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H.B. 426 Enrolled

             1     

GOVERNMENT PROCUREMENT - PRIVATE

             2     
PROPOSALS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Kevin S. Garn

             6     
Senate Sponsor: Wayne L. Niederhauser

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill creates a program allowing a private entity to submit proposals to provide
             11      certain products or services to the Department of Technology Services or the Board of
             12      Education.
             13      Highlighted Provisions:
             14          This bill:
             15          .    creates a program allowing the submission of a proposal to provide a product or
             16      service to the Department of Technology Services or the Board of Education;
             17          .    requires the Board of Business and Economic Development to appoint a committee
             18      to evaluate a proposal under the program;
             19          .    defines terms;
             20          .    addresses the requirements of an initial proposal submitted to the committee;
             21          .    provides for review of an initial proposal by the committee and the affected
             22      department and allows comments by various entities;
             23          .    addresses the procurement process for detailed proposals if the initial proposal is
             24      accepted by the committee;
             25          .    provides requirements for a detailed proposal;
             26          .    makes an initial proposal a protected record under Title 63, Chapter 2, Government
             27      Records Access and Management Act;
             28          .    allows the committee, by rule, to maintain certain portions of an initial proposal as a
             29      protected record;


             30          .    addresses cooperation between a private entity submitting a detailed proposal and
             31      the affected department;
             32          .    requires the Governor's Office of Planning and Budget to prepare an economic
             33      feasibility report concerning a proposal;
             34          .    provides for the acceptance of a detailed proposal and the preparation and execution
             35      of a project agreement;
             36          .    creates a restricted special revenue fund, comprised of monies collected from fees
             37      for submitting a proposal;
             38          .    establishes uses for which monies may be expended from the restricted account;
             39          .    requires the establishment of fees for proposals and project agreements;
             40          .    allows for the appointment of an advisory committee to assist the committee in
             41      evaluating proposals and preparing project agreements; and
             42          .    makes technical changes.
             43      Monies Appropriated in this Bill:
             44          None
             45      Other Special Clauses:
             46          None
             47      Utah Code Sections Affected:
             48      AMENDS:
             49          63-2-304, as last amended by Laws of Utah 2008, Chapter 3
             50          63-38f-203, as renumbered and amended by Laws of Utah 2005, Chapter 148
             51          63-56-204, as last amended by Laws of Utah 2005, Chapter 169 and renumbered and
             52      amended by Laws of Utah 2005, Chapter 25
             53          63-56-205, as renumbered and amended by Laws of Utah 2005, Chapter 25
             54          63-56-302, as renumbered and amended by Laws of Utah 2005, Chapter 25
             55          63F-1-205, as last amended by Laws of Utah 2007, Chapter 306
             56      ENACTS:
             57          63G-6-408.5, Utah Code Annotated 1953


             58          63M-1-2401, Utah Code Annotated 1953
             59          63M-1-2402, Utah Code Annotated 1953
             60          63M-1-2403, Utah Code Annotated 1953
             61          63M-1-2404, Utah Code Annotated 1953
             62          63M-1-2405, Utah Code Annotated 1953
             63          63M-1-2406, Utah Code Annotated 1953
             64          63M-1-2407, Utah Code Annotated 1953
             65          63M-1-2408, Utah Code Annotated 1953
             66          63M-1-2409, Utah Code Annotated 1953
             67          63M-1-2410, Utah Code Annotated 1953
             68          63M-1-2411, Utah Code Annotated 1953
             69          63M-1-2412, Utah Code Annotated 1953
             70     
             71      Be it enacted by the Legislature of the state of Utah:
             72          Section 1. Section 63-2-304 is amended to read:
             73           63-2-304. Protected records.
             74          The following records are protected if properly classified by a governmental entity:
             75          (1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret
             76      has provided the governmental entity with the information specified in Section 63-2-308 ;
             77          (2) commercial information or nonindividual financial information obtained from a
             78      person if:
             79          (a) disclosure of the information could reasonably be expected to result in unfair
             80      competitive injury to the person submitting the information or would impair the ability of the
             81      governmental entity to obtain necessary information in the future;
             82          (b) the person submitting the information has a greater interest in prohibiting access
             83      than the public in obtaining access; and
             84          (c) the person submitting the information has provided the governmental entity with the
             85      information specified in Section 63-2-308 ;


             86          (3) commercial or financial information acquired or prepared by a governmental entity
             87      to the extent that disclosure would lead to financial speculations in currencies, securities, or
             88      commodities that will interfere with a planned transaction by the governmental entity or cause
             89      substantial financial injury to the governmental entity or state economy;
             90          (4) records the disclosure of which could cause commercial injury to, or confer a
             91      competitive advantage upon a potential or actual competitor of, a commercial project entity as
             92      defined in Subsection 11-13-103 (4);
             93          (5) test questions and answers to be used in future license, certification, registration,
             94      employment, or academic examinations;
             95          (6) records the disclosure of which would impair governmental procurement
             96      proceedings or give an unfair advantage to any person proposing to enter into a contract or
             97      agreement with a governmental entity, except that this Subsection (6) does not restrict the right
             98      of a person to see bids submitted to or by a governmental entity after bidding has closed;
             99          (7) records that would identify real property or the appraisal or estimated value of real
             100      or personal property, including intellectual property, under consideration for public acquisition
             101      before any rights to the property are acquired unless:
             102          (a) public interest in obtaining access to the information outweighs the governmental
             103      entity's need to acquire the property on the best terms possible;
             104          (b) the information has already been disclosed to persons not employed by or under a
             105      duty of confidentiality to the entity;
             106          (c) in the case of records that would identify property, potential sellers of the described
             107      property have already learned of the governmental entity's plans to acquire the property;
             108          (d) in the case of records that would identify the appraisal or estimated value of
             109      property, the potential sellers have already learned of the governmental entity's estimated value
             110      of the property; or
             111          (e) the property under consideration for public acquisition is a single family residence
             112      and the governmental entity seeking to acquire the property has initiated negotiations to acquire
             113      the property as required under Section 78B-6-505 ;


             114          (8) records prepared in contemplation of sale, exchange, lease, rental, or other
             115      compensated transaction of real or personal property including intellectual property, which, if
             116      disclosed prior to completion of the transaction, would reveal the appraisal or estimated value
             117      of the subject property, unless:
             118          (a) the public interest in access outweighs the interests in restricting access, including
             119      the governmental entity's interest in maximizing the financial benefit of the transaction; or
             120          (b) when prepared by or on behalf of a governmental entity, appraisals or estimates of
             121      the value of the subject property have already been disclosed to persons not employed by or
             122      under a duty of confidentiality to the entity;
             123          (9) records created or maintained for civil, criminal, or administrative enforcement
             124      purposes or audit purposes, or for discipline, licensing, certification, or registration purposes, if
             125      release of the records:
             126          (a) reasonably could be expected to interfere with investigations undertaken for
             127      enforcement, discipline, licensing, certification, or registration purposes;
             128          (b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
             129      proceedings;
             130          (c) would create a danger of depriving a person of a right to a fair trial or impartial
             131      hearing;
             132          (d) reasonably could be expected to disclose the identity of a source who is not
             133      generally known outside of government and, in the case of a record compiled in the course of an
             134      investigation, disclose information furnished by a source not generally known outside of
             135      government if disclosure would compromise the source; or
             136          (e) reasonably could be expected to disclose investigative or audit techniques,
             137      procedures, policies, or orders not generally known outside of government if disclosure would
             138      interfere with enforcement or audit efforts;
             139          (10) records the disclosure of which would jeopardize the life or safety of an individual;
             140          (11) records the disclosure of which would jeopardize the security of governmental
             141      property, governmental programs, or governmental recordkeeping systems from damage, theft,


             142      or other appropriation or use contrary to law or public policy;
             143          (12) records that, if disclosed, would jeopardize the security or safety of a correctional
             144      facility, or records relating to incarceration, treatment, probation, or parole, that would interfere
             145      with the control and supervision of an offender's incarceration, treatment, probation, or parole;
             146          (13) records that, if disclosed, would reveal recommendations made to the Board of
             147      Pardons and Parole by an employee of or contractor for the Department of Corrections, the
             148      Board of Pardons and Parole, or the Department of Human Services that are based on the
             149      employee's or contractor's supervision, diagnosis, or treatment of any person within the board's
             150      jurisdiction;
             151          (14) records and audit workpapers that identify audit, collection, and operational
             152      procedures and methods used by the State Tax Commission, if disclosure would interfere with
             153      audits or collections;
             154          (15) records of a governmental audit agency relating to an ongoing or planned audit
             155      until the final audit is released;
             156          (16) records prepared by or on behalf of a governmental entity solely in anticipation of
             157      litigation that are not available under the rules of discovery;
             158          (17) records disclosing an attorney's work product, including the mental impressions or
             159      legal theories of an attorney or other representative of a governmental entity concerning
             160      litigation;
             161          (18) records of communications between a governmental entity and an attorney
             162      representing, retained, or employed by the governmental entity if the communications would be
             163      privileged as provided in Section 78B-1-137 ;
             164          (19) (a) (i) personal files of a state legislator, including personal correspondence to or
             165      from a member of the Legislature; and
             166          (ii) notwithstanding Subsection (19)(a)(i), correspondence that gives notice of
             167      legislative action or policy may not be classified as protected under this section; and
             168          (b) (i) an internal communication that is part of the deliberative process in connection
             169      with the preparation of legislation between:


             170          (A) members of a legislative body;
             171          (B) a member of a legislative body and a member of the legislative body's staff; or
             172          (C) members of a legislative body's staff; and
             173          (ii) notwithstanding Subsection (19)(b)(i), a communication that gives notice of
             174      legislative action or policy may not be classified as protected under this section;
             175          (20) (a) records in the custody or control of the Office of Legislative Research and
             176      General Counsel, that, if disclosed, would reveal a particular legislator's contemplated
             177      legislation or contemplated course of action before the legislator has elected to support the
             178      legislation or course of action, or made the legislation or course of action public; and
             179          (b) notwithstanding Subsection (20)(a), the form to request legislation submitted to the
             180      Office of Legislative Research and General Counsel is a public document unless a legislator asks
             181      that the records requesting the legislation be maintained as protected records until such time as
             182      the legislator elects to make the legislation or course of action public;
             183          (21) research requests from legislators to the Office of Legislative Research and
             184      General Counsel or the Office of the Legislative Fiscal Analyst and research findings prepared in
             185      response to these requests;
             186          (22) drafts, unless otherwise classified as public;
             187          (23) records concerning a governmental entity's strategy about collective bargaining or
             188      pending litigation;
             189          (24) records of investigations of loss occurrences and analyses of loss occurrences that
             190      may be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the
             191      Uninsured Employers' Fund, or similar divisions in other governmental entities;
             192          (25) records, other than personnel evaluations, that contain a personal recommendation
             193      concerning an individual if disclosure would constitute a clearly unwarranted invasion of
             194      personal privacy, or disclosure is not in the public interest;
             195          (26) records that reveal the location of historic, prehistoric, paleontological, or
             196      biological resources that if known would jeopardize the security of those resources or of
             197      valuable historic, scientific, educational, or cultural information;


             198          (27) records of independent state agencies if the disclosure of the records would
             199      conflict with the fiduciary obligations of the agency;
             200          (28) records of an institution within the state system of higher education defined in
             201      Section 53B-1-102 regarding tenure evaluations, appointments, applications for admissions,
             202      retention decisions, and promotions, which could be properly discussed in a meeting closed in
             203      accordance with Title 52, Chapter 4, Open and Public Meetings Act, provided that records of
             204      the final decisions about tenure, appointments, retention, promotions, or those students
             205      admitted, may not be classified as protected under this section;
             206          (29) records of the governor's office, including budget recommendations, legislative
             207      proposals, and policy statements, that if disclosed would reveal the governor's contemplated
             208      policies or contemplated courses of action before the governor has implemented or rejected
             209      those policies or courses of action or made them public;
             210          (30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
             211      revenue estimates, and fiscal notes of proposed legislation before issuance of the final
             212      recommendations in these areas;
             213          (31) records provided by the United States or by a government entity outside the state
             214      that are given to the governmental entity with a requirement that they be managed as protected
             215      records if the providing entity certifies that the record would not be subject to public disclosure
             216      if retained by it;
             217          (32) transcripts, minutes, or reports of the closed portion of a meeting of a public body
             218      except as provided in Section 52-4-206 ;
             219          (33) records that would reveal the contents of settlement negotiations but not including
             220      final settlements or empirical data to the extent that they are not otherwise exempt from
             221      disclosure;
             222          (34) memoranda prepared by staff and used in the decision-making process by an
             223      administrative law judge, a member of the Board of Pardons and Parole, or a member of any
             224      other body charged by law with performing a quasi-judicial function;
             225          (35) records that would reveal negotiations regarding assistance or incentives offered


             226      by or requested from a governmental entity for the purpose of encouraging a person to expand
             227      or locate a business in Utah, but only if disclosure would result in actual economic harm to the
             228      person or place the governmental entity at a competitive disadvantage, but this section may not
             229      be used to restrict access to a record evidencing a final contract;
             230          (36) materials to which access must be limited for purposes of securing or maintaining
             231      the governmental entity's proprietary protection of intellectual property rights including patents,
             232      copyrights, and trade secrets;
             233          (37) the name of a donor or a prospective donor to a governmental entity, including an
             234      institution within the state system of higher education defined in Section 53B-1-102 , and other
             235      information concerning the donation that could reasonably be expected to reveal the identity of
             236      the donor, provided that:
             237          (a) the donor requests anonymity in writing;
             238          (b) any terms, conditions, restrictions, or privileges relating to the donation may not be
             239      classified protected by the governmental entity under this Subsection (37); and
             240          (c) except for an institution within the state system of higher education defined in
             241      Section 53B-1-102 , the governmental unit to which the donation is made is primarily engaged in
             242      educational, charitable, or artistic endeavors, and has no regulatory or legislative authority over
             243      the donor, a member of the donor's immediate family, or any entity owned or controlled by the
             244      donor or the donor's immediate family;
             245          (38) accident reports, except as provided in Sections 41-6a-404 , 41-12a-202 , and
             246      73-18-13 ;
             247          (39) a notification of workers' compensation insurance coverage described in Section
             248      34A-2-205 ;
             249          (40) (a) the following records of an institution within the state system of higher
             250      education defined in Section 53B-1-102 , which have been developed, discovered, disclosed to,
             251      or received by or on behalf of faculty, staff, employees, or students of the institution:
             252          (i) unpublished lecture notes;
             253          (ii) unpublished notes, data, and information:


             254          (A) relating to research; and
             255          (B) of:
             256          (I) the institution within the state system of higher education defined in Section
             257      53B-1-102 ; or
             258          (II) a sponsor of sponsored research;
             259          (iii) unpublished manuscripts;
             260          (iv) creative works in process;
             261          (v) scholarly correspondence; and
             262          (vi) confidential information contained in research proposals;
             263          (b) Subsection (40)(a) may not be construed to prohibit disclosure of public information
             264      required pursuant to Subsection 53B-16-302 (2)(a) or (b); and
             265          (c) Subsection (40)(a) may not be construed to affect the ownership of a record;
             266          (41) (a) records in the custody or control of the Office of Legislative Auditor General
             267      that would reveal the name of a particular legislator who requests a legislative audit prior to the
             268      date that audit is completed and made public; and
             269          (b) notwithstanding Subsection (41)(a), a request for a legislative audit submitted to the
             270      Office of the Legislative Auditor General is a public document unless the legislator asks that the
             271      records in the custody or control of the Office of Legislative Auditor General that would reveal
             272      the name of a particular legislator who requests a legislative audit be maintained as protected
             273      records until the audit is completed and made public;
             274          (42) records that provide detail as to the location of an explosive, including a map or
             275      other document that indicates the location of:
             276          (a) a production facility; or
             277          (b) a magazine;
             278          (43) information contained in the database described in Section 62A-3-311.1 ;
             279          (44) information contained in the Management Information System and Licensing
             280      Information System described in Title 62A, Chapter 4a, Child and Family Services;
             281          (45) information regarding National Guard operations or activities in support of the


             282      National Guard's federal mission;
             283          (46) records provided by any pawn or secondhand business to a law enforcement
             284      agency or to the central database in compliance with Title 13, Chapter 32a, Pawnshop and
             285      Secondhand Merchandise Transaction Information Act;
             286          (47) information regarding food security, risk, and vulnerability assessments performed
             287      by the Department of Agriculture and Food;
             288          (48) except to the extent that the record is exempt from this chapter pursuant to
             289      Section 63-2-106 , records related to an emergency plan or program prepared or maintained by
             290      the Division of Homeland Security the disclosure of which would jeopardize:
             291          (a) the safety of the general public; or
             292          (b) the security of:
             293          (i) governmental property;
             294          (ii) governmental programs; or
             295          (iii) the property of a private person who provides the Division of Homeland Security
             296      information;
             297          (49) records of the Department of Agriculture and Food relating to the National Animal
             298      Identification System or any other program that provides for the identification, tracing, or
             299      control of livestock diseases, including any program established under Title 4, Chapter 24, Utah
             300      Livestock Brand and Anti-theft Act or Title 4, Chapter 31, Livestock Inspection and
             301      Quarantine;
             302          (50) as provided in Section 26-39-109 :
             303          (a) information or records held by the Department of Health related to a complaint
             304      regarding a child care program or residential child care which the department is unable to
             305      substantiate; and
             306          (b) information or records related to a complaint received by the Department of Health
             307      from an anonymous complainant regarding a child care program or residential child care; [and]
             308          (51) unless otherwise classified as public under Section 63-2-301 and except as
             309      provided under Section 41-1a-116 , an individual's home address, home telephone number, or


             310      personal mobile phone number, if:
             311          (a) the individual is required to provide the information in order to comply with a law,
             312      ordinance, rule, or order of a government entity; and
             313          (b) the subject of the record has a reasonable expectation that this information will be
             314      kept confidential due to:
             315          (i) the nature of the law, ordinance, rule, or order; and
             316          (ii) the individual complying with the law, ordinance, rule, or order[.]; and
             317          (52) an initial proposal under Title 63M, Chapter 1, Part 24, Government Procurement
             318      Private Proposal Program, to the extent not made public by rules made under that chapter.
             319          Section 2. Section 63-38f-203 is amended to read:
             320           63-38f-203. Powers and duties of director.
             321          (1) The director, with the approval of the governor, may:
             322          (a) by following the procedures and requirements of Title 63, Chapter 38e, Federal
             323      Funds Procedures, seek federal grants, loans, or participation in federal programs;
             324          (b) enter into lawful contracts or agreements with other states, any chamber of
             325      commerce organization, [and] any service club[; and], and a private entity pursuant to Section
             326      63M-1-2410 ; and
             327          (c) annually prepare and submit to the governor a budget of the office's financial
             328      requirements.
             329          (2) If any federal program requires the expenditure of state funds as a condition to
             330      participation by the state in any fund, property, or service, with the governor's approval, the
             331      director shall expend whatever funds are necessary out of the money provided by the
             332      Legislature for the use of the office.
             333          Section 3. Section 63-56-204 is amended to read:
             334           63-56-204. Duties of chief procurement officer.
             335          Except as otherwise specifically provided in this chapter, the chief procurement officer
             336      serves as the central procurement officer of the state and shall:
             337          (1) adopt office policies governing the internal functions of the Division of Purchasing


             338      and General Services;
             339          (2) procure or supervise the procurement of all supplies, services, and construction
             340      needed by the state;
             341          (3) exercise general supervision and control over all inventories or supplies belonging to
             342      the state;
             343          (4) establish and maintain programs for the inspection, testing, and acceptance of
             344      supplies, services, and construction;
             345          (5) prepare statistical data concerning the procurement and usage of all supplies,
             346      services, and construction;
             347          (6) before June 1, 1990, notify all public procurement units of the requirements of
             348      Section 63-56-406 regarding purchases of recycled paper and recycled paper products,
             349      recycling requirements, and provide guidelines on the availability of recycled paper and paper
             350      products, including the sources of supply and the potential uses of various grades of recycled
             351      paper;
             352          (7) before July 1, 1992:
             353          (a) establish standards and specifications for determining which supplies are considered
             354      recycled, based upon his review of current definitions and standards employed by national
             355      procurement, product recycling, and other relevant organizations and the federal Environmental
             356      Protection Agency;
             357          (b) compile and update as necessary the specifications, a list of recycled supplies
             358      available on state contract, and sources where the supplies may be obtained;
             359          (c) make the compiled information under Subsection (7)(b) available to:
             360          (i) all local government entities under Section 11-37-101 ;
             361          (ii) all local health departments under Section 26A-1-108.7 ;
             362          (iii) all procurement officers or other persons responsible for purchasing supplies within
             363      the public school system under Title 53A, State System of Public Education;
             364          (iv) all procurement officers or other persons responsible for purchasing supplies within
             365      the state system of higher education under Title 53B, State System of Higher Education; and


             366          (v) all procurement officers or other persons responsible for purchasing supplies for all
             367      public procurement units as defined in Section 63-56-105 ; and
             368          (d) present a written report to the Natural Resources, Agriculture, and Environment
             369      Interim Committee annually prior to November 30 regarding the purchases of recycled goods
             370      on state contracts during the prior fiscal year; and
             371          (8) ensure that:
             372          (a) before approving a purchase, lease, or rental not covered by an existing statewide
             373      contract for information technology or telecommunications supplies or services, the chief
             374      information officer and the agency have provided in writing to the division, that the needs
             375      analysis required in Section 63F-1-205 was completed, unless the purchase, lease, or rental is
             376      approved in accordance with Title 63M, Chapter 1, Part 24, Government Procurement Private
             377      Proposal Program; and
             378          (b) the oversight authority required by Subsection (8)(a) is not delegated outside the
             379      Division of Purchasing and General Services.
             380          Section 4. Section 63-56-205 is amended to read:
             381           63-56-205. Delegation of authority.
             382          Subject to rules and regulations, the chief procurement officer may delegate authority to
             383      designees or to any department, agency, or official. For a procurement process under Title
             384      63M, Chapter 1, Part 24, Government Procurement Privat