H.B. 146

1

PUBLIC TRANSIT DISTRICT CONFLICT OF INTEREST
2 AMENDMENTS
3 2011 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Janice M. Fisher
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill modifies the Public Transit District Act and the Utah Public Officers' and
11 Employees' Ethics Act by amending provisions relating to conflicts of interest.
12 Highlighted Provisions:
13 This bill:
14 . repeals certain public transit district conflict of interest provisions and clarifies that
15 each trustee, officer, and employee of a public transit district is subject to the Utah
16 Public Officers' and Employees' Ethics Act;
17 . provides that a trustee, officer, or employee of a public transit district may not be
18 interested in any manner, directly or indirectly, in a contract or in the profits derived
19 from a contract:
20 . awarded by the board of trustees; or
21 . made by an officer or employee pursuant to discretionary authority vested in the
22 officer or employee;
23 . provides that the prohibition applies even if the trustee, officer, or employee makes
24 certain disclosures; and
25 . makes technical changes.
26 Money Appropriated in this Bill:
27 None

28 Other Special Clauses:
29 None
30 Utah Code Sections Affected:
31 AMENDS:
32 17B-2a-814, as renumbered and amended by Laws of Utah 2007, Chapter 329
33 67-16-8, as last amended by Laws of Utah 1990, Chapter 93
34
35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 17B-2a-814 is amended to read:
37 17B-2a-814. Conflict of interests prohibited -- Disclosure -- Violation -- Penalty.
38 [(1) As used in this section, "relative" means a parent, spouse, child, grandparent,
39 grandchild, great grandparent, great grandchild, or sibling of a trustee, officer, or employee.]
40 [(2) Except as provided in this section, a trustee, officer, or employee of a public transit
41 district may not be interested in any manner, directly or indirectly, in a contract or in the profits
42 derived from a contract:]
43 [(a) awarded by the board of trustees; or]
44 [(b) made by an officer or employee pursuant to discretionary authority vested in the
45 officer or employee.]
46 [(3) Notwithstanding Subsection (2), if a trustee, officer, or employee of a public
47 transit district is a stockholder, bondholder, director, or other officer or employee of a
48 corporation contracting with the district, the district may contract with that corporation for its
49 general benefit unless the trustee, officer, or employee of the district owns or controls, directly
50 or indirectly, stock or bonds in an amount greater than 5% of the total amount of outstanding
51 stock or bonds.]
52 [(4) (a) (i) A trustee, officer, or employee of a public transit district who has, or whose
53 relative has, a substantial interest in a contract with, sale to, purchase from, or service to the
54 district shall disclose that interest to the board of trustees of the district in a public meeting of
55 the board.]
56 [(ii) The board of trustees of the district shall disclose that interest in the minutes of its
57 meeting.]
58 [(b) A trustee, officer, or employee of a public transit district who has, or whose

59 relative has, a substantial interest in a contract with, sale to, purchase from, or service to the
60 district may not vote upon or otherwise participate in any manner as a trustee, officer, or
61 employee in the contract, sale, purchase, or service.]
62 [(5) A trustee, officer, or employee of a public transit district, in contemplation of
63 official action by the trustee, officer, or employee or by the district or in reliance on
64 information to which the trustee, officer, or employee has access in an official capacity and
65 which has not been made public, commits misuse of official information if the trustee, officer,
66 or employee:]
67 [(a) acquires a pecuniary interest in any property, transaction, or enterprise that may be
68 affected by the information or official action;]
69 [(b) speculates or wagers on the basis of the information or official action; or]
70 [(c) aids, advises, or encourages another to do so with intent to confer upon any person
71 a special pecuniary benefit.]
72 [(6) Each trustee, officer, and employee who violates this section:]
73 [(a) is guilty of a class B misdemeanor; and]
74 [(b) if convicted, shall be terminated from board appointment or district employment.]
75 Each trustee, officer, and employee of a public transit district is subject to the
76 provisions of Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act.
77 Section 2. Section 67-16-8 is amended to read:
78 67-16-8. Participation in transaction involving business as to which public officer
79 or employee has interest -- Exceptions.
80 (1) [No] Except as provided in Subsection (3), a public officer or public employee
81 [shall] may not participate in [his] the public officer's or public employee's official capacity or
82 receive compensation [in] with respect to any transaction between the state or any of its
83 agencies and any business entity as to which [such] the public officer or public employee is
84 also an officer, director, or employee or owns a substantial interest, unless disclosure has been
85 made as provided under Section 67-16-7 .
86 (2) A concession contract between an agency, political subdivision, or the state and a
87 certified professional golf association member who is a public employee or officer does not
88 violate the provisions of Subsection (1) or Title 10, Chapter 3, Part 13, Municipal Officers' and
89 Employees' Ethics Act.

90 (3) (a) A trustee, officer, or employee of a public transit district organized under Title
91 17B, Chapter 2a, Part 8, Public Transit District Act, may not be interested in any manner,
92 directly or indirectly, in a contract or in the profits derived from a contract:
93 (i) awarded by the board of trustees; or
94 (ii) made by an officer or employee pursuant to discretionary authority vested in the
95 officer or employee.
96 (b) The prohibition under Subsection (3)(a) applies even if the trustee, officer, or
97 employee makes a disclosure as provided under Section 67-16-7 .




Legislative Review Note
as of 2-24-11 3:50 PM

Office of Legislative Research and General Counsel