SB 197

     Enrolled Copy  S.B. 197
1Transportation Funding and Governance Amendments
                                       2026 GENERAL SESSION
                                            STATE OF UTAH
                                  Chief Sponsor: Wayne A. Harper
                                 House Sponsor: Kay J. Christofferson
2
3  LONG TITLE
4  General Description:
5      This bill amends provisions related to the governance of a large public transit district and
6  financial reporting of public transit districts.
7  Highlighted Provisions:
8      This bill:
9      ▸ requires public transit districts to provide an annual financial report to the Transportation
10  and Infrastructure Appropriations Subcommittee;
11      ▸ repeals the structure of the large public transit district board of trustees and changes the
12  body to a transit commission;
13      ▸ provides for selection process, appointment, and duties of the transit commission of a
14  large public transit district;
15      ▸ defines duties and reallocates certain responsibilities between the executive director and
16  transit commission of a large public transit district;
17      ▸ provides for the transition of the governance structure of a large public transit district;
18      ▸ changes the appointment process for the executive director of a large public transit district
19  to be appointed by the governor;
20      ▸ repeals the requirement of a large public transit district to have a local advisory council;
21      ▸ requires the State Tax Commission, beginning in fiscal year 2028, to annually deposit a
22  certain amount of new growth derived from state sales and use taxes into the Transit
23  Transportation Investment Fund; and
24      ▸ makes technical changes.
25  Money Appropriated in this Bill:
26      None
27  Other Special Clauses:
     S.B. 197  Enrolled Copy
28This bill provides a special effective date.
29   Utah Code Sections Affected:
30   AMENDS:
3117B-1-301 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 76
3217B-1-311 (Effective 05/06/26), as last amended by Laws of Utah 2023, Chapter 15
3317B-1-702 (Effective 05/06/26), as last amended by Laws of Utah 2023, Chapter 15
3417B-2a-802 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
35Session, Chapter 15
3617B-2a-804 (Effective 05/06/26), as last amended by Laws of Utah 2025, First Special
37Session, Chapter 15
3817B-2a-808 (Effective 05/06/26), as last amended by Laws of Utah 2018, Chapter 424
3917B-2a-809 (Effective 05/06/26), as renumbered and amended by Laws of Utah 2007,
40Chapter 329
4117B-2a-810 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 544
4217B-2a-812 (Effective 05/06/26), as enacted by Laws of Utah 2007, Chapter 329
4317B-2a-815 (Effective 05/06/26), as last amended by Laws of Utah 2013, Chapter 216
4417B-2a-816 (Effective 05/06/26), as enacted by Laws of Utah 2007, Chapter 329
4517B-2a-821 (Effective 05/06/26), as last amended by Laws of Utah 2016, Chapter 273
4617B-2a-822 (Effective 05/06/26), as last amended by Laws of Utah 2022, Chapter 381
4717B-2a-826 (Effective 05/06/26), as last amended by Laws of Utah 2019, Chapter 479
4859-12-103 (Effective 07/01/26), as last amended by Laws of Utah 2025, Chapter 285
4963N-3-605 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 29
5067-22-2 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 232
51   ENACTS:
5217B-2a-807.3 (Effective 05/06/26), Utah Code Annotated 1953
53   REPEALS AND REENACTS:
5417B-2a-808.1 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapters
55271, 544
5617B-2a-811.1 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 544
57   REPEALS:
5817B-2a-807.1 (Effective 05/06/26), as last amended by Laws of Utah 2024, Chapter 529
5917B-2a-807.2 (Effective 05/06/26), as last amended by Laws of Utah 2024, Chapters
60517, 529
6117B-2a-808.2 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 544
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62
63  Be it enacted by the Legislature of the state of Utah:
64Section 1. Section 17B-1-301 is amended to read:
6517B-1-301 (Effective 05/06/26). Board of trustees duties and powers.
66  (1)(a) This section does not apply to a large public transit district created in accordance
67      with Chapter 2a, Part 8, Public Transit District Act.
68      [(a)] (b) Each special district shall be governed by a board of trustees that shall:
69(i) manage and conduct the business and affairs of the district; and
70(ii) determine all questions of district policy.
71      [(b)] (c) All powers of a special district are exercised through the board of trustees.
72  (2) The board of trustees may:
73      (a) fix the location of the special district's principal place of business and the location of
74all offices and departments, if any;
75      (b) fix the times of meetings of the board of trustees;
76      (c) select and use an official district seal;
77      (d) subject to Subsections (3) and (4), employ employees and agents, or delegate to
78district officers power to employ employees and agents, for the operation of the
79special district and the special district's properties and prescribe or delegate to district
80officers the power to prescribe the duties, compensation, and terms and conditions of
81employment of those employees and agents;
82      (e) require crime insurance for district officers and employees charged with the handling
83of district funds in an amount set by the board;
84      (f) contract for or employ professionals to perform work or services for the special
85district that cannot satisfactorily be performed by the officers or employees of the
86district;
87      (g) through counsel, prosecute on behalf of or defend the special district in all court
88actions or other proceedings in which the district is a party or is otherwise involved;
89      (h) adopt bylaws for the orderly functioning of the board;
90      (i) adopt and enforce rules and regulations for the orderly operation of the special district
91or for carrying out the district's purposes;
92      (j) prescribe a system of civil service for district employees;
93      (k) on behalf of the special district, enter into contracts that the board considers to be for
94the benefit of the district;
95      (l) acquire, construct or cause to be constructed, operate, occupy, control, and use
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96buildings, works, or other facilities for carrying out the purposes of the special
97district;
98(m) on behalf of the special district, acquire, use, hold, manage, occupy, and possess
99property necessary to carry out the purposes of the district, dispose of property when
100the board considers it appropriate, and institute and maintain in the name of the
101district any action or proceeding to enforce, maintain, protect, or preserve rights or
102privileges associated with district property;
103(n) delegate to a district officer the exercise of a district duty; and
104(o) exercise all powers and perform all functions in the operation of the special district
105and the special district's properties as are ordinarily exercised by the governing body
106of a political subdivision of the state and as are necessary to accomplish the purposes
107of the district.
108   (3)(a) As used in this Subsection (3), "interim vacancy period" means:
109(i) if any member of the special district board is elected, the period of time that:
110(A) begins on the day on which an election is held to elect a special district board
111member; and
112(B) ends on the day on which the special district board member-elect begins the
113member's term; or
114(ii) if any member of the special district board is appointed, the period of time that:
115(A) begins on the day on which an appointing authority posts a notice of vacancy
116in accordance with Section 17B-1-304; and
117(B) ends on the day on which the individual who is appointed by the special
118district board to fill the vacancy begins the individual's term.
119(b)(i) The special district may not hire during an interim vacancy period a manager, a
120chief executive officer, a chief administrative officer, an executive director, or a
121similar position to perform executive and administrative duties or functions.
122(ii) Notwithstanding Subsection (3)(b)(i):
123(A) the special district may hire an interim manager, a chief executive officer, a
124chief administrative officer, an executive director, or a similar position during
125an interim vacancy period; and
126(B) the interim manager's, chief executive officer's, chief administrative officer's,
127or similar position's employment shall terminate once a new manager, chief
128executive officer, chief administrative officer, or similar position is hired by
129the new special district board after the interim vacancy period has ended.
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130      (c) Subsection (3)(b) does not apply if:
131(i) all the elected special district board members who held office on the day of the
132election for the special district board members, whose term of office was vacant
133for the election are re-elected to the special district board; and
134(ii) all the appointed special district board members who were appointed whose term
135of appointment was expiring are re-appointed to the special district board.
136  (4) A special district board that hires an interim manager, a chief executive officer, a chief
137      administrative officer, an executive director, or a similar position in accordance with this
138      section may not enter into an employment contract that contains an automatic renewal
139      provision with the interim manager, chief executive officer, chief administrative officer,
140      executive director, or similar position.
141Section 2. Section 17B-1-311 is amended to read:
14217B-1-311 (Effective 05/06/26). Board member prohibited from district
143  employment -- Exception.
144  (1) No elected or appointed member of the board of trustees of a special district may, while
145      serving on the board, be employed by the district, whether as an employee or under a
146      contract.
147  (2) No person employed by a special district, whether as an employee or under a contract,
148      may serve on the board of that special district.
149  (3) A special district is not in violation of a prohibition described in Subsection (1) or (2) if
150      the special district:
151      (a) treats a member of a board of trustees as an employee for income tax purposes; and
152      (b) complies with the compensation limits of Section 17B-1-307 for purposes of that
153member.
154  (4) This section does not apply to a special district if:
155      (a) fewer than 3,000 people in the state live within 40 miles of the special district's
156boundaries or primary place of employment, measured over all weather public roads;
157and
158      (b) with respect to the employment of a board of trustees member under Subsection (1):
159(i) the job opening has had reasonable public notice; and
160(ii) the person employed is the best qualified candidate for the position.
161  (5) This section does not apply to a [board of trustees] transit commission of a large public
162      transit district as described in Chapter 2a, Part 8, Public Transit District Act.
163Section 3. Section 17B-1-702 is amended to read:
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16417B-1-702 (Effective 05/06/26). Special districts to submit budgets.
165   (1)(a) [Except as provided in Subsection (1)(b), within] Within 30 days after it is
166approved by the board, and at least 30 days before the board adopts a final budget,
167the board of each special district with an annual budget of $50,000 or more shall send
168a copy of its tentative budget and notice of the time and place for its budget hearing
169to:
170(i) each of its constituent entities that has in writing requested a copy; and
171(ii) to each of its customer agencies that has in writing requested a copy.
172[(b) Within 30 days after it is approved by the board, and at least 30 days before the
173board adopts a final budget, the board of trustees of a large public transit district as
174defined in Section 17B-2a-802 shall send a copy of its tentative budget and notice of
175the time and place for its budget hearing to:]
176[(i) each of its constituent entities;]
177[(ii) each of its customer agencies that has in writing requested a copy;]
178[(iii) the governor; and]
179[(iv) the Legislature.]
180[(c)] (b) The special district shall include with the tentative budget a signature sheet that
181includes:
182(i) language that the constituent entity or customer agency received the tentative
183budget and has no objection to it; and
184(ii) a place for the chairperson or other designee of the constituent entity or customer
185agency to sign.
186   (2) Each constituent entity and each customer agency that receives the tentative budget
187shall review the tentative budget submitted by the district and either:
188(a) sign the signature sheet and return it to the district; or
189(b) attend the budget hearing or other meeting scheduled by the district to discuss the
190objections to the proposed budget.
191   (3)(a) If any constituent entity or customer agency that received the tentative budget has
192not returned the signature sheet to the special district within 15 calendar days after
193the tentative budget was mailed, the special district shall send a written notice of the
194budget hearing to each constituent entity or customer agency that did not return a
195signature sheet and invite them to attend that hearing.
196(b) If requested to do so by any constituent entity or customer agency, the special district
197shall schedule a meeting to discuss the budget with the constituent entities and
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198customer agencies.
199      (c) At the budget hearing, the special district board shall:
200(i) explain its budget and answer any questions about it;
201(ii) specifically address any questions or objections raised by the constituent entity,
202customer agency, or those attending the meeting; and
203(iii) seek to resolve the objections.
204  (4) Nothing in this part prevents a special district board from approving or implementing a
205      budget over any or all constituent entity's or customer agency's protests, objections, or
206      failure to respond.
207Section 4. Section 17B-2a-802 is amended to read:
20817B-2a-802 (Effective 05/06/26). Definitions.
209     As used in this part:
210  (1) "Affordable housing" means housing occupied or reserved for occupancy by households
211      that meet certain gross household income requirements based on the area median income
212      for households of the same size.
213      (a) "Affordable housing" may include housing occupied or reserved for occupancy by
214households that meet specific area median income targets or ranges of area median
215income targets.
216      (b) "Affordable housing" does not include housing occupied or reserved for occupancy
217by households with gross household incomes that are more than 60% of the area
218median income for households of the same size.
219  (2) "Appointing entity" means the person, county, unincorporated area of a county, or
220      municipality appointing a member to a public transit district board of trustees or transit
221      commission.
222  (3)(a) "Chief executive officer" means a person appointed by the board of trustees of a
223      small public transit district to serve as chief executive officer.
224      (b) "Chief executive officer" shall enjoy all the rights, duties, and responsibilities
225defined in Sections 17B-2a-810 and 17B-2a-811 and includes all rights, duties, and
226responsibilities assigned to the general manager but prescribed by the board of
227trustees to be fulfilled by the chief executive officer.
228  (4) "Confidential employee" means a person who, in the regular course of the person's
229      duties:
230      (a) assists in and acts in a confidential capacity in relation to other persons who
231formulate, determine, and effectuate management policies regarding labor relations;
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232or
233(b) has authorized access to information relating to effectuating or reviewing the
234employer's collective bargaining policies.
235   (5) "Council of governments" means a decision-making body in each county composed of
236membership including the county governing body and the mayors of each municipality
237in the county.
238   (6) "Department" means the Department of Transportation created in Section 72-1-201.
239   (7) "Executive director" means a person appointed by [the board of trustees of a large
240public transit district to serve as executive director] the governor as described in Section
24117B-2a-811.1 to serve as executive director of a large public transit district.
242   (8) "Fixed guideway" means the same as that term is defined in Section 59-12-102.
243   (9) "Fixed guideway capital development" means the same as that term is defined in
244Section 72-1-102.
245   (10)(a) "General manager" means a person appointed by the board of trustees of a small
246public transit district to serve as general manager.
247(b) "General manager" shall enjoy all the rights, duties, and responsibilities defined in
248Sections 17B-2a-810 and 17B-2a-811 prescribed by the board of trustees of a small
249public transit district.
250   (11) "Large public transit district" means a public transit district that provides public transit
251to an area that includes:
252(a) more than 65% of the population of the state based on:
253(i) the estimate of the Utah Population Committee created in Section 63C-20-103; or
254(ii) if the Utah Population Committee estimate is not available for each county,
255municipality, and unincorporated area that comprise the district, the most recent
256official census or census estimate of the United States Bureau of the Census; and
257(b) two or more counties.
258   [(12) "Local advisory council" means the local advisory council created in accordance with
259Section 17B-2a-808.2.]
260   [(13)] (12)(a) "Locally elected public official" means a person who holds an elected
261position with a county or municipality.
262(b) "Locally elected public official" does not include a person who holds an elected
263position if the elected position is not with a county or municipality.
264   [(14)] (13) "Managerial employee" means a person who is:
265(a) engaged in executive and management functions; and
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266      (b) charged with the responsibility of directing, overseeing, or implementing the
267effectuation of management policies and practices.
268  [(15)] (14) "Metropolitan planning organization" means the same as that term is defined in
269      Section 72-1-208.5.
270  [(16)] (15) "Multicounty district" means a public transit district located in more than one
271      county.
272  [(17)] (16) "Operator" means a public entity or other person engaged in the transportation of
273      passengers for hire.
274  [(18)] (17)(a) "Public transit" means regular, continuing, shared-ride, surface
275      transportation services that are open to the general public or open to a segment of the
276      general public defined by age, disability, or low income.
277      (b) "Public transit" does not include transportation services provided by:
278(i) chartered bus;
279(ii) sightseeing bus;
280(iii) taxi;
281(iv) school bus service;
282(v) courtesy shuttle service for patrons of one or more specific establishments; or
283(vi) intra-terminal or intra-facility shuttle services.
284  [(19)] (18) "Public transit district" means a special district that provides public transit
285      services.
286  [(20)] (19) "Public transit innovation grant" means[ ] the same as that term is defined in
287      Section 72-2-401.
288  [(21)] (20) "Small public transit district" means any public transit district that is not a large
289      public transit district.
290  [(22)] (21) "Station area plan" means a plan developed and adopted by a municipality in
291      accordance with Section 10-21-203.
292  [(23)] (22)(a) "Supervisor" means a person who has authority, in the interest of the
293      employer, to:
294(i) hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or
295discipline other employees; or
296(ii) adjust another employee's grievance or recommend action to adjust another
297employee's grievance.
298      (b) "Supervisor" does not include a person whose exercise of the authority described in
299Subsection [(23)(a)] (22)(a):
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300(i) is of a merely routine or clerical nature; and
301(ii) does not require the person to use independent judgment.
302   [(24)] (23) "Transit facility" means a transit vehicle, transit station, depot, passenger loading
303or unloading zone, parking lot, or other facility:
304(a) leased by or operated by or on behalf of a public transit district; and
305(b) related to the public transit services provided by the district, including:
306(i) railway or other right-of-way;
307(ii) railway line; and
308(iii) a reasonable area immediately adjacent to a designated stop on a route traveled
309by a transit vehicle.
310   [(25)] (24) "Transit vehicle" means a passenger bus, coach, railcar, van, or other vehicle
311operated as public transportation by a public transit district.
312   [(26)] (25) "Transit-oriented development" means a mixed use residential or commercial
313area that is designed to maximize access to public transit and includes the development
314of land owned by a large public transit district.
315   [(27)] (26) "Transit-supportive development" means a mixed use residential or commercial
316area that is designed to maximize access to public transit and does not include the
317development of land owned by a large public transit district.
318Section 5. Section 17B-2a-804 is amended to read:
31917B-2a-804 (Effective 05/06/26). Additional public transit district powers.
320   (1) In addition to the powers conferred on a public transit district under Section 17B-1-103,
321a public transit district may:
322(a) provide a public transit system for the transportation of passengers and their
323incidental baggage;
324(b) notwithstanding Subsection 17B-1-103(2)(g) and subject to Section 17B-2a-817,
325levy and collect property taxes only for the purpose of paying:
326(i) principal and interest of bonded indebtedness of the public transit district; or
327(ii) a final judgment against the public transit district if:
328(A) the amount of the judgment exceeds the amount of any collectable insurance
329or indemnity policy; and
330(B) the district is required by a final court order to levy a tax to pay the judgment;
331(c) insure against:
332(i) loss of revenues from damage to or destruction of some or all of a public transit
333system from any cause;
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334(ii) public liability;
335(iii) property damage; or
336(iv) any other type of event, act, or omission;
337      (d) subject to Section 72-1-203 pertaining to fixed guideway capital development within
338a large public transit district, acquire, contract for, lease, construct, own, operate,
339control, or use:
340(i) a right-of-way, rail line, monorail, bus line, station, platform, switchyard, terminal,
341parking lot, or any other facility necessary or convenient for public transit service;
342or
343(ii) any structure necessary for access by persons and vehicles;
344      (e)(i) hire, lease, or contract for the supplying or management of a facility, operation,
345equipment, service, employee, or management staff of an operator; and
346(ii) provide for a sublease or subcontract by the operator upon terms that are in the
347public interest;
348      (f) operate feeder bus lines and other feeder or ridesharing services as necessary;
349      (g) accept a grant, contribution, or loan, directly through the sale of securities or
350equipment trust certificates or otherwise, from the United States, or from a
351department, instrumentality, or agency of the United States;
352      (h) study and plan transit facilities in accordance with any legislation passed by
353Congress;
354      (i) cooperate with and enter into an agreement with the state or an agency of the state or
355otherwise contract to finance to establish transit facilities and equipment or to study
356or plan transit facilities;
357      (j) subject to Subsection [17B-2a-808.1(4)] 17B-2a-811.1(8), issue bonds as provided in
358and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of
359the district;
360      (k) from bond proceeds or any other available funds, reimburse the state or an agency of
361the state for an advance or contribution from the state or state agency;
362      (l) do anything necessary to avail itself of any aid, assistance, or cooperation available
363under federal law, including complying with labor standards and making
364arrangements for employees required by the United States or a department,
365instrumentality, or agency of the United States;
366      (m) sell or lease property;
367      (n) except as provided in Subsection (2)(b), [ ]assist in or operate transit-oriented or
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368transit-supportive developments;
369(o) subject to Subsections (2) and (3), establish, finance, participate as a limited partner
370or member in a development with limited liabilities in accordance with Subsection
371(1)(p), construct, improve, maintain, or operate transit facilities, equipment, and, in
372accordance with Subsection (3), [ ]transit-oriented developments or transit-supportive
373developments; and
374(p) subject to the [ ]restrictions and requirements in Subsections [ ](2) and (3), assist in a
375transit-oriented development or a transit-supportive development in connection with
376project area development [ ]as defined in Section 17C-1-102 by:
377(i) investing in a project as a limited partner or a member, with limited liabilities; or
378(ii) subordinating an ownership interest in real property owned by the public transit
379district.
380   (2)(a) A public transit district may only assist in the development of areas under
381Subsection (1)(p) that have been approved by the board of trustees or transit
382commission, and in the manners described in Subsection (1)(p).
383(b) A public transit district may not invest in a transit-oriented development or
384transit-supportive development as a limited partner or other limited liability entity
385under the provisions of Subsection (1)(p)(i), unless the partners, developer, or other
386investor in the entity, makes an equity contribution equal to no less than 25% of the
387appraised value of the property to be contributed by the public transit district.
388(c)(i) For transit-oriented development projects, a public transit district shall adopt
389transit-oriented development policies and guidelines that include provisions on
390affordable housing.
391(ii) For transit-supportive development projects, a public transit district shall work
392with the metropolitan planning organization and city and county governments
393where the project is located to collaboratively seek to create joint plans for the
394areas within one-half mile of transit stations, including plans for affordable
395housing.
396(d) A current board member of a public transit district or a transit commissioner to
397which the board member or transit commissioner is appointed may not have any
398interest in the transactions engaged in by the public transit district in accordance with
399Subsection (1)(p)(i) or (ii), except as may be required by the board member's or
400transit commissioner's fiduciary duty as a board member or transit commissioner.
401   (3) For any transit-oriented development or transit-supportive development authorized in
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402      this section, the public transit district shall:
403      (a) perform a cost-benefit analysis of the monetary investment and expenditures of the
404development, including effect on:
405(i) service and ridership;
406(ii) regional plans made by the metropolitan planning agency;
407(iii) the local economy;
408(iv) the environment and air quality;
409(v) affordable housing; and
410(vi) integration with other modes of transportation;
411      (b) provide evidence to the public of a quantifiable positive return on investment,
412including improvements to public transit service; and
413      (c) coordinate with the Department of Transportation in accordance with Section
41472-1-203 pertaining to fixed guideway capital development and associated parking
415facilities within a station area plan for a transit oriented development within a large
416public transit district.
417  (4) For any fixed guideway capital development project with oversight by the Department
418      of Transportation as described in Section 72-1-203, a large public transit district shall
419      coordinate with the Department of Transportation in all aspects of the project, including
420      planning, project development, outreach, programming, environmental studies and
421      impact statements, impacts on public transit operations, and construction.
422  (5) A public transit district may participate in a transit-oriented development only if:
423      (a) for a transit-oriented development involving a municipality:
424(i) the relevant municipality has developed and adopted a station area plan; and
425(ii) the municipality is in compliance with Sections 10-21-201 and 10-21-202
426regarding the inclusion of moderate income housing in the general plan and the
427required reporting requirements; or
428      (b) for a transit-oriented development involving property in an unincorporated area of a
429county, the county is in compliance with Sections 17-79-403 and 17-80-202
430regarding inclusion of moderate income housing in the general plan and required
431reporting requirements.
432  (6) A public transit district may be funded from any combination of federal, state, local, or
433      private funds.
434  (7) A public transit district may not acquire property by eminent domain.
435Section 6. Section 17B-2a-807.3 is enacted to read:
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43617B-2a-807.3 (Effective 05/06/26). Transit commission of a large public transit
437   district -- Appointment -- Quorum -- Compensation -- Terms.
438   (1)(a) A large public transit district shall have a transit commission.
439(b) For a large public transit district created as provided in this part on or before January
4401, 2026, the structure and membership of the board of trustees may remain and serve
441as constituted as of January 1, 2026, until June 30, 2026.
442(c) Beginning on July 1, 2026, a large public transit district shall be governed by a
443transit commission as provided in this section.
444(d) A large public transit district shall provide severance pay and benefits through
445December 31, 2026, to each member of the board of trustees in place on June 30,
4462026.
447   (2)(a) A large public transit district shall be governed by a transit commission consisting
448of members appointed as follows:
449(i) two members appointed by the speaker of the House of Representatives, in
450consultation with public transit stakeholders from within the public transit district;
451(ii) two members appointed by the president of the Senate, in consultation with
452public transit stakeholders from within the public transit district; and
453(iii) three members appointed by the governor from nominations described in
454Subsection (2)(b).
455(b)(i)(A) The councils of governments of Davis County and Weber County shall
456each nominate to the governor one or more candidates for transit commissioner.
457(B) The Box Elder County legislative body and the chief executives of each
458municipality within the boundary of the large public transit district in Box
459Elder County, may jointly nominate one or more candidates for transit
460commissioner.
461(C) The governor shall appoint, with advice and consent of the Senate, one
462candidate nominated as described in Subsection (2)(b)(i)(A) or (2)(b)(i)(B).
463(ii)(A) The council of governments of Utah County shall nominate to the governor
464one or more candidates for transit commissioner.
465(B) The Tooele County legislative body and the chief executives of each
466municipality within the boundary of the large public transit district in Tooele
467County, may jointly nominate one or more candidates for transit commissioner.
468(C) The governor shall appoint, with advice and consent of the Senate, one
469candidate nominated as described in Subsection (2)(b)(ii)(A) or (2)(b)(ii)(B).
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470(iii)(A) The council of governments of Salt Lake County shall nominate to the
471governor one or more candidates for transit commissioner.
472(B) The governor shall appoint, with advice and consent of the Senate, one
473candidate nominated as described in Subsection (2)(b)(iii)(A).
474(iv) The nominations described in Subsections (2)(b)(i) through (iii) shall be made to
475the governor:
476(A) for the initial terms beginning on July 1, 2026, on or before May 1, 2026; and
477(B) for nominations after the initial nominations described in Subsection
478(2)(b)(iv)(A), within 30 days after the day on which notice is given by the
479executive director to the nominating entity of an upcoming vacancy on the
480transit commission.
481(v)(A) If a nominating body described in this Subsection (2)(b) fails to nominate
482an individual on or before the deadlines described in Subsection (2)(b)(iv), the
483governor may, with advice and consent of the Senate, appoint the transit
484commissioner.
485(B) If the governor does not wish to appoint one or more candidates nominated as
486described in this Subsection (2)(b), the governor may request additional
487nominations.
488      (c) Beginning on July 1, 2026, and until June 30, 2027, the executive director of the
489department shall serve as a nonvoting, ex officio member of the transit commission.
490  (3)(a) Except as provided in Subsections (3)(b) and (3)(c), each transit commissioner of
491      a large public transit district shall serve for a term of four years.
492      (b) Each transit commissioner serves at the pleasure of the individual in the office that
493appointed the transit commissioner.
494      (c)(i) A transit commissioner may serve an unlimited number of terms.
495(ii) For members of the transit commission whose appointments begin on July 1,
4962026, the transit commissioners shall serve an initial term as follows:
497(A) the speaker of the House of Representatives shall designate one appointee as
498serving an initial term for three years, and one appointee as serving an initial
499term of four years;
500(B) the president of the Senate shall designate one appointee as serving an initial
501term for three years, and one appointee as serving an initial term of four years;
502and
503(C) the governor shall designate two appointees as serving an initial term for two
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504years, and one appointee as serving an initial term of five years.
505(d) Each transit commissioner:
506(i) serves and represents the whole of the large public transit district; and
507(ii) does not represent a specific geographic portion of the large public transit district.
508   (4)(a) If a vacancy occurs, the nomination and appointment procedures to replace the
509individual shall occur in the same manner described in Subsection (2) as for the
510transit commissioner creating the vacancy.
511(b) If a vacancy occurs on the transit commission of a large public transit district and the
512vacated seat is a transit commissioner nominated as described in Subsection (2)(b),
513the nominating body described in Subsection (2)(b) relevant for the vacancy shall
514nominate individuals for appointment by the governor as described in this section
515within 60 days after the date on which the vacancy occurs.
516(c) If the respective nominating body described in Subsection (2)(b) does not nominate
517to fill the vacancy within 60 days, the governor shall, with the advice and consent of
518the Senate, appoint an individual to fill the vacancy.
519(d) A replacement transit commissioner shall serve for the remainder of the unexpired
520term, but may serve an unlimited number of terms as provided in Subsection (3)(c)(i).
521   (5)(a) The nominating and appointing individuals described in this section shall ensure
522that each individual nominated or appointed to the transit commission of a large
523public transit district has extensive experience in one or more of the following areas:
524(i) public transit and mobility;
525(ii) public finance and budgeting;
526(iii) community development and engagement;
527(iv) law, public policy, or public administration; or
528(v) business management.
529(b) An individual who holds an elected office is ineligible for nomination, appointment,
530or service on the transit commission.
531   (6) A member may not receive compensation or benefits for the member's service, but may
532receive per diem and local travel expenses in accordance with:
533(a) Section 63A-3-106;
534(b) Section 63A-3-107; and
535(c) rules made by the Division of Finance in accordance with Sections 63A-3-106 and
53663A-3-107.
537   (7) Any four members of the transit commission constitute a quorum.
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538  (8)(a) The governor shall designate one transit commissioner as chair.
539      (b) The transit commission may select one member as vice chair to act in the chair's
540absence.
541  (9) Each transit commissioner shall qualify by taking the constitutional oath of office.
542  (10) Each transit commissioner is subject to the conflict of interest provisions described in
543      Title 63G, Chapter 24, Part 3, Conflicts of Interest.
544  (11) For the purposes of Section 63J-1-504, the transit commission is not considered an
545      agency.
546Section 7. Section 17B-2a-808 is amended to read:
54717B-2a-808 (Effective 05/06/26). Small public transit district board of trustees
548  powers and duties -- Adoption of ordinances, resolutions, or orders -- Effective date of
549  ordinances.
550  (1) The powers and duties of a board of trustees of a small public transit district stated in
551      this section are in addition to the powers and duties stated in Section 17B-1-301.
552  (2) The board of trustees of each small public transit district shall:
553      (a) appoint and fix the salary of a general manager, a chief executive officer, or both, as
554provided in Section 17B-2a-811;
555      (b) determine the transit facilities that the district should acquire or construct;
556      (c) supervise and regulate each transit facility that the district owns and operates,
557including:
558(i) fixing rates, fares, rentals, and charges and any classifications of rates, fares,
559rentals, and charges; and
560(ii) making and enforcing rules, regulations, contracts, practices, and schedules for or
561in connection with a transit facility that the district owns or controls;
562      (d) control the investment of all funds assigned to the district for investment, including
563funds:
564(i) held as part of a district's retirement system; and
565(ii) invested in accordance with the participating employees' designation or direction
566pursuant to an employee deferred compensation plan established and operated in
567compliance with Section 457 of the Internal Revenue Code;
568      (e) invest all funds according to the procedures and requirements of Title 51, Chapter 7,
569State Money Management Act;
570      (f) if a custodian is appointed under Subsection (3)(d), pay the fees for the custodian's
571services from the interest earnings of the investment fund for which the custodian is
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572appointed;
573(g)(i) cause an annual audit of all district books and accounts to be made by an
574independent certified public accountant;
575(ii) as soon as practicable after the close of each fiscal year, submit to the chief
576administrative officer and legislative body of each county and municipality with
577territory within the district a financial report showing:
578(A) the result of district operations during the preceding fiscal year; and
579(B) the district's financial status on the final day of the fiscal year; and
580(iii) supply copies of the report under Subsection (2)(g)(ii) to the general public upon
581request in a quantity that the board considers appropriate;
582(h) report at least annually to the Transportation Commission created in Section 72-1-301
583the district's short-term and strategic long-range [public ]transit plans, including the
584transit portions of applicable regional transportation plans adopted by a metropolitan
585planning organization established under 23 U.S.C. Sec. 134;
586(i) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits that
587the board of trustees determines to be the most critical to the success of the
588organization;[ and]
589(j) hear audit reports for audits conducted in accordance with Subsection (2)(i)[.] ; and
590(k) provide to the Transportation and Infrastructure Appropriations Subcommittee an
591annual financial report in conformity with generally accepted accounting principles.
592   (3) A board of trustees of a public transit district may:
593(a) subject to Subsection (5), make and pass ordinances, resolutions, and orders that are:
594(i) not repugnant to the United States Constitution, the Utah Constitution, or the
595provisions of this part; and
596(ii) necessary for:
597(A) the government and management of the affairs of the district;
598(B) the execution of district powers; and
599(C) carrying into effect the provisions of this part;
600(b) provide by resolution, under terms and conditions the board considers fit, for the
601payment of demands against the district without prior specific approval by the board,
602if the payment is:
603(i) for a purpose for which the expenditure has been previously approved by the
604board;
605(ii) in an amount no greater than the amount authorized; and
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606(iii) approved by the general manager or other officer or deputy as the board
607prescribes;
608      (c)(i) hold public hearings and subpoena witnesses; and
609(ii) appoint district officers to conduct a hearing and require the officers to make
610findings and conclusions and report them to the board; and
611      (d) appoint a custodian for the funds and securities under its control, subject to
612Subsection (2)(f).
613  (4) A member of the board of trustees of a public transit district or a hearing officer
614      designated by the board may administer oaths and affirmations in a district investigation
615      or proceeding.
616  (5)(a) The vote of the board of trustees on each ordinance shall be by roll call vote with
617      each affirmative and negative vote recorded.
618      (b)(i) Subject to Subsection (5)(b)(ii), the board of trustees may adopt a resolution or
619order by voice vote.
620(ii) The vote of the board of trustees on a resolution or order shall be by roll call vote
621if a member of the board so demands.
622      (c)(i) Except as provided in Subsection (5)(c)(ii), the board of trustees of a public
623transit district may not adopt an ordinance unless it is:
624(A) introduced at least a day before the board of trustees adopts it; or
625(B) mailed by registered mail, postage prepaid, to each member of the board of
626trustees at least five days before the day upon which the ordinance is presented
627for adoption.
628(ii) Subsection (5)(c)(i) does not apply if the ordinance is adopted by a unanimous
629vote of all board members present at a meeting at which at least 3/4 of all board
630members are present.
631      (d) Each ordinance adopted by a public transit district's board of trustees shall take effect
632upon adoption, unless the ordinance provides otherwise.
633Section 8. Section 17B-2a-808.1 is repealed and reenacted to read:
63417B-2a-808.1 (Effective 05/06/26). Large public transit district transit
635  commission powers and duties -- Adoption of ordinances, resolutions, or orders --
636  Effective date of ordinances.
637  (1) The powers and duties of the transit commission of a large public transit district stated
638      in this section replace any powers and duties stated in Section 17B-1-301.
639  (2)(a) The transit commission of each large public transit district shall, at least monthly,
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640hold public meetings and receive public comment.
641(b) The transit commission may conduct public meetings described in Subsection (2)(a)
642at various locations throughout the public transit district.
643   (3) The transit commission shall perform the following duties, which shall occur in a public
644meeting described in Subsection (2):
645(a) approve an annual budget, which shall emphasize fiscal responsibility, increasing
646ridership, and maintaining a state of good repair;
647(b) approve any interlocal agreement with a local jurisdiction;
648(c) approve a strategic long-range transit plan for development and operations proposed
649by the executive director in accordance with Subsection 17B-2a-811.1(5)(b);
650(d) vote on adoption of transit commission ordinances and bylaws; and
651(e) review and recommend a proposal from the executive director for the issuance of a
652bond.
653   (4) The transit commission shall:
654(a) in consultation with local stakeholders, work to establish and enhance transit
655infrastructure to provide cohesive and efficient public transit services throughout the
656service area of the large public transit district;
657(b) cause an annual audit of all public transit district books and accounts to be made by
658an independent certified public accountant;
659(c)(i) as soon as practicable after the close of each fiscal year, submit to each county,
660municipality, council of governments, and metropolitan planning organization
661within the public transit district, and make available upon request, a financial
662report showing:
663(A) the result of the transit district operations during the preceding fiscal year;
664(B) an accounting of the expenditures of all local sales and use tax revenues
665generated under Title 59, Chapter 12, Part 22, Local Option Sales and Use
666Taxes for Transportation Act;
667(C) the transit district's financial status on the final day of the fiscal year; and
668(D) the transit district's progress and efforts to improve the transit district's fiscal
669outlook relative to the previous fiscal year; and
670(ii) supply copies of the report under Subsection (4)(c)(i) to the general public upon
671request;
672(d)(i) direct the internal auditor appointed under Section 17B-2a-810 to conduct
673audits that the transit commission determines to be the most critical to the success
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674of the organization;
675(ii) if requested by the executive director, direct the internal auditor appointed under
676Section 17B-2a-810 to conduct an audit of an internal issue of the large public
677transit district; and
678(iii) hear audit reports for audits conducted in accordance with this Subsection (4)(d);
679      (e) at least annually, engage with the safety and security team of the large public transit
680district to ensure coordination with local municipalities and counties;
681      (f) at least annually, engage with the relevant metropolitan planning organizations and
682other stakeholders;
683      (g) at least annually, for the commissioners nominated by the councils of government,
684engage with the councils of government about community and local needs,
685investments, and services;
686      (h) engage with elected officials or staff from municipalities and counties within the
687large public transit district; and
688      (i) consult with local officials and stakeholders:
689(i) to review routes, service changes, and service improvements; and
690(ii) regarding the approvals described in Subsections (3)(a) through (c).
691  (5) A transit commission of a large public transit district may:
692      (a) approve and pass ordinances, resolutions, and orders that are:
693(i) not repugnant to the United States Constitution, the Utah Constitution, or the
694provisions of this part; and
695(ii) necessary for:
696(A) the governance of the affairs of the district; and
697(B) carrying into effect the provisions of this part;
698      (b) provide by resolution, under terms and conditions the transit commission considers
699fit, for the payment of demands against the district without prior specific approval by
700the transit commission, if the payment is:
701(i) for a purpose for which the expenditure has been previously approved by the
702transit commission;
703(ii) in an amount no greater than the amount authorized; and
704(iii) approved by the executive director or other officer or deputy as the transit
705commission prescribes; or
706      (c) appoint a custodian for the funds and securities under large public transit district
707control.
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708   (6) A transit commissioner or a hearing officer designated by the transit commission may
709administer oaths and affirmations in a public transit district investigation or proceeding.
710   (7)(a) The vote of the transit commission on each ordinance or resolution shall be by roll
711call vote with each affirmative and negative vote recorded.
712(b) The transit commission may not adopt an ordinance unless the ordinance is
713introduced at least 48 hours before the transit commission adopts the ordinance.
714(c) Each ordinance adopted by the transit commission shall take effect upon adoption,
715unless the ordinance provides otherwise.
716Section 9. Section 17B-2a-809 is amended to read:
71717B-2a-809 (Effective 05/06/26). Public transit districts to submit agendas and
718   minutes of board meetings.
719   (1) The board of trustees or transit commission of each public transit district shall submit to
720each constituent entity, as defined in Section 17B-1-701:
721(a) a copy of the board or transit commission agenda and a notice of the location and
722time of the board or transit commission meeting within the same time frame provided
723to members of the board [prior to] before the meeting; and
724(b) a copy of the minutes of board meetings within five working days following
725approval of the minutes.
726   (2) The board may submit notices, agendas, and minutes by electronic mail if agreed to by
727the constituent entity as defined under Section 17B-1-701.
728Section 10. Section 17B-2a-810 is amended to read:
72917B-2a-810 (Effective 05/06/26). Officers of a public transit district.
730   (1)(a) The officers of a public transit district shall consist of:
731(i) the members of the board of trustees or transit commission;
732(ii) for a small public transit district, a chair and vice chair, appointed by the board of
733trustees, subject to Subsection (1)(c);
734(iii) a secretary, appointed by the board of trustees or transit commission;
735(iv)(A) for a small public transit district, a general manager, appointed by the
736board of trustees as provided in Section 17B-2a-811, whose duties may be
737allocated by the board of trustees, at the board of trustees' discretion, to a chief
738executive officer, or both; or
739(B) for a large public transit district, an executive director appointed by the [board
740of trustees] governor as provided in Section 17B-2a-811.1;
741(v) for a small public transit district, a chief executive officer appointed by the board
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742of trustees, as provided in Section 17B-2a-811;
743(vi) for a small public transit district, a general counsel, appointed by the board of
744trustees, subject to Subsection (1)(d);
745(vii) a treasurer, appointed as provided in Section 17B-1-633, except that the
746treasurer of a large public transit district shall be appointed by the executive
747director;
748(viii) a comptroller, appointed by the board of trustees, subject to Subsection (1)(e),
749except that the comptroller of a large public transit district shall be appointed by
750the executive director;
751(ix) for a large public transit district, an internal auditor, appointed by the [board of
752trustees] executive director, subject to Subsection (1)(f); and
753(x) other officers, assistants, and deputies that the board of trustees or transit
754commission considers necessary.
755      (b) The board of trustees of a small public transit district may, at its discretion, appoint a
756president, who shall also be considered an officer of a public transit district.
757      (c) The district chair and vice chair of a small public transit district shall be members of
758the board of trustees.
759      (d) The person appointed as general counsel for a small public transit district shall:
760(i) be admitted to practice law in the state; and
761(ii) have been actively engaged in the practice of law for at least seven years next
762preceding the appointment.
763      (e) The person appointed as comptroller shall have been actively engaged in the practice
764of accounting for at least seven years next preceding the appointment.
765      (f) The person appointed as internal auditor shall be a licensed certified internal auditor
766or certified public accountant with at least five years experience in the auditing or
767public accounting profession, or the equivalent, [prior to] before appointment.
768  (2)(a) For a small public transit district, the district's general manager or chief executive
769      officer, as the board prescribes, or for a large public transit district, the executive
770      director, shall appoint all officers and employees not specified in Subsection (1).
771      (b) Each officer and employee appointed by the district's general manager or chief
772executive officer of a small public transit district, or the executive director of a large
773public transit district, serves at the pleasure of the appointing general manager, chief
774executive officer, or executive director.
775  (3) [The] For a small public transit district, the board of trustees shall by ordinance or
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776resolution fix the compensation of all district officers and employees, except as
777otherwise provided in this part.
778   (4)(a) Each officer appointed by the board of trustees or transit commission, or by the
779district's general manager, chief executive officer, or executive director shall take the
780oath of office specified in Utah Constitution, Article IV, Section 10.
781(b) Each oath under Subsection (4)(a) shall be subscribed and filed with the district
782secretary no later than 15 days after the commencement of the officer's term of office.
783Section 11. Section 17B-2a-811.1 is repealed and reenacted to read:
78417B-2a-811.1 (Effective 05/06/26). Executive director of a large public transit
785   district -- Appointment -- Duties -- Reporting.
786   (1)(a) The governor, with the advice and consent of the Senate, shall appoint an
787executive director for a large public transit district.
788(b) The executive director of a large public transit district in place as of January 1, 2026,
789shall remain in place until:
790(i) reappointed as described in Subsection (1)(a); or
791(ii) replaced as described in Subsection (1)(a).
792   (2)(a) Except as provided in Subsection (2)(b), the salary of the executive director shall
793be set as described in Section 67-22-2.
794(b) For an executive director in place as of January 1, 2026, the salary and other terms of
795the executive director's employment contract in place as of January 31, 2026, shall
796remain in force until the expiration of the contract.
797(c) After the expiration of the executive director's employment contract as described in
798Subsection (2)(b), the executive director is eligible to receive the same benefits as
799other executive employees of the large public transit district.
800   (3) The executive director manages and directs the operations of the large public transit
801district, with the primary and overarching mission to:
802(a) provide efficient and cost effective public transit services;
803(b) increase ridership;
804(c) maintain a state of good repair; and
805(d) reduce debt and maintain fiscal responsibility.
806   (4) The executive director:
807(a) serves as a full-time officer and devotes full time to the district's business;
808(b) serves at the pleasure of the governor;
809(c) holds office for an indefinite term;
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810      (d) ensures that all district ordinances are enforced;
811      (e) advises the transit commission regarding the needs of the district;
812      (f) ensures district compliance with state and federal requirements;
813      (g) attends meetings of the transit commission; and
814      (h) supervises and has supervisory authority over all employees of the large public
815transit district.
816  (5) The executive director shall:
817      (a)(i) as described in Subsection (6), create and present the budget of the large public
818transit district to the transit commission for approval; and
819(ii) provide notice of the proposed budget hearing and a copy of the proposed budget
820to the counties and municipalities within the large public transit district no later
821than 30 days before the hearing;
822      (b)(i) at least as frequently as every four years, in consultation with the transit
823commission and relevant metropolitan planning organizations, develop a strategic
824long-range transit plan for the district that aligns with relevant transportation and
825public transit plans on time horizons of five, 10, and 20 years;
826(ii) provide the proposed strategic long-range transit plan described in Subsection
827(5)(b)(i) to councils of government, counties, municipalities, and other relevant
828stakeholders for review and input; and
829(iii) after considering input received under Subsection (5)(b)(ii), present the proposed
830strategic long-range transit plan described in Subsection (5)(b)(i) to the transit
831commission for approval;
832      (c)(i) propose for transit commission approval any ordinances or bylaws with effect
833outside the transit district organization; and
834(ii) develop and implement internal transit district policies;
835      (d) in consultation with the transit commission, create and annually report the public
836transit district's long-term financial plan to the State Finance Review Commission
837created in Section 63C-25-201;
838      (e)(i) at least as frequently as every five years, perform a cost-effectiveness and
839cost-benefit study for each mode of public transit; and
840(ii) develop goals for the large public transit district to achieve an effective balance of
841cost-effective and cost-beneficial services;
842      (f) subject to Section 72-1-203, in consultation with the transit commission, prepare
843plans and specifications for the construction of district works;
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844(g) cause to be installed and maintained a system of auditing and accounting that shows
845the district's financial condition at all times;
846(h) notwithstanding Subsections 17B-1-301(2)(l) and (m), have charge of:
847(i) the acquisition, construction, maintenance, and operation of public transit
848facilities; and
849(ii) the administration of the public transit district's business affairs;
850(i) approve contracts and overall property acquisitions and dispositions for
851transit-oriented development;
852(j) create and pursue funding opportunities for transit capital and service initiatives to
853meet anticipated growth within the public transit district and in accordance with the
854strategic long-range transit plan;
855(k) regulate each transit facility that the public transit district owns and operates,
856including:
857(i) fix rates, rentals, charges and any classifications of rates, rentals, and charges;
858(ii) fix fares; and
859(iii) propose rules and approve contracts, practices, and schedules for or in
860connection with a transit facility that the district owns or controls;
861(l) oversee the investment of all funds assigned to the district for investment, including
862funds:
863(i) held as part of a district's retirement system; and
864(ii) invested in accordance with the participating employees' designation or direction
865in accordance with an employee deferred compensation plan established and
866operated in compliance with Section 457 of the Internal Revenue Code;
867(m) if a custodian is appointed under Subsection 17B-2a-808.1(5)(c), pay the fees for the
868custodian's services from the interest earnings of the investment fund for which the
869custodian is appointed;
870(n) ensure that the policies established by the public transit district meet state and federal
871regulatory requirements and federal grantee eligibility;
872(o) coordinate with political subdivisions within the large public transit district and the
873department to coordinate public transit services provided by the large public transit
874district with pilot services related to public transit innovation grants; and
875(p) require crime insurance for district officers and employees charged with the handling
876of district funds in an amount set by the commission.
877   (6)(a) The executive director shall prepare and submit to the transit commission an
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878      annual operating budget no later than 60 days before the beginning of each fiscal year.
879      (b) The budget shall include:
880(i) estimated revenues from all sources;
881(ii) proposed expenditures for all programs, operations, and administrative functions,
882including:
883(A) personnel and overhead costs;
884(B) new construction and improvement projects;
885(C) operation costs;
886(D) maintenance and state of good repair of the public transit system; and
887(E) capital expenditures, including vehicle purchases;
888(iii) an explanation of significant changes from the budget of the prior fiscal year; and
889(iv) other information as requested by the transit commission.
890      (c)(i) The transit commission shall review the proposed budget and may conduct
891hearings and request such additional information as the transit commission
892considers necessary.
893(ii) The budget becomes effective only upon approval by the transit commission.
894(iii) If the budget is not approved before the beginning of the fiscal year, the
895executive director shall operate under the previous year's budget until a new
896budget is approved.
897      (d)(i) The executive director may not make or authorize expenditures that result in a
898material deviation from the approved budget without prior approval of the transit
899commission.
900(ii) For purposes of this Subsection (6), a "material deviation" means:
901(A) a single expenditure or group of related expenditures exceeding 10% of any
902major expense budget line item;
903(B) a reallocation of funds between major budget categories exceeding 15% of the
904affected expense category; or
905(C) an expenditure that would cause total organizational spending to exceed the
906approved budget by more than 5%.
907(iii) The executive director shall request a budget amendment in writing to the transit
908commission with:
909(A) an explanation of the necessity for the deviation; and
910(B) the deviation's anticipated impact on the transit district's operations and
911financial position.
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912(iv) The executive director may approve minor adjustments within budget categories
913that do not constitute material deviations, if total expenditures do not exceed the
914approved budget.
915(e)(i) The budget shall include a comprehensive ten-year budget projection and
916financial forecast.
917(ii) The ten-year budget projection and financial forecast shall include:
918(A) projected revenues by source, including farebox revenue, sales tax receipts,
919federal grants, state contributions, contributions from local governments, and
920other operating income;
921(B) projected operating and capital expenditures, including personnel costs, fleet
922maintenance and replacement, fuel and energy costs, facilities maintenance,
923and debt service;
924(C) anticipated ridership trends and service level assumptions;
925(D) financial forecast balance sheets showing projected assets, liabilities, and fund
926balances;
927(E) projected status of indebtedness and bond payoffs;
928(F) material assumptions, including inflation rates, wage adjustments, fuel price
929projections, and anticipated changes in federal or state funding; and
930(G) identified risks to financial sustainability and proposed mitigation strategies.
931(f) The executive director shall provide quarterly financial reports to the transit
932commission comparing actual revenues and expenditures to the approved budget and
933explaining any variances.
934   (7)(a) The executive director shall present to the transit commission in a public meeting
935a proposed contract for reduced-fare, ticket-as-fare, or other fare event contracts.
936(b) The executive director shall provide information about:
937(i) the benefits of the reduced-fare, ticket-as-fare, or other fare event proposal; and
938(ii) the impacts of the reduced-fare, ticket-as-fare, or other fare event proposal on the
939budget of the transit district.
940(c) A contract for reduced-fare, ticket-as-fare, or other fare event is subject to approval
941by the transit commission.
942   (8)(a) The executive director may propose the issuance of a bond.
943(b) A bond proposed by the executive director may not be issued unless:
944(i) the bond is reviewed and recommended by the transit commission; and
945(ii) approved by the State Finance Review Commission created in Section
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94663C-25-201.
947  (9) The executive director shall annually prepare and provide to the transit commission and
948      the Transportation Interim Committee:
949      (a) a report regarding fare contracts and transit pass programs, including:
950(i) information about institutional contracts as well as reduced-fare, ticket-as-fare, or
951other fare event contracts;
952(ii) contribution levels from both the large public transit district and each relevant
953institution or party;
954(iii) projected and observed benefits and costs and return on investment of the
955proposed contract, including increased ridership, traffic congestion reduction,
956operational and customer safety, and net financial gain of the large public transit
957district; and
958(iv) other relevant data used to determine that the contract is in the public's
959transportation interest;
960      (b) a report of the public transit district's efforts to engage in public-private partnerships
961for public transit services; and
962      (c) a financial report in conformity with generally accepted accounting principles.
963  (10) The executive director shall annually report the public transit district's progress and
964      expenditures related to state resources to the Executive Appropriations Committee and
965      the Transportation and Infrastructure Appropriations Subcommittee.
966  (11)(a) At least every two years, the executive director shall provide a report to the
967      transit commission and provide an accounting of:
968(i) the amount of revenue from local option sales and use taxes under this part that
969was collected within each respective county, city, or town and allocated to the
970large public transit district as provided in this part;
971(ii) how much revenue described in Subsection (11)(a)(i) was allocated to provide
972public transit services utilized by residents of each county, city, and town;
973(iii) how the revenue described in Subsection (11)(a)(i) was spent to provide public
974transit services utilized by residents of each respective county, city, and town; and
975(iv) the ridership of all transit services.
976      (b) After providing the report described in Subsection (11)(a), the executive director
977shall provide the report to each county, city, and town within the boundary of the
978large public transit district.
979      (c) To provide the report described in this Subsection (11), the executive director may
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980coordinate with the Department of Transportation to report on relevant public transit
981capital development projects administered by the Department of Transportation.
982   (12) The executive director shall report at least annually to the Transportation Commission
983created in Section 72-1-301, including:
984(a) the district's short-term and strategic long-range transit plans, including the portions
985of applicable regional transportation plans adopted by a metropolitan planning
986organization established under 23 U.S.C. Sec. 134; and
987(b) any fixed guideway capital development projects that the executive director would
988like the Transportation Commission to consider.
989   (13) The executive director or the executive director's designee shall engage:
990(a) with elected officials or staff from the relevant metropolitan planning organizations,
991councils of government, counties, and municipalities within the large public transit
992district; and
993(b) at least annually with elected officials or staff from any county or municipality that
994provides direct financial contributions for transit district operations, including
995expanded service or other similar proposals.
996Section 12. Section 17B-2a-812 is amended to read:
99717B-2a-812 (Effective 05/06/26). Comptroller required to provide statement of
998   revenues and expenditures.
999      The comptroller of each public transit district shall, as soon as possible after the close of
1000     each fiscal year:
1001     (1) prepare a statement of revenues and expenditures for the fiscal year just ended, in the
1002  detail that the board of trustees or transit commission prescribes; and
1003     (2) transmit a copy of the statement to the chief executive officer of:
1004  (a) each municipality within the district; and
1005  (b) each county with unincorporated area within the district.
1006  Section 13. Section 17B-2a-815 is amended to read:
1007  17B-2a-815 (Effective 05/06/26). Rates and charges for service -- Fare collection
1008     information private.
1009     (1) The board of trustees of a small public transit district, or the executive director of a
1010  large public transit district, shall fix rates and charges for service provided by the district
1011  by a two-thirds vote of all board members.
1012     (2) Rates and charges shall:
1013  (a) be reasonable; and
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1014        (b) to the extent practicable:
1015  (i) result in enough revenue to make the public transit system self supporting; and
1016  (ii) be sufficient to:
1017  (A) pay for district operating expenses;
1018  (B) provide for repairs, maintenance, and depreciation of works and property that
1019  the district owns or operates;
1020  (C) provide for the purchase, lease, or acquisition of property and equipment;
1021  (D) pay the interest and principal of bonds that the district issues; and
1022  (E) pay for contracts, agreements, leases, and other legal liabilities that the district
1023  incurs.
1024    (3)(a) In accordance with Section 63G-2-302, the following personal information
1025        received by the district from a customer through any debit, credit, or electronic fare
1026        payment process is a private record under Title 63G, Chapter 2, Government Records
1027        Access and Management Act:
1028  (i) travel data, including:
1029  (A) the identity of the purchasing individual or entity;
1030  (B) travel dates, times, or frequency of use; and
1031  (C) locations of use;
1032  (ii) service type or vehicle identification used by the customer;
1033  (iii) the unique transit pass identifier assigned to the customer; or
1034  (iv) customer account information, including the cardholder's name, the credit or
1035  debit card number, the card issuer identification, or any other related information.
1036        (b) Private records described in this Subsection (3) that are received by a public transit
1037  district may only be disclosed in accordance with Section 63G-2-202.
1038  Section 14. Section 17B-2a-816 is amended to read:
1039  17B-2a-816 (Effective 05/06/26). Hearing on a rate or charge or a proposal to fix
1040    the location of district facilities.
1041    (1)(a) The legislative body of a county or municipality with territory within a public
1042        transit district may, on behalf of a person who is a resident of the county or
1043        municipality, respectively, and who is a user of a public transit system operated by
1044        the public transit district, file a request for a hearing before the public transit district's
1045        board of trustees or transit commission as to:
1046  (i) the reasonableness of a rate or charge fixed by the board of trustees or transit
1047  commission; or
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1048  (ii) a proposal for fixing the location of district facilities.
1049  (b) Each request under Subsection (1)(a) shall:
1050  (i) be in writing;
1051  (ii) be filed with the board of trustees or transit commission of the public transit
1052  district; and
1053  (iii) state the subject matter on which a hearing is requested.
1054     (2)(a) At least 15 but not more than 60 days after a request under Subsection (1)(a) is
1055  filed, the public transit district's board of trustees or transit commission shall hold a
1056  hearing on, as the case may be:
1057  (i) the reasonableness of a rate or charge fixed by the board of trustees or transit
1058  commission; or
1059  (ii) a proposal for fixing the location of district facilities.
1060  (b) The public transit district board of trustees or transit commission shall provide notice
1061  of the hearing by:
1062  (i) mailing, postage prepaid, a notice to:
1063  (A) the county or municipality requesting the hearing; and
1064  (B) the legislative body of each other county and municipality with territory
1065  within the public transit district; and
1066  (ii) once publishing a notice.
1067     (3) At each hearing under Subsection (2)(a):
1068  (a) the legislative body of a county or municipality may intervene, be heard, and
1069  introduce evidence if the county or municipality:
1070  (i) is eligible to file a request for hearing under Subsection (1); and
1071  (ii) did not file a request for hearing;
1072  (b) the public transit district, the county or municipality that filed the request for hearing,
1073  and an intervening county or municipality under Subsection (3)(a) may:
1074  (i) call and examine witnesses;
1075  (ii) introduce exhibits;
1076  (iii) cross-examine opposing witnesses on any matter relevant to the issues, even
1077  though the matter was not covered in direct examination; and
1078  (iv) rebut evidence introduced by others;
1079  (c) evidence shall be taken on oath or affirmation;
1080  (d) technical rules of evidence need not be followed, regardless of the existence of a
1081  common law or statutory rule that makes improper the admission of evidence over
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1082  objection in a civil action;
1083        (e) hearsay evidence is admissible in order to supplement or explain direct evidence, but
1084  is not sufficient in itself to support a finding unless it would be admissible over
1085  objection in a civil action; and
1086        (f) the public transit district board of trustees or transit commission shall appoint a
1087  reporter to take a complete record of all proceedings and testimony before the board
1088  or transit commission.
1089    (4)(a) Within 60 days after the conclusion of a hearing under Subsection (2)(a), the
1090        public transit district board of trustees or transit commission shall render its decision
1091        in writing, together with written findings of fact.
1092        (b) The board of trustees or transit commission shall mail by certified mail, postage
1093  prepaid, a copy of the decision and findings to:
1094  (i) the county or municipality that filed a request under Subsection (1); and
1095  (ii) each county and municipality that intervened under Subsection (3)(a).
1096    (5) In any action to review a decision of a public transit district board of trustees or transit
1097        commission under this section, the record on review shall consist of:
1098        (a) the written request for hearing, the transcript of the testimony at the hearing, and all
1099  exhibits introduced at the hearing; or
1100        (b) if the parties stipulate in writing:
1101  (i) the evidence specified in the stipulation; and
1102  (ii) the written stipulation itself.
1103  Section 15. Section 17B-2a-821 is amended to read:
1104  17B-2a-821 (Effective 05/06/26). Multicounty district may establish and enforce
1105    parking ordinance.
1106       The board of trustees or transit commission of a multicounty district may adopt an
1107    ordinance governing parking of vehicles at a transit facility, including the imposition of a fine
1108    or civil penalty for a violation of the ordinance.
1109  Section 16. Section 17B-2a-822 is amended to read:
1110  17B-2a-822 (Effective 05/06/26). Multicounty district may employ or contract
1111    for law enforcement officers -- Law enforcement officer status, powers, and jurisdiction.
1112    (1) The board of trustees or transit commission of a multicounty district may employ law
1113        enforcement officers or contract with other law enforcement agencies to provide law
1114        enforcement services for the district.
1115    (2) A law enforcement officer employed or provided by contract under Subsection (1) is a
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1116  law enforcement officer under Section 53-13-103 and shall be subject to the provisions
1117  of that section.
1118  Section 17. Section 17B-2a-826 is amended to read:
1119  17B-2a-826 (Effective 05/06/26). Public transit district office of constituent
1120     services and office of coordinated mobility.
1121     (1)(a) The [board of trustees] executive director of a large public transit district shall
1122  create and employ an office of constituent services.
1123  (b) The duties of the office of constituent services described in Subsection (1)(a) shall
1124  include:
1125  (i) establishing a central call number to hear and respond to complaints, requests,
1126  comments, concerns, and other communications from customers and citizens
1127  within the district;
1128  (ii) keeping a log of the complaints, comments, concerns, and other communications
1129  from customers and citizens within the district; and
1130  (iii) reporting complaints, comments, concerns, and other communications to
1131  management[ and to the local advisory council created in Section 17B-2a-808.2].
1132     (2)(a) A large public transit district shall create and employ an office of coordinated
1133  mobility.
1134  (b) The duties of the office of coordinated mobility shall include:
1135  (i) establishing a central call number to facilitate human services transportation;
1136  (ii) coordinating all human services transportation needs within the public transit
1137  district;
1138  (iii) receiving requests and other communications regarding human services
1139  transportation;
1140  (iv) receiving requests and other communications regarding vans, buses, and other
1141  vehicles available for use from the public transit district to maximize the utility of
1142  and investment in those vehicles; and
1143  (v) supporting local efforts and applications for additional funding.
1144  Section 18. Section 59-12-103 is amended to read:
1145  59-12-103 (Effective 07/01/26). Sales and use tax base -- Rates -- Effective dates
1146     -- Use of sales and use tax revenue.
1147     (1) A tax is imposed on the purchaser as provided in this part on the purchase price or sales
1148  price for amounts paid or charged for the following transactions:
1149  (a) retail sales of tangible personal property made within the state;
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1150        (b) amounts paid for:
1151  (i) telecommunications service, other than mobile telecommunications service, that
1152  originates and terminates within the boundaries of this state;
1153  (ii) mobile telecommunications service that originates and terminates within the
1154  boundaries of one state only to the extent permitted by the Mobile
1155  Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
1156  (iii) an ancillary service associated with a:
1157  (A) telecommunications service described in Subsection (1)(b)(i); or
1158  (B) mobile telecommunications service described in Subsection (1)(b)(ii);
1159        (c) sales of the following for commercial use:
1160  (i) gas;
1161  (ii) electricity;
1162  (iii) heat;
1163  (iv) coal;
1164  (v) fuel oil; or
1165  (vi) other fuels;
1166        (d) sales of the following for residential use:
1167  (i) gas;
1168  (ii) electricity;
1169  (iii) heat;
1170  (iv) coal;
1171  (v) fuel oil; or
1172  (vi) other fuels;
1173        (e) sales of prepared food;
1174        (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
1175  user fees for theaters, movies, operas, museums, planetariums, shows of any type or
1176  nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
1177  menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling
1178  matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling
1179  lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts,
1180  ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
1181  river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or
1182  any other amusement, entertainment, recreation, exhibition, cultural, or athletic
1183  activity;
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1184  (g) amounts paid or charged for services for repairs or renovations of tangible personal
1185  property, unless Section 59-12-104 provides for an exemption from sales and use tax
1186  for:
1187  (i) the tangible personal property; and
1188  (ii) parts used in the repairs or renovations of the tangible personal property described
1189  in Subsection (1)(g)(i), regardless of whether:
1190  (A) any parts are actually used in the repairs or renovations of that tangible
1191  personal property; or
1192  (B) the particular parts used in the repairs or renovations of that tangible personal
1193  property are exempt from a tax under this chapter;
1194  (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted
1195  cleaning or washing of tangible personal property;
1196  (i) amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer
1197  court accommodations and services;
1198  (j) amounts paid or charged for laundry or dry cleaning services;
1199  (k) amounts paid or charged for leases or rentals of tangible personal property if within
1200  this state the tangible personal property is:
1201  (i) stored;
1202  (ii) used; or
1203  (iii) otherwise consumed;
1204  (l) amounts paid or charged for tangible personal property if within this state the tangible
1205  personal property is:
1206  (i) stored;
1207  (ii) used; or
1208  (iii) consumed;
1209  (m) amounts paid or charged for a sale:
1210  (i)(A) of a product transferred electronically; or
1211  (B) of a repair or renovation of a product transferred electronically; and
1212  (ii) regardless of whether the sale provides:
1213  (A) a right of permanent use of the product; or
1214  (B) a right to use the product that is less than a permanent use, including a right:
1215  (I) for a definite or specified length of time; and
1216  (II) that terminates upon the occurrence of a condition; and
1217  (n) sales of leased tangible personal property from the lessor to the lessee made in the
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1218  state.
1219    (2)(a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are
1220        imposed on a transaction described in Subsection (1) equal to the sum of:
1221  (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
1222  (A) 4.70%;
1223  (B) the rate specified in Subsection (6)(a); and
1224  (C) the tax rate the state imposes in accordance with Part 20, Supplemental State
1225  Sales and Use Tax Act, if the location of the transaction as determined under
1226  Sections 59-12-211 through 59-12-215 is in a city, town, or the unincorporated
1227  area of a county in which the state imposes the tax under Part 20, Supplemental
1228  State Sales and Use Tax Act; and
1229  (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1230  transaction under this chapter other than this part.
1231        (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state
1232  tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal
1233  to the sum of:
1234  (i) a state tax imposed on the transaction at a tax rate of 2%; and
1235  (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1236  transaction under this chapter other than this part.
1237        (c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed
1238  on amounts paid or charged for food and food ingredients equal to the sum of:
1239  (i) a state tax imposed on the amounts paid or charged for food and food ingredients
1240  at a tax rate of 1.75%; and
1241  (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
1242  amounts paid or charged for food and food ingredients under this chapter other
1243  than this part.
1244        (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid
1245  or charged for fuel to a common carrier that is a railroad for use in a locomotive
1246  engine at a rate equal to the sum of the rates described in Subsections (2)(a)(i)(A) and
1247  (2)(a)(i)(B).
1248        (e)(i)(A) The rates described in Subsections (2)(a)(i)(A) and (2)(a)(i)(B) do not
1249  apply to car sharing, a car sharing program, a shared vehicle driver, or a shared
1250  vehicle owner, for a car sharing or shared vehicle transaction if a shared
1251  vehicle owner certifies to the commission, on a form prescribed by the
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1252  commission, that the shared vehicle is an individual-owned shared vehicle.
1253  (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is
1254  required once during the time that the shared vehicle owner owns the shared
1255  vehicle.
1256  (C) The commission shall verify that a shared vehicle is an individual-owned
1257  shared vehicle by verifying that the applicable Utah taxes imposed under this
1258  chapter were paid on the purchase of the shared vehicle.
1259  (D) The exception under Subsection (2)(e)(i)(A) applies to a certified
1260  individual-owned shared vehicle shared through a car-sharing program even if
1261  non-certified shared vehicles are also available to be shared through the same
1262  car-sharing program.
1263  (ii) A tax imposed under Subsection (2)(a)(i)(C) or (2)(a)(ii) applies to car sharing.
1264  (iii)(A) A car-sharing program may rely in good faith on a shared vehicle owner's
1265  representation that the shared vehicle is an individual-owned shared vehicle
1266  certified with the commission as described in Subsection (2)(e)(i).
1267  (B) If a car-sharing program relies in good faith on a shared vehicle owner's
1268  representation that the shared vehicle is an individual-owned shared vehicle
1269  certified with the commission as described in Subsection (2)(e)(i), the
1270  car-sharing program is not liable for any tax, penalty, fee, or other sanction
1271  imposed on the shared vehicle owner.
1272  (iv) If all shared vehicles shared through a car-sharing program are certified as
1273  described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has
1274  no obligation to collect and remit the tax under Subsections (2)(a)(i)(A) and
1275  (2)(a)(i)(B) for that tax period.
1276  (v) A car-sharing program is not required to list or otherwise identify an
1277  individual-owned shared vehicle on a return or an attachment to a return.
1278  (vi) A car-sharing program shall:
1279  (A) retain tax information for each car-sharing program transaction; and
1280  (B) provide the information described in Subsection (2)(e)(vi)(A) to the
1281  commission at the commission's request.
1282  (f)(i) For a bundled transaction that is attributable to food and food ingredients and
1283  tangible personal property other than food and food ingredients, a state tax and a
1284  local tax is imposed on the entire bundled transaction equal to the sum of:
1285  (A) the tax rates described in Subsection (2)(a)(i); and
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1286  (B) a local tax imposed on the entire bundled transaction at the sum of the tax
1287  rates described in Subsection (2)(a)(ii).
1288  (ii) If an optional computer software maintenance contract is a bundled transaction
1289  that consists of taxable and nontaxable products that are not separately itemized
1290  on an invoice or similar billing document, the purchase of the optional computer
1291  software maintenance contract is 40% taxable under this chapter and 60%
1292  nontaxable under this chapter.
1293  (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled
1294  transaction described in Subsection (2)(f)(i) or (ii):
1295  (A) if the sales price of the bundled transaction is attributable to tangible personal
1296  property, a product, or a service that is subject to taxation under this chapter
1297  and tangible personal property, a product, or service that is not subject to
1298  taxation under this chapter, the entire bundled transaction is subject to taxation
1299  under this chapter unless:
1300  (I) the seller is able to identify by reasonable and verifiable standards the
1301  tangible personal property, product, or service that is not subject to taxation
1302  under this chapter from the books and records the seller keeps in the seller's
1303  regular course of business; or
1304  (II) state or federal law provides otherwise; or
1305  (B) if the sales price of a bundled transaction is attributable to two or more items
1306  of tangible personal property, products, or services that are subject to taxation
1307  under this chapter at different rates, the entire bundled transaction is subject to
1308  taxation under this chapter at the higher tax rate unless:
1309  (I) the seller is able to identify by reasonable and verifiable standards the
1310  tangible personal property, product, or service that is subject to taxation
1311  under this chapter at the lower tax rate from the books and records the seller
1312  keeps in the seller's regular course of business; or
1313  (II) state or federal law provides otherwise.
1314  (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the
1315  seller's regular course of business includes books and records the seller keeps in
1316  the regular course of business for nontax purposes.
1317        (g)(i) Except as otherwise provided in this chapter and subject to Subsections
1318  (2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible
1319  personal property, a product, or a service that is subject to taxation under this
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1320  chapter, and the sale, lease, or rental of tangible personal property, other property,
1321  a product, or a service that is not subject to taxation under this chapter, the entire
1322  transaction is subject to taxation under this chapter unless the seller, at the time of
1323  the transaction:
1324  (A) separately states the portion of the transaction that is not subject to taxation
1325  under this chapter on an invoice, bill of sale, or similar document provided to
1326  the purchaser; or
1327  (B) is able to identify by reasonable and verifiable standards, from the books and
1328  records the seller keeps in the seller's regular course of business, the portion of
1329  the transaction that is not subject to taxation under this chapter.
1330  (ii) A purchaser and a seller may correct the taxability of a transaction if:
1331  (A) after the transaction occurs, the purchaser and the seller discover that the
1332  portion of the transaction that is not subject to taxation under this chapter was
1333  not separately stated on an invoice, bill of sale, or similar document provided
1334  to the purchaser because of an error or ignorance of the law; and
1335  (B) the seller is able to identify by reasonable and verifiable standards, from the
1336  books and records the seller keeps in the seller's regular course of business, the
1337  portion of the transaction that is not subject to taxation under this chapter.
1338  (iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller
1339  keeps in the seller's regular course of business includes books and records the
1340  seller keeps in the regular course of business for nontax purposes.
1341  (h)(i) If the sales price of a transaction is attributable to two or more items of tangible
1342  personal property, products, or services that are subject to taxation under this
1343  chapter at different rates, the entire purchase is subject to taxation under this
1344  chapter at the higher tax rate unless the seller, at the time of the transaction:
1345  (A) separately states the items subject to taxation under this chapter at each of the
1346  different rates on an invoice, bill of sale, or similar document provided to the
1347  purchaser; or
1348  (B) is able to identify by reasonable and verifiable standards the tangible personal
1349  property, product, or service that is subject to taxation under this chapter at the
1350  lower tax rate from the books and records the seller keeps in the seller's regular
1351  course of business.
1352  (ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the
1353  seller's regular course of business includes books and records the seller keeps in
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1354  the regular course of business for nontax purposes.
1355        (i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate
1356  imposed under the following shall take effect on the first day of a calendar quarter:
1357  (i) Subsection (2)(a)(i)(A);
1358  (ii) Subsection (2)(a)(i)(B);
1359  (iii) Subsection (2)(b)(i);
1360  (iv) Subsection (2)(c)(i); or
1361  (v) Subsection (2)(f)(i)(A).
1362        (j)(i) A tax rate increase takes effect on the first day of the first billing period that
1363  begins on or after the effective date of the tax rate increase if the billing period for
1364  the transaction begins before the effective date of a tax rate increase imposed
1365  under:
1366  (A) Subsection (2)(a)(i)(A);
1367  (B) Subsection (2)(a)(i)(B);
1368  (C) Subsection (2)(b)(i);
1369  (D) Subsection (2)(c)(i); or
1370  (E) Subsection (2)(f)(i)(A).
1371  (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
1372  statement for the billing period is rendered on or after the effective date of the
1373  repeal of the tax or the tax rate decrease imposed under:
1374  (A) Subsection (2)(a)(i)(A);
1375  (B) Subsection (2)(a)(i)(B);
1376  (C) Subsection (2)(b)(i);
1377  (D) Subsection (2)(c)(i); or
1378  (E) Subsection (2)(f)(i)(A).
1379        (k)(i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale
1380  is computed on the basis of sales and use tax rates published in the catalogue, a
1381  tax rate repeal or change in a tax rate takes effect:
1382  (A) on the first day of a calendar quarter; and
1383  (B) beginning 60 days after the effective date of the tax rate repeal or tax rate
1384  change.
1385  (ii) Subsection (2)(k)(i) applies to the tax rates described in the following:
1386  (A) Subsection (2)(a)(i)(A);
1387  (B) Subsection (2)(a)(i)(B);
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1388  (C) Subsection (2)(b)(i);
1389  (D) Subsection (2)(c)(i); or
1390  (E) Subsection (2)(f)(i)(A).
1391  (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1392  the commission may by rule define the term "catalogue sale."
1393  (l)(i) For a location described in Subsection (2)(l)(ii), the commission shall determine
1394  the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
1395  based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other
1396  fuel at the location.
1397  (ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
1398  or other fuel is furnished through a single meter for two or more of the following
1399  uses:
1400  (A) a commercial use;
1401  (B) an industrial use; or
1402  (C) a residential use.
1403     (3)(a) The commission shall deposit the following state taxes into the General Fund:
1404  (i) the tax imposed by Subsection (2)(a)(i)(A);
1405  (ii) the tax imposed by Subsection (2)(b)(i);
1406  (iii) the tax imposed by Subsection (2)(c)(i);
1407  (iv) the tax imposed by Subsection (2)(d); and
1408  (v) the tax imposed by Subsection (2)(f)(i)(A).
1409  (b) The commission shall distribute the following local taxes to a county, city, or town
1410  as provided in this chapter:
1411  (i) the tax imposed by Subsection (2)(a)(ii);
1412  (ii) the tax imposed by Subsection (2)(b)(ii);
1413  (iii) the tax imposed by Subsection (2)(c)(ii); and
1414  (iv) the tax imposed by Subsection (2)(f)(i)(B).
1415     (4)(a) Notwithstanding Subsection (3)(a), for each fiscal year the commission shall make
1416  the deposits described in Subsections (4)(b) through [(4)(h)] (4)(i) from the revenue
1417  from the taxes imposed by:
1418  (i) Subsection (2)(a)(i)(A);
1419  (ii) Subsection (2)(b)(i);
1420  (iii) Subsection (2)(c)(i); and
1421  (iv) Subsection (2)(f)(i)(A).
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1422        (b) The commission shall deposit 15% of the difference between 1.4543% of the
1423  revenue described in Subsection (4)(a) and the deposits made under Subsection (5)(b),
1424  into the Water Rights Restricted Account created in Section 73-2-1.6.
1425        (c) The commission shall deposit 85% of the difference between 1.4543% of the revenue
1426  described in Subsection (4)(a) and the deposits made under Subsection (5)(b), into
1427  the Water Resources Conservation and Development Fund created in Section
1428  73-10-24 for use by the Division of Water Resources for:
1429  (i) preconstruction costs:
1430  (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73,
1431  Chapter 26, Bear River Development Act; and
1432  (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
1433  authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
1434  (ii) the cost of employing a civil engineer to oversee any project authorized by Title
1435  73, Chapter 26, Bear River Development Act;
1436  (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline
1437  project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development
1438  Act; and
1439  (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
1440  Subsection (5)(b)(iv)(B) after funding the uses specified in Subsections (4)(c)(i)
1441  through (iii).
1442        (d) The commission shall deposit 1.4543% of the revenue described in Subsection (4)(a)
1443  into the Water Infrastructure Restricted Account created in Section 73-10g-103.
1444        (e)(i) Subject to Subsection (4)(e)(ii), the commission shall deposit 26.24% of the
1445  revenue described in Subsection (4)(a) into the Transportation Investment Fund of
1446  2005 created in Section 72-2-124.
1447  (ii) The commission shall annually reduce the deposit described in Subsection
1448  (4)(e)(i) by the sum of:
1449  (A) $1,813,400;
1450  (B) the earmark described in Subsection (5)(c); and
1451  (C) an amount equal to 35% of the revenue generated in the current fiscal year by
1452  the portion of the tax imposed on motor and special fuel that is sold, used, or
1453  received in the state that exceeds 29.4 cents per gallon.
1454  (iii) The amount described in Subsection (4)(e)(ii)(C) shall be annually deposited into
1455  the Transit Transportation Investment Fund created in Section 72-2-124.
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 S.B. 197  Enrolled Copy
1456  (f) The commission shall deposit .44% of the revenue described in Subsection (4)(a) into
1457  the Cottonwood Canyons Transportation Investment Fund created in Section
1458  72-2-124.
1459  (g) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into
1460  the Commuter Rail Subaccount created in Section 72-2-124.
1461  (h) The commission shall deposit 1% of the revenue described in Subsection (4)(a) into
1462  the Outdoor Adventure Infrastructure Restricted Account created in Section 51-9-902
1463  as follows:
1464  (i) into the Outdoor Adventure Infrastructure Restricted Account created in Section
1465  51-9-902, an amount equal to the amount that was deposited into the Outdoor
1466  Adventure Infrastructure Restricted Account in fiscal year 2025; and
1467  (ii) for any amount exceeding the amount described in Subsection (4)(h)(i), 50% into
1468  the Outdoor Adventure Infrastructure Restricted Account and 50% to the Utah
1469  Fairpark Area Investment and Restoration District created in Section 11-70-201.
1470  (i)(i) As used in this Subsection (4)(i):
1471  (A) "Base year balance" means the amount of revenue described in Subsection
1472  (4)(a) that the commission deposits into the General Fund for the fiscal year
1473  beginning on July 1, 2027, after making all other deposits and transfers
1474  required under this section.
1475  (B) "Current year balance" means the amount of revenue described in Subsection
1476  (4)(a) that the commission deposits into the General Fund for the current fiscal
1477  year, after making all other deposits and transfers required under this section.
1478  (C) "Total transit amount" means the sum of the deposits made under Subsections
1479  (4)(e)(ii)(C) and (4)(g) for the current fiscal year.
1480  (ii) For each fiscal year beginning on or after July 1, 2028, in which the current year
1481  balance exceeds the base year balance, the commission shall deposit into the
1482  Transit Transportation Investment Fund created in Section 72-2-124 an amount
1483  equal to the lesser of:
1484  (A) 5% of the difference between the current year balance and the base year
1485  balance; and
1486  (B) the total transit amount.
1487     (5)(a) Notwithstanding Subsection (3)(a), each fiscal year the commission shall make
1488  the deposits described in this Subsection (5).
1489  (b)(i)(A) The commission shall deposit $500,000 to the Department of Natural
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1490  Resources to be used for watershed rehabilitation or restoration.
1491  (B) At the end of each fiscal year, 100% of any unexpended amount described in
1492  Subsection (5)(b)(i)(A) shall lapse into the Water Resources Conservation and
1493  Development Fund created in Section 73-10-24.
1494  (ii) The commission shall deposit $150,000 to the Division of Water Resources for
1495  cloud-seeding projects authorized by Title 73, Chapter 15, Modification of
1496  Weather.
1497  (iii) The commission shall deposit $525,000 into the Division of Conservation
1498  created in Section 4-46-401 to implement water related programs.
1499  (iv) The commission shall deposit $7,175,000 into the Water Resources Conservation
1500  and Development Fund created in Section 73-10-24 for use by the Division of
1501  Water Resources:
1502  (A) for the uses allowed of the Water Resources Conservation and Development
1503  Fund under Section 73-10-24;
1504  (B) to conduct hydrologic and geotechnical investigations by the Division of
1505  Water Resources in a cooperative effort with other state, federal, or local
1506  entities, for the purpose of quantifying surface and ground water resources and
1507  describing the hydrologic systems of an area in sufficient detail so as to enable
1508  local and state resource managers to plan for and accommodate growth in
1509  water use without jeopardizing the resource;
1510  (C) to fund state required dam safety improvements; and
1511  (D) to protect the state's interest in interstate water compact allocations, including
1512  the hiring of technical and legal staff.
1513  (v) The commission shall deposit $3,587,500 into the Utah Wastewater Loan
1514  Program Subaccount created in Section 73-10c-5 for use by the Water Quality
1515  Board to fund wastewater projects.
1516  (vi) The commission shall deposit $3,587,500 into the Drinking Water Loan Program
1517  Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water
1518  to:
1519  (A) provide for the installation and repair of collection, treatment, storage, and
1520  distribution facilities for any public water system, as defined in Section
1521  19-4-102;
1522  (B) develop underground sources of water, including springs and wells; and
1523  (C) develop surface water sources.
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 S.B. 197  Enrolled Copy
1524  (vii) The commission shall deposit $2,450,000 to the Division of Wildlife Resources
1525  to:
1526  (A) implement the measures described in Subsections 23A-3-214(3)(a) through
1527  (d) to protect sensitive plant and animal species; or
1528  (B) award grants, up to the amount authorized by the Legislature in an
1529  appropriations act, to political subdivisions of the state to implement the
1530  measures described in Subsections 23A-3-214(3)(a) through (d) to protect
1531  sensitive plant and animal species.
1532  (viii) Funds transferred to the Division of Wildlife Resources under Subsection
1533  (5)(b)(vii)(A) may not be used to assist the United States Fish and Wildlife
1534  Service or any other person to list or attempt to have listed a species as threatened
1535  or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531, et
1536  seq.
1537  (ix) At the end of each fiscal year, any unexpended amounts described in Subsections
1538  (5)(b)(vii)(A) and (B) shall lapse:
1539  (A) 50% into the Water Resources Conservation and Development Fund created
1540  in Section 73-10-24;
1541  (B) 25% into the Utah Wastewater Loan Program Subaccount created in Section
1542  73-10c-5; and
1543  (C) 25% into the Drinking Water Loan Program Subaccount created in Section
1544  73-10c-5.
1545  (x) The commission shall allocate $175,000 to the Division of Water Rights to cover
1546  the costs incurred in hiring legal and technical staff for the adjudication of water
1547  rights.
1548  (xi) At the end of each fiscal year, any unexpended amounts described in Subsection
1549  (5)(b)(x) shall lapse:
1550  (A) 50% into the Water Resources Conservation and Development Fund created
1551  in Section 73-10-24;
1552  (B) 25% into the Utah Wastewater Loan Program Subaccount created in Section
1553  73-10c-5; and
1554  (C) 25% into the Drinking Water Loan Program Subaccount created in Section
1555  73-10c-5.
1556  (c) The commission shall deposit $45,000,000 into the Active Transportation Investment
1557  Fund created in Section 72-2-124.
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 Enrolled Copy  S.B. 197
1558        (d) The commission shall deposit $533,750 into the Qualified Emergency Food
1559  Agencies Fund created by and expended in accordance with Section 35A-8-1009.
1560        (e) The commission shall deposit $200,000 into the General Fund as a dedicated credit
1561  for the sole use of the Search and Rescue Financial Assistance Program created by
1562  and to be expended in accordance with Title 53, Chapter 2a, Part 11, Search and
1563  Rescue Act.
1564    (6)(a) The rate specified in this Subsection (6) is 0.15%.
1565        (b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning
1566  on or after July 1, 2019, annually transfer the amount of revenue collected from the
1567  rate described in Subsection (6)(a) on the transactions that are subject to the sales and
1568  use tax under Subsection (2)(a)(i)(B) into the Medicaid ACA Fund created in Section
1569  26B-1-315.
1570    (7)(a) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11),
1571        (12), and (13), and as described in Section 63N-3-610, beginning the first day of a
1572        calendar quarter one year after the sales and use tax boundary for a housing and
1573        transit reinvestment zone is established under Title 63N, Chapter 3, Part 6, Housing
1574        and Transit Reinvestment Zone Act, the commission, at least annually, shall transfer
1575        an amount equal to 15% of the sales and use tax increment from the sales and use tax
1576        imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within
1577        an established sales and use tax boundary, as defined in Section 63N-3-602, into the
1578        Transit Transportation Investment Fund created in Section 72-2-124.
1579        (b) Beginning no sooner than January 1, 2026, notwithstanding Subsection (3)(a), and
1580  except as provided in Subsections (11), (12), and (13), and as described in Section
1581  63N-3-610.1, beginning the first day of a calendar quarter after the year set in the
1582  proposal and after the sales and use tax boundary for a convention center
1583  reinvestment zone is established in a capital city under Title 63N, Chapter 3, Part 6,
1584  Housing and Transit Reinvestment Zone Act, the commission, at least annually, shall
1585  transfer an amount equal to 50% of the sales and use tax increment as defined in
1586  Section 63N-3-602 from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a
1587  4.7% rate, on transactions occurring within an established sales and use tax boundary,
1588  as defined in Section 63N-3-602, to a convention center public infrastructure district
1589  created in accordance with Section 17D-4-202.1 and specified in the convention
1590  center reinvestment zone proposal submitted [pursuant to] in accordance with Title
1591  63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
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 S.B. 197  Enrolled Copy
1592     (8) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and
1593  (13), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark Area
1594  Investment and Restoration District, created in Section 11-70-201, the revenue from the
1595  sales and use tax imposed by Subsection (2)(a)(i)(A), on transactions occurring within
1596  the district sales tax area, as defined in Section 11-70-101.
1597     (9)(a) As used in this Subsection (9):
1598  (i) "Additional land" means point of the mountain state land described in Subsection
1599  11-59-102(6)(b) that the point of the mountain authority acquires after the point of
1600  the mountain authority provides the commission a map under Subsection (9)(c).
1601  (ii) "Point of the mountain authority" means the Point of the Mountain State Land
1602  Authority, created in Section 11-59-201.
1603  (iii) "Point of the mountain state land" means the same as that term is defined in
1604  Section 11-59-102.
1605  (b) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12),
1606  and (13), the commission shall distribute to the point of the mountain authority 50%
1607  of the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A), on
1608  transactions occurring on the point of the mountain state land.
1609  (c) The distribution under Subsection (9)(b) shall begin the next calendar quarter that
1610  begins at least 90 days after the point of the mountain authority provides the
1611  commission a map that:
1612  (i) accurately describes the point of the mountain state land; and
1613  (ii) the point of the mountain authority certifies as accurate.
1614  (d) A distribution under Subsection (9)(b) with respect to additional land shall begin the
1615  next calendar quarter that begins at least 90 days after the point of the mountain
1616  authority provides the commission a map of point of the mountain state land that:
1617  (i) accurately describes the point of the mountain state land, including the additional
1618  land; and
1619  (ii) the point of the mountain authority certifies as accurate.
1620  (e)(i) Upon the payment in full of bonds secured by the sales and use tax revenue
1621  distributed to the point of the mountain authority under Subsection (9)(b), the
1622  point of the mountain authority shall immediately notify the commission in
1623  writing that the bonds are paid in full.
1624  (ii) The commission shall discontinue distributions of sales and use tax revenue under
1625  Subsection (9)(b) at the beginning of the calendar quarter that begins at least 90
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 Enrolled Copy  S.B. 197
1626  days after the date that the commission receives the written notice under
1627  Subsection (9)(e)(i).
1628    (10) Notwithstanding Subsection (3)(a), the amount of state sales tax revenues described in
1629        Section 63N-2-503.5 is deposited into the Convention Incentive Fund created in Section
1630        63N-2-503.5.
1631    (11)(a) As used in this Subsection (11):
1632  (i) "Applicable percentage" means:
1633  (A) for a housing and transit reinvestment zone created under Title 63N, Chapter
1634  3, Part 6, Housing and Transit Reinvestment Zone Act, 15% of the revenue
1635  from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate
1636  for sales occurring within the qualified development zone described in
1637  Subsection (11)(a)(ii)(A);
1638  (B) for the Utah Fairpark Area Investment and Restoration District created in
1639  Section 11-70-201, the revenue from the sales and use tax imposed by
1640  Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified
1641  development zone described in Subsection (11)(a)(ii)(B); and
1642  (C) for the Point of the Mountain State Land Authority created in Section
1643  11-59-201, 50% of the revenue from sales and use tax imposed by Subsection
1644  (2)(a)(i)(A) at a 4.7% rate for sales occurring within the qualified development
1645  zone described in Subsection (11)(a)(ii)(C).
1646  (ii) "Qualified development zone" means:
1647  (A) the sales and use tax boundary of a housing and transit reinvestment zone
1648  created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment
1649  Act;
1650  (B) the district sales tax boundary as defined in Section 11-70-101 for the Utah
1651  Fairpark Area Investment and Restoration District, created in Section
1652  11-70-201; or
1653  (C) the sales and use tax boundary of point of the mountain state land, as defined
1654  in Section 11-59-102, under the Point of the Mountain State Land Authority
1655  created in Section 11-59-201.
1656  (iii) "Schedule J sale" means a sale reported on State Tax Commission Form
1657  TC-62M, Schedule J or a substantially similar form as designated by the
1658  commission.
1659        (b) Revenue generated from the applicable percentage by a Schedule J sale within a
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1660  qualified development zone shall be deposited into the General Fund.
1661     (12)(a) As used in Subsections (12) and (13):
1662  (i) "Applicable percentage" means, for a convention center reinvestment zone created
1663  in a capital city under Title 63N, Chapter 3, Part 6, Housing and Transit
1664  Reinvestment Zone Act, an amount equal to 50% of the sales and use tax
1665  increment, as that term is defined in Section 63N-3-602, from the sales and use tax
1666  imposed by Subsection (2)(a)(i)(A) at a 4.7% rate for sales occurring within the
1667  qualified development zone described in Subsection (12)(a)(ii).
1668  (ii) "Qualified development zone" means the sales and use tax boundary of a
1669  convention center reinvestment zone created in a capital city under Title 63N,
1670  Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
1671  (iii) "Qualifying construction materials" means construction materials that are:
1672  (A) delivered to a delivery outlet within a qualified development zone; and
1673  (B) intended to be permanently attached to real property within the qualified
1674  development zone.
1675  (b) For a sale of qualifying construction materials, the commission shall distribute the
1676  product calculated in Subsection (12)(c) to a qualified development zone if the seller
1677  of the construction materials:
1678  (i) establishes a delivery outlet with the commission within the qualified development
1679  zone;
1680  (ii) reports the sales of the construction materials to the delivery outlet described in
1681  Subsection (12)(b)(i); and
1682  (iii) does not report the sales of the construction materials on a simplified electronic
1683  return.
1684  (c) For the purposes of Subsection (12)(b), the product is equal to:
1685  (i) the sales price or purchase price of the qualifying construction materials; and
1686  (ii) the applicable percentage.
1687     (13)(a) As used in this Subsection (13), "Schedule J sale" means a sale reported on State
1688  Tax Commission Form TC-62M, Schedule J, or a substantially similar form as
1689  designated by the commission.
1690  (b) Revenue generated from the applicable percentage by a Schedule J sale within a
1691  qualified development zone shall be distributed into the General Fund.
1692  Section 19. Section 63N-3-605 is amended to read:
1693  63N-3-605 (Effective 05/06/26). Housing and transit reinvestment zone
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 Enrolled Copy  S.B. 197
1694    committee -- Creation.
1695    (1) For any housing and transit reinvestment zone proposed under this part, or for a first
1696        home investment zone proposed in accordance with Part 16, First Home Investment
1697        Zone Act, there is created a housing and transit reinvestment zone committee with
1698        membership described in Subsection (2).
1699    (2) Each housing and transit reinvestment zone committee shall consist of the following
1700        members:
1701        (a) one representative from the Governor's Office of Economic Opportunity, designated
1702  by the executive director of the Governor's Office of Economic Opportunity;
1703        (b) one representative from each municipality that is a party to the proposed housing and
1704  transit reinvestment zone or first home investment zone, designated by the chief
1705  executive officer of each respective municipality;
1706        (c) a member of the Transportation Commission created in Section 72-1-301;
1707        (d) a member of the [board of trustees] transit commission of a large public transit
1708  district;
1709        (e) one individual from the Office of the State Treasurer, designated by the state
1710  treasurer;
1711        (f) two members designated by the president of the Senate;
1712        (g) two members designated by the speaker of the House of Representatives;
1713        (h) one member designated by the chief executive officer of each county affected by the
1714  housing and transit reinvestment zone or first home investment zone;
1715        (i) two representatives designated by the school superintendent from the school district
1716  affected by the housing and transit reinvestment zone or first home investment zone;
1717  and
1718        (j) one representative, representing the largest participating local taxing entity, after the
1719  municipality, county, and school district.
1720    (3) The individual designated by the Governor's Office of Economic Opportunity as
1721        described in Subsection (2)(a) shall serve as chair of the housing and transit
1722        reinvestment zone committee.
1723    (4)(a) A majority of the members of the housing and transit reinvestment zone
1724        committee constitutes a quorum of the housing and transit reinvestment zone
1725        committee.
1726        (b) An action by a majority of a quorum of the housing and transit reinvestment zone
1727  committee is an action of the housing and transit reinvestment zone committee.
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1728     (5)(a) After the Governor's Office of Economic Opportunity receives the results of the
1729  analysis described in Section 63N-3-604, and after the Governor's Office of
1730  Economic Opportunity has received a request from the submitting municipality or
1731  public transit county to submit the housing and transit reinvestment zone proposal to
1732  the housing and transit reinvestment zone committee, the Governor's Office of
1733  Economic Opportunity shall notify each of the entities described in Subsection (2) of
1734  the formation of the housing and transit reinvestment zone committee.
1735  (b) For a first home investment zone, the housing and transit reinvestment zone
1736  committee shall follow the procedures described in Section 63N-3-1604.
1737     (6)(a) The chair of the housing and transit reinvestment zone committee shall convene a
1738  public meeting to consider the proposed housing and transit reinvestment zone.
1739  (b) A meeting of the housing and transit reinvestment zone committee is subject to Title
1740  52, Chapter 4, Open and Public Meetings Act.
1741     (7)(a) The proposing municipality or public transit county shall present the housing and
1742  transit reinvestment zone proposal to the housing and transit reinvestment zone
1743  committee in a public meeting.
1744  (b) The housing and transit reinvestment zone committee shall, for a housing and transit
1745  reinvestment zone proposal:
1746  (i) evaluate and verify whether the elements of a housing and transit reinvestment
1747  zone described in Subsections 63N-3-603(2) and (4) have been met; and
1748  (ii) evaluate the proposed housing and transit reinvestment zone relative to the
1749  analysis described in Subsection 63N-3-604(2).
1750  (c) The housing and transit reinvestment zone committee shall, for a convention center
1751  reinvestment zone proposal, evaluate and verify whether the objectives of a
1752  convention center reinvestment zone described in Section 63N-3-603.1 have been
1753  met.
1754     (8)(a) Subject to Subsection (8)(b), the housing and transit reinvestment zone committee
1755  may:
1756  (i)(A) for a housing and transit reinvestment zone, request changes to the housing
1757  and transit reinvestment zone proposal based on the analysis, characteristics,
1758  and criteria described in Section 63N-3-604; or
1759  (B) for a convention center reinvestment zone, request changes to the convention
1760  center reinvestment zone proposal based on the characteristics and criteria
1761  described in Sections 63N-3-603.1 and 63N-3-604.1; or
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1762  (ii) vote to approve or deny the proposal.
1763        (b) Before the housing and transit reinvestment zone committee may approve the
1764  housing and transit reinvestment zone proposal, the municipality or public transit
1765  county proposing the housing and transit reinvestment zone shall ensure that the area
1766  of the proposed housing and transit reinvestment zone is zoned in such a manner to
1767  accommodate the requirements of a housing and transit reinvestment zone described
1768  in this section and the proposed development.
1769    (9) If a housing and transit reinvestment zone is approved by the committee:
1770        (a) the proposed housing and transit reinvestment zone is established according to the
1771  terms of the housing and transit reinvestment zone proposal;
1772        (b) affected local taxing entities are required to participate according to the terms of the
1773  housing and transit reinvestment zone proposal; and
1774        (c) each affected taxing entity is required to participate at the same rate.
1775    (10) A housing and transit reinvestment zone proposal may be amended by following the
1776        same procedure as approving a housing and transit reinvestment zone proposal.
1777    (11)(a) The approval for a convention center reinvestment zone in a capital city may be
1778        completed with a condition that the relevant municipality also create a public
1779        infrastructure district as provided in Subsection 63N-3-607(8)(b).
1780        (b) The approval described in Subsection (11)(a) shall verify that the requirements and
1781  limitations on use of funds is limited to the conditions described under Subsections
1782  63N-3-604.1(2)(b) and (c).
1783  Section 20. Section 67-22-2 is amended to read:
1784  67-22-2 (Effective 05/06/26). Compensation -- Other state officers.
1785    (1) As used in this section:
1786        (a) "Appointed executive" means the:
1787  (i) commissioner of the Department of Agriculture and Food;
1788  (ii) commissioner of the Insurance Department;
1789  (iii) commissioner of the Labor Commission;
1790  (iv) director, Department of Alcoholic Beverage Services;
1791  (v) commissioner of the Department of Financial Institutions;
1792  (vi) executive director, Department of Commerce;
1793  (vii) executive director, Commission on Criminal and Juvenile Justice;
1794  (viii) adjutant general;
1795  (ix) executive director, Department of Cultural and Community Engagement;
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1796  (x) executive director, Department of Corrections;
1797  (xi) commissioner, Department of Public Safety;
1798  (xii) executive director, Department of Natural Resources;
1799  (xiii) executive director, Governor's Office of Planning and Budget;
1800  (xiv) executive director, Department of Government Operations;
1801  (xv) executive director, Department of Environmental Quality;
1802  (xvi) executive director, Governor's Office of Economic Opportunity;
1803  (xvii) executive director, Department of Workforce Services;
1804  (xviii) executive director, Department of Health and Human Services, Nonphysician;
1805  (xix) executive director, Department of Transportation;
1806  (xx) executive director, Department of Veterans and Military Affairs;
1807  (xxi) advisor, Public Lands Policy Coordinating Office, created in Section
1808  63L-11-201;
1809  (xxii) Great Salt Lake commissioner, appointed under Section 73-32-201;[ and]
1810  (xxiii) Utah water agent, appointed under Section 73-10g-702[.] ; and
1811  (xxiv) a local district executive.
1812  (b) "Board or commission executive" means:
1813  (i) members, Board of Pardons and Parole;
1814  (ii) chair, State Tax Commission;
1815  (iii) commissioners, State Tax Commission;
1816  (iv) executive director, State Tax Commission;
1817  (v) chair, Public Service Commission; and
1818  (vi) commissioners, Public Service Commission.
1819  (c) "Deputy" means the person who acts as the appointed executive's second in
1820  command as determined by the Division of Human Resource Management.
1821  (d) "Local district executive" means the executive director of a large public transit
1822  district, as defined in Section 17B-2a-802.
1823     (2)(a)(i) The director of the Division of Human Resource Management shall:
1824  [(i)] (A) before October 31 of each year, recommend to the governor a
1825  compensation plan for the appointed executives and the board or commission
1826  executives; and
1827  [(ii)] (B) base those recommendations on market salary studies conducted by the
1828  Division of Human Resource Management.
1829  (ii) For a market salary study described in Subsection (2)(a)(i)(B) for a local district
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1830  executive, the Division of Human Resource Management shall include a salary
1831  comparison with executives of public transit districts of similar size and
1832  sophistication in other states.
1833        (b)(i) The Division of Human Resource Management shall determine the salary range
1834  for the appointed executives by:
1835  (A) identifying the salary range assigned to the appointed executive's deputy;
1836  (B) designating the lowest minimum salary from those deputies' salary ranges as
1837  the minimum salary for the appointed executives' salary range; and
1838  (C) designating 105% of the highest maximum salary range from those deputies'
1839  salary ranges as the maximum salary for the appointed executives' salary range.
1840  (ii) If the deputy is a medical doctor, the Division of Human Resource Management
1841  may not consider that deputy's salary range in designating the salary range for
1842  appointed executives.
1843        (c)(i) Except as provided in Subsection (2)(c)(ii), in establishing the salary ranges for
1844  board or commission executives, the Division of Human Resource Management
1845  shall set the maximum salary in the salary range for each of those positions at
1846  90% of the salary for district judges as established in the annual appropriation act
1847  under Section 67-8-2.
1848  (ii) In establishing the salary ranges for an individual described in Subsection
1849  (1)(b)(ii), (1)(b)(iii), or (1)(b)(iv), the Division of Human Resource Management
1850  shall set the maximum salary in the salary range for each of those positions at
1851  100% of the salary for district judges as established in the annual appropriation act
1852  under Section 67-8-2.
1853    (3)(a)(i) Except as provided in Subsection (3)(a)(ii) or Subsection (3)(d), the
1854        governor shall establish a specific salary for each appointed executive within the
1855        range established under Subsection (2)(b).
1856  (ii) If the executive director of the Department of Health and Human Services is a
1857  physician, the governor shall establish a salary within the highest physician salary
1858  range established by the Division of Human Resource Management.
1859  (iii) The governor may provide salary increases for appointed executives within the
1860  range established by Subsection (2)(b) and identified in Subsection (3)(a)(ii).
1861        (b) The governor shall apply the same overtime regulations applicable to other FLSA
1862  exempt positions.
1863        (c) The governor may develop standards and criteria for reviewing the appointed
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1864  executives.
1865  (d) If under Section 73-10g-702 the governor appoints an individual who is serving in an
1866  appointed executive branch position to be the Utah water agent, the governor shall
1867  adjust the salary of the Utah water agent to account for salary received for the
1868  appointed executive branch position.
1869     (4) Salaries for other Schedule A employees, as defined in Section 63A-17-301, that are not
1870  provided for in this chapter, or in Title 67, Chapter 8, Utah Elected Official and Judicial
1871  Salary Act, shall be established as provided in Section 63A-17-301.
1872     (5)(a) [The] Except as provided in Subsection (5)(c), the Legislature fixes benefits for the
1873  appointed executives and the board or commission executives as follows:
1874  (i) the option of participating in a state retirement system established by Title 49,
1875  Utah State Retirement and Insurance Benefit Act, or in a deferred compensation
1876  plan administered by the State Retirement Office in accordance with the Internal
1877  Revenue Code and its accompanying rules and regulations;
1878  (ii) health insurance;
1879  (iii) dental insurance;
1880  (iv) basic life insurance;
1881  (v) unemployment compensation;
1882  (vi) workers' compensation;
1883  (vii) required employer contribution to Social Security;
1884  (viii) long-term disability income insurance;
1885  (ix) the same additional state-paid life insurance available to other noncareer service
1886  employees;
1887  (x) the same severance pay available to other noncareer service employees;
1888  (xi) the same leave, holidays, and allowances granted to Schedule B state employees
1889  as follows:
1890  (A) sick leave;
1891  (B) converted sick leave if accrued [prior to] before January 1, 2014;
1892  (C) educational allowances;
1893  (D) holidays; and
1894  (E) annual leave except that annual leave shall be accrued at the maximum rate
1895  provided to Schedule B state employees;
1896  (xii) the option to convert accumulated sick leave to cash or insurance benefits as
1897  provided by law or rule upon resignation or retirement according to the same
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1898  criteria and procedures applied to Schedule B state employees;
1899  (xiii) the option to purchase additional life insurance at group insurance rates
1900  according to the same criteria and procedures applied to Schedule B state
1901  employees; and
1902  (xiv) professional memberships if being a member of the professional organization is
1903  a requirement of the position.
1904        (b) Each department shall pay the cost of additional state-paid life insurance for its
1905  executive director from its existing budget.
1906        (c) Subject to Subsection 17B-2a-811.1(2)(b), the transit commission of a large public
1907  transit district, as defined in Section 17B-2a-802, shall fix the benefits for the
1908  executive director of a large public transit district similar to benefits for other
1909  employees of the large public transit district.
1910    (6) The Legislature fixes the following additional benefits:
1911        (a) for the executive director of the Department of Transportation a vehicle for official
1912  and personal use;
1913        (b) for the executive director of the Department of Natural Resources a vehicle for
1914  commute and official use;
1915        (c) for the commissioner of Public Safety:
1916  (i) an accidental death insurance policy if POST certified; and
1917  (ii) a public safety vehicle for official and personal use;
1918        (d) for the executive director of the Department of Corrections:
1919  (i) an accidental death insurance policy if POST certified; and
1920  (ii) a public safety vehicle for official and personal use;
1921        (e) for the adjutant general a vehicle for official and personal use;
1922        (f) for each member of the Board of Pardons and Parole a vehicle for commute and
1923  official use; and
1924        (g) for the executive director of the Department of Veterans and Military Affairs a
1925  vehicle for commute and official use.
1926  Section 21. Repealer.
1927  This bill repeals:
1928  Section 17B-2a-807.1, Large public transit district board of trustees -- Appointment --
1929    Quorum -- Compensation -- Terms.
1930  Section 17B-2a-807.2, Existing large public transit district board of trustees --
1931    Appointment -- Quorum -- Compensation -- Terms.
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1932  Section 17B-2a-808.2, Large public transit district local advisory council -- Powers and
1933     duties.
1934  Section 22. Effective Date.
1935     (1) Except as provided in Subsection (2), this bill takes effect May 6, 2026.
1936     (2) The actions affecting Section 59-12-103 (Effective 07/01/26) take effect on July 1, 2026.
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