SB 197 — Transportation Funding and Governance Amendments

(EffectiveDefinitions. 05/06/26)Definitions.

- 7 - SB0197 compared with SB0197S01 (2) "Appointing entity" means the person, county, unincorporated area of a county, or municipality appointing a member to a public transit district board of trustees or transit commission.

(3)(3)(a) (a) "Chief executive officer" means a person appointed by the board of trustees of a small public transit district to serve as chief executive officer.

or- (b)7 has- authorizedS.B. access to information relating to effectuating or reviewing the employer's collective bargaining policies.

197 Enrolled Copy or (b) has authorized access to information relating to effectuating or reviewing the employer's collective bargaining policies.

(10)(10)(a) (a) "General manager" means a person appointed by the board of trustees of a small public transit district to serve as general manager.

or - 8 - SB0197 compared with SB0197S01 (ii) if the Utah Population Committee estimate is not available for each county, municipality, and unincorporated area that comprise the district, the most recent official census or census estimate of the United States Bureau of the Census;

[(12) "Local advisory council" means the local advisory council created in accordance with Section 17B-2a-808.2.] [(13)] (12)(12)(a) (a) "Locally elected public official" means a person who holds an elected position with a county or municipality.

and (b)- charged8 with- theEnrolled responsibilityCopy ofS.B. directing, overseeing, or implementing the effectuation of management policies and practices.

197 (b) charged with the responsibility of directing, overseeing, or implementing the effectuation of management policies and practices.

[(18)] (17)(17)(a) (a) "Public transit" means regular, continuing, shared-ride, surface transportation services that are open to the general public or open to a segment of the general public defined by age, disability, or low income.

- 9 - SB0197 compared with SB0197S01 [(19)] (18) "Public transit district" means a special district that provides public transit services.

[(23)] (22)(22)(a) (a) "Supervisor" means a person who has authority, in the interest of the employer, to:

(b) "Supervisor" does not include a person whose exercise of the authority described in Subsection [(23)[(23)(a)] (a)] (22)(a):

(i)- is9 of- aS.B. merely routine or clerical nature;

197 Enrolled Copy (i) is of a merely routine or clerical nature;

- 10 - SB0197 compared with SB0197S01 [(27)] (26) "Transit-supportive development" means a mixed use residential or commercial area that is designed to maximize access to public transit and does not include the development of land owned by a large public transit district.

17B-2a-804.17B-2a-804 (Effective 05/06/26).

(EffectiveAdditional 05/06/26)Additional public transit district powers.

(ii)- public10 liability;- Enrolled Copy S.B.

197 (ii) public liability;

(e)(e)(i) (i) hire, lease, or contract for the supplying or management of a facility, operation, equipment, service, employee, or management staff of an operator;

- 11 - SB0197 compared with SB0197S01 (g) accept a grant, contribution, or loan, directly through the sale of securities or equipment trust certificates or otherwise, from the United States, or from a department, instrumentality, or agency of the United States;

(j) subject to Subsection {[17B-2a-808.1(4)] Ŝ→17B-2a-811.1(8), } [{[} 17B-2a-808.1(4){] 17B-2a-811.1(8)}] 17B-2a-811.1(8){ ←Ŝ } , issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district;

(n) except as provided in Subsection (2)(b), [ ]assist in or operate transit-oriented or transit-supportive- developments;11 - S.B.

(o)197 subjectEnrolled toCopy Subsections (2) and (3), establish, finance, participate as a limited partner or member in a development with limited liabilities in accordance with Subsection (1)(p), construct, improve, maintain, or operate transit facilities, equipment, and, in accordance with Subsection (3), [ ]transit- oriented developments or transit-supportive developments;

and(o) (p) subject to theSubsections [(2) ]restrictions and requirements(3), inestablish, Subsectionsfinance, [participate ](2)as anda (3),limited assistpartner or member in a transit-development orientedwith developmentlimited liabilities in accordance with Subsection (1)(p), construct, improve, maintain, or aoperate transit-supportivetransit developmentfacilities, equipment, and, in connectionaccordance with projectSubsection area(3), development [ ]as]transit-oriented defineddevelopments inor Sectiontransit-supportive 17C-1-102developments; by:

and (p) subject to the [ ]restrictions and requirements in Subsections [ ](2) and (3), assist in a transit-oriented development or a transit-supportive development in connection with project area development [ ]as defined in Section 17C-1-102 by:

(2)(2)(a) (a) A public transit district may only assist in the development of areas under Subsection (1)(p) that have been approved by the board of trustees or transit commission, and in the manners described in Subsection (1)(p).

- 12 - SB0197 compared with SB0197S01 (b) A public transit district may not invest in a transit-oriented development or transit-supportive development as a limited partner or other limited liability entity under the provisions of Subsection (1)(p)(i), unless the partners, developer, or other investor in the entity, makes an equity contribution equal to no less than 25% of the appraised value of the property to be contributed by the public transit district.

(c)(c)(i) (i) For transit-oriented development projects, a public transit district shall adopt transit-oriented development policies and guidelines that include provisions on affordable housing.

(3) For any transit-oriented development or transit-supportive development authorized in this- section,12 the- publicEnrolled transitCopy districtS.B. shall:

197 this section, the public transit district shall:

and - 13 - SB0197 compared with SB0197S01 (c) coordinate with the Department of Transportation in accordance with Section 72-1-203 pertaining to fixed guideway capital development and associated parking facilities within a station area plan for a transit oriented development within a large public transit district.

Section 617B-2a-807.3 is enacted to read:

17B-2a-807.3.- 13 - S.B.

(Effective197 05/06/26)TransitEnrolled commissionCopy of17B-2a-807.3 a(Effective large05/06/26). public transit district -- Appointment -- Quorum -- Compensation -- Terms.

(1)Transit (a)commission Aof a large public transit district shall-- haveAppointment a-- transitQuorum commission.-- Compensation -- Terms.

(1)(a) A large public transit district shall have a transit commission.

-(2)(a) 14 - SB0197 compared with SB0197S01 (2) (a) A large public transit district shall be governed by a transit commission consisting of members appointed as follows:

(i) two members appointed by the speaker of the House of Representatives, in consultation with public transit {stakeholder } stakeholders from within the public transit district;

(b)(b)(i)(A) (i) (A) The councils of governments of Davis County and Weber County shall each nominate to the governor one or more candidates for {a } transit commissioner.

(B) The Box Elder County legislative body and the chief executives of each municipality within the boundary of the large public transit district in Box Elder County, may jointly nominate one or more candidates for {one } transit commissioner.

(ii)(ii)(A) (A) The council of governments of Utah County shall nominate to the governor one or more candidates for {a } transit commissioner.

(B) The Tooele County legislative body and the chief executives of each municipality within the boundary of the large public transit district in Tooele County, may jointly nominate one or more candidates for {one } transit commissioner.

(iii)- (A)14 The- councilEnrolled ofCopy governmentsS.B. of Salt Lake County shall nominate to the governor one or more candidates for transit commissioner.

197 (iii)(A) The council of governments of Salt Lake County shall nominate to the governor one or more candidates for transit commissioner.

- 15 - SB0197 compared with SB0197S01 (A) for the initial terms beginning on July 1, 2026, on or before May 1, 2026;

and (B) for nominations {subsequent to } after the initial nominations described in Subsection (2)(b)(iv)(A), within 30 days after the day on which notice is given by the executive director to the nominating entity of an upcoming vacancy on the transit commission.

(v)(v)(A) (A) If a nominating body described in this Subsection (2)(b) fails to nominate an individual on or before the deadlines described in Subsection (2)(b)(iv), the governor may, with advice and consent of the Senate, appoint the transit commissioner.

(3)(3)(a) (a) Except as provided in Subsections (3)(b) and (3)(c), each transit commissioner of a large public transit district shall serve for a term of four years.

(c)(c)(i) (i) A transit commissioner may serve an unlimited number of terms.

(A) the speaker of the House of {Representative } Representatives shall designate one appointee as serving an initial term for three years, and one appointee as serving an initial term of four years;

and (C) the governor shall designate two appointees as serving an initial term for two years,- and15 one- appointeeS.B. as serving an initial term of five years.

428a197 (d){Enrolled Ŝ→Copy {}years, {(d)}and }one Eachappointee transitas commissioner:serving an initial term of five years.

428b(d) (i)(i)Each serves and represents the whole of the large public transit district;commissioner:

and(i) 428cserves (ii)(ii)and doesrepresents notthe representwhole a specific geographic portion of the large public transit district.district;

(4)and -(ii) 16does -not SB0197represent compared with SB0197S01 (a) If a vacancyspecific occurs,geographic theportion nominationof and appointment procedures to replace the individuallarge shallpublic occur in the same manner described in Subsection (2) as for the transit commissionerdistrict. creating the vacancy.

(4)(a) If a vacancy occurs, the nomination and appointment procedures to replace the individual shall occur in the same manner described in Subsection (2) as for the transit commissioner creating the vacancy.

(5)(5)(a) (a) The nominating and appointing individuals described in this section shall ensure that each individual nominated or appointed to the transit commission of a large public transit district has extensive experience in one or more of the following areas:

(8)- (a)16 The- governorEnrolled shallCopy designateS.B. one transit commissioner as chair.

-197 17(8)(a) - SB0197 compared with SB0197S01 (b) The transitgovernor commissionshall maydesignate select one membertransit commissioner as vicechair. chair to act in the chair's absence.

(b) The transit commission may select one member as vice chair to act in the chair's absence.

17B-2a-808.17B-2a-808 (Effective 05/06/26).

(EffectiveSmall 05/06/26)Small public transit district board of trustees powers and duties -- Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.

(f) if a custodian is appointed under Subsection (3)(d), pay the fees for the custodian's services from the interest earnings of the investment fund for which the custodian is appointed;- 17 - S.B.

(g)197 (i)Enrolled causeCopy anappointed; annual audit of all district books and accounts to be made by an independent certified public accountant;

-(g)(i) 18cause -an SB0197annual comparedaudit with SB0197S01 (ii) as soon as practicable after the close of eachall fiscaldistrict year,books submit to the chief administrative officer and legislativeaccounts bodyto ofbe eachmade countyby andan municipalityindependent withcertified territorypublic withinaccountant; the district a financial report showing:

(ii) as soon as practicable after the close of each fiscal year, submit to the chief administrative officer and legislative body of each county and municipality with territory within the district a financial report showing:

(h) report at least annually to the Transportation Commission created in Section 72-1-301 the district's short-term and strategic { Ŝ→ {} {strategic }{} ←Ŝ } long-range {[public Ŝ→]transit } [{[} public {]} ]{ ←Ŝ } transit plans, including the transit portions of applicable regional transportation plans adopted by a metropolitan planning organization established under 23 U.S.C.

and (iii)- approved18 by- theEnrolled generalCopy managerS.B. or other officer or deputy as the board prescribes;

(c)197 (i)(iii) holdapproved publicby hearingsthe andgeneral subpoenamanager witnesses;or other officer or deputy as the board prescribes;

and(c)(i) -hold 19public -hearings SB0197 compared with SB0197S01 (ii) appoint district officers to conduct a hearing and requiresubpoena thewitnesses; officers to make findings and conclusions and report them to the board;

and (ii) appoint district officers to conduct a hearing and require the officers to make findings and conclusions and report them to the board;

(5)(5)(a) (a) The vote of the board of trustees on each ordinance shall be by roll call vote with each affirmative and negative vote recorded.

(b)(b)(i) (i) Subject to Subsection (5)(b)(ii), the board of trustees may adopt a resolution or order by voice vote.

(c)(c)(i) (i) Except as provided in Subsection (5)(c)(ii), the board of trustees of a public transit district may not adopt an ordinance unless it is:

17B-2a-808.1.17B-2a-808.1 (Effective 05/06/26).

(EffectiveLarge 05/06/26)Large public transit district transit commission powers and duties -- Adoption of ordinances, resolutions, or orders -- Effective date of ordinances.

(2)(2)(a) (a) The transit commission of each large public transit district shall, at least monthly, hold- public19 meetings- andS.B. receive public comment.

-197 20Enrolled -Copy SB0197hold compared with SB0197S01 (b) The transit commission may conduct public meetings describedand inreceive Subsection (2)(a) at various locations throughout the public transitcomment. district.

(b) The transit commission may conduct public meetings described in Subsection (2)(a) at various locations throughout the public transit district.

572a(a) (a){ Ŝ→ {} {(a)} } in consultation with local stakeholders, work to establish and enhance transit infrastructure to provide cohesive and efficient public transit services throughout the service area of the large public transit district;

(b){[{(a)}(b) {]} {{(b)} }{} ←Ŝ } cause an annual audit of all public transit district books and accounts to be made by an independent certified public accountant;

(c){(c)(i) Ŝ→ {} {[} {(b)} {]} {{(c)} }{} ←Ŝ } (i) as soon as practicable after the close of each fiscal year, submit to each county, municipality, council of governments, and metropolitan planning organization within the public transit district, and make available upon request, a financial report showing:

and (ii) supply copies of the report under Subsection {[(4)(b)(i)]} (4)(c)(i) to the general public upon request;

(d){(d)(i) Ŝ→ {} {[} {(c)} {]} {{(d)} }{} ←Ŝ } - 21 - SB0197 compared with SB0197S01 (i) direct the internal auditor appointed under Section 17B-2a-810 to conduct audits that the transit commission determines to be the most critical to the success of- the20 organization;- Enrolled Copy S.B.

197 of the organization;

and (iii) hear audit reports for audits conducted in accordance with this Subsection {[(4)(c)]} (4)(d);

{[and]}(e) (e){[{(d)} {]} {{(e)} }{} ←Ŝ } at least annually, engage with the safety and security team of the large public transit district to ensure coordination with local municipalities and counties{[.]}counties; ;

596a(f) (f)(f) at least annually, engage with the relevant metropolitan planning organizations and other stakeholders;

596c(g) (g)(g) at least annually, for the commissioners nominated by the councils of government, engage with the councils of government about community and local needs, investments, and services;

596f(h) (h)(h) engage with elected officials or staff from municipalities and counties within the large public transit district;

and 596h(i) (i)(i) consult with local officials and stakeholders:

596i(i) (i)(i) to review routes, service changes, and service improvements;

and 596j(ii) (ii)(ii) regarding the approvals described in Subsections (3)(a) through (c).

- 2221 - SB0197S.B. compared with SB0197S01 (6) A transit commissioner or a hearing officer designated by the transit commission may administer oaths and affirmations in a public transit district investigation or proceeding.

(7)197 (a)Enrolled TheCopy vote(6) ofA the transit commissioncommissioner on each ordinance or resolutiona shallhearing beofficer designated by rollthe calltransit votecommission withmay eachadminister affirmativeoaths and negativeaffirmations votein recorded.a public transit district investigation or proceeding.

(7)(a) The vote of the transit commission on each ordinance or resolution shall be by roll call vote with each affirmative and negative vote recorded.

17B-2a-809.17B-2a-809 (Effective 05/06/26).

(EffectivePublic 05/06/26)Public transit districts to submit agendas and minutes of board meetings.

17B-2a-810.17B-2a-810 (Effective 05/06/26).

(EffectiveOfficers 05/06/26)Officers of a public transit district.

(1)(1)(a) (a) The officers of a public transit district shall consist of:

(iv)(iv)(A) - 23 - SB0197 compared with SB0197S01 (A) for a small public transit district, a general manager, appointed by the board of trustees as provided in Section 17B-2a-811, whose duties may be allocated by the board of trustees, at the board of trustees' discretion, to a chief executive officer, or both;

(v) for a small public transit district, a chief executive officer appointed by the board of- trustees,22 as- providedEnrolled inCopy SectionS.B. 17B-2a-811;

197 of trustees, as provided in Section 17B-2a-811;

(2)(2)(a) - 24 - SB0197 compared with SB0197S01 (a) For a small public transit district, the district's general manager or chief executive officer, as the board prescribes, or for a large public transit district, the executive director, shall appoint all officers and employees not specified in Subsection (1).

(3) [The] For a small public transit district, the board of trustees shall by ordinance or resolution- fix23 the- compensationS.B. of all district officers and employees, except as otherwise provided in this part.

(4)197 (a)Enrolled EachCopy officerresolution appointedfix by the boardcompensation of trusteesall ordistrict transitofficers commission,and oremployees, byexcept theas district'sotherwise generalprovided manager, chief executive officer, or executive director shall take the oath of office specified in Utahthis Constitution,part. Article IV, Section 10.

(4)(a) Each officer appointed by the board of trustees or transit commission, or by the district's general manager, chief executive officer, or executive director shall take the oath of office specified in Utah Constitution, Article IV, Section 10.

17B-2a-811.1.17B-2a-811.1 (Effective 05/06/26).

(EffectiveExecutive 05/06/26)Executive director of a large public transit district -- Appointment -- Duties -- Reporting.

(1)(1)(a) (a) The governor, with the advice and consent of the Senate, shall appoint an executive director for a large public transit district.

(2)(2)(a) (a) Except as provided in Subsection (2)(b), the salary of the executive director shall be set as described in Section 67-22-2.

- 25 - SB0197 compared with SB0197S01 (c) After the expiration of the executive director's employment contract as described in Subsection (2)(2)(b), (b), the executive director is eligible to receive the same benefits as other executive employees of the large public transit district.

(d)- ensures24 that- allEnrolled districtCopy ordinancesS.B. are enforced;

197 (d) ensures that all district ordinances are enforced;

Ŝ→(a)(i) {[(a) as described in Subsection (6), create and present the budget of the large public ][transittransit district to the transit commission for approval;]}approval; (a){[(b)} (i) at least as frequently as every four years, in consultation with the transit ][commission, metropolitan planning organizations, operations specialists of the ][large public transit district, and other relevant stakeholders, develop a strategic][plan for the district that aligns with relevant transportation and public transit ][plans, including corresponding proposed projects on time horizons of five, 10, and ] [20 years;

and]}and {[(ii)(ii) presentprovide thenotice strategicof plan described in Subsection (5)(b)(i) to the transitproposed ][commissionbudget forhearing approval;]}and 732aa {(a)copy }of -the 26proposed -budget SB0197to comparedthe withcounties SB0197S01 (i)(i) as described in Subsection (6), create and presentmunicipalities thewithin budget of the large public transit district tono thelater transitthan commission30 fordays approval;before the hearing;

and(b)(i) 732cat (ii)(ii)least provideas noticefrequently ofas theevery proposedfour budgetyears, hearingin consultation with the transit commission and arelevant copymetropolitan ofplanning theorganizations, proposeddevelop budgeta tostrategic long-range transit plan for the countiesdistrict andthat municipalitiesaligns withinwith therelevant largetransportation and public transit districtplans noon latertime thanhorizons 30of daysfive, before10, theand hearing;20 years;

732f(ii) (b)(b)provide (i)(i) at least as frequently as every four years, in consultation with the transitproposed commission and relevant metropolitan planning organizations, develop a strategic long-range transit plan fordescribed thein districtSubsection that(5)(b)(i) alignsto withcouncils relevantof transportationgovernment, andcounties, publicmunicipalities, transitand plansother onrelevant timestakeholders horizonsfor ofreview five, 10, and 20input; years;

732jand (ii)(ii)(iii) provideafter considering input received under Subsection (5)(b)(ii), present the proposed strategic long-range transit plan described in Subsection (5)(b)(i) to councilsthe oftransit government,commission counties, municipalities , and other relevant stakeholders for reviewapproval; and input;

and(c)(i) 732mpropose (iii)(iii)for aftertransit consideringcommission inputapproval receivedany underordinances Subsectionor (5)(b)(ii),bylaws presentwith theeffect proposedoutside strategic long-range transit plan described in Subsection (5)(b)(i) to the transit commissiondistrict fororganization; approval;

(c) (i) propose for transit commission approval any ordinances or bylaws with effect outside the transit district organization;

(e)(e)(i) (i) at least as frequently as every five years, perform a cost-effectiveness and cost-benefit study for each mode of public transit;

(g)- cause25 to- beS.B. installed and maintained a system of auditing and accounting that shows the district's financial condition at all times;

-197 27Enrolled -Copy SB0197(g) comparedcause withto SB0197S01be (h)installed notwithstandingand Subsectionsmaintained 17B-1-301(2)(l)a system of auditing and (m),accounting havethat chargeshows of:the district's financial condition at all times;

(h) notwithstanding Subsections 17B-1-301(2)(l) and (m), have charge of:

{[and]} (o) coordinate with political subdivisions within the large public transit district and the department to coordinate public transit services provided by the large public transit district with pilot services related to public transit innovation grants{[.]}grants; ;

and 775a(p) (p)(p) require crime insurance for district officers and employees charged with the handling of district fundsinfunds in an amount set by the board.commission.

(6)(6)(a) (a) The executive director shall prepare and submit to the transit commission an annual- operating26 budget- noEnrolled laterCopy thanS.B. 60 days before the beginning of each fiscal year.

197 annual operating budget no later than 60 days before the beginning of each fiscal year.

- 28 - SB0197 compared with SB0197S01 (ii) proposed expenditures for all programs, operations, and administrative functions, including:

(c)(c)(i) (i) The transit commission shall review the proposed budget and may conduct hearings and request such additional information as the transit commission considers necessary.

(d)(d)(i) (i) The executive director may not make or authorize expenditures that result in a material deviation from the approved budget without prior approval of the transit commission.

(iv)- The27 executive- directorS.B. may approve minor adjustments within budget categories that do not constitute material deviations, {provided that } if total expenditures do not exceed the approved budget.

(e)197 -Enrolled 29Copy -(iv) SB0197The comparedexecutive withdirector SB0197S01may (i)approve Theminor adjustments within budget shallcategories includethat ado comprehensivenot ten-yearconstitute budgetmaterial projectiondeviations, andif {prototal formaexpenditures }do financialnot {statement}exceed forecast.the approved budget.

(ii)(e)(i) The ten-year budget projectionshall andinclude {proa formacomprehensive }ten-year financialbudget forecastprojection shalland include:financial forecast.

(ii) The ten-year budget projection and financial forecast shall include:

(D) {pro forma } financial forecast balance sheets showing projected assets, liabilities, and fund balances;

(7)(7)(a) (a) The executive director shall present to the transit commission in a public meeting a proposed contract for reduced-fare, ticket-as-fare, or other fare event contracts.

(8)(8)(a) (a) The executive director may propose the issuance of a bond.

and (ii) approved by the State Finance Review Commission created in Section 63C-25-201.- 28 - Enrolled Copy S.B.

-197 3063C-25-201. - SB0197 compared with SB0197S01 (9) The executive director shall annually prepare and provide to the transit commission and the Transportation Interim Committee:

(9) The executive director shall annually prepare and provide to the transit commission and the Transportation Interim Committee:

(11)(11)(a) (a) At least every two years, the executive director shall provide a report to the transit commission and provide an accounting of:

(ii) how much revenue described in Subsection (11)(a)(i) was allocated to provide public transit services utilized by residents of each county, city, and town;{[town; and]} (iii) how the revenue described in Subsection (11)(a)(i) was spent to provide public transit services utilized by residents of each respective county, city, and town{[.]} ;

and(iii) 872bhow (iv)(iv) the ridershiprevenue ofdescribed allin Subsection (11)(a)(i) was spent to provide public transit services.services utilized by residents of each respective county, city, and town;

and (iv) the ridership of all transit services.

- 31 - SB0197 compared with SB0197S01 (c) To provide the report described in this Subsection (11), the executive director may coordinate- with29 the- DepartmentS.B. of Transportation to report on relevant public transit capital development projects administered by the Department of Transportation.

197 Enrolled Copy coordinate with the Department of Transportation to report on relevant public transit capital development projects administered by the Department of Transportation.

(a) the district's short-term and {[long-range public transit plans]} strategic long-range transit plans, including the portions of applicable regional transportation plans adopted by a metropolitan planning organization established under 23 U.S.C.

885a(13) (13){ Ŝ→ {} {(13)} } The executive director or the executive director's designee shall {meet and } engage:

885c(a) (a)(a) with elected officials or staff from the relevant metropolitan planning organizations, councils of government, counties, and municipalities within the large public transit district;

and 885f(b) (b)(b) at least annually with elected officials or staff from any county or municipality that provides direct financial contributions for transit district operations, including expanded service or other similar proposals.

17B-2a-812.17B-2a-812 (Effective 05/06/26).

(EffectiveComptroller 05/06/26)Comptroller required to provide statement of revenues and expenditures.

17B-2a-815.17B-2a-815 (Effective 05/06/26).

(EffectiveRates 05/06/26)Rates and charges for service -- Fare collection information private.

- 32 - SB0197 compared with SB0197S01 (1) The board of trustees of a small public transit district, or the executive director of a large public transit district, shall fix rates and charges for service provided by the district by a two-thirds vote of all board members.

and (b)- to30 the- extentEnrolled practicable:Copy S.B.

197 (b) to the extent practicable:

(3)(3)(a) (a) In accordance with Section 63G-2-302, the following personal information received by the district from a customer through any debit, credit, or electronic fare payment process is a private record under Title 63G, Chapter 2, Government Records Access and Management Act:

17B-2a-816.17B-2a-816 (Effective 05/06/26).

(EffectiveHearing 05/06/26)Hearing on a rate or charge or a proposal to fix the location of district facilities.

-(1)(a) 33 - SB0197 compared with SB0197S01 (1) (a) The legislative body of a county or municipality with territory within a public transit district may, on behalf of a person who is a resident of the county or municipality, respectively, and who is a user of a public transit system operated by the public transit district, file a request for a hearing before the public transit district's board of trustees or transit commission as to:

or (ii)- a31 proposal- forS.B. fixing the location of district facilities.

197 Enrolled Copy (ii) a proposal for fixing the location of district facilities.

(2)(2)(a) (a) At least 15 but not more than 60 days after a request under Subsection (1)(a) is filed, the public transit district's board of trustees or transit commission shall hold a hearing on, as the case may be:

- 34 - SB0197 compared with SB0197S01 (ii) introduce exhibits;

(d) technical rules of evidence need not be followed, regardless of the existence of a common law or statutory rule that makes improper the admission of evidence over objection- in32 a- civilEnrolled action;Copy S.B.

197 objection in a civil action;

(4)(4)(a) (a) Within 60 days after the conclusion of a hearing under Subsection (2)(a), the public transit district board of trustees or transit commission shall render its decision in writing, together with written findings of fact.

17B-2a-821.17B-2a-821 (Effective 05/06/26).

(EffectiveMulticounty 05/06/26)Multicounty district may establish and enforce parking ordinance.

The board of trustees or transit commission of a multicounty district may adopt an - 35 - SB0197 compared with SB0197S01 ordinance governing parking of vehicles at a transit facility, including the imposition of a fine or civil penalty for a violation of the ordinance.

17B-2a-822.17B-2a-822 (Effective 05/06/26).

(EffectiveMulticounty 05/06/26)Multicounty district may employ or contract for law enforcement officers -- Law enforcement officer status, powers, and jurisdiction.

(2) A law enforcement officer employed or provided by contract under Subsection (1) is a law- enforcement33 officer- underS.B. Section 53-13-103 and shall be subject to the provisions of that section.

197 Enrolled Copy law enforcement officer under Section 53-13-103 and shall be subject to the provisions of that section.

17B-2a-826.17B-2a-826 (Effective 05/06/26).

(EffectivePublic 05/06/26)Public transit district office of constituent services and office of coordinated mobility.

(1)(1)(a) (a) The [board of trustees] executive director of a large public transit district shall create and employ an office of constituent services.

(2)(2)(a) (a) A large public transit district shall create and employ an office of coordinated mobility.

and - 36 - SB0197 compared with SB0197S01 (v) supporting local efforts and applications for additional funding.

59-12-103.59-12-103 (Effective 07/01/26).

(b)- amounts34 paid- for:Enrolled Copy S.B.

197 (b) amounts paid for:

- 37 - SB0197 compared with SB0197S01 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, or athletic activity;

(g)- amounts35 paid- orS.B. charged for services for repairs or renovations of tangible personal property, unless Section 59-12-104 provides for an exemption from sales and use tax for:

197 Enrolled Copy (g) amounts paid or charged for services for repairs or renovations of tangible personal property, unless Section 59-12-104 provides for an exemption from sales and use tax for:

and (ii) parts used in the repairs or renovations of the tangible personal property described in Subsection (1)(1)(g)(i), (g)(i), regardless of whether:

- 38 - SB0197 compared with SB0197S01 (m) amounts paid or charged for a sale:

(i)(i)(A) (A) of a product transferred electronically;

and (n) sales of leased tangible personal property from the lessor to the lessee made in the state.- 36 - Enrolled Copy S.B.

(2)197 (a)state. Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are imposed on a transaction described in Subsection (1) equal to the sum of:

(2)(a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax are imposed on a transaction described in Subsection (1) equal to the sum of:

and - 39 - SB0197 compared with SB0197S01 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the amounts paid or charged for food and food ingredients under this chapter other than this part.

(e)(e)(i)(A) (i) (A) The rates described in Subsections (2)(a)(i)(A) and (2)(a)(i)(B) do not apply to car sharing, a car sharing program, a shared vehicle driver, or a shared vehicle owner, for a car sharing or shared vehicle transaction if a shared vehicle owner certifies to the commission, on a form prescribed by the commission,- that37 the- sharedS.B. vehicle is an individual-owned shared vehicle.

197 Enrolled Copy commission, that the shared vehicle is an individual-owned shared vehicle.

(iii)(iii)(A) (A) A car-sharing program may rely in good faith on a shared vehicle owner's representation that the shared vehicle is an individual-owned shared vehicle certified with the commission as described in Subsection (2)(e)(i).

- 40 - SB0197 compared with SB0197S01 (v) A car-sharing program is not required to list or otherwise identify an individual-owned shared vehicle on a return or an attachment to a return.

(f)(f)(i) (i) For a bundled transaction that is attributable to food and food ingredients and tangible personal property other than food and food ingredients, a state tax and a local tax is imposed on the entire bundled transaction equal to the sum of:

and (B)- a38 local- taxEnrolled imposedCopy onS.B. the entire bundled transaction at the sum of the tax rates described in Subsection (2)(a)(ii).

197 (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates described in Subsection (2)(a)(ii).

- 41 - SB0197 compared with SB0197S01 (I) the seller is able to identify by reasonable and verifiable standards the tangible personal property, product, or service that is subject to taxation under this chapter at the lower tax rate from the books and records the seller keeps in the seller's regular course of business;

(g)(g)(i) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a product, or a service that is subject to taxation under this chapter,- and39 the- sale,S.B. lease, or rental of tangible personal property, other property, a product, or a service that is not subject to taxation under this chapter, the entire transaction is subject to taxation under this chapter unless the seller, at the time of the transaction:

197 Enrolled Copy chapter, and the sale, lease, or rental of tangible personal property, other property, a product, or a service that is not subject to taxation under this chapter, the entire transaction is subject to taxation under this chapter unless the seller, at the time of the transaction:

(h)(h)(i) - 42 - SB0197 compared with SB0197S01 (i) If the sales price of a transaction is attributable to two or more items of tangible personal property, products, or services that are subject to taxation under this chapter at different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate unless the seller, at the time of the transaction:

(ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the seller's regular course of business includes books and records the seller keeps in the- regular40 course- ofEnrolled businessCopy forS.B. nontax purposes.

197 the regular course of business for nontax purposes.

(j)(j)(i) (i) A tax rate increase takes effect on the first day of the first billing period that begins on or after the effective date of the tax rate increase if the billing period for the transaction begins before the effective date of a tax rate increase imposed under:

- 43 - SB0197 compared with SB0197S01 (A) Subsection (2)(a)(i)(A);

(k)(k)(i) (i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or change in a tax rate takes effect:

(C)- Subsection41 (2)(b)(i);- S.B.

197 Enrolled Copy (C) Subsection (2)(b)(i);

(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale." (l)(l)(i) (i) For a location described in Subsection (2)(l)(ii), the commission shall determine the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.

(3)(3)(a) (a) The commission shall deposit the following state taxes into the General Fund:

- 44 - SB0197 compared with SB0197S01 (ii) the tax imposed by Subsection (2)(b)(i);

(4)(4)(a) (a) Notwithstanding Subsection (3)(a), for each fiscal year the commission shall make the deposits described in Subsections (4)(b) through [(4)(h)] (4)(i) from the revenue from the taxes imposed by:

(b)- The42 commission- shallEnrolled depositCopy 15%S.B. of the difference between 1.4543% of the revenue described in Subsection (4)(a) and the deposits made under Subsection (5)(b), into the Water Rights Restricted Account created in Section 73-2-1.6.

197 (b) The commission shall deposit 15% of the difference between 1.4543% of the revenue described in Subsection (4)(a) and the deposits made under Subsection (5)(b), into the Water Rights Restricted Account created in Section 73-2-1.6.

- 45 - SB0197 compared with SB0197S01 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;

and (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and Subsection (5)(b)(iv)(5)(b)(iv)(B) (B) after funding the uses specified in Subsections (4)(c)(i) through (iii).

(e)(e)(i) (i) Subject to Subsection (4)(e)(ii), the commission shall deposit 26.24% of the revenue described in Subsection (4)(a) into the Transportation Investment Fund of 2005 created in Section 72-2-124.

(f)- The43 commission- shallS.B. deposit .44% of the revenue described in Subsection (4)(a) into the Cottonwood Canyons Transportation Investment Fund created in Section 72-2-124.

197 Enrolled Copy (f) The commission shall deposit .44% of the revenue described in Subsection (4)(a) into the Cottonwood Canyons Transportation Investment Fund created in Section 72-2-124.

(i)(i)(i) (i) As used in this Subsection (4)(i):

- 46 - SB0197 compared with SB0197S01 (A) "Base year balance" means the amount of revenue described in Subsection (4)(a) that the commission deposits into the General Fund for the fiscal year beginning on July 1, 2025,2027, after making all other deposits and transfers required under this section.

(ii) For each fiscal year beginning on or after July 1, 2027,2028, in which the current year balance exceeds the base year balance, the commission shall deposit into the Transit Transportation Investment Fund created in Section 72-2-124 an amount equal to the lesser of:

(5)(5)(a) (a) Notwithstanding Subsection (3)(a), each fiscal year the commission shall make the deposits described in this Subsection (5).

(b)(b)(i)(A) (i) (A) The commission shall deposit $500,000 to the Department of Natural Resources- to44 be- usedEnrolled forCopy watershedS.B. rehabilitation or restoration.

(B)197 At the end of each fiscal year, 100% of any unexpended amount described in Subsection (5) (b)(i)(A) shall lapse into the Water Resources Conservationto andbe Developmentused Fundfor createdwatershed inrehabilitation Sectionor 73-10-24.restoration.

(B) At the end of each fiscal year, 100% of any unexpended amount described in Subsection (5)(b)(i)(A) shall lapse into the Water Resources Conservation and Development Fund created in Section 73-10-24.

- 47 - SB0197 compared with SB0197S01 (B) to conduct hydrologic and geotechnical investigations by the Division of Water Resources in a cooperative effort with other state, federal, or local entities, for the purpose of quantifying surface and ground water resources and describing the hydrologic systems of an area in sufficient detail so as to enable local and state resource managers to plan for and accommodate growth in water use without jeopardizing the resource;

(vii)- The45 commission- shallS.B. deposit $2,450,000 to the Division of Wildlife Resources to:

197 Enrolled Copy (vii) The commission shall deposit $2,450,000 to the Division of Wildlife Resources to:

- 48 - SB0197 compared with SB0197S01 (x) The commission shall allocate $175,000 to the Division of Water Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of water rights.

(d)- The46 commission- shallEnrolled depositCopy $533,750S.B. into the Qualified Emergency Food Agencies Fund created by and expended in accordance with Section 35A-8-1009.

197 (d) The commission shall deposit $533,750 into the Qualified Emergency Food Agencies Fund created by and expended in accordance with Section 35A-8-1009.

(6)(6)(a) (a) The rate specified in this Subsection (6) is 0.15%.

(b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the rate described in Subsection (6)(6)(a) (a) on the transactions that are subject to the sales and use tax under Subsection (2)(a)(i)(B) into the Medicaid ACA Fund created in Section 26B-1-315.

(7)(7)(a) (a) Notwithstanding Subsection (3)(a) and except as provided in Subsections (11), (12), and (13), and as described in Section 63N-3-610, beginning the first day of a calendar quarter one year after the sales and use tax boundary for a housing and transit reinvestment zone is established under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, the commission, at least annually, shall transfer an amount equal to 15% of the sales and use tax increment from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within an established sales and use tax boundary, as defined in Section 63N-3-602, into the Transit Transportation Investment Fund created in Section 72-2-124.

(b) Beginning no sooner than January 1, 2026, notwithstanding Subsection (3)(a), and except as provided in Subsections (11), (12), and (13), and as described in Section 63N-3-610.1, beginning - 49 - SB0197 compared with SB0197S01 the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established in a capital city under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, the commission, at least annually, shall transfer an amount equal to 50% of the sales and use tax increment as defined in Section 63N-3-602 from the sales and use tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within an established sales and use tax boundary, as defined in Section 63N-3-602, to a convention center public infrastructure district created in accordance with Section 17D-4-202.1 and specified in the convention center reinvestment zone proposal submitted [pursuant to] in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.

(8)- Notwithstanding47 Subsection- (3)(a)S.B. and except as provided in Subsections (11), (12), and (13), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, the revenue from the sales and use tax imposed by Subsection (2)(a)(i)(A), on transactions occurring within the district sales tax area, as defined in Section 11-70-101.

(9)197 (a)Enrolled AsCopy used(8) Notwithstanding Subsection (3)(a) and except as provided in thisSubsections (11), (12), and (13), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201, the revenue from the sales and use tax imposed by Subsection (9):(2)(a)(i)(A), on transactions occurring within the district sales tax area, as defined in Section 11-70-101.

(i)(9)(a) "AdditionalAs land"used means point of the mountain state land described in Subsectionthis 11-59-102(6) (b) that the point of the mountain authority acquires after the point of the mountain authority provides the commission a map under Subsection (9)(c).(9):

(i) "Additional land" means point of the mountain state land described in Subsection 11-59-102(6)(b) that the point of the mountain authority acquires after the point of the mountain authority provides the commission a map under Subsection (9)(c).

- 50 - SB0197 compared with SB0197S01 (d) A distribution under Subsection (9)(b) with respect to additional land shall begin the next calendar quarter that begins at least 90 days after the point of the mountain authority provides the commission a map of point of the mountain state land that:

(e)(e)(i) (i) Upon the payment in full of bonds secured by the sales and use tax revenue distributed to the point of the mountain authority under Subsection (9)(b), the point of the mountain authority shall immediately notify the commission in writing that the bonds are paid in full.

(ii) The commission shall discontinue distributions of sales and use tax revenue under Subsection (9)(b) at the beginning of the calendar quarter that begins at least 90 days- after48 the- dateEnrolled thatCopy theS.B. commission receives the written notice under Subsection (9)(e)(i).

197 days after the date that the commission receives the written notice under Subsection (9)(e)(i).

(11)(11)(a) (a) As used in this Subsection (11):

- 51 - SB0197 compared with SB0197S01 (B) the district sales tax boundary as defined in Section 11-70-101 for the Utah Fairpark Area Investment and Restoration District, created in Section 11-70-201;

(b) Revenue generated from the applicable percentage by a Schedule J sale within a qualified- development49 zone- shallS.B. be deposited into the General Fund.

(12)197 (a)Enrolled AsCopy usedqualified indevelopment Subsectionszone (12)shall andbe (13):deposited into the General Fund.

(12)(a) As used in Subsections (12) and (13):

(ii) reports the sales of the construction materials to the delivery outlet described in Subsection (12)(b)(12)(b)(i); (i);

-(13)(a) 52 - SB0197 compared with SB0197S01 (13) (a) As used in this Subsection (13), "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J, or a substantially similar form as designated by the commission.

63N-3-605.63N-3-605 (Effective 05/06/26).

Housing and transit reinvestment zone committee- --50 Creation.- Enrolled Copy S.B.

197 committee -- Creation.

(4)(4)(a) - 53 - SB0197 compared with SB0197S01 (a) A majority of the members of the housing and transit reinvestment zone committee constitutes a quorum of the housing and transit reinvestment zone committee.

(5)- (a)51 After- theS.B. Governor's Office of Economic Opportunity receives the results of the analysis described in Section 63N-3-604, and after the Governor's Office of Economic Opportunity has received a request from the submitting municipality or public transit county to submit the housing and transit reinvestment zone proposal to the housing and transit reinvestment zone committee, the Governor's Office of Economic Opportunity shall notify each of the entities described in Subsection (2) of the formation of the housing and transit reinvestment zone committee.

197 Enrolled Copy (5)(a) After the Governor's Office of Economic Opportunity receives the results of the analysis described in Section 63N-3-604, and after the Governor's Office of Economic Opportunity has received a request from the submitting municipality or public transit county to submit the housing and transit reinvestment zone proposal to the housing and transit reinvestment zone committee, the Governor's Office of Economic Opportunity shall notify each of the entities described in Subsection (2) of the formation of the housing and transit reinvestment zone committee.

(6)(6)(a) (a) The chair of the housing and transit reinvestment zone committee shall convene a public meeting to consider the proposed housing and transit reinvestment zone.

(7)(7)(a) (a) The proposing municipality or public transit county shall present the housing and transit reinvestment zone proposal to the housing and transit reinvestment zone committee in a public meeting.

-(8)(a) 54 - SB0197 compared with SB0197S01 (8) (a) Subject to Subsection (8)(b), the housing and transit reinvestment zone committee may:

(i)(i)(A) (A) for a housing and transit reinvestment zone, request changes to the housing and transit reinvestment zone proposal based on the analysis, characteristics, and criteria described in Section 63N-3-604;

or (ii)- vote52 to- approveEnrolled orCopy denyS.B. the proposal.

197 (ii) vote to approve or deny the proposal.

(11)(11)(a) (a) The approval for a convention center reinvestment zone in a capital city may be completed with a condition that the relevant municipality also create a public infrastructure district as provided in Subsection 63N-3-607(8)(b).

67-22-2.67-22-2 (Effective 05/06/26).

(EffectiveCompensation 05/06/26)Compensation -- Other state officers.

- 55 - SB0197 compared with SB0197S01 (a) "Appointed executive" means the:

(x)- executive53 director,- DepartmentS.B. of Corrections;

197 Enrolled Copy (x) executive director, Department of Corrections;

and - 56 - SB0197 compared with SB0197S01 (vi) commissioners, Public Service Commission.

(2)(2)(a)(i) (a) (i) The director of the Division of Human Resource Management shall:

(ii) For a market salary study described in Subsection (2)(a)(i)(B) for a local district executive,- the54 Division- ofEnrolled HumanCopy ResourceS.B. Management shall include a salary comparison with executives of public transit districts of similar size and sophistication in other states.

(b)197 (i)executive, Thethe Division of Human Resource Management shall determineinclude thea salary rangecomparison forwith theexecutives appointedof executivespublic by:transit districts of similar size and sophistication in other states.

(b)(i) The Division of Human Resource Management shall determine the salary range for the appointed executives by:

(c)(c)(i) (i) Except as provided in Subsection (2)(c)(ii), in establishing the salary ranges for board or commission executives, the Division of Human Resource Management shall set the maximum salary in the salary range for each of those positions at 90% of the salary for district judges as established in the annual appropriation act under Section 67-8-2.

- 57 - SB0197 compared with SB0197S01 (ii) In establishing the salary ranges for an individual described in Subsection (1)(b)(ii), (1)(b)(iii), or (1)(b)(iv), the Division of Human Resource Management shall set the maximum salary in the salary range for each of those positions at 100% of the salary for district judges as established in the annual appropriation act under Section 67-8-2.

(3)(3)(a)(i) (a) (i) Except as provided in Subsection (3)(a)(ii) or Subsection (3)(d), the governor shall establish a specific salary for each appointed executive within the range established under Subsection (2)(2)(b). (b).

(c) The governor may develop standards and criteria for reviewing the appointed executives.- 55 - S.B.

197 Enrolled Copy executives.

(5)(5)(a) (a) [The] Except as provided in Subsection (5)(c), the Legislature fixes benefits for the appointed executives and the board or commission executives as follows:

- 58 - SB0197 compared with SB0197S01 (iv) basic life insurance;

(xii) the option to convert accumulated sick leave to cash or insurance benefits as provided by law or rule upon resignation or retirement according to the same criteria- and56 procedures- appliedEnrolled toCopy ScheduleS.B. B state employees;

197 criteria and procedures applied to Schedule B state employees;

- 59 - SB0197 compared with SB0197S01 (c) for the commissioner of Public Safety:

This Bill Repeals:

Section- 17B-2a-808.2,57 Large- publicS.B. transit district local advisory council -- Powers and duties.

197 Enrolled Copy Section 17B-2a-808.2, Large public transit district local advisory council -- Powers and duties.

Effective date.

{This(1) } Except as provided in Subsection (2), this bill takes effect {on } May 6, 2026.

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