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H.B. 249





Sponsor: Marda Dillree

             5      This act modifies the Utah Public Transit District Act to authorize certain public transit
             6      districts to exercise the power of eminent domain. The act expands the ways by which public
             7      transit districts may acquire property.
             8      This act affects sections of Utah Code Annotated 1953 as follows:
             9      AMENDS:
             10          17A-2-1016, as last amended by Chapter 254, Laws of Utah 2000
             11      Be it enacted by the Legislature of the state of Utah:
             12          Section 1. Section 17A-2-1016 is amended to read:
             13           17A-2-1016. Powers of incorporated district -- Bidding -- Eminent domain.
             14          (1) As used in this section, "operator" means any city, public agency, person, firm, or
             15      private corporation engaged in the transportation of passengers for hire.
             16          (2) Any district incorporated under this part may:
             17          (a) have perpetual succession;
             18          (b) sue and be sued in all actions and proceedings and in all courts and tribunals of
             19      competent jurisdiction;
             20          (c) adopt a corporate seal and alter it at pleasure;
             21          (d) levy and collect taxes only for paying:
             22          (i) the principal and interest of bonded indebtedness of the district; or
             23          (ii) any final judgment obtained against the district beyond the amount of any collectable
             24      insurance or indemnity policy if the district is required by final order of any court of competent
             25      jurisdiction to levy a tax to pay the judgment;
             26          (e) take by grant, purchase, bequest, devise, [or] lease, exchange, or, as provided in
             27      Subsection (5)(a), eminent domain, and [to] hold, enjoy, lease, sell, encumber, alien, or otherwise

             28      dispose of real or personal property of every kind within the district;
             29          (f) make contracts and enter into stipulations of any nature, including contracts and
             30      stipulations:
             31          (i) to indemnify and save harmless;
             32          (ii) to do all acts to exercise the powers granted in this part; and
             33          (iii) with any department or agency of the United States of America, of the state, or with
             34      any public agency or private person, firm, or corporation upon terms and conditions the board of
             35      trustees finds are in the best interests of the district;
             36          (g) (i) insure against:
             37          (A) loss of revenues from accident or destruction of the system or any part of the system,
             38      from any cause whatsoever; or
             39          (B) public liability or property damage, or against all other types of events, acts, or
             40      omissions; and
             41          (ii) provide in the proceedings authorizing the issuance of any bonds for the carrying of
             42      any other insurance, in an amount and of such character as may be specified, and for the payment
             43      of the premiums on the insurance;
             44          (h) provide a public transit system for the transportation of passengers and their incidental
             45      baggage;
             46          (i) purchase all supplies, equipment, and materials;
             47          (j) construct facilities and works, but when the expenditure required exceeds $25,000
             48      construction shall be let by contract to the lowest responsible bidder or proposer;
             49          (k) acquire, contract for, lease, construct, own, operate, control, or use rights-of-way, rail
             50      lines, monorails, bus lines, stations, platforms, switches, yards, terminals, parking lots, any
             51      facilities necessary or convenient for public transit service, and all structures necessary for access
             52      by persons and vehicles;
             53          (l) hire, lease, or contract for the supplying of, or management of, any facilities, operations,
             54      equipment, services, employees, or management staff of any operator and provide for subleases
             55      or subcontracts by the operator upon terms that are in the public interest; and
             56          (m) operate feeder bus lines and other feeder services as necessary.
             57          (3) (a) Bids or proposals shall be advertised through public notice as determined by the
             58      board.

             59          (b) The notice may include publication in a newspaper of general circulation in the district,
             60      trade journal, or other method determined by the board at least once and not less than ten days
             61      prior to the expiration of the period within which bids or proposals are received.
             62          (c) The board may reject any and all bids or proposals and readvertise or give renotice at
             63      its discretion.
             64          (d) If, after rejecting bids or proposals, the board determines and declares by vote of
             65      two-thirds of all its members present that in its opinion the supplies, equipment, and materials may
             66      be purchased at a lower price in the open market, the board may proceed to purchase the same in
             67      the open market without further observance of the provisions requiring contracts, bids or
             68      proposals, advertisement, or notice.
             69          (e) Contracts, in writing or otherwise, may be let without advertising for or inviting bids
             70      when any repairs, alterations, or other work or the purchase of materials, supplies, equipment, or
             71      other property is found by the board upon a two-thirds vote of its members present to be of urgent
             72      necessity, or where the general manager certifies by affidavit that there is only one source for the
             73      required supplies, equipment, and materials, or construction items.
             74          (f) If any payment on a contract with a private contractor to construct facilities under this
             75      section is retained or withheld, it shall be retained or withheld and released as provided in Section
             76      13-8-5 .
             77          (4) (a) Installations in state highways or freeways are subject to the approval of the
             78      Department of Transportation.
             79          (b) It is presumed that the use of the streets, roads, highways, and other public places by
             80      the district for any of the purposes permitted in this section constitutes no greater burden on
             81      adjoining properties than the uses existing on July 9, 1969.
             82          (c) If facilities, other than state highways or freeways referred to in Subsection (2),
             83      including streets, roads, highways, pipelines, sewers, water mains, storm drains, poles, and
             84      communications wires of another public agency of the state, or of a private owner must be
             85      relocated, replaced, or altered in order for the district to construct or operate its system, or to
             86      preserve and maintain already constructed district facilities, the facilities shall be relocated,
             87      replaced, or altered with reasonable promptness by the respective public corporation, state, or
             88      private owner and the district shall by prior agreement reimburse the public corporation, state, or
             89      private owner for the reasonable cost incurred in relocation, replacement, or alteration.

             90          (d) The district may enter into an agreement with any city or county having jurisdiction
             91      over the street, road, or highway involved and, as may be provided by agreement, close any city
             92      street or county road at or near the point of its interception with any district facility or provide for
             93      carrying the city street or county road over or under or to a connection with the district facility and
             94      may do any and all work on the city street or county road as is necessary. A city street or county
             95      road may not be closed directly or indirectly by the construction of district facilities except:
             96          (i) pursuant to agreement; or
             97          (ii) while temporarily necessary during the construction of district facilities.
             98          (5) (a) A multicounty district may acquire by eminent domain under Title 78, Chapter 34,
             99      Eminent Domain, real and personal property necessary for establishing and operating a district,
             100      including a fee simple interest in real property, an easement, an access right, an air right, a
             101      right-of-way, and other private property interests.
             102          (b) The state, a municipality, or a county may acquire private property interests by eminent
             103      domain pursuant to Title 78, Chapter 34, Eminent Domain, including fee simple, easements, air
             104      rights, rights-of-way, and other private property interests necessary to the establishment and
             105      operation of a public transit district.

Legislative Review Note
    as of 11-20-00 12:49 PM

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

Office of Legislative Research and General Counsel

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