S.B. 227

1

RESPONSIBILITIES OF PUBLIC TRANSIT
2 DISTRICTS
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Scott D. McCoy
6 House Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Utah Public Transit District Act by amending provisions related
11 to public transit district responsibilities.
12 Highlighted Provisions:
13 This bill:
14 . requires a public transit district to assist and coordinate with other state agencies to
15 help recipients of public assistance find employment; and
16 . makes technical changes.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 AMENDS:
23 17A-2-1016, as last amended by Chapter 136, Laws of Utah 2005
24
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 17A-2-1016 is amended to read:
27 17A-2-1016. Powers and duties of incorporated district -- Bidding -- Eminent

28 domain.
29 (1) As used in this section, "operator" means any city, public agency, person, firm, or
30 private corporation engaged in the transportation of passengers for hire.
31 (2) Any district incorporated under this part may:
32 (a) have perpetual succession;
33 (b) sue and be sued in all actions and proceedings and in all courts and tribunals of
34 competent jurisdiction;
35 (c) adopt a corporate seal and alter it at pleasure;
36 (d) levy and collect taxes only for paying:
37 (i) the principal and interest of bonded indebtedness of the district; or
38 (ii) any final judgment obtained against the district beyond the amount of any
39 collectable insurance or indemnity policy if the district is required by final order of any court of
40 competent jurisdiction to levy a tax to pay the judgment;
41 (e) take by grant, purchase, bequest, devise, or lease, and to hold, enjoy, lease, sell,
42 encumber, alien, or otherwise dispose of real or personal property of every kind within the
43 district;
44 (f) make contracts and enter into stipulations of any nature, including contracts and
45 stipulations:
46 (i) to indemnify and save harmless;
47 (ii) to do all acts to exercise the powers granted in this part; and
48 (iii) with any department or agency of the United States of America, of the state, or
49 with any public agency or private person, firm, or corporation upon terms and conditions the
50 board of trustees finds are in the best interests of the district;
51 (g) (i) insure against:
52 (A) loss of revenues from accident or destruction of the system or any part of the
53 system, from any cause whatsoever; or
54 (B) public liability or property damage, or against all other types of events, acts, or
55 omissions; and
56 (ii) provide in the proceedings authorizing the issuance of any bonds for the carrying of
57 any other insurance, in an amount and of such character as may be specified, and for the
58 payment of the premiums on the insurance;

59 (h) provide a public transit system for the transportation of passengers and their
60 incidental baggage;
61 (i) purchase all supplies, equipment, and materials;
62 (j) construct facilities and works, but when the expenditure required exceeds $25,000
63 construction shall be let in accordance with Title 63, Chapter 56, Utah Procurement Code;
64 (k) acquire, contract for, lease, construct, own, operate, control, or use rights-of-way,
65 rail lines, monorails, bus lines, stations, platforms, switches, yards, terminals, parking lots, any
66 facilities necessary or convenient for public transit service, and all structures necessary for
67 access by persons and vehicles;
68 (l) hire, lease, or contract for the supplying of, or management of, any facilities,
69 operations, equipment, services, employees, or management staff of any operator and provide
70 for subleases or subcontracts by the operator upon terms that are in the public interest; and
71 (m) operate feeder bus lines and other feeder services as necessary.
72 (3) A public transit district incorporated under this part shall assist and coordinate with
73 other state agencies to help recipients of public assistance find employment.
74 [(3)] (4) (a) Bids or proposals shall be advertised through public notice as determined
75 by the board.
76 (b) The notice may include publication in a newspaper of general circulation in the
77 district, trade journal, or other method determined by the board at least once and not less than
78 ten days prior to the expiration of the period within which bids or proposals are received.
79 (c) The board may reject any and all bids or proposals and readvertise or give renotice
80 at its discretion.
81 (d) If, after rejecting bids or proposals, the board determines and declares by vote of
82 two-thirds of all its members present that in its opinion the supplies, equipment, and materials
83 may be purchased at a lower price in the open market, the board may proceed to purchase the
84 same in the open market without further observance of the provisions requiring contracts, bids
85 or proposals, advertisement, or notice.
86 (e) Contracts, in writing or otherwise, may be let without advertising for or inviting
87 bids when any repairs, alterations, or other work or the purchase of materials, supplies,
88 equipment, or other property is found by the board upon a two-thirds vote of its members
89 present to be of urgent necessity, or where the general manager certifies by affidavit that there

90 is only one source for the required supplies, equipment, and materials, or construction items.
91 (f) If any payment on a contract with a private contractor to construct facilities under
92 this section is retained or withheld, it shall be retained or withheld and released as provided in
93 Section 13-8-5 .
94 [(4)] (5) (a) Installations in state highways or freeways are subject to the approval of
95 the Department of Transportation.
96 (b) It is presumed that the use of the streets, roads, highways, and other public places
97 by the district for any of the purposes permitted in this section constitutes no greater burden on
98 adjoining properties than the uses existing on July 9, 1969.
99 (c) If facilities, other than state highways or freeways referred to in Subsection (2),
100 including streets, roads, highways, pipelines, sewers, water mains, storm drains, poles, and
101 communications wires of another public agency of the state, or of a private owner must be
102 relocated, replaced, or altered in order for the district to construct or operate its system, or to
103 preserve and maintain already constructed district facilities, the facilities shall be relocated,
104 replaced, or altered with reasonable promptness by the respective public corporation, state, or
105 private owner and the district shall by prior agreement reimburse the public corporation, state,
106 or private owner for the reasonable cost incurred in relocation, replacement, or alteration.
107 (d) (i) The district may enter into an agreement with any city or county having
108 jurisdiction over the street, road, or highway involved and, as may be provided by agreement,
109 close any city street or county road at or near the point of its interception with any district
110 facility or provide for carrying the city street or county road over or under or to a connection
111 with the district facility and may do any and all work on the city street or county road as is
112 necessary.
113 (ii) A city street or county road may not be closed directly or indirectly by the
114 construction of district facilities except:
115 [(i)] (A) pursuant to agreement; or
116 [(ii)] (B) while temporarily necessary during the construction of district facilities.
117 [(5)] (6) The state, a municipality, or a county may acquire private property interests
118 within its respective boundaries by eminent domain pursuant to Title 78, Chapter 34, Eminent
119 Domain, including fee simple, easements, air rights, rights-of-way, and other private property
120 interests necessary to the establishment and operation of a public transit district.

Legislative Review Note
as of 2-7-06 1:29 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel