1. (1) As used in this section:

   1. (a) "Graveled road" means the same as that term is defined in Section 72-2-108.
   2. (b) "Paved road" means the same as that term is defined in Section 72-2-108.

   3. (c)

      1. (i) "Qualifying county" means a county that:

         1. (A) is a county of the third through sixth class, as classified in Section 17-60-104, except as provided in Subsection (1)(c)(ii);

         2. (B) has imposed a local option sales and use tax pursuant to:

            1. (I) Section 59-12-2217;
            2. (II) Section 59-12-2218; or
            3. (III) Section 59-12-2219; and
         3. (C) has not imposed a local option sales and use tax pursuant to Section 59-12-2220 on or before January 1, 2023.
      2. (ii) "Qualifying county" does not include a county of the third class, as classified in Section 17-60-104, with an airport facilitating commercial flights to three or more airports outside of the state.
   4. (d) "Qualifying municipality" means a municipality located within a qualifying county.
   5. (e) "Qualifying recipient" means qualifying county or a qualifying municipality.
   6. (f) "Road mile" means the same as that term is defined in Section 72-2-108.
   7. (g) "Weighted mileage" means the same as that term is defined in Section 72-2-108.
2. (2) There is created in the Transportation Fund an expendable special revenue fund called the Rural Transportation Infrastructure Fund.

3. (3) The Rural Transportation Infrastructure Fund shall be funded by:

   1. (a) deposits into the fund as described in Subsection 41-1a-1201(9);
   2. (b) appropriations by the Legislature; and
   3. (c) other deposits into the fund.
4. (4) The department shall administer the fund.

5. (5)

   1. (a) Beginning on January 1, 2024, and subject to Subsection (5)(b), the department shall annually distribute revenue in the fund among qualifying recipients in the following manner:

      1. (i) 50% in the ratio that the class B roads weighted mileage within each county and class C roads weighted mileage within each municipality bear to the total class B and class C roads weighted mileage within the state; and
      2. (ii) 50% in the ratio that the population of a county or municipality bears to the total population of the state.

   2. (b) To the extent not otherwise required by federal law, population shall be based on:

      1. (i) the most recent estimate from the Utah Population Committee created in Section 63C-20-103; or
      2. (ii) if the Utah Population Committee estimate is not available for each municipality and unincorporated area, the adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104.
6. (6) A qualifying recipient may only use funds distributed as described in this section in the same manner as class B and class C road funds distributed in accordance with Section 72-2-108.

7. (7)

   1. (a)

      1. (i) Before October 1 of each year, the department shall inform the State Tax Commission which counties, if any, have an airport described in Subsection (1)(c)(ii).
      2. (ii) Before November 1 of each year, the State Tax Commission shall notify the department and indicate which counties are qualifying counties.
   2. (b) After receiving the notification described in Subsection (7)(a)(ii), the department shall distribute funds for the following year to the municipalities and counties that were identified as qualifying recipients in the notification described in Subsection (7)(a).

Amended by Chapter 17, 2025 Special Session 1