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S.B. 231 Enrolled
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
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
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:
30 Other Special Clauses:
31 This bill takes effect on July 1, 2008.
32 Utah Code Sections Affected:
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
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 [
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
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 [
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
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
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
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.
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.
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.
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.
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
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 [
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.
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.
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
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 [
201 vacancy shall be filled as provided in Subsection [
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,
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
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; [
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;
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
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
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
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);
295 (viii) an internal auditor, appointed by the board of trustees, subject to Subsection
296 (1)(e); and
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
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
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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