Reporting. (1) (a) The governor, with the advice and consent of the Senate, shall appoint an executive director for a large public transit district. (b) The executive director of a large public transit district in place as of January 1, 2026, shall remain in place until: (i) reappointed as described in Subsection (1)(a); or (ii) replaced as described in Subsection (1)(a). (2) (a) Except as provided in Subsection (2)(b), the salary of the executive director shall be set as described in Section 67-22-2. (b) For an executive director in place as of January 1, 2026, the salary and other terms of the executive director's employment contract in place as of January 31, 2026, shall remain in force until the expiration of the contract. (c) After the expiration of the executive director's employment contract as described in Subsection (2)(b), the executive director is eligible to receive the same benefits as other executive employees of the large public transit district. (3) The executive director manages and directs the operations of the large public transit district, with the primary and overarching mission to: (a) provide efficient and cost effective public transit services; (b) increase ridership; (c) maintain a state of good repair; and (d) reduce debt and maintain fiscal responsibility. (4) The executive director: (a) serves as a full-time officer and devotes full time to the district's business; (b) serves at the pleasure of the governor; (c) holds office for an indefinite term; (d) ensures that all district ordinances are enforced; (e) advises the transit commission regarding the needs of the district; (f) ensures district compliance with state and federal requirements; (g) attends meetings of the transit commission; and (h) supervises and has supervisory authority over all employees of the large public transit district. (5) The executive director shall: (a) (i) as described in Subsection (6), create and present the budget of the large public transit district to the transit commission for approval; and (ii) provide notice of the proposed budget hearing and a copy of the proposed budget to the counties and municipalities within the large public transit district no later than 30 days before the hearing; (b) (i) at least as frequently as every four years, in consultation with the transit commission and relevant metropolitan planning organizations, develop a strategic long-range transit plan for the district that aligns with relevant transportation and public transit plans on time horizons of five, 10, and 20 years; (ii) provide the proposed strategic long-range transit plan described in Subsection (5)(b)(i) to councils of government, counties, municipalities, and other relevant stakeholders for review and input; and (iii) after considering input received under Subsection (5)(b)(ii), present the proposed strategic long-range transit plan described in Subsection (5)(b)(i) to the transit commission for approval; (c) (i) propose for transit commission approval any ordinances or bylaws with effect outside the transit district organization; and (ii) develop and implement internal transit district policies; (d) in consultation with the transit commission, create and annually report the public transit district's long-term financial plan to the State Finance Review Commission created in Section 63C-25-201; (e) (i) at least as frequently as every five years, perform a cost-effectiveness and cost-benefit study for each mode of public transit; and (ii) develop goals for the large public transit district to achieve an effective balance of cost- effective and cost-beneficial services; (f) subject to Section 72-1-203, in consultation with the transit commission, prepare plans and specifications for the construction of district works; (g) cause to be installed and maintained a system of auditing and accounting that shows the district's financial condition at all times; (h) notwithstanding Subsections 17B-1-301(2)(l) and (m), have charge of: (i) the acquisition, construction, maintenance, and operation of public transit facilities; and (ii) the administration of the public transit district's business affairs; (i) approve contracts and overall property acquisitions and dispositions for transit-oriented development; (j) create and pursue funding opportunities for transit capital and service initiatives to meet anticipated growth within the public transit district and in accordance with the strategic long- range transit plan; (k) regulate each transit facility that the public transit district owns and operates, including: (i) fix rates, rentals, charges and any classifications of rates, rentals, and charges; (ii) fix fares; and (iii) propose rules and approve contracts, practices, and schedules for or in connection with a transit facility that the district owns or controls; (l) oversee the investment of all funds assigned to the district for investment, including funds: (i) held as part of a district's retirement system; and (ii) invested in accordance with the participating employees' designation or direction in accordance with an employee deferred compensation plan established and operated in compliance with Section 457 of the Internal Revenue Code; (m) if a custodian is appointed under Subsection 17B-2a-808.1(5)(c), pay the fees for the custodian's services from the interest earnings of the investment fund for which the custodian is appointed; (n) ensure that the policies established by the public transit district meet state and federal regulatory requirements and federal grantee eligibility; (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; and (p) require crime insurance for district officers and employees charged with the handling of district funds in an amount set by the commission. (6) (a) The executive director shall prepare and submit to the transit commission an annual operating budget no later than 60 days before the beginning of each fiscal year. (b) The budget shall include: (i) estimated revenues from all sources; (ii) proposed expenditures for all programs, operations, and administrative functions, including: (A) personnel and overhead costs; (B) new construction and improvement projects; (C) operation costs; (D) maintenance and state of good repair of the public transit system; and (E) capital expenditures, including vehicle purchases; (iii) an explanation of significant changes from the budget of the prior fiscal year; and (iv) other information as requested by the transit commission. (c) (i) The transit commission shall review the proposed budget and may conduct hearings and request such additional information as the transit commission considers necessary. (ii) The budget becomes effective only upon approval by the transit commission. (iii) If the budget is not approved before the beginning of the fiscal year, the executive director shall operate under the previous year's budget until a new budget is approved. (d) (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. (ii) For purposes of this Subsection (6), a "material deviation" means: (A) a single expenditure or group of related expenditures exceeding 10% of any major expense budget line item; (B) a reallocation of funds between major budget categories exceeding 15% of the affected expense category; or (C) an expenditure that would cause total organizational spending to exceed the approved budget by more than 5%. (iii) The executive director shall request a budget amendment in writing to the transit commission with: (A) an explanation of the necessity for the deviation; and (B) the deviation's anticipated impact on the transit district's operations and financial position. (iv) The executive director may approve minor adjustments within budget categories that do not constitute material deviations, if total expenditures do not exceed the approved budget. (e) (i) The budget shall include a comprehensive ten-year budget projection and financial forecast. (ii) The ten-year budget projection and financial forecast shall include: (A) projected revenues by source, including farebox revenue, sales tax receipts, federal grants, state contributions, contributions from local governments, and other operating income; (B) projected operating and capital expenditures, including personnel costs, fleet maintenance and replacement, fuel and energy costs, facilities maintenance, and debt service; (C) anticipated ridership trends and service level assumptions; (D) financial forecast balance sheets showing projected assets, liabilities, and fund balances; (E) projected status of indebtedness and bond payoffs; (F) material assumptions, including inflation rates, wage adjustments, fuel price projections, and anticipated changes in federal or state funding; and (G) identified risks to financial sustainability and proposed mitigation strategies. (f) The executive director shall provide quarterly financial reports to the transit commission comparing actual revenues and expenditures to the approved budget and explaining any variances. (7) (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. (b) The executive director shall provide information about: (i) the benefits of the reduced-fare, ticket-as-fare, or other fare event proposal; and (ii) the impacts of the reduced-fare, ticket-as-fare, or other fare event proposal on the budget of the transit district. (c) A contract for reduced-fare, ticket-as-fare, or other fare event is subject to approval by the transit commission. (8) (a) The executive director may propose the issuance of a bond. (b) A bond proposed by the executive director may not be issued unless: (i) the bond is reviewed and recommended by the transit commission; and (ii) approved by the State Finance Review Commission created in Section 63C-25-201. (9) The executive director shall annually prepare and provide to the transit commission and the Transportation Interim Committee: (a) a report regarding fare contracts and transit pass programs, including: (i) information about institutional contracts as well as reduced-fare, ticket-as-fare, or other fare event contracts; (ii) contribution levels from both the large public transit district and each relevant institution or party; (iii) projected and observed benefits and costs and return on investment of the proposed contract, including increased ridership, traffic congestion reduction, operational and customer safety, and net financial gain of the large public transit district; and (iv) other relevant data used to determine that the contract is in the public's transportation interest; (b) a report of the public transit district's efforts to engage in public-private partnerships for public transit services; and (c) a financial report in conformity with generally accepted accounting principles. (10) The executive director shall annually report the public transit district's progress and expenditures related to state resources to the Executive Appropriations Committee and the Transportation and Infrastructure Appropriations Subcommittee. (11) (a) At least every two years, the executive director shall provide a report to the transit commission and provide an accounting of: (i) the amount of revenue from local option sales and use taxes under this part that was collected within each respective county, city, or town and allocated to the large public transit district as provided in this part; (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; (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 (iv) the ridership of all transit services. (b) After providing the report described in Subsection (11)(a), the executive director shall provide the report to each county, city, and town within the boundary of the large public transit district. (c) To provide the report described in this Subsection (11), the executive director may coordinate with the Department of Transportation to report on relevant public transit capital development projects administered by the Department of Transportation. (12) The executive director shall report at least annually to the Transportation Commission created in Section 72-1-301, including: (a) the district's short-term and 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. Sec. 134; and (b) any fixed guideway capital development projects that the executive director would like the Transportation Commission to consider. (13) The executive director or the executive director's designee shall engage: (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 (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. Repealed and Re-enacted by Chapter 486, 2026 General Session
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