H.B. 82

1

PUBLIC TRANSIT DISTRICT ETHICS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Raymond W. Short
5 AN ACT RELATING TO PUBLIC TRANSIT DISTRICTS; MODIFYING ETHICS
6 REQUIREMENTS FOR BOARD MEMBERS, OFFICERS, AND EMPLOYEES; AND
7 MAKING TECHNICAL CORRECTIONS.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 17A-2-1050, as renumbered and amended by Chapter 186, Laws of Utah 1990
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 17A-2-1050 is amended to read:
13 17A-2-1050. Conflict of interests prohibited -- Violation -- Penalty.
14 (1) Except as [herein] provided in this section, [no] a director or any other officer or
15 employee of the district [shall in any manner] may not be interested in any manner, directly or
16 indirectly, in any contract or in the profits derived from any contract:
17 (a) awarded by the board of directors; or
18 (b) made by any officer or employee pursuant to discretionary authority vested in him[,
19 or in the profits to be derived therefrom].
20 (2) Notwithstanding [the fact that] Subsection (1), when a director or other officer or
21 employee of the district [may be] is a stockholder [or], bondholder [or], director, or other officer
22 or employee of a corporation contracting with the district, [contracts may be made with] the district
23 may contract with that corporation for its general benefit unless [a] the director [or], officer, or
24 employee of the district [shall own or control] owns or controls, directly or indirectly, stock or
25 bonds [to] in an amount [exceeding five per cent] greater than 5% of the total amount of
26 outstanding stock or bonds. [For any violation of this section such director or other officer or
27 employee of the district shall be deemed guilty of a misdemeanor, and such conviction shall work

1 a forfeiture of his office, or employment, and he shall be punished by a fine not exceeding $500,
2 or by imprisonment in the county jail not exceeding six months, or by both such fine and
3 imprisonment.]
4 (3) (a) (i) A director, officer, or employee of the district who has, or whose relative has,
5 a substantial interest in any contract, sale, purchase, or service to the district shall disclose that
6 interest to the board of directors of the district in a public meeting of the board.
7 (ii) The board of directors of the district shall disclose that interest in the minutes of its
8 meeting.
9 (b) A director, officer, or employee of the district who has, or whose relative has, a
10 substantial interest in any contract, sale, purchase, or service to the district may not vote upon or
11 otherwise participate in any manner as a director, officer, or employee in the contract, sale, or
12 purchase.
13 (4) A director, officer, or employee of the district, in contemplation of official action by
14 himself or by the district or in reliance on information to which he has access in his official
15 capacity and which has not been made public, commits misuse of official information if he:
16 (a) acquires a pecuniary interest in any property, transaction, or enterprise that may be
17 affected by the information or official action;
18 (b) speculates or wagers on the basis of the information or official action; or
19 (c) aids, advises, or encourages another to do so with intent to confer upon any person a
20 special pecuniary benefit.
21 (5) Each director, officer, and employee who violates this section:
22 (a) is guilty of a class B misdemeanor; and
23 (b) if convicted, his board appointment or district employment is terminated.




Legislative Review Note
as of 1-13-97 11:55 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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