SB 151 — Public Safety Funding Amendments

{[(b){]}(b) {(ii)} } payment of overtime for Highway Patrol troopers;

and {[(c){]}(c) {(iii)} } acquisition of equipment to improve motor vehicle safety impacts and enforcement.

{(b) The division may not use money transferred into the account in accordance with Subsection 59-9-101(10) for a purpose other than the purpose described in Subsection (3)(a)(i).} (4) The division shall annually report to the Criminal Justice Appropriations Subcommittee to justify expenditures and use of funds in the account.

{Section 3.

Section 59-9-101 is amended to read:

} 59-9-101.

Tax basis -- Rates -- Exemptions -- Rate reductions.

(1) - 4 - SB0151 compared with SB0151S05 (a) Except as provided in Subsection (1)(b), (1)(d), or (5), an admitted insurer shall pay to the commission on or before March 31 in each year, a tax of 2.25% of the total premiums received by admitted insurer during the preceding calendar year from insurance covering property or risks located in this state.

(b) This Subsection (1) does not apply to:

(i) workers' compensation insurance, assessed under Subsection (2);

(ii) title insurance premiums taxed under Subsection (3);

(iii) annuity considerations;

(iv) insurance premiums paid by an institution within the state system of higher education as specified in Section 53H-1-102;

and (v) ocean marine insurance.

(c) The taxable premium under this Subsection (1) shall be reduced by:

(i) the premiums returned or credited to policyholders on direct business subject to tax in this state;

(ii) the premiums received for reinsurance of property or risks located in this state;

and (iii) the dividends, including premium reduction benefits maturing within the year:

(A) paid or credited to policyholders in this state;

or (B) applied in abatement or reduction of premiums due during the preceding calendar year.

(d) (i) For purposes of this Subsection (1)(d):

(A) "Utah variable life insurance premium" means an insurance premium paid:

(I) by:

(Aa) a corporation;

or (Bb) a trust established or funded by a corporation;

and (II) for variable life insurance covering risks located within the state.

(B) "Variable life insurance" means an insurance policy that provides for life insurance, the amount or duration of which varies according to the investment experience of one or more separate accounts that are established and maintained by the insurer pursuant to Title 31A, Insurance Code.

(ii) Notwithstanding Subsection (1)(a), beginning on January 1, 2006, the tax on that portion of the total premiums subject to a tax under Subsection (1)(a) that is a Utah variable life insurance premium shall be calculated as follows:

- 5 - SB0151 compared with SB0151S05 (A) 2.25% of the first $100,000 of Utah variable life insurance premiums:

(I) paid for each variable life insurance policy;

and (II) received by the admitted insurer in the preceding calendar year;

and (B) .08% of the Utah variable life insurance premiums that exceed $100,000:

(I) paid for the policy described in Subsection (1)(d)(ii)(A);

and (II) received by the admitted insurer in the preceding calendar year.

(2) (a) An admitted insurer writing workers' compensation insurance in this state shall pay to the tax commission, on or before March 31 in each year, a premium assessment on the basis of the total workers' compensation premium income received by the insurer from workers' compensation insurance in this state during the preceding calendar year as follows:

(i) on or before December 31, 2010, an amount of equal to or greater than 1%, but equal to or less than 5.75% of the total workers' compensation premium income described in this Subsection (2);

(ii) on and after January 1, 2011, but on or before December 31, 2022, an amount of equal to or greater than 1%, but equal to or less than 4.25% of the total workers' compensation premium income described in this Subsection (2);

and (iii) on and after January 1, 2023, an amount equal to 1.25% of the total workers' compensation premium income described in this Subsection (2).

(b) Total workers' compensation premium income means the net written premium as calculated before any premium reduction for any insured employer's deductible, retention, or reimbursement amounts and also those amounts equivalent to premiums as provided in Section 34A-2-202.

(c) The percentage of premium assessment applicable for a calendar year shall be determined by the Labor Commission under Subsection (2)(d).

The total premium income shall be reduced in the same manner as provided in Subsections (1)(c)(i) and (1)(c)(ii), but not as provided in Subsection (1)(c)(iii).

The commission shall promptly remit from the premium assessment collected under this Subsection (2):

(i) income to the state treasurer for credit to the Employers' Reinsurance Fund created under Subsection 34A-2-702(1) as follows:

(A) on or before December 31, 2009, an amount of up to 5% of the total workers' compensation premium income;

- 6 - SB0151 compared with SB0151S05 (B) on and after January 1, 2010, but on or before December 31, 2010, an amount of up to 4.5% of the total workers' compensation premium income;

(C) on and after January 1, 2011, but on or before December 31, 2022, an amount of up to 3% of the total workers' compensation premium income;

and (D) on and after January 1, 2023, 0% of the total workers' compensation premium income;

(ii) an amount equal to .25% of the total workers' compensation premium income to the state treasurer for credit to the Workplace Safety Account created by Section 34A-2-701;

(iii) an amount of up to .5% and any remaining assessed percentage of the total workers' compensation premium income to the state treasurer for credit to the Uninsured Employers' Fund created under Section 34A-2-704;

and (iv) beginning on January 1, 2010, .5% of the total workers' compensation premium income to the state treasurer for credit to the Industrial Accident Restricted Account created in Section 34A-2-705.

(d) (i) The Labor Commission shall determine the amount of the premium assessment for each year on or before each October 15 of the preceding year.

The Labor Commission shall make this determination following a public hearing.

The determination shall be based upon the recommendations of a qualified actuary.

(ii) The actuary shall recommend a premium assessment rate sufficient to provide payments of benefits and expenses from the Employers' Reinsurance Fund and to project a funded condition with assets greater than liabilities by no later than June 30, 2025.

(iii) The actuary shall recommend a premium assessment rate sufficient to provide payments of benefits and expenses from the Uninsured Employers' Fund and to maintain it at a funded condition with assets equal to or greater than liabilities.

(iv) At the end of each fiscal year the minimum approximate assets in the Employers' Reinsurance Fund shall be $5,000,000 which amount shall be adjusted each year beginning in 1990 by multiplying by the ratio that the total workers' compensation premium income for the preceding calendar year bears to the total workers' compensation premium income for the calendar year 1988.

(v) The requirements of Subsection (2)(d)(iv) cease when the future annual disbursements from the Employers' Reinsurance Fund are projected to be less than the calculations of the corresponding future minimum required assets.

The Labor Commission shall, after a public hearing, determine - 7 - SB0151 compared with SB0151S05 if the future annual disbursements are less than the corresponding future minimum required assets from projections provided by the actuary.

(vi) At the end of each fiscal year the minimum approximate assets in the Uninsured Employers' Fund shall be $2,000,000, which amount shall be adjusted each year beginning in 1990 by multiplying by the ratio that the total workers' compensation premium income for the preceding calendar year bears to the total workers' compensation premium income for the calendar year 1988.

(e) A premium assessment that is to be transferred into the General Fund may be collected on premiums received from Utah public agencies.

(3) An admitted insurer writing title insurance in this state shall pay to the commission, on or before March 31 in each year, a tax of .45% of the total premium received by either the insurer or by its agents during the preceding calendar year from title insurance concerning property located in this state.

In calculating this tax, "premium" includes the charges made to an insured under or to an applicant for a policy or contract of title insurance for:

(a) the assumption by the title insurer of the risks assumed by the issuance of the policy or contract of title insurance;

and (b) abstracting title, title searching, examining title, or determining the insurability of title, and every other activity, exclusive of escrow, settlement, or closing charges, whether denominated premium or otherwise, made by a title insurer, an agent of a title insurer, a title insurance producer, or any of them.

(4) Beginning July 1, 1986, a former county mutual and a former mutual benefit association shall pay the premium tax or assessment due under this chapter.

Premiums received after July 1, 1986, shall be considered in determining the tax or assessment.

(5) The following insurers are not subject to the premium tax on health care insurance that would otherwise be applicable under Subsection (1):

(a) an insurer licensed under Title 31A, Chapter 5, Domestic Stock and Mutual Insurance Corporations;

(b) an insurer licensed under Title 31A, Chapter 7, Nonprofit Health Service Insurance Corporations;

(c) an insurer licensed under Title 31A, Chapter 8, Health Maintenance Organizations and Limited Health Plans;

(d) an insurer licensed under Title 31A, Chapter 9, Insurance Fraternals;

(e) an insurer licensed under Title 31A, Chapter 11, Motor Clubs;

and (f) an insurer licensed under Title 31A, Chapter 14, Foreign Insurers.

- 8 - SB0151 compared with SB0151S05 (6) (a) As used in this Subsection (6):

(i) "Cancellation fee waiver" means the same as that term is defined in Section 31A-23a-902.

(ii) "Primary certificate holder" means an individual who elects and purchases travel insurance under a group policy.

(iii) "Primary policyholder" means an individual who elects and purchases individual travel insurance.

(iv) "Travel assistance service" means the same as that term is defined in Section 31A-23a-902.

(v) "Travel insurance" means the same as that term is defined in Section 31A-23a-902.

(b) A travel insurer shall:

(i) pay a premium tax required under Subsection (1) on a travel insurance premium that:

(A) an individual primary policyholder pays, if the policyholder is a resident of this state;

(B) a primary certificate holder pays, if the certificate holder is a resident of this state and elects coverage under a group travel insurance policy;

or (C) subject to any apportionment rules that apply to the insurer across multiple taxing jurisdictions or permit the insurer to allocate the premium on an apportioned basis in a reasonable and equitable manner across multiple jurisdictions, a blanket travel insurance policyholder pays for eligible blanket group members, if the policyholder is a resident in this state, has the policyholder's principal place of business in this state, or has the principal place of business of an affiliate or subsidiary that has purchased blanket travel insurance in this state;

(ii) document the state of residence or principal place of business of each policyholder and certificate holder;

and (iii) report as a premium only the amount allocable to travel insurance and not an amount received for:

(A) a cancellation fee waiver;

or (B) a travel assistance service.

(7) A captive insurer, as provided in Section 31A-3-304, that pays a fee imposed under Section 31A-3-304 is not subject to the premium tax under this section.

(8) An insurer issuing multiple policies to an insured may not artificially allocate the premiums among the policies for purposes of reducing the aggregate premium tax or assessment applicable to the policies.

- 9 - SB0151 compared with SB0151S05 (9) The retaliatory provisions of Title 31A, Chapter 3, Department Funding, Fees, and Taxes, apply to the tax or assessment imposed under this chapter.

(10) Beginning fiscal year 2027, the Division of Finance shall annually transfer into the Motor Vehicle Safety Impact Restricted Account created in Section 53-8-214 $3,000,000 of the total revenue collected from the taxes levied under this section.

{Section 4.

Section 72-2-103 is amended to read:

} 72-2-103.

Limitations on Transportation Fund appropriations to agencies not a part of the Department of Transportation -- Exceptions.

(1) Except as provided under Subsection (2), the amount appropriated or transferred from the Transportation Fund each year may not exceed a combined total of $11,600,000 to:

(a) the Department of Public Safety;

(b) the State Tax Commission;

(c) the Division of Finance;

and (d) any other state agency that is not a part of the Department of Transportation.

(2) The following amounts are exempt from the appropriation and transfer limitations of Subsection (1):

(a) amounts deposited in the Department of Public Safety Restricted Account created under Section 53-3-106;

(b) revenue generated by the uninsured motorist identification fee under Section 41-1a-1218;

(c) revenue generated by the motor carrier fee under Section 41-1a-1219;[ and] (d) revenue generated by the Motorcycle Rider Education Program under Section [53-3-905.] 53-3-905;

and (e) up to $2,000,000 appropriated to the Department of Public Safety to be used for hiring new Highway Patrol troopers.

72-2-124.72-2-124 .

- 10 - SB0151 compared with SB0151S05 (d) the sales and use tax revenues deposited into the fund in accordance with Section 59-12-103;

(3)- (a)2 The- fundEnrolled shallCopy earnS.B. interest.

151 (3)(a) The fund shall earn interest.

(4)(4)(a) (a) Except as provided in Subsection (4)(b), the executive director may only use fund money to pay:

- 11 - SB0151 compared with SB0151S05 (A) mitigate traffic congestion on the state highway system;

(A)- the3 connector- roadS.B. between Main Street and 1600 North in the city of Vineyard;

151 Enrolled Copy (A) the connector road between Main Street and 1600 North in the city of Vineyard;

- 12 - SB0151 compared with SB0151S05 (C) $5,000,000 for improvements to 4700 South in Taylorsville;

(xii) for a fiscal year beginning on July 1, 2025, only, as pass-through funds from revenue- deposited4 into- theEnrolled fundCopy inS.B. accordance with Section 59-12-103, for the following projects:

151 revenue deposited into the fund in accordance with Section 59-12-103, for the following projects:

[(c)] (d)(d)(i) (i) Construction related to the project described in Subsection (4)(a)(ix)(D) may not commence until a right-of-way not owned by a federal agency that is required for the realignment and extension of U-111, as described in the department's 2023 environmental study related to the project, is dedicated to the department.

(5)(5)(a) (a) Except as provided in Subsection (5)(b), if the department receives a notice of ineligibility for a municipality as described in Subsection 10-21-202(8), the executive director may not program fund - 13 - SB0151 compared with SB0151S05 money to a project prioritized by the commission under Section 72-1-304, including fund money from the Transit Transportation Investment Fund, within the boundaries of the municipality until the department receives notification from the Housing and Community Development Division within the Department of Workforce Services that ineligibility under this Subsection (5) no longer applies to the municipality.

(i)- may5 program- fundS.B. money in accordance with Subsection (4)(a) for a limited-access facility or interchange connecting limited-access facilities;

151 Enrolled Copy (i) may program fund money in accordance with Subsection (4)(a) for a limited-access facility or interchange connecting limited-access facilities;

(6)(6)(a) (a) Except as provided in Subsection (6)(b), if the department receives a notice of ineligibility for a county as described in Subsection 17-80-202(8), the executive director may not program fund money to a project prioritized by the commission under Section 72-1-304, including fund money from the Transit Transportation Investment Fund, within the boundaries of the unincorporated area of the county until the department receives notification from the Housing and Community Development Division within the Department of Workforce Services that ineligibility under this Subsection (6) no longer applies to the county.

- 14 - SB0151 compared with SB0151S05 (iii) may program Transit Transportation Investment Fund money for a multi-community fixed guideway public transportation project;

(c) Subsections (6)(a) and (b) do not apply to a project programmed by the executive director before July 1, 2022, for projects prioritized by the commission under Section 72-1-304.- 6 - Enrolled Copy S.B.

(7)151 (a)72-1-304. Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued in any fiscal year, the department and the commission shall appear before the Executive Appropriations Committee of the Legislature and present the amount of bond proceeds that the department needs to provide funding for the projects identified in Subsections 63B-18-401(2), (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.

(7)(a) Before bonds authorized by Section 63B-18-401 or 63B-27-101 may be issued in any fiscal year, the department and the commission shall appear before the Executive Appropriations Committee of the Legislature and present the amount of bond proceeds that the department needs to provide funding for the projects identified in Subsections 63B-18-401(2), (3), and (4) or Subsection 63B-27-101(2) for the current or next fiscal year.

(10)(10)(a) (a) There is created in the Transportation Investment Fund of 2005 the Transit Transportation Investment Fund.

- 15 - SB0151 compared with SB0151S05 (ii) appropriations into the account by the Legislature;

(c)(c)(i) (i) The fund shall earn interest.

(d)- Subject7 to- SubsectionS.B. (10)(e), the commission may prioritize money from the fund:

151 Enrolled Copy (d) Subject to Subsection (10)(e), the commission may prioritize money from the fund:

(e)(e)(i) (i) Subject to Subsections (10)(g), (h), and (i), the commission may only prioritize money from the fund for a public transit capital development project or pedestrian or nonmotorized transportation project that provides connection to the public transit system if the public transit district or political subdivision provides funds of equal to or greater than 30% of the costs needed for the project.

- 16 - SB0151 compared with SB0151S05 (g) For any revenue transferred into the fund in accordance with Subsection 59-12-2220(11)(b):

(i) The requirement to provide funds equal to or greater than 30% of the costs needed for the- project8 described- inEnrolled SubsectionCopy (10)(e)S.B. does not apply to a public transit capital development project or pedestrian or nonmotorized transportation project that the department proposes.

151 the project described in Subsection (10)(e) does not apply to a public transit capital development project or pedestrian or nonmotorized transportation project that the department proposes.

(11)(11)(a) (a) There is created in the Transportation Investment Fund of 2005 the Cottonwood Canyons Transportation Investment Fund.

(c)(c)(i) (i) The fund shall earn interest.

- 17 - SB0151 compared with SB0151S05 (f) Beginning with fiscal year beginning on July 1, 2025, the department shall use any sales and use tax growth over sales and use tax collections during the 2025 fiscal year to fund projects to provide ingress and egress for a public transit hub, including construction of the public transit hub, in the Big Cottonwood Canyon area.

(12)(12)(a) (a) There is created in the Transportation Investment Fund of 2005 the Active Transportation Investment Fund.

(c)(c)(i) (i) The fund shall earn interest.

(i)- the9 planning,- design,S.B. construction, maintenance, reconstruction, or renovation of paved pedestrian or paved nonmotorized trail projects that:

151 Enrolled Copy (i) the planning, design, construction, maintenance, reconstruction, or renovation of paved pedestrian or paved nonmotorized trail projects that:

(13)(13)(a) (a) As used in this Subsection (13), "commuter rail" means the same as that term is defined in Section 63N-3-602.

- 18 - SB0151 compared with SB0151S05 (ii) appropriations into the subaccount by the Legislature;

(d)(d)(i) (i) The subaccount shall earn interest.

Operating and Capital Budgets Under- the10 terms- andEnrolled conditionsCopy ofS.B. Title 63J, Chapter 1, Budgetary Procedures Act, the Legislature appropriates the following sums of money from the funds or accounts indicated for the use and support of the government of the state of Utah.

ITEM151 1Under Tothe Departmentterms and conditions of PublicTitle Safety63J, -Chapter Programs1, &Budgetary OperationsProcedures FromAct, Transportationthe InvestmentLegislature Fundappropriates the following sums of 2005money 2,000,000from Fromthe Motorfunds Vehicleor Safetyaccounts Impactindicated Restrictedfor Accountthe 3,000,000use {Fromand Transportationsupport Fundof 2,000,000the }government Scheduleof the state of Programs:Utah.

ITEM 1 To Department of Public Safety - Programs & Operations From Transportation Investment Fund of 2005 2,000,000 From Motor Vehicle Safety Impact Restricted Account 3,000,000 Schedule of Programs:

- 19 - SB0151 compared with SB0151S05 ITEM 2 To Utah Valley University - Special Projects From General Fund (3,000,000) Schedule of Programs:

Effective date.

This bill takes effect on {May 6, } July 1, 2026.

Section- 8.11 -

Repealer.

This Bill Repeals:

Section 49-11-902, Premium tax revenues -- Formula -- Deposits.

Section 49-11-903, State appropriation funding offset -- Proportionate share determination and reporting.

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