HB 425 Utah House · 2026 General Session

Local Government Fees Amendments

HB 425 restricts how Utah cities and towns can charge certain fees. It bars cities from imposing general fees for broadband internet or public safety services (like police/fire) on the public, with limited exceptions (e.g., fees for bonds issued before 2026 must end by 2027). Similarly, towns cannot charge general fees for public safety services, except for existing fees tied to agreements between towns or volunteer services, which must be renewed every three years. The bill also creates a new process for municipalities to establish transportation utility fees (for services like roads), requiring annual reviews, appeal mechanisms, and local referendums for new fees.
Bill status signed all 5 stages cleared
Introduction
Jan 2026
Committee Review
Feb 2026
House Passage
Feb 2026
Senate Passage
Feb 2026
Signed into Law
Mar 2026
Introduced Jan 29, 2026 Signed Mar 24, 2026
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Enrolled · 7 edits · Mar 24, 2026
MODERATE
This bill updates Utah laws to restrict how cities and towns charge fees for broadband and public safety services while simultaneously creating a new, regulated process for municipalities and counties to charge 'transportation utility fees.' The changes aim to prevent general taxes on essential services like internet and police/fire protection, but allow local governments to fund road and bridge projects through a fee system that requires public studies, annual reviews, and strict rules on how the money is spent.
Scope change
The bill expands the scope of regulation by adding new definitions for 'broadband' and 'transportation utility fee,' and it extends the applicability of fee restrictions to cover both cities and towns regarding public safety, whereas previously only cities were explicitly mentioned in some contexts. It also adds counties to the list of entities authorized to impose transportation utility fees.
DEFINITION

Added a specific definition for 'broadband' as high-capacity, high-speed internet service to clarify what fees are prohibited.

ELIGIBILITY

Removed the ability for cities to impose general fees on the public for broadband service, with exceptions only for pre-existing fees that must be repealed by a specific deadline.

REQUIREMENT

Established a mandatory process for imposing transportation utility fees, including the requirement to conduct a study on need and funding, post the study online, and establish an appeals process for user classification.

Required municipalities and counties to conduct an annual review of transportation utility fees to ensure the fee amount remains reasonable and necessary.

FISCAL

Created a requirement that all revenue from transportation utility fees must be deposited into a separate 'transportation fund' that cannot be used for any purpose other than transportation projects.

TIMELINE

Set specific deadlines requiring cities and towns to repeal prohibited public safety fees by July 1, 2027, if they were in place before May 6, 2026.

ENFORCEMENT

Made ordinances imposing transportation utility fees subject to local referenda, giving voters the power to approve or reject these fees.

Floor votes · Senate Feb 27, 2026 · House Feb 18, 2026

How they voted

260
Passed · 3 other
Total votes 29
Feb 27, 2026
D Democratic6
6 Yea
100% Yea
N Forward1
1 Yea
100% Yea
R Republican22
19 Yea 3
86% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
37
Key actions
9
Committee
6
Mar 24, 2026
Signed into law
Governor Signed
executive
Feb 27, 2026
Lower · Passed
House/ signed by Speaker/ sent for enrolling
lower
Feb 27, 2026
Lower · Passed
Senate/ signed by President/ returned to House
lower
Feb 27, 2026
Upper · Passed
Senate/ passed 3rd reading
upper
Feb 23, 2026
Upper · Passed
Senate/ committee report favorable [Senate Revenue and Taxation Committee]
upper
Feb 23, 2026
Upper · Passed
Senate Comm - Favorable Recommendation [Senate Revenue and Taxation Committee]
upper
Feb 20, 2026
Committee
Senate/ to standing committee [Senate Revenue and Taxation Committee]
upper
Feb 18, 2026
Introduced
Senate/ 1st reading (Introduced)
upper
Feb 18, 2026
Upper · Passed
House/ passed 3rd reading
upper
Feb 9, 2026
Lower · Passed
House/ committee report favorable [House Political Subdivisions Committee]
lower
Feb 6, 2026
Lower · Passed
House Comm - Favorable Recommendation [House Political Subdivisions Committee]
lower
Feb 5, 2026
Committee
House/ to standing committee [House Political Subdivisions Committee]
lower
Jan 29, 2026
Introduced
House/ 1st reading (Introduced)
lower
1 primary · 1 co-sponsor

Sponsors