Chief Sponsor: Joel K. Briscoe

Senate Sponsor: ____________


8     General Description:
9          This bill prohibits a large public transit district from charging a fare to a passenger of a
10     public transit service.
11     Highlighted Provisions:
12          This bill:
13          ▸     prohibits a large public transit district from charging a fare to a passenger of a
14     public transit service; and
15          ▸     makes technical changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          None
20     Utah Code Sections Affected:
21     AMENDS:
22          17B-2a-808.1, as last amended by Laws of Utah 2021, Chapter 239
23          17B-2a-815, as last amended by Laws of Utah 2013, Chapter 216

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 17B-2a-808.1 is amended to read:
27          17B-2a-808.1. Large public transit district board of trustees powers and duties --

28     Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.
29          (1) The powers and duties of a board of trustees of a large public transit district stated
30     in this section are in addition to the powers and duties stated in Section 17B-1-301.
31          (2) The board of trustees of each large public transit district shall:
32          (a) hold public meetings and receive public comment;
33          (b) ensure that the policies, procedures, and management practices established by the
34     public transit district meet state and federal regulatory requirements and federal grantee
35     eligibility;
36          (c) subject to Subsection (8), create and approve an annual budget, including the
37     issuance of bonds and other financial instruments, after consultation with the local advisory
38     council;
39          (d) approve any interlocal agreement with a local jurisdiction;
40          (e) in consultation with the local advisory council, approve contracts and overall
41     property acquisitions and dispositions for transit-oriented development;
42          (f) in consultation with constituent counties, municipalities, metropolitan planning
43     organizations, and the local advisory council:
44          (i) develop and approve a strategic plan for development and operations on at least a
45     four-year basis; and
46          (ii) create and pursue funding opportunities for transit capital and service initiatives to
47     meet anticipated growth within the public transit district;
48          (g) annually report the public transit district's long-term financial plan to the State
49     Bonding Commission;
50          (h) annually report the public transit district's progress and expenditures related to state
51     resources to the Executive Appropriations Committee and the Infrastructure and General
52     Government Appropriations Subcommittee;
53          (i) annually report to the Transportation Interim Committee the public transit district's
54     efforts to engage in public-private partnerships for public transit services;
55          (j) hire, set salaries, and develop performance targets and evaluations for:
56          (i) the executive director; and
57          (ii) all chief level officers;
58          (k) supervise and regulate each transit facility that the public transit district owns and

59     operates, including:
60          (i) fix rates, fares, rentals, charges and any classifications of rates, fares, rentals, and
61     charges; and
62          (ii) make and enforce rules, regulations, contracts, practices, and schedules for or in
63     connection with a transit facility that the district owns or controls;
64          (l) subject to Subsection (4), control the investment of all funds assigned to the district
65     for investment, including funds:
66          (i) held as part of a district's retirement system; and
67          (ii) invested in accordance with the participating employees' designation or direction
68     pursuant to an employee deferred compensation plan established and operated in compliance
69     with Section 457 of the Internal Revenue Code;
70          (m) in consultation with the local advisory council created under Section
71     17B-2a-808.2, invest all funds according to the procedures and requirements of Title 51,
72     Chapter 7, State Money Management Act;
73          (n) if a custodian is appointed under Subsection (3)(d), and subject to Subsection (4),
74     pay the fees for the custodian's services from the interest earnings of the investment fund for
75     which the custodian is appointed;
76          (o) (i) cause an annual audit of all public transit district books and accounts to be made
77     by an independent certified public accountant;
78          (ii) as soon as practicable after the close of each fiscal year, submit to each of the
79     councils of governments within the public transit district a financial report showing:
80          (A) the result of district operations during the preceding fiscal year;
81          (B) an accounting of the expenditures of all local sales and use tax revenues generated
82     under Title 59, Chapter 12, Part 22, Local Option Sales and Use Taxes for Transportation Act;
83          (C) the district's financial status on the final day of the fiscal year; and
84          (D) the district's progress and efforts to improve efficiency relative to the previous
85     fiscal year; and
86          (iii) supply copies of the report under Subsection (2)(o)(ii) to the general public upon
87     request;
88          (p) report at least annually to the Transportation Commission created in Section
89     72-1-301, which report shall include:

90          (i) the district's short-term and long-range public transit plans, including the portions of
91     applicable regional transportation plans adopted by a metropolitan planning organization
92     established under 23 U.S.C. Sec. 134; and
93          (ii) any transit capital development projects that the board of trustees would like the
94     Transportation Commission to consider;
95          (q) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits
96     that the board of trustees determines, in consultation with the local advisory council created in
97     Section 17B-2a-808.2, to be the most critical to the success of the organization;
98          (r) together with the local advisory council created in Section 17B-2a-808.2, hear audit
99     reports for audits conducted in accordance with Subsection (2)(o);
100          [(s) review and approve all contracts pertaining to reduced fares, and evaluate existing
101     contracts, including review of:]
102          [(i) how negotiations occurred;]
103          [(ii) the rationale for providing a reduced fare; and]
104          [(iii) identification and evaluation of cost shifts to offset operational costs incurred and
105     impacted by each contract offering a reduced fare;]
106          [(t)] (s) in consultation with the local advisory council, develop and approve other
107     board policies, ordinances, and bylaws; and
108          [(u)] (t) review and approve any:
109          (i) contract or expense exceeding $200,000; or
110          (ii) proposed change order to an existing contract if the change order:
111          (A) increases the total contract value to $200,000 or more;
112          (B) increases a contract of or expense of $200,000 or more by 15% or more; or
113          (C) has a total change order value of $200,000 or more.
114          (3) A board of trustees of a large public transit district may:
115          (a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that
116     are:
117          (i) not repugnant to the United States Constitution, the Utah Constitution, or the
118     provisions of this part; and
119          (ii) necessary for:
120          (A) the governance and management of the affairs of the district;

121          (B) the execution of district powers; and
122          (C) carrying into effect the provisions of this part;
123          (b) provide by resolution, under terms and conditions the board considers fit, for the
124     payment of demands against the district without prior specific approval by the board, if the
125     payment is:
126          (i) for a purpose for which the expenditure has been previously approved by the board;
127          (ii) in an amount no greater than the amount authorized; and
128          (iii) approved by the executive director or other officer or deputy as the board
129     prescribes;
130          (c) in consultation with the local advisory council created in Section 17B-2a-808.2:
131          (i) hold public hearings and subpoena witnesses; and
132          (ii) appoint district officers to conduct a hearing and require the officers to make
133     findings and conclusions and report them to the board; and
134          (d) appoint a custodian for the funds and securities under its control, subject to
135     Subsection (2)(n).
136          (4) For a large public transit district in existence as of May 8, 2018, on or before
137     September 30, 2019, the board of trustees of a large public transit district shall present a report
138     to the Transportation Interim Committee regarding retirement benefits of the district, including:
139          (a) the feasibility of becoming a participating employer and having retirement benefits
140     of eligible employees and officials covered in applicable systems and plans administered under
141     Title 49, Utah State Retirement and Insurance Benefit Act;
142          (b) any legal or contractual restrictions on any employees that are party to a collectively
143     bargained retirement plan; and
144          (c) a comparison of retirement plans offered by the large public transit district and
145     similarly situated public employees, including the costs of each plan and the value of the
146     benefit offered.
147          (5) The board of trustees may not issue a bond unless the board of trustees has
148     consulted and received approval from the State Bonding Commission created in Section
149     63B-1-201.
150          (6) A member of the board of trustees of a large public transit district or a hearing
151     officer designated by the board may administer oaths and affirmations in a district investigation

152     or proceeding.
153          (7) (a) The vote of the board of trustees on each ordinance or resolution shall be by roll
154     call vote with each affirmative and negative vote recorded.
155          (b) The board of trustees of a large public transit district may not adopt an ordinance
156     unless it is introduced at least 24 hours before the board of trustees adopts it.
157          (c) Each ordinance adopted by a large public transit district's board of trustees shall
158     take effect upon adoption, unless the ordinance provides otherwise.
159          (8) (a) For a large public transit district in existence on May 8, 2018, for the budget for
160     calendar year 2019, the board in place on May 8, 2018, shall create the tentative annual budget.
161          (b) The budget described in Subsection (8)(a) shall include setting the salary of each of
162     the members of the board of trustees that will assume control on or before November 1, 2018,
163     which salary may not exceed $150,000, plus additional retirement and other standard benefits,
164     as set by the local advisory council as described in Section 17B-2a-808.2.
165          (c) For a large public transit district in existence on May 8, 2018, the board of trustees
166     that assumes control of the large public transit district on or before November 2, 2018, shall
167     approve the calendar year 2019 budget on or before December 31, 2018.
168          Section 2. Section 17B-2a-815 is amended to read:
169          17B-2a-815. Rates and charges for service -- Fare collection information private.
170          (1) (a) [The] Except as provided in Subsection (1)(b), the board of trustees of a public
171     transit district shall fix rates and charges for service provided by the district by a two-thirds
172     vote of all board members.
173          (b) A large public transit district may not charge a fare for any public transit service
174     provided by the large public transit district.
175          (2) Rates and charges shall:
176          (a) be reasonable; and
177          (b) to the extent practicable:
178          (i) result in enough revenue to make the public transit system self supporting; and
179          (ii) be sufficient to:
180          (A) pay for district operating expenses;
181          (B) provide for repairs, maintenance, and depreciation of works and property that the
182     district owns or operates;

183          (C) provide for the purchase, lease, or acquisition of property and equipment;
184          (D) pay the interest and principal of bonds that the district issues; and
185          (E) pay for contracts, agreements, leases, and other legal liabilities that the district
186     incurs.
187          (3) (a) In accordance with Section 63G-2-302, the following personal information
188     received by the district from a customer through any debit, credit, or electronic fare payment
189     process is a private record under Title 63G, Chapter 2, Government Records Access and
190     Management Act:
191          (i) travel data, including:
192          (A) the identity of the purchasing individual or entity;
193          (B) travel dates, times, or frequency of use; and
194          (C) locations of use;
195          (ii) service type or vehicle identification used by the customer;
196          (iii) the unique transit pass identifier assigned to the customer; or
197          (iv) customer account information, including the cardholder's name, the credit or debit
198     card number, the card issuer identification, or any other related information.
199          (b) Private records described in this Subsection (3) that are received by a public transit
200     district may only be disclosed in accordance with Section 63G-2-202.