The & alone is the bitwise and operation. Ie, bits is compared with 0x10 bit by bit and if both have a bit of 1 for that position the result is 1 for that position, otherwise 0.
Basically, since 0x10 is 10000 in binary, this is checking if the 5th bit in bits is set to 1.
I don't know much ruby, but my guess is, it should have a bitwise and operator and it would probably be & as well. Therefore this particular piece of code would end up being exactly the same in ruby.
Edit: according to the Ruby Operators page. Under section "Ruby Bitwise Operators", & acts as a bitwise and in ruby as well, so you can keep this as is in your translation of utility and it should, indeed, work.
&&in python, andbits and 0x10==0x10will do something quite different.