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S.B. 231 Enrolled

             1     

TRANSPORTATION GOVERNANCE

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Sheldon L. Killpack

             5     
House Sponsor: Wayne A. Harper

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Public Transit District Act by amending provisions relating to
             10      public transit district governance.
             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          .    creates an internal auditor public transit district officer that is appointed by the board
             19      of trustees;
             20          .    provides that the person appointed as the internal auditor shall be a licensed certified
             21      internal auditor or certified public accountant and meet certain experience
             22      requirements;
             23          .    requires the board of trustees of a public transit district to:
             24              .    direct the internal auditor to conduct internal audits that the board of trustees
             25      determines are critical to the success of the organization; and
             26              .    hear audit reports of the audits conducted as directed by the board; and
             27          .    makes technical changes.
             28      Monies Appropriated in this Bill:
             29          None


             30      Other Special Clauses:
             31          This bill takes effect on July 1, 2008.
             32      Utah Code Sections Affected:
             33      AMENDS:
             34          17B-2a-807, as renumbered and amended by Laws of Utah 2007, Chapter 329
             35          17B-2a-808, as enacted by Laws of Utah 2007, Chapter 329
             36          17B-2a-810, as enacted by Laws of Utah 2007, Chapter 329
             37          72-1-303, as last amended by Laws of Utah 2007, Chapter 329
             38     
             39      Be it enacted by the Legislature of the state of Utah:
             40          Section 1. Section 17B-2a-807 is amended to read:
             41           17B-2a-807. Public transit district board of trustees -- Appointment --
             42      Apportionment -- Qualifications -- Quorum -- Compensation -- Terms.
             43          (1) (a) If 200,000 people or fewer reside within the boundaries of a public transit
             44      district, the board of trustees shall consist of members appointed by the legislative bodies of
             45      each municipality, county, or unincorporated area within any county on the basis of one member
             46      for each full unit of regularly scheduled passenger routes proposed to be served by the district in
             47      each municipality or unincorporated area within any county in the following calendar year.
             48          (b) For purposes of determining membership under Subsection (1)(a), the number of
             49      service miles comprising a unit shall be determined jointly by the legislative bodies of the
             50      municipalities or counties comprising the district.
             51          (c) The board of trustees of a public transit district under this Subsection (1) may
             52      include a member that is a commissioner on the Transportation Commission created in Section
             53      72-1-301 and appointed as provided in Subsection [(10)] (11), who shall serve as a nonvoting,
             54      ex officio member.
             55          (d) Members appointed under this Subsection (1) shall be appointed and added to the
             56      board or omitted from the board at the time scheduled routes are changed, or as municipalities,
             57      counties, or unincorporated areas of counties annex to or withdraw from the district using the


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


             86      combination of counties with the largest additional fraction of a whole member proportion shall
             87      have one more member apportioned to it.
             88          (e) If the population in the unincorporated area of a county is at least 1/15 of the
             89      district's population, the county executive, with the advice and consent of the county legislative
             90      body, shall appoint one voting member to represent each 1/15 of the district's population within
             91      a county's unincorporated area population.
             92          (f) If a municipality's population is at least 1/15 of the district's population, the chief
             93      municipal executive, with the advice and consent of the municipal legislative body, shall appoint
             94      one voting member to represent each 1/15 of the district's population within a municipality.
             95          (g) The number of voting members appointed from a county and municipalities within a
             96      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 the
             100      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 the
             109      consent and approval of the county legislative body of the county that has at least 1/15 of the
             110      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 majority
             113      of chief executive officers of municipalities with the consent of the legislative body of the


             114      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 Commission.
             127          (o) (i) The board shall be apportioned as provided under this section in conjunction with
             128      the decennial United States Census Bureau report every ten years.
             129          (ii) Within 120 days following the receipt of the population estimates under this
             130      Subsection (2)(o), the district shall reapportion representation on the board of trustees in
             131      accordance with this section.
             132          (iii) The board shall adopt by resolution a schedule reflecting the current and proposed
             133      apportionment.
             134          (iv) Upon adoption of the resolution, the board shall forward a copy of the resolution to
             135      each of its constituent entities as defined under Section 17B-1-701 .
             136          (v) The appointing entities gaining a new board member shall appoint a new member
             137      within 30 days following receipt of the resolution.
             138          (vi) The appointing entities losing a board member shall inform the board of which
             139      member currently serving on the board will step down upon appointment of a new member
             140      under Subsection (2)(o)(v).
             141          (3) Upon the completion of an annexation to a public transit district under Chapter 1,


             142      Part 4, Annexation, the annexed area shall have a representative on the board of trustees on the
             143      same basis as if the area had been included in the district as originally organized.
             144          (4) In addition to the voting members appointed in accordance with Subsection (2), the
             145      board shall consist of three voting members appointed as follows:
             146          (a) one member appointed by the speaker of the House of Representatives;
             147          (b) one member appointed by the president of the Senate; and
             148          (c) one member appointed by the governor.
             149          [(4)] (5) (a) Except the initial members of the board, the terms of office of the voting
             150      members of the board shall be two years or until a successor is appointed, qualified, seated, and
             151      has taken the oath of office.
             152          (b) At the first meeting of the initial members of the board held after July 1, 2004,
             153      voting members of the board shall designate by the drawing of lots for 1/2 of their number to
             154      serve for one-year terms and 1/2 for two-year terms.
             155          (c) A voting member may not be appointed for more than three successive full terms.
             156          [(5)] (6) (a) Vacancies for voting members shall be filled by the official appointing the
             157      member creating the vacancy for the unexpired term, unless the official fails to fill the vacancy
             158      within 90 days.
             159          (b) If the appointing official under Subsection (1) does not fill the vacancy within 90
             160      days, the board of trustees of the authority shall fill the vacancy.
             161          (c) If the appointing official under Subsection (2) does not fill the vacancy within 90
             162      days, the governor, with the advice and consent of the Senate, shall fill the vacancy.
             163          [(6)] (7) (a) Each voting member may cast one vote on all questions, orders,
             164      resolutions, and ordinances coming before the board of trustees.
             165          (b) A majority of all voting members of the board of trustees are a quorum for the
             166      transaction of business.
             167          (c) The affirmative vote of a majority of all voting members present at any meeting at
             168      which a quorum was initially present shall be necessary and, except as otherwise provided, is
             169      sufficient to carry any order, resolution, ordinance, or proposition before the board of trustees.


             170          [(7)] (8) Each public transit district shall pay to each voting member:
             171          (a) an attendance fee of $50 per board or committee meeting attended, not to exceed
             172      $200 in any calendar month to any voting member; and
             173          (b) reasonable mileage and expenses necessarily incurred to attend board or committee
             174      meetings.
             175          [(8)] (9) (a) Members of the initial board of trustees shall convene at the time and place
             176      fixed by the chief executive officer of the entity initiating the proceedings.
             177          (b) Immediately upon convening, the board of trustees shall elect from its voting
             178      membership a president, vice president, and secretary [who].
             179          (c) The members elected under Subsection (9)(b) shall serve for a period of two years
             180      or until their successors shall be elected and qualified.
             181          [(9)] (10) At the time of a voting member's appointment or during a voting member's
             182      tenure in office, a voting member may not hold any employment, except as an independent
             183      contractor or elected public official, with a county or municipality within the district.
             184          [(10)] (11) The Transportation Commission created in Section 72-1-301 :
             185          (a) for a public transit district serving a population of 200,000 people or fewer, may
             186      appoint a commissioner of the Transportation Commission to serve on the board of trustees as a
             187      nonvoting, ex officio member; and
             188          (b) for a public transit district serving a population of more than 200,000 people, shall
             189      appoint a commissioner of the Transportation Commission to serve on the board of trustees as a
             190      [nonvoting, ex officio] voting member.
             191          [(11)] (12) (a) (i) Each member of the board of trustees of a public transit district is
             192      subject to recall at any time by the legislative body of the county or municipality from which the
             193      member is appointed.
             194          (ii) Each recall of a board of trustees member shall be made in the same manner as the
             195      original appointment.
             196          (iii) The legislative body recalling a board of trustees member shall provide written
             197      notice to the member being recalled.


             198          (b) Upon providing written notice to the board of trustees, a member of the board may
             199      resign from the board of trustees.
             200          (c) If a board member is recalled or resigns under this Subsection [(11)] (12), the
             201      vacancy shall be filled as provided in Subsection [(5)] (6).
             202          Section 2. Section 17B-2a-808 is amended to read:
             203           17B-2a-808. Public transit district board of trustees powers and duties --
             204      Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
             205          (1) The powers and duties of a board of trustees of a public transit district stated in this
             206      section are in addition to the powers and duties stated in Section 17B-1-301 .
             207          (2) The board of trustees of each public transit district shall:
             208          (a) appoint and fix the salary of a general manager, as provided in Section 17B-2a-811 ;
             209          (b) determine the transit facilities that the district should acquire or construct;
             210          (c) supervise and regulate each transit facility that the district owns and operates,
             211      including:
             212          (i) fixing rates, fares, rentals, and charges and any classifications of rates, fares, rentals,
             213      and charges; and
             214          (ii) making and enforcing rules, regulations, contracts, practices, and schedules for or in
             215      connection with a transit facility that the district owns or controls;
             216          (d) control the investment of all funds assigned to the district for investment, including
             217      funds:
             218          (i) held as part of a district's retirement system; and
             219          (ii) invested in accordance with the participating employees' designation or direction
             220      pursuant to an employee deferred compensation plan established and operated in compliance
             221      with Section 457 of the Internal Revenue Code;
             222          (e) invest all funds according to the procedures and requirements of Title 51, Chapter 7,
             223      State Money Management Act;
             224          (f) if a custodian is appointed under Subsection (3)(d), pay the fees for the custodian's
             225      services from the interest earnings of the investment fund for which the custodian is appointed;


             226          (g) (i) cause an annual audit of all district books and accounts to be made by an
             227      independent certified public accountant;
             228          (ii) as soon as practicable after the close of each fiscal year, submit to the chief
             229      administrative officer and legislative body of each county and municipality with territory within
             230      the district a financial report showing:
             231          (A) the result of district operations during the preceding fiscal year; and
             232          (B) the district's financial status on the final day of the fiscal year; and
             233          (iii) supply copies of the report under Subsection (2)(g)(ii) to the general public upon
             234      request in a quantity that the board considers appropriate; [and]
             235          (h) report at least annually to the Transportation Commission created in Section
             236      72-1-301 the district's short-term and long-range public transit plans, including the transit
             237      portions of applicable regional transportation plans adopted by a metropolitan planning
             238      organization established under 23 U.S.C. Sec. 134[.];
             239          (i) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits
             240      that the board of trustees determines to be the most critical to the success of the organization;
             241      and
             242          (j) hear audit reports for audits conducted in accordance with Subsection (2)(i).
             243          (3) A board of trustees of a public transit district may:
             244          (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
             245      are:
             246          (i) not repugnant to the United States Constitution, the Utah Constitution, or the
             247      provisions of this part; and
             248          (ii) necessary for:
             249          (A) the government and management of the affairs of the district;
             250          (B) the execution of district powers; and
             251          (C) carrying into effect the provisions of this part;
             252          (b) provide by resolution, under terms and conditions the board considers fit, for the
             253      payment of demands against the district without prior specific approval by the board, if the


             254      payment is:
             255          (i) for a purpose for which the expenditure has been previously approved by the board;
             256          (ii) in an amount no greater than the amount authorized; and
             257          (iii) approved by the general manager or other officer or deputy as the board prescribes;
             258          (c) (i) hold public hearings and subpoena witnesses; and
             259          (ii) appoint district officers to conduct a hearing and require the officers to make
             260      findings and conclusions and report them to the board; and
             261          (d) appoint a custodian for the funds and securities under its control, subject to
             262      Subsection (2)(f).
             263          (4) A member of the board of trustees of a public transit district or a hearing officer
             264      designated by the board may administer oaths and affirmations in a district investigation or
             265      proceeding.
             266          (5) (a) The vote of the board of trustees on each ordinance shall be by roll call vote
             267      with each affirmative and negative vote recorded.
             268          (b) (i) Subject to Subsection (5)(b)(ii), the board of trustees may adopt a resolution or
             269      order by voice vote.
             270          (ii) The vote of the board of trustees on a resolution or order shall be by roll call vote if
             271      a member of the board so demands.
             272          (c) (i) Except as provided in Subsection (5)(c)(ii), the board of trustees of a public
             273      transit district may not adopt an ordinance unless it is:
             274          (A) introduced at least a day before the board of trustees adopts it; or
             275          (B) mailed by registered mail, postage prepaid, to each member of the board of trustees
             276      at least five days before the day upon which the ordinance is presented for adoption.
             277          (ii) Subsection (5)(c)(i) does not apply if the ordinance is adopted by a unanimous vote
             278      of all board members present at a meeting at which at least 3/4 of all board members are
             279      present.
             280          (d) Each ordinance adopted by a public transit district's board of trustees shall take
             281      effect upon adoption, unless the ordinance provides otherwise.


             282          Section 3. Section 17B-2a-810 is amended to read:
             283           17B-2a-810. Officers of a public transit district.
             284          (1) (a) The officers of a public transit district shall consist of:
             285          (i) the members of the board of trustees;
             286          (ii) a president and vice president, appointed by the board of trustees, subject to
             287      Subsection (1)(b);
             288          (iii) a secretary, appointed by the board of trustees;
             289          (iv) a general manager, appointed by the board of trustees as provided in Section
             290      17B-2a-811 ;
             291          (v) a general counsel, appointed by the board of trustees, subject to Subsection (1)(c);
             292          (vi) a treasurer, appointed as provided in Section 17B-1-633 ;
             293          (vii) a comptroller, appointed by the board of trustees, subject to Subsection (1)(d);
             294      [and]
             295          (viii) an internal auditor, appointed by the board of trustees, subject to Subsection
             296      (1)(e); and
             297          [(viii)] (ix) other officers, assistants, and deputies that the board of trustees considers
             298      necessary.
             299          (b) The district president and vice president shall be members of the board of trustees.
             300          (c) The person appointed as general counsel shall:
             301          (i) be admitted to practice law in the state; and
             302          (ii) have been actively engaged in the practice of law for at least seven years next
             303      preceding the appointment.
             304          (d) The person appointed as comptroller shall have been actively engaged in the
             305      practice of accounting for at least seven years next preceding the appointment.
             306          (e) The person appointed as internal auditor shall be a licensed certified internal auditor
             307      or certified public accountant with at least five years experience in the auditing or public
             308      accounting profession, or the equivalent, prior to appointment.
             309          (2) (a) The district's general manager shall appoint all officers and employees not


             310      specified in Subsection (1).
             311          (b) Each officer and employee appointed by the district's general manager serves at the
             312      pleasure of the general manager.
             313          (3) The board of trustees shall by ordinance or resolution fix the compensation of all
             314      district officers and employees, except as otherwise provided in this part.
             315          (4) (a) Each officer appointed by the board of trustees or by the district's general
             316      manager shall take the oath of office specified in Utah Constitution Article IV, Section 10.
             317          (b) Each oath under Subsection (4)(a) shall be subscribed and filed with the district
             318      secretary no later than 15 days after the commencement of the officer's term of office.
             319          Section 4. Section 72-1-303 is amended to read:
             320           72-1-303. Duties of commission.
             321          The commission has the following duties:
             322          (1) determining priorities and funding levels of projects in the state transportation
             323      systems for each fiscal year based on project lists compiled by the department;
             324          (2) determining additions and deletions to state highways under Chapter 4, Designation
             325      of State Highways Act;
             326          (3) holding public hearings and otherwise providing for public input in transportation
             327      matters;
             328          (4) making policies and rules in accordance with Title 63, Chapter 46a, Utah
             329      Administrative Rulemaking Act, necessary to perform the commission's duties described under
             330      this section;
             331          (5) in accordance with Section 63-46b-12 , reviewing orders issued by the executive
             332      director in adjudicative proceedings held in accordance with Title 63, Chapter 46b,
             333      Administrative Procedures Act;
             334          (6) advising the department in state transportation systems policy;
             335          (7) approving settlement agreements of condemnation cases subject to Section
             336      63-38b-401 ;
             337          (8) in accordance with Section 17B-2a-807 , appointing a commissioner to serve as a


             338      nonvoting, ex officio member or a voting member on the board of trustees of a public transit
             339      district;
             340          (9) in accordance with Section 17B-2a-808 , reviewing, at least annually, the short-term
             341      and long-range public transit plans; and
             342          (10) reviewing administrative rules made, amended, or repealed by the department.
             343          Section 5. Effective date.
             344          This bill takes effect on July 1, 2008.


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