All Roll Calls
Yes: 183 • No: 7
UtahS.B. 1972026 General SessionSenateWALLET
Transportation Funding and Governance Amendments
Sponsored By: Wayne A. Harper (Republican)
Signed by Governor
Legislative OperationsLegislative Committees and Task ForcesSales and Use TaxState Tax CommissionRevenue and TaxationTransportationPublic Transit DistrictsPublic TransitTransit Transportation Investment FundTransportation Funding
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
13 provisions identified: 5 benefits, 1 costs, 7 mixed.
State balance growth funds transit investment
For fiscal years beginning July 1, 2028, or later, the State Tax Commission must make an annual transit-fund deposit. A deposit is required only when the General Fund balance exceeds the balance for the fiscal year beginning July 1, 2027. The deposit equals the smaller of 5% of that increase or the year's total transit amount. That cap is the sum of the two transit deposit streams identified in the law. The money goes to the Transit Transportation Investment Fund, without guaranteeing a fare cut or service change.
Outgoing transit trustees receive severance benefits
Large transit districts must provide severance pay and benefits to trustees serving on June 30, 2026. This protection runs through December 31, 2026. The law does not state payment or benefit amounts.
More public access to transit decisions
Beginning May 6, 2026, large transit district commissions must hold public meetings and hear comments at least monthly. At public meetings, they approve budgets, local government agreements, and long-range transit plans. They also vote on ordinances and bylaws, and review and recommend bonds. Each district must have a public contact office with a central phone number and a log of messages. The office reports messages to management, rather than the local advisory council.
Transit audits and reports become required
Beginning May 6, 2026, each large transit district commission must arrange an annual independent audit. After each fiscal year, it must promptly share service, transportation sales-tax spending, financial status, and fiscal progress reports with local governments and planning groups. Reports cover the prior fiscal year and year-end finances, and must be available to the public on request. Commissions must direct critical internal audits, require internal-issue audits requested by the director, and hear audit results. At least yearly, commissions must engage safety teams, regional planning groups, community stakeholders, and councils of governments. They must also consult local officials and stakeholders about routes, service changes, improvements, and specified approvals.
Transit commissions can provide police services
Beginning May 6, 2026, multicounty transit commissions, like district boards, can hire police officers or contract with another agency. Officers must meet the state law governing law enforcement officers. The law allows these services but requires no hiring, contract, or staffing level.
Transit parking rules can include fines
Beginning May 6, 2026, multicounty transit commissions, like district boards, can adopt and enforce parking rules at transit facilities. Those rules can include fines or civil penalties. The law sets no penalty amounts and does not require districts to adopt parking rules.
Transit fares face approval and hearings
Beginning May 6, 2026, small district boards and large district directors set service rates and charges. Two-thirds of all board members must approve them. Rates must be reasonable and, where practical, cover operating costs, maintenance, debt payments, and other liabilities. Proposed reduced-fare, ticket-as-fare, and fare-event contracts need public commission review of benefits and budget effects, followed by approval. A city or county with territory in the district can request a hearing for a resident who uses its transit. The hearing can address reasonable rates or a proposed facility location, and decisions must include written findings. The law sets no fare amount or automatic discount.
Transit director pay comparisons and benefits
Beginning May 6, 2026, large transit district directors are included in the state's local district executive compensation rules. State human resources salary studies must compare their pay with leaders of similarly sized and complex transit districts in other states. The transit commission sets director benefits similar to those of other district employees, subject to the statutory limit on that authority. This replaces the prior use of legislative benefit rules for appointed executives. The law sets no salary or benefit amount and guarantees no increase or cut.
New leaders for large transit districts
Beginning July 1, 2026, a seven-member commission replaces the board governing each large transit district. The House speaker and Senate president each appoint two members; the governor appoints three from specified nominations. Members generally serve four-year terms and need extensive experience in transit, finance, community development, law, public policy, administration, or business management. Elected officials cannot serve, but district employees can. Members receive no pay or benefits, apart from allowed daily and local travel expenses. Beginning May 6, 2026, the governor appoints the district's executive director, with Senate approval. Existing boards may remain through June 30, 2026. The state transportation department's executive director serves as a nonvoting member from July 1, 2026, through June 30, 2027.
Transit directors gain powers and duties
Beginning May 6, 2026, large transit district directors manage services, facilities, staff, business affairs, and compliance with laws. They can set fares, approve specified development contracts and property deals, and seek money for transit projects and service. They must pursue cost-effective service, more riders, well-maintained facilities, lower debt, and sound finances. Construction plans remain subject to state transportation law. Directors must work with local governments and regional planning groups. At least yearly, they must engage cities and counties that directly fund operations, including about service expansion.
Tighter transit budget and borrowing controls
Beginning May 6, 2026, large transit district directors must submit budgets at least 60 days before the fiscal year starts. Cities and counties get a budget copy and hearing notice at least 30 days before the hearing. Budgets need commission approval, estimated income and spending, major changes, requested details, a ten-year forecast, and quarterly comparisons with actual finances. Without timely approval, the prior year's budget stays in effect. Prior approval is required for spending above 10% of a major expense line, or reallocations above 15% of an affected category. It is also required for spending that exceeds the approved budget by more than 5%. Smaller changes are allowed only within total approved spending. Director-proposed bonds need transit commission review and recommendation, plus Utah State Finance Review Commission approval.
Transit development investments face new safeguards
Beginning May 6, 2026, transit districts can assist or operate transit-linked development connected with project area development. With board or commission approval, they can make limited-liability investments or place their property interest behind other claims. For limited-liability investments, other investors must contribute equity worth at least 25% of the appraised value of district-contributed property. Districts must analyze costs and benefits and publicly show a measurable positive return, including transit service improvements. Specified large-district fixed-guideway and parking projects within station plans require coordination with the Utah Department of Transportation. Board members and commissioners cannot hold interests in covered development investments or property deals, except interests required by their fiduciary duties.
Transit housing plans face new conditions
Beginning May 6, 2026, transit districts undertaking transit-oriented development must include affordable housing in their policies and guidelines. For transit-supportive projects, they must work with regional planners, cities, and counties to seek joint plans within one-half mile of stations. Those plans must address affordable housing. District participation in city transit-oriented projects requires a station area plan and compliance with state moderate-income-housing planning and reporting rules. Projects in unincorporated county areas require county compliance with the specified housing planning and reporting rules. These requirements do not guarantee affordable homes or lower rents.
Sponsors & Cosponsors
Sponsor
Wayne A. Harper
Republican • Senate
Cosponsors
Kay J. Christofferson
Republican • House
Roll Call Votes
Senate vote • 3/6/2026
Senate/ concurs with House amendment
Yes: 28 • No: 1
House vote • 3/6/2026
House/ floor amendment
Yes: 0 • No: 0
House vote • 3/6/2026
House/ passed 3rd reading
Yes: 65 • No: 2
House vote • 2/26/2026
House Comm - Substitute Recommendation
Yes: 12 • No: 0
House vote • 2/26/2026
House Comm - Favorable Recommendation
Yes: 11 • No: 1
House vote • 2/26/2026
House Comm - Amendment Recommendation
Yes: 12 • No: 0
Senate vote • 2/23/2026
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/23/2026
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/23/2026
Senate/ passed 3rd reading
Yes: 27 • No: 1
Senate vote • 2/20/2026
Senate/ floor amendment
Yes: 0 • No: 0
Senate vote • 2/20/2026
Senate/ passed 2nd reading
Yes: 23 • No: 2
Senate vote • 1/30/2026
Senate Comm - Favorable Recommendation
Yes: 5 • No: 0
Actions Timeline
Governor Signed
3/26/2026Senate/ to Governor
3/13/2026SenateSenate/ received enrolled bill from Printing
3/13/2026SenateSenate/ enrolled bill to Printing
3/11/2026SenateEnrolled Bill Returned to House or Senate
3/11/2026Draft of Enrolled Bill Prepared
3/10/2026Bill Received from Senate for Enrolling
3/10/2026Senate/ signed by President/ sent for enrolling
3/10/2026SenateSenate/ received from House
3/10/2026SenateHouse/ to Senate
3/6/2026HouseHouse/ signed by Speaker/ returned to Senate
3/6/2026HouseHouse/ received from Senate
3/6/2026HouseSenate/ to House
3/6/2026SenateSenate/ concurs with House amendment
3/6/2026SenateSenate/ placed on Concurrence Calendar
3/6/2026SenateSenate/ received from House
3/6/2026SenateHouse/ to Senate
3/6/2026HouseHouse/ passed 3rd reading
3/6/2026HouseHouse/ floor amendment
3/6/2026HouseHouse/ 3rd reading
3/6/2026HouseHouse/ 2nd reading
3/5/2026HouseHouse/ Rules to 3rd Reading Calendar
3/5/2026HouseHouse/ return to Rules due to fiscal impact
2/26/2026HouseHouse/ comm rpt/ substituted/ amended
2/26/2026HouseHouse Comm - Favorable Recommendation
2/26/2026
Bill Text
Enrolled
3/11/2026
Amended 3/6/2026 17:03:606
3/6/2026
Amended 2/26/2026 19:02:436
2/26/2026
Substitute #1
2/26/2026
Amended 2/20/2026 14:02:833
2/20/2026
Introduced
1/26/2026