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First Substitute H.B. 188

Representative Wayne A. Harper proposes the following substitute bill:


             1     
TRANSIT REVISIONS

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne A. Harper

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Public Transit District Act and the Transportation Code by
             10      amending provisions relating to public transit.
             11      Highlighted Provisions:
             12          This bill:
             13          .    for a public transit district that has 200,000 or more people residing within its
             14      boundaries:
             15              .    increases the number of members on the board of trustees; and
             16              .    changes the Transportation Commission member on the board of trustees from a
             17      nonvoting, ex officio member to a voting member;
             18          .    provides that a member of the board of trustees that has served three successive full
             19      terms may not be reappointed for at least four years;
             20          .    amends certain duties of a public transit district board of trustees;
             21          .    prohibits a public transit district from delegating duties assigned to the board of
             22      trustees to the officers of the district;
             23          .    establishes requirements for a board of trustees to consider when fixing rates and
             24      charges for service provided by the district; and
             25          .    makes technical changes.


             26      Monies Appropriated in this Bill:
             27          None
             28      Other Special Clauses:
             29          None
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          17B-2a-807, as renumbered and amended by Laws of Utah 2007, Chapter 329
             33          17B-2a-808, as enacted by Laws of Utah 2007, Chapter 329
             34          17B-2a-815, as enacted by Laws of Utah 2007, Chapter 329
             35          72-1-303, as last amended by Laws of Utah 2007, Chapter 329
             36     
             37      Be it enacted by the Legislature of the state of Utah:
             38          Section 1. Section 17B-2a-807 is amended to read:
             39           17B-2a-807. Public transit district board of trustees -- Appointment --
             40      Apportionment -- Qualifications -- Quorum -- Compensation -- Terms.
             41          (1) (a) If 200,000 people or fewer reside within the boundaries of a public transit
             42      district, the board of trustees shall consist of members appointed by the legislative bodies of
             43      each municipality, county, or unincorporated area within any county on the basis of one
             44      member for each full unit of regularly scheduled passenger routes proposed to be served by the
             45      district in each municipality or unincorporated area within any county in the following calendar
             46      year.
             47          (b) For purposes of determining membership under Subsection (1)(a), the number of
             48      service miles comprising a unit shall be determined jointly by the legislative bodies of the
             49      municipalities or counties comprising the district.
             50          (c) The board of trustees of a public transit district under this Subsection (1) may
             51      include a member that is a commissioner on the Transportation Commission created in Section
             52      72-1-301 and appointed as provided in Subsection [(10)] (11), who shall serve as a nonvoting,
             53      ex officio member.
             54          (d) Members appointed under this Subsection (1) shall be appointed and added to the
             55      board or omitted from the board at the time scheduled routes are changed, or as municipalities,
             56      counties, or unincorporated areas of counties annex to or withdraw from the district using the


             57      same appointment procedures.
             58          (e) For purposes of appointing members under this Subsection (1), municipalities,
             59      counties, and unincorporated areas of counties in which regularly scheduled passenger routes
             60      proposed to be served by the district in the following calendar year is less than a full unit, as
             61      defined in Subsection (1)(b), may combine with any other similarly situated municipality or
             62      unincorporated area to form a whole unit and may appoint one member for each whole unit
             63      formed.
             64          (2) (a) If more than 200,000 people reside within the boundaries of a public transit
             65      district, the board of trustees shall consist of 15 members appointed as described under this
             66      Subsection (2), three members appointed as described in Subsection (4), and one [nonvoting,
             67      ex officio] voting member appointed as provided in Subsection [(10)] (11).
             68          (b) Except as provided in Subsections (2)(c) and(d), the board shall apportion voting
             69      members to each county within the district using an average of:
             70          (i) the proportion of population included in the district and residing within each county,
             71      rounded to the nearest 1/15 of the total transit district population; and
             72          (ii) the proportion of transit sales and use tax collected from areas included in the
             73      district and within each county, rounded to the nearest 1/15 of the total transit sales and use tax
             74      collected for the transit district.
             75          (c) The board shall join an entire or partial county not apportioned a voting member
             76      under this Subsection (2) with an adjacent county for representation. The combined
             77      apportionment basis included in the district of both counties shall be used for the
             78      apportionment.
             79          (d) (i) If rounding to the nearest 1/15 of the total public transit district apportionment
             80      basis under Subsection (2)(b) results in an apportionment of more than 15 members, the county
             81      or combination of counties with the smallest additional fraction of a whole member proportion
             82      shall have one less member apportioned to it.
             83          (ii) If rounding to the nearest 1/15 of the total public transit district apportionment
             84      basis under Subsection (2)(b) results in an apportionment of less than 15 members, the county
             85      or combination of counties with the largest additional fraction of a whole member proportion
             86      shall have one more member apportioned to it.
             87          (e) If the population in the unincorporated area of a county is at least 1/15 of the


             88      district's population, the county executive, with the advice and consent of the county legislative
             89      body, shall appoint one voting member to represent each 1/15 of the district's population within
             90      a county's unincorporated area population.
             91          (f) If a municipality's population is at least 1/15 of the district's population, the chief
             92      municipal executive, with the advice and consent of the municipal legislative body, shall
             93      appoint one voting member to represent each 1/15 of the district's population within a
             94      municipality.
             95          (g) The number of voting members appointed from a county and municipalities within
             96      a county under Subsections (2)(e) and (f) shall be subtracted from the county's total voting
             97      member apportionment under this Subsection (2).
             98          (h) If the entire county is within the district, the remaining voting members for the
             99      county shall represent the county or combination of counties, if Subsection (2)(c) applies, or
             100      the municipalities within the county.
             101          (i) If the entire county is not within the district, and the county is not joined with
             102      another county under Subsection (2)(c), the remaining voting members for the county shall
             103      represent a municipality or combination of municipalities.
             104          (j) Except as provided under Subsections (2)(e) and (f), voting members representing
             105      counties, combinations of counties if Subsection (2)(c) applies, or municipalities within the
             106      county shall be designated and appointed by a simple majority of the chief executives of the
             107      municipalities within the county or combinations of counties if Subsection (2)(c) applies. The
             108      appointments shall be made by joint written agreement of the appointing municipalities, with
             109      the consent and approval of the county legislative body of the county that has at least 1/15 of
             110      the district's apportionment basis.
             111          (k) Voting members representing a municipality or combination of municipalities shall
             112      be designated and appointed by the chief executive officer of the municipality or simple
             113      majority of chief executive officers of municipalities with the consent of the legislative body of
             114      the municipality or municipalities.
             115          (l) The appointment of voting members shall be made without regard to partisan
             116      political affiliation from among citizens in the community.
             117          (m) Each voting member shall be a bona fide resident of the municipality, county, or
             118      unincorporated area or areas which the voting member is to represent for at least six months


             119      before the date of appointment, and must continue in that residency to remain qualified to serve
             120      as a voting member.
             121          (n) (i) All population figures used under this section shall be derived from the most
             122      recent official census or census estimate of the United States Bureau of the Census.
             123          (ii) If population estimates are not available from the United States Bureau of Census,
             124      population figures shall be derived from the estimate from the Utah Population Estimates
             125      Committee.
             126          (iii) All transit sales and use tax totals shall be obtained from the State Tax
             127      Commission.
             128          (o) (i) The board shall be apportioned as provided under this section in conjunction
             129      with the decennial United States Census Bureau report every ten years.
             130          (ii) Within 120 days following the receipt of the population estimates under this
             131      Subsection (2)(o), the district shall reapportion representation on the board of trustees in
             132      accordance with this section.
             133          (iii) The board shall adopt by resolution a schedule reflecting the current and proposed
             134      apportionment.
             135          (iv) Upon adoption of the resolution, the board shall forward a copy of the resolution to
             136      each of its constituent entities as defined under Section 17B-1-701 .
             137          (v) The appointing entities gaining a new board member shall appoint a new member
             138      within 30 days following receipt of the resolution.
             139          (vi) The appointing entities losing a board member shall inform the board of which
             140      member currently serving on the board will step down upon appointment of a new member
             141      under Subsection (2)(o)(v).
             142          (3) Upon the completion of an annexation to a public transit district under Chapter 1,
             143      Part 4, Annexation, the annexed area shall have a representative on the board of trustees on the
             144      same basis as if the area had been included in the district as originally organized.
             145          (4) In addition to the voting members appointed in accordance with Subsection (2), the
             146      board shall consist of three voting members appointed as follows:
             147          (a) one member appointed by the speaker of the House of Representatives;
             148          (b) one member appointed by the president of the Senate; and
             149          (c) one member appointed by the governor.


             150          [(4)] (5) (a) Except the initial members of the board, the terms of office of the voting
             151      members of the board shall be two years or until a successor is appointed, qualified, seated, and
             152      has taken the oath of office.
             153          (b) At the first meeting of the initial members of the board held after July 1, 2004,
             154      voting members of the board shall designate by the drawing of lots for 1/2 of their number to
             155      serve for one-year terms and 1/2 for two-year terms.
             156          (c) (i) A voting member may not be appointed for more than three successive full
             157      terms.
             158          (ii) A voting member that has served three successive full terms may not be
             159      reappointed as a member of the board for at least four years after the voting member's final day
             160      of service of the voting member's third full term on the board.
             161          [(5)] (6) (a) Vacancies for voting members shall be filled by the official appointing the
             162      member creating the vacancy for the unexpired term, unless the official fails to fill the vacancy
             163      within 90 days.
             164          (b) If the appointing official under Subsection (1) does not fill the vacancy within 90
             165      days, the board of trustees of the authority shall fill the vacancy.
             166          (c) If the appointing official under Subsection (2) does not fill the vacancy within 90
             167      days, the governor, with the advice and consent of the Senate, shall fill the vacancy.
             168          [(6)] (7) (a) Each voting member may cast one vote on all questions, orders,
             169      resolutions, and ordinances coming before the board of trustees.
             170          (b) A majority of all voting members of the board of trustees are a quorum for the
             171      transaction of business.
             172          (c) The affirmative vote of a majority of all voting members present at any meeting at
             173      which a quorum was initially present shall be necessary and, except as otherwise provided, is
             174      sufficient to carry any order, resolution, ordinance, or proposition before the board of trustees.
             175          [(7)] (8) Each public transit district shall pay to each voting member:
             176          (a) an attendance fee of $50 per board or committee meeting attended, not to exceed
             177      $200 in any calendar month to any voting member; and
             178          (b) reasonable mileage and expenses necessarily incurred to attend board or committee
             179      meetings.
             180          [(8)] (9) (a) Members of the initial board of trustees shall convene at the time and place


             181      fixed by the chief executive officer of the entity initiating the proceedings.
             182          (b) Immediately upon convening, the board of trustees shall elect from its voting
             183      membership a president, vice president, and secretary who shall serve for a period of two years
             184      or until their successors shall be elected and qualified.
             185          [(9)] (10) At the time of a voting member's appointment or during a voting member's
             186      tenure in office, a voting member may not hold any employment, except as an independent
             187      contractor or elected public official, with a county or municipality within the district.
             188          [(10)] (11) The Transportation Commission created in Section 72-1-301 :
             189          (a) for a public transit district serving a population of 200,000 people or fewer, may
             190      appoint a commissioner of the Transportation Commission to serve on the board of trustees as
             191      a nonvoting, ex officio member; and
             192          (b) for a public transit district serving a population of more than 200,000 people, shall
             193      appoint a commissioner of the Transportation Commission to serve on the board of trustees as
             194      a [nonvoting, ex officio] voting member.
             195          [(11)] (12) (a) (i) Each member of the board of trustees of a public transit district is
             196      subject to recall at any time by the legislative body of the county or municipality from which
             197      the member is appointed.
             198          (ii) Each recall of a board of trustees member shall be made in the same manner as the
             199      original appointment.
             200          (iii) The legislative body recalling a board of trustees member shall provide written
             201      notice to the member being recalled.
             202          (b) Upon providing written notice to the board of trustees, a member of the board may
             203      resign from the board of trustees.
             204          (c) If a board member is recalled or resigns under this Subsection [(11)] (12), the
             205      vacancy shall be filled as provided in Subsection [(5)] (6).
             206          Section 2. Section 17B-2a-808 is amended to read:
             207           17B-2a-808. Public transit district board of trustees powers and duties --
             208      Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
             209          (1) The powers and duties of a board of trustees of a public transit district stated in this
             210      section are in addition to the powers and duties stated in Section 17B-1-301 .
             211          (2) The board of trustees of each public transit district shall:


             212          (a) appoint and fix the salary of a general manager, as provided in Section 17B-2a-811 ;
             213          (b) determine the transit facilities that the district should acquire or construct;
             214          (c) supervise and regulate each transit facility that the district owns and operates,
             215      including:
             216          (i) fixing rates, fares, rentals, and charges and any classifications of rates, fares, rentals,
             217      and charges subject to the restrictions in Section 17B-2a-815 ; and
             218          (ii) making and enforcing rules, regulations, contracts, practices, and schedules for or
             219      in connection with a transit facility that the district owns or controls;
             220          (d) control the investment of all funds assigned to the district for investment, including
             221      funds:
             222          (i) held as part of a district's retirement system; and
             223          (ii) invested in accordance with the participating employees' designation or direction
             224      pursuant to an employee deferred compensation plan established and operated in compliance
             225      with Section 457 of the Internal Revenue Code;
             226          (e) invest all funds according to the procedures and requirements of Title 51, Chapter
             227      7, State Money Management Act;
             228          (f) if a custodian is appointed under Subsection (3)(d), pay the fees for the custodian's
             229      services from the interest earnings of the investment fund for which the custodian is appointed;
             230          (g) (i) cause an annual audit of all district books and accounts to be made by an
             231      independent certified public accountant;
             232          (ii) as soon as practicable after the close of each fiscal year, submit to the chief
             233      administrative officer and legislative body of each county and municipality with territory
             234      within the district a financial report showing:
             235          (A) the result of district operations during the preceding fiscal year; and
             236          (B) the district's financial status on the final day of the fiscal year; and
             237          (iii) supply copies of the report under Subsection (2)(g)(ii) to the general public upon
             238      request in a quantity that the board considers appropriate; and
             239          (iv) ensure policies are in place so that all public reports and data and statistics
             240      included in public reports are accurate;
             241          (h) annually review, modify, and approve the public transit district's short-term and
             242      long-range public transit plans, including the transit portions of applicable regional


             243      transportation plans adopted by a metropolitan planning organization established under 23
             244      U.S.C. Sec. 134;
             245          [(h) report] (i) submit at least annually to the Transportation Commission created in
             246      Section 72-1-301 the district's short-term and long-range public transit plans, including the
             247      transit portions of applicable regional transportation plans adopted by a metropolitan planning
             248      organization established under 23 U.S.C. Sec. 134[.];
             249          (j) conduct an annual review of ridership and allocate funds and routes based on
             250      ridership and needs;
             251          (k) set minimum performance standards for a bus route and revise as needed to reflect
             252      the public transit system demographics, congestion and pollution mitigation strategies, and
             253      ridership needs and changes;
             254          (l) direct the internal auditor to conduct audits that the board of trustees determines to
             255      be the most critical to the success of the organization; and
             256          (m) hear audit reports for audits conducted in accordance with Subsection (2)(l).
             257          (3) A board of trustees of a public transit district may:
             258          (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
             259      are:
             260          (i) not repugnant to the United States Constitution, the Utah Constitution, or the
             261      provisions of this part; and
             262          (ii) necessary for:
             263          (A) the government and management of the affairs of the district;
             264          (B) the execution of district powers; and
             265          (C) carrying into effect the provisions of this part;
             266          (b) provide by resolution, under terms and conditions the board considers fit, for the
             267      payment of demands against the district without prior specific approval by the board, if the
             268      payment is:
             269          (i) for a purpose for which the expenditure has been previously approved by the board;
             270          (ii) in an amount no greater than the amount authorized; and
             271          (iii) approved by the general manager or other officer or deputy as the board prescribes;
             272          (c) (i) hold public hearings and subpoena witnesses; and
             273          (ii) appoint district officers to conduct a hearing and require the officers to make


             274      findings and conclusions and report them to the board; and
             275          (d) appoint a custodian for the funds and securities under its control, subject to
             276      Subsection (2)(f).
             277          (4) The board of trustees of a public transit district may not delegate any of the powers
             278      or duties of the board specified under Subsection (2).
             279          [(4)] (5) A member of the board of trustees of a public transit district or a hearing
             280      officer designated by the board may administer oaths and affirmations in a district investigation
             281      or proceeding.
             282          [(5)] (6) (a) The vote of the board of trustees on each ordinance shall be by roll call
             283      vote with each affirmative and negative vote recorded.
             284          (b) (i) Subject to Subsection [(5)] (6)(b)(ii), the board of trustees may adopt a
             285      resolution or order by voice vote.
             286          (ii) The vote of the board of trustees on a resolution or order shall be by roll call vote if
             287      a member of the board so demands.
             288          (c) (i) Except as provided in Subsection [(5)] (6)(c)(ii), the board of trustees of a public
             289      transit district may not adopt an ordinance unless it is:
             290          (A) introduced at least a day before the board of trustees adopts it; or
             291          (B) mailed by registered mail, postage prepaid, to each member of the board of trustees
             292      at least five days before the day upon which the ordinance is presented for adoption.
             293          (ii) Subsection [(5)] (6)(c)(i) does not apply if the ordinance is adopted by a unanimous
             294      vote of all board members present at a meeting at which at least 3/4 of all board members are
             295      present.
             296          (d) Each ordinance adopted by a public transit district's board of trustees shall take
             297      effect upon adoption, unless the ordinance provides otherwise.
             298          Section 3. Section 17B-2a-815 is amended to read:
             299           17B-2a-815. Rates and charges for service.
             300          (1) The board of trustees of a public transit district shall fix rates and charges for
             301      service provided by the district by a two-thirds vote of all board members[.] considering:
             302          (a) a basis and pricing strategy for how subsidized fares and passes are set for all
             303      service modes; and
             304          (b) an acceptable subsidy level for all service modes.


             305          (2) Rates and charges shall:
             306          (a) be reasonable and equitable; and
             307          (b) to the extent practicable:
             308          (i) result in enough revenue to make the public transit system self supporting; and
             309          (ii) be sufficient to:
             310          (A) pay for district operating expenses;
             311          (B) provide for repairs, maintenance, and depreciation of works and property that the
             312      district owns or operates;
             313          (C) provide for the purchase, lease, or acquisition of property and equipment;
             314          (D) pay the interest and principal of bonds that the district issues; and
             315          (E) pay for contracts, agreements, leases, and other legal liabilities that the district
             316      incurs.
             317          Section 4. Section 72-1-303 is amended to read:
             318           72-1-303. Duties of commission.
             319          The commission has the following duties:
             320          (1) determining priorities and funding levels of projects in the state transportation
             321      systems for each fiscal year based on project lists compiled by the department;
             322          (2) determining additions and deletions to state highways under Chapter 4, Designation
             323      of State Highways Act;
             324          (3) holding public hearings and otherwise providing for public input in transportation
             325      matters;
             326          (4) making policies and rules in accordance with Title 63, Chapter 46a, Utah
             327      Administrative Rulemaking Act, necessary to perform the commission's duties described under
             328      this section;
             329          (5) in accordance with Section 63-46b-12 , reviewing orders issued by the executive
             330      director in adjudicative proceedings held in accordance with Title 63, Chapter 46b,
             331      Administrative Procedures Act;
             332          (6) advising the department in state transportation systems policy;
             333          (7) approving settlement agreements of condemnation cases subject to Section
             334      63-38b-401 ;
             335          (8) in accordance with Section 17B-2a-807 , appointing a commissioner to serve as a


             336      nonvoting, ex officio member or a voting member on the board of trustees of a public transit
             337      district;
             338          (9) in accordance with Section 17B-2a-808 , reviewing, at least annually, the short-term
             339      and long-range public transit plans; and
             340          (10) reviewing administrative rules made, amended, or repealed by the department.


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