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S.B. 231

             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
             19      board of trustees;
             20          .    provides that the person appointed as the internal auditor shall be a licensed
             21      certified 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
             46      member for each full unit of regularly scheduled passenger routes proposed to be served by the
             47      district in each municipality or unincorporated area within any county in the following calendar
             48      year.
             49          (b) For purposes of determining membership under Subsection (1)(a), the number of
             50      service miles comprising a unit shall be determined jointly by the legislative bodies of the
             51      municipalities or counties comprising the district.
             52          (c) The board of trustees of a public transit district under this Subsection (1) may
             53      include a member that is a commissioner on the Transportation Commission created in Section
             54      72-1-301 and appointed as provided in Subsection [(10)] (11), who shall serve as a nonvoting,
             55      ex officio member.
             56          (d) Members appointed under this Subsection (1) shall be appointed and added to the
             57      board or omitted from the board at the time scheduled routes are changed, or as municipalities,
             58      counties, or unincorporated areas of counties annex to or withdraw from the district using the


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


             90      district's population, the county executive, with the advice and consent of the county legislative
             91      body, shall appoint one voting member to represent each 1/15 of the district's population within
             92      a county's unincorporated area population.
             93          (f) If a municipality's population is at least 1/15 of the district's population, the chief
             94      municipal executive, with the advice and consent of the municipal legislative body, shall
             95      appoint one voting member to represent each 1/15 of the district's population within a
             96      municipality.
             97          (g) The number of voting members appointed from a county and municipalities within
             98      a county under Subsections (2)(e) and (f) shall be subtracted from the county's total voting
             99      member apportionment under this Subsection (2).
             100          (h) If the entire county is within the district, the remaining voting members for the
             101      county shall represent the county or combination of counties, if Subsection (2)(c) applies, or
             102      the municipalities within the county.
             103          (i) If the entire county is not within the district, and the county is not joined with
             104      another county under Subsection (2)(c), the remaining voting members for the county shall
             105      represent a municipality or combination of municipalities.
             106          (j) Except as provided under Subsections (2)(e) and (f), voting members representing
             107      counties, combinations of counties if Subsection (2)(c) applies, or municipalities within the
             108      county shall be designated and appointed by a simple majority of the chief executives of the
             109      municipalities within the county or combinations of counties if Subsection (2)(c) applies. The
             110      appointments shall be made by joint written agreement of the appointing municipalities, with
             111      the consent and approval of the county legislative body of the county that has at least 1/15 of
             112      the district's apportionment basis.
             113          (k) Voting members representing a municipality or combination of municipalities shall
             114      be designated and appointed by the chief executive officer of the municipality or simple
             115      majority of chief executive officers of municipalities with the consent of the legislative body of
             116      the municipality or municipalities.
             117          (l) The appointment of voting members shall be made without regard to partisan
             118      political affiliation from among citizens in the community.
             119          (m) Each voting member shall be a bona fide resident of the municipality, county, or
             120      unincorporated area or areas which the voting member is to represent for at least six months


             121      before the date of appointment, and must continue in that residency to remain qualified to serve
             122      as a voting member.
             123          (n) (i) All population figures used under this section shall be derived from the most
             124      recent official census or census estimate of the United States Bureau of the Census.
             125          (ii) If population estimates are not available from the United States Bureau of Census,
             126      population figures shall be derived from the estimate from the Utah Population Estimates
             127      Committee.
             128          (iii) All transit sales and use tax totals shall be obtained from the State Tax
             129      Commission.
             130          (o) (i) The board shall be apportioned as provided under this section in conjunction
             131      with the decennial United States Census Bureau report every ten years.
             132          (ii) Within 120 days following the receipt of the population estimates under this
             133      Subsection (2)(o), the district shall reapportion representation on the board of trustees in
             134      accordance with this section.
             135          (iii) The board shall adopt by resolution a schedule reflecting the current and proposed
             136      apportionment.
             137          (iv) Upon adoption of the resolution, the board shall forward a copy of the resolution to
             138      each of its constituent entities as defined under Section 17B-1-701 .
             139          (v) The appointing entities gaining a new board member shall appoint a new member
             140      within 30 days following receipt of the resolution.
             141          (vi) The appointing entities losing a board member shall inform the board of which
             142      member currently serving on the board will step down upon appointment of a new member
             143      under Subsection (2)(o)(v).
             144          (3) Upon the completion of an annexation to a public transit district under Chapter 1,
             145      Part 4, Annexation, the annexed area shall have a representative on the board of trustees on the
             146      same basis as if the area had been included in the district as originally organized.
             147          (4) In addition to the voting members appointed in accordance with Subsection (2), the
             148      board shall consist of three voting members appointed as follows:
             149          (a) one member appointed by the speaker of the House of Representatives;
             150          (b) one member appointed by the president of the Senate; and
             151          (c) one member appointed by the governor.


             152          [(4)] (5) (a) Except the initial members of the board, the terms of office of the voting
             153      members of the board shall be two years or until a successor is appointed, qualified, seated, and
             154      has taken the oath of office.
             155          (b) At the first meeting of the initial members of the board held after July 1, 2004,
             156      voting members of the board shall designate by the drawing of lots for 1/2 of their number to
             157      serve for one-year terms and 1/2 for two-year terms.
             158          (c) A voting member may not be appointed for more than three successive full terms.
             159          [(5)] (6) (a) Vacancies for voting members shall be filled by the official appointing the
             160      member creating the vacancy for the unexpired term, unless the official fails to fill the vacancy
             161      within 90 days.
             162          (b) If the appointing official under Subsection (1) does not fill the vacancy within 90
             163      days, the board of trustees of the authority shall fill the vacancy.
             164          (c) If the appointing official under Subsection (2) does not fill the vacancy within 90
             165      days, the governor, with the advice and consent of the Senate, shall fill the vacancy.
             166          [(6)] (7) (a) Each voting member may cast one vote on all questions, orders,
             167      resolutions, and ordinances coming before the board of trustees.
             168          (b) A majority of all voting members of the board of trustees are a quorum for the
             169      transaction of business.
             170          (c) The affirmative vote of a majority of all voting members present at any meeting at
             171      which a quorum was initially present shall be necessary and, except as otherwise provided, is
             172      sufficient to carry any order, resolution, ordinance, or proposition before the board of trustees.
             173          [(7)] (8) Each public transit district shall pay to each voting member:
             174          (a) an attendance fee of $50 per board or committee meeting attended, not to exceed
             175      $200 in any calendar month to any voting member; and
             176          (b) reasonable mileage and expenses necessarily incurred to attend board or committee
             177      meetings.
             178          [(8)] (9) (a) Members of the initial board of trustees shall convene at the time and place
             179      fixed by the chief executive officer of the entity initiating the proceedings.
             180          (b) Immediately upon convening, the board of trustees shall elect from its voting
             181      membership a president, vice president, and secretary [who].
             182          (c) The members elected under Subsection (9)(b) shall serve for a period of two years


             183      or until their successors shall be elected and qualified.
             184          [(9)] (10) At the time of a voting member's appointment or during a voting member's
             185      tenure in office, a voting member may not hold any employment, except as an independent
             186      contractor or elected public official, with a county or municipality within the district.
             187          [(10)] (11) The Transportation Commission created in Section 72-1-301 :
             188          (a) for a public transit district serving a population of 200,000 people or fewer, may
             189      appoint a commissioner of the Transportation Commission to serve on the board of trustees as
             190      a nonvoting, ex officio member; and
             191          (b) for a public transit district serving a population of more than 200,000 people, shall
             192      appoint a commissioner of the Transportation Commission to serve on the board of trustees as
             193      a [nonvoting, ex officio] voting member.
             194          [(11)] (12) (a) (i) Each member of the board of trustees of a public transit district is
             195      subject to recall at any time by the legislative body of the county or municipality from which
             196      the member is appointed.
             197          (ii) Each recall of a board of trustees member shall be made in the same manner as the
             198      original appointment.
             199          (iii) The legislative body recalling a board of trustees member shall provide written
             200      notice to the member being recalled.
             201          (b) Upon providing written notice to the board of trustees, a member of the board may
             202      resign from the board of trustees.
             203          (c) If a board member is recalled or resigns under this Subsection [(11)] (12), the
             204      vacancy shall be filled as provided in Subsection [(5)] (6).
             205          Section 2. Section 17B-2a-808 is amended to read:
             206           17B-2a-808. Public transit district board of trustees powers and duties --
             207      Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
             208          (1) The powers and duties of a board of trustees of a public transit district stated in this
             209      section are in addition to the powers and duties stated in Section 17B-1-301 .
             210          (2) The board of trustees of each public transit district shall:
             211          (a) appoint and fix the salary of a general manager, as provided in Section 17B-2a-811 ;
             212          (b) determine the transit facilities that the district should acquire or construct;
             213          (c) supervise and regulate each transit facility that the district owns and operates,


             214      including:
             215          (i) fixing rates, fares, rentals, and charges and any classifications of rates, fares, rentals,
             216      and charges; and
             217          (ii) making and enforcing rules, regulations, contracts, practices, and schedules for or
             218      in connection with a transit facility that the district owns or controls;
             219          (d) control the investment of all funds assigned to the district for investment, including
             220      funds:
             221          (i) held as part of a district's retirement system; and
             222          (ii) invested in accordance with the participating employees' designation or direction
             223      pursuant to an employee deferred compensation plan established and operated in compliance
             224      with Section 457 of the Internal Revenue Code;
             225          (e) invest all funds according to the procedures and requirements of Title 51, Chapter
             226      7, State Money Management Act;
             227          (f) if a custodian is appointed under Subsection (3)(d), pay the fees for the custodian's
             228      services from the interest earnings of the investment fund for which the custodian is appointed;
             229          (g) (i) cause an annual audit of all district books and accounts to be made by an
             230      independent certified public accountant;
             231          (ii) as soon as practicable after the close of each fiscal year, submit to the chief
             232      administrative officer and legislative body of each county and municipality with territory
             233      within the district a financial report showing:
             234          (A) the result of district operations during the preceding fiscal year; and
             235          (B) the district's financial status on the final day of the fiscal year; and
             236          (iii) supply copies of the report under Subsection (2)(g)(ii) to the general public upon
             237      request in a quantity that the board considers appropriate; [and]
             238          (h) report at least annually to the Transportation Commission created in Section
             239      72-1-301 the district's short-term and long-range public transit plans, including the transit
             240      portions of applicable regional transportation plans adopted by a metropolitan planning
             241      organization established under 23 U.S.C. Sec. 134[.];
             242          (i) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits
             243      that the board of trustees determines to be the most critical to the success of the organization;
             244      and


             245          (j) hear audit reports for audits conducted in accordance with Subsection (2)(i).
             246          (3) A board of trustees of a public transit district may:
             247          (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
             248      are:
             249          (i) not repugnant to the United States Constitution, the Utah Constitution, or the
             250      provisions of this part; and
             251          (ii) necessary for:
             252          (A) the government and management of the affairs of the district;
             253          (B) the execution of district powers; and
             254          (C) carrying into effect the provisions of this part;
             255          (b) provide by resolution, under terms and conditions the board considers fit, for the
             256      payment of demands against the district without prior specific approval by the board, if the
             257      payment is:
             258          (i) for a purpose for which the expenditure has been previously approved by the board;
             259          (ii) in an amount no greater than the amount authorized; and
             260          (iii) approved by the general manager or other officer or deputy as the board prescribes;
             261          (c) (i) hold public hearings and subpoena witnesses; and
             262          (ii) appoint district officers to conduct a hearing and require the officers to make
             263      findings and conclusions and report them to the board; and
             264          (d) appoint a custodian for the funds and securities under its control, subject to
             265      Subsection (2)(f).
             266          (4) A member of the board of trustees of a public transit district or a hearing officer
             267      designated by the board may administer oaths and affirmations in a district investigation or
             268      proceeding.
             269          (5) (a) The vote of the board of trustees on each ordinance shall be by roll call vote
             270      with each affirmative and negative vote recorded.
             271          (b) (i) Subject to Subsection (5)(b)(ii), the board of trustees may adopt a resolution or
             272      order by voice vote.
             273          (ii) The vote of the board of trustees on a resolution or order shall be by roll call vote if
             274      a member of the board so demands.
             275          (c) (i) Except as provided in Subsection (5)(c)(ii), the board of trustees of a public


             276      transit district may not adopt an ordinance unless it is:
             277          (A) introduced at least a day before the board of trustees adopts it; or
             278          (B) mailed by registered mail, postage prepaid, to each member of the board of trustees
             279      at least five days before the day upon which the ordinance is presented for adoption.
             280          (ii) Subsection (5)(c)(i) does not apply if the ordinance is adopted by a unanimous vote
             281      of all board members present at a meeting at which at least 3/4 of all board members are
             282      present.
             283          (d) Each ordinance adopted by a public transit district's board of trustees shall take
             284      effect upon adoption, unless the ordinance provides otherwise.
             285          Section 3. Section 17B-2a-810 is amended to read:
             286           17B-2a-810. Officers of a public transit district.
             287          (1) (a) The officers of a public transit district shall consist of:
             288          (i) the members of the board of trustees;
             289          (ii) a president and vice president, appointed by the board of trustees, subject to
             290      Subsection (1)(b);
             291          (iii) a secretary, appointed by the board of trustees;
             292          (iv) a general manager, appointed by the board of trustees as provided in Section
             293      17B-2a-811 ;
             294          (v) a general counsel, appointed by the board of trustees, subject to Subsection (1)(c);
             295          (vi) a treasurer, appointed as provided in Section 17B-1-633 ;
             296          (vii) a comptroller, appointed by the board of trustees, subject to Subsection (1)(d);
             297      [and]
             298          (viii) an internal auditor, appointed by the board of trustees, subject to Subsection
             299      (1)(e); and
             300          [(viii)] (ix) other officers, assistants, and deputies that the board of trustees considers
             301      necessary.
             302          (b) The district president and vice president shall be members of the board of trustees.
             303          (c) The person appointed as general counsel shall:
             304          (i) be admitted to practice law in the state; and
             305          (ii) have been actively engaged in the practice of law for at least seven years next
             306      preceding the appointment.


             307          (d) The person appointed as comptroller shall have been actively engaged in the
             308      practice of accounting for at least seven years next preceding the appointment.
             309          (e) The person appointed as internal auditor shall be a licensed certified internal auditor
             310      or certified public accountant with at least five years experience in the auditing or public
             311      accounting profession, or the equivalent, prior to appointment.
             312          (2) (a) The district's general manager shall appoint all officers and employees not
             313      specified in Subsection (1).
             314          (b) Each officer and employee appointed by the district's general manager serves at the
             315      pleasure of the general manager.
             316          (3) The board of trustees shall by ordinance or resolution fix the compensation of all
             317      district officers and employees, except as otherwise provided in this part.
             318          (4) (a) Each officer appointed by the board of trustees or by the district's general
             319      manager shall take the oath of office specified in Utah Constitution Article IV, Section 10.
             320          (b) Each oath under Subsection (4)(a) shall be subscribed and filed with the district
             321      secretary no later than 15 days after the commencement of the officer's term of office.
             322          Section 4. Section 72-1-303 is amended to read:
             323           72-1-303. Duties of commission.
             324          The commission has the following duties:
             325          (1) determining priorities and funding levels of projects in the state transportation
             326      systems for each fiscal year based on project lists compiled by the department;
             327          (2) determining additions and deletions to state highways under Chapter 4, Designation
             328      of State Highways Act;
             329          (3) holding public hearings and otherwise providing for public input in transportation
             330      matters;
             331          (4) making policies and rules in accordance with Title 63, Chapter 46a, Utah
             332      Administrative Rulemaking Act, necessary to perform the commission's duties described under
             333      this section;
             334          (5) in accordance with Section 63-46b-12 , reviewing orders issued by the executive
             335      director in adjudicative proceedings held in accordance with Title 63, Chapter 46b,
             336      Administrative Procedures Act;
             337          (6) advising the department in state transportation systems policy;


             338          (7) approving settlement agreements of condemnation cases subject to Section
             339      63-38b-401 ;
             340          (8) in accordance with Section 17B-2a-807 , appointing a commissioner to serve as a
             341      nonvoting, ex officio member or a voting member on the board of trustees of a public transit
             342      district;
             343          (9) in accordance with Section 17B-2a-808 , reviewing, at least annually, the short-term
             344      and long-range public transit plans; and
             345          (10) reviewing administrative rules made, amended, or repealed by the department.
             346          Section 5. Effective date.
             347          This bill takes effect on July 1, 2008.




Legislative Review Note
    as of 2-11-08 4:42 PM


Office of Legislative Research and General Counsel


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