make big changes without approval (over 10% of a major line, 15% between major categories, or 5% over total). The commission meets monthly in public, approves plans and budgets, orders audits, reports how local sales‑tax money is spent, and any bond needs both commission recommendation and State Finance Review Commission approval. The old trustee‑duties section no longer applies to large districts, and the director must file yearly reports on passes, partnerships, GAAP financials, and state‑funded project progress to named committees and the Transportation Commission.
New yearly funding for water projects
Beginning May 6, 2026, the state makes steady, yearly deposits for water and wildlife. It sends $7.175 million for studies, dam safety, and protecting interstate water rights; $3.5875 million each to wastewater and drinking water loan programs; $525,000 for water‑related conservation programs; $500,000 for watershed rehab; and $150,000 for cloud seeding. It also sends $2.45 million to protect sensitive species and for grants, but the money cannot be used to help list species as threatened or endangered. $175,000 a year pays for legal and technical staff for water‑rights adjudication. Unspent wildlife and adjudication funds at year‑end are split 50%/25%/25% to the Water Resources fund, the Wastewater Loan subaccount, and the Drinking Water Loan subaccount. In addition, 1.4543% of a named revenue goes to a water infrastructure account each year, and 85%/15% of a related difference goes to the Water Resources and Water Rights accounts, with first call to Bear River and Lake Powell Pipeline preconstruction and oversight.
Sales tax growth funds transit and development
One year after a housing and transit reinvestment zone’s sales‑tax boundary is set, 15% of the 4.7% sales‑tax increment from inside the zone goes to the Transit Transportation Investment Fund. For a convention center reinvestment zone, 50% of its 4.7% sales‑tax increment goes to its public infrastructure district, starting no earlier than January 1, 2026 and after the boundary and proposal timing rules. For Point of the Mountain state land, 50% of sales tax from on‑site transactions goes to the authority after a certified map, and stops after the related bonds are fully paid. For qualifying construction materials delivered into a qualified development zone and reported to a registered delivery outlet (not on a simplified return), 50% of the sales‑tax increment from that sale goes to the zone.
Sales tax share funds Medicaid
Starting with fiscal years that begin July 1, 2019, the state transfers 0.15% of certain sales and use tax receipts into the Medicaid ACA Fund. Each year, the transfer equals 0.0015 times the taxable sales amount for those transactions.
New rules for transit-area development
Effective May 6, 2026, public transit districts may help build or finance projects near transit. They cannot invest as a limited partner unless other partners put in at least 25% of the property’s appraised value. For transit‑oriented projects, districts must adopt policies that include affordable housing. For transit‑supportive projects, they must plan with local governments and the MPO, show a positive return on investment, and coordinate with the transportation department. Zone committees add named state and local members, meet in public, and must confirm zoning fits the project before approval.
Where some sales tax now goes
Starting October 1, 2024, sales tax from purchases inside the Fairpark district goes to the Utah Fairpark Area Investment and Restoration District. Effective May 6, 2026, the Tax Commission changes which sales and use tax receipts go to the state General Fund and which are sent to counties, cities, and towns. Certain state sales tax receipts now go into the Convention Incentive Fund. For Schedule J sales inside qualified development zones, the applicable percentage is deposited into the General Fund.
Stronger oversight and rider data privacy
Effective May 6, 2026, the transit director must present reduced‑fare and ticket‑as‑fare contracts at a public meeting, and the transit commission must approve them. Fares are set only with a two‑thirds vote of the board (for small districts) or by the large district executive with a two‑thirds board vote. Riders’ debit, credit, and electronic fare payment and travel data are private records under state law. The director must send a detailed tax‑and‑service report to every county, city, and town at least every two years. The law repeals old board and advisory‑council statutes. It also clarifies who counts as a local district executive, requires market pay comparisons to similar transit systems in other states, and requires the commission to set executive benefits similar to other employees.
More money for search and rescue
Starting May 6, 2026, the state deposits $200,000 each year as a dedicated credit for the Search and Rescue Financial Assistance Program. This money pays for grants and help for rescue teams.
More public input and open budgets
Special districts with annual budgets of $50,000 or more must send tentative budgets and hearing notices to requested entities on time, with a signature sheet for objections. Boards must send meeting agendas and notices when they send them to members, and minutes within five working days after approval; electronic delivery is allowed if agreed. Small transit districts must file a GAAP annual report to the legislative appropriations subcommittee. After each fiscal year, each transit district comptroller sends a statement of revenues and spending to city and county leaders. Counties and cities may request a hearing on fare changes or where a facility will be placed; the district must hold it in 15 to 60 days, give mailed and published notice, allow intervention, take sworn evidence, and decide within 60 days after the hearing.
Annual funds for emergency food aid
Beginning May 6, 2026, the state deposits $533,750 each fiscal year into the Qualified Emergency Food Agencies Fund. The money supports emergency food providers as set in Section 35A-8-1009.
Transit can set parking rules, hire police
Effective May 6, 2026, a multicounty transit district may adopt parking rules at its facilities and set fines or civil penalties for violations. It may hire its own law‑enforcement officers or contract with agencies; those officers have state law‑enforcement authority.
Tighter conflict rules and hiring pause
During an interim vacancy period, a special district may not permanently hire a manager, CEO, or similar executive; it may name an interim who leaves when the new board hires a permanent leader. A person cannot serve on a special district board and be employed by that same district at the same time, with narrow exceptions for very small areas and certain tax‑treatment rules. This board‑employment bar does not apply to the large transit commission.
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Sponsors & Cosponsors
Sponsor
Wayne A. Harper
Republican • Senate
Cosponsors
Kay J. Christofferson
Republican • House
Roll Call Votes
House vote • 3/6/2026
House/ passed 3rd reading
Yes: 65 • No: 2
House vote • 3/6/2026
House/ floor amendment
Yes: 0 • No: 0
Senate vote • 3/6/2026
Senate/ concurs with House amendment
Yes: 28 • No: 1
House vote • 2/26/2026
House Comm - Amendment Recommendation
Yes: 12 • No: 0
House vote • 2/26/2026
House Comm - Favorable Recommendation
Yes: 11 • No: 1
House vote • 2/26/2026
House Comm - Substitute Recommendation
Yes: 12 • No: 0
Senate vote • 2/23/2026
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/23/2026
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/23/2026
Senate/ passed 3rd reading
Yes: 27 • No: 1
Senate vote • 2/20/2026
Senate/ floor amendment
Yes: 0 • No: 0
Senate vote • 2/20/2026
Senate/ passed 2nd reading
Yes: 23 • No: 2
House vote • 1/30/2026
Senate Comm - Favorable Recommendation
Yes: 5 • No: 0
Actions Timeline
Governor Signed
3/26/2026Senate/ to Governor
3/13/2026SenateSenate/ received enrolled bill from Printing
3/13/2026SenateSenate/ enrolled bill to Printing
3/11/2026SenateEnrolled Bill Returned to House or Senate
3/11/2026Draft of Enrolled Bill Prepared
3/10/2026Bill Received from Senate for Enrolling
3/10/2026Senate/ signed by President/ sent for enrolling
3/10/2026SenateSenate/ received from House
3/10/2026SenateHouse/ to Senate
3/6/2026HouseHouse/ signed by Speaker/ returned to Senate
3/6/2026HouseHouse/ received from Senate
3/6/2026HouseSenate/ to House
3/6/2026SenateSenate/ concurs with House amendment
3/6/2026SenateSenate/ placed on Concurrence Calendar
3/6/2026SenateSenate/ received from House
3/6/2026SenateHouse/ to Senate
3/6/2026HouseHouse/ passed 3rd reading
3/6/2026HouseHouse/ floor amendment
3/6/2026HouseHouse/ 3rd reading
3/6/2026HouseHouse/ 2nd reading
3/5/2026HouseHouse/ Rules to 3rd Reading Calendar
3/5/2026HouseHouse/ return to Rules due to fiscal impact
2/26/2026HouseHouse/ comm rpt/ substituted/ amended
2/26/2026HouseHouse Comm - Favorable Recommendation
2/26/2026
Bill Text
Enrolled
3/11/2026
Amended 3/6/2026 17:03:606
3/6/2026
Amended 2/26/2026 19:02:436
2/26/2026
Substitute #1
2/26/2026
Amended 2/20/2026 14:02:833
2/20/2026
Introduced
1/26/2026
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