Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 4002 (2020S4)

Sponsor

Rep. Ferry, J.

Final action

Governor Signed 4/28/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• repeals the state sales and use tax exemption for sales of fuel to a rail carrier for use in a locomotive engine and deposits the resulting revenue into the General Fund;
• creates the Rail Transportation Restricted Account; and
• provides the purposes for which the Department of Transportation may use money in the account.

Every vote on this bill

Bill text

This document includes House Floor Amendments incorporated into the bill on Thu, Apr 23, 2020 at 2:52 PM by pflowers.
RAIL FUEL SALES TAX AMENDMENTS
FOURTH SPECIAL SESSION
STATE OF UTAH
Chief Sponsor: Joel Ferry
Senate Sponsor: 
Scott D. Sandall
LONG TITLE
General Description:
This bill modifies provisions related to railroads.
Highlighted Provisions:
This bill:
▸ repeals the state sales and use tax exemption for sales of fuel to a rail carrier for use
in a locomotive engine and deposits the resulting revenue into the General Fund;
▸ creates the Rail Transportation Restricted Account; and
▸ provides the purposes for which the Department of Transportation may use money
in the account.
Money Appropriated in this Bill:
This bill appropriates in fiscal year 2021:
▸ to the Transit Transportation Investment Fund -- Rail Transportation Restricted
Account, as an ongoing appropriation:
• from the General Fund, $3,660,000;
▸ to the Transit Transportation Investment Fund -- Rail Transportation Restricted
Account, as a one-time appropriation:
• from the General Fund, ($2,135,000);
▸ to Transportation -- Railroad Crossing Safety Grants, as an ongoing appropriation:
• from Rail Transportation Restricted Account, $366,000; and
▸ to Transportation -- Railroad Crossing Safety Grants, as a one-time appropriation:
• from Rail Transportation Restricted Account, ($213,500).
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
ENACTS:
59-12-103.3
, Utah Code Annotated 1953
72-2-131
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
59-12-103.3
 is enacted to read:
 59-12-103.3.
Sales and use tax base -- Rate for locomotive fuel.
(1) (a) Notwithstanding Section 
59-12-104
 and except as provided in Subsection
59-12-103
(2)(d) or (e), a state tax at a rate of 4.85% is imposed on amounts paid or charged for
sales of fuel to a common carrier that is a railroad for use in a locomotive engine.
(b) The state tax imposed by Subsection (1)(a) shall be deposited into the General
Fund.
(2) Except for the tax imposed by Subsection (1), in accordance with Section
59-12-104
, sales of fuel to a common carrier that is a railroad for use in a locomotive engine
are exempt from the taxes imposed by this chapter.
(3) For purposes of Subsection 
11-41-102
(5), "sales and use tax" does not include a tax
imposed under Subsection (1).
(4) For purposes of Subsection 
59-12-102
(7), "agreement sales and use tax" includes a
tax imposed under Subsection (1).
Section 2. Section 
72-2-131
 is enacted to read:
 72-2-131.
Rail Transportation Restricted Account -- Grants for railroad crossing
safety.
(1) As used in this section, "eligible entity" means:
(a) a public entity; or
(b) a private entity that is exempt from federal income taxation under Section
501(c)(3), Internal Revenue Code.
(2) There is created in the Transit Transportation Investment Fund, created in Section
72-2-124
, the Rail Transportation Restricted Account.
(3) The account shall be funded by:
(a) appropriations to the account by the Legislature;
(b) private contributions;
(c) donations or grants from public or private entities; and
(d) interest earned on money in the account.
(4) Upon appropriation, the department shall:
(a) use an amount equal to 10% of the money deposited into the account to provide
grants in accordance with Subsection (5);
(b) use an amount equal to 10% of the money deposited into the account to pay the
costs of performing environmental impact studies in connection with construction,
reconstruction, or renovation projects related to railroad crossings on
Ĥ→ 
class A,
 ←Ĥ
class B
70a 
Ĥ→ 
,
 ←Ĥ
or class C roads;
and
(c) use the remaining money deposited into the account to pay:
(i) the costs of construction, reconstruction, or renovation projects related to railroad
crossings on
Ĥ→ 
class A,
 ←Ĥ
class B
Ĥ→ 
,
 ←Ĥ
or class C roads; or
(ii) debt service related to a project described in Subsection (4)(b).
(5) (a) The department may award grants to one or more eligible entities to be used for
the purpose of improving safety at railroad crossings on
Ĥ→ 
class A,
 ←Ĥ
class B
Ĥ→ 
,
 ←Ĥ
or
77a 
class C roads.
(b) An eligible entity may use grant money for any expense related to improving safety
at railroad crossings on
Ĥ→ 
class A,
 ←Ĥ
class B
Ĥ→ 
,
 ←Ĥ
or class C roads, including:
(i) signage; and
(ii) safety enhancements to a railroad crossing.
(c) The department shall prioritize, in the following order, grants to applicants that
propose projects impacting railroad crossings that:
(i) have demonstrated safety concerns, including emergency services access; and
(ii) have high levels of vehicular and pedestrian traffic.
Section 3. 
Appropriation.
The following sums of money are appropriated for the fiscal year beginning July 1,
2020, and ending June 30, 2021. These are additions to amounts previously appropriated for
fiscal year 2021. The Legislature authorizes the State Division of Finance to transfer the
following amounts between the following funds or accounts as indicated. Expenditures and
outlays from the funds or accounts to which the money is transferred must be authorized by an
appropriation.
ITEM 1
To Transit Transportation Investment Fund - Rail Transportation Restricted Account
From General Fund
$3,660,000
From General Fund, One-time
($2,135,000)
Schedule of Programs:
Rail Transportation Restricted Account $1,525,000
ITEM 2
To Transportation -- Railroad Crossing Safety Grants
From Rail Transportation Restricted Account
$366,000
From Rail Transportation Restricted Account, One-Time
($213,500)
Schedule of Programs:
Railroad Crossing Safety Grants $152,500
The Legislature intends that appropriations under this item be used to award grants
under Subsection 
72-2-131
(5).
Section 4. 
Effective date.
This bill takes effect on January 1, 2021.