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H.B. 426

             1     

GOVERNMENT PROCUREMENT - PRIVATE

             2     
PROPOSALS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Kevin S. Garn

             6     
Senate Sponsor: ____________

             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 State
             12      School Board.
             13      Highlighted Provisions:
             14          This bill:
             15          .    makes legislative findings;
             16          .    creates a program allowing the submission of a proposal to provide a product or
             17      service to the Department of Technology Services or the State School Board;
             18          .    requires the Board of Business and Economic Development to appoint a committee
             19      to evaluate a proposal under the program;
             20          .    defines terms;
             21          .    addresses the requirements of an initial proposal submitted to the committee;
             22          .    provides for review of an initial proposal by the committee and the affected
             23      department;
             24          .    addresses the issuance of an invitation for detailed proposals if the initial proposal is
             25      accepted by the committee;
             26          .    provides requirements for a detailed proposal;
             27          .    makes an initial proposal a protected record under Title 63, Chapter 2, Government


             28      Records Access and Management Act;
             29          .    allows the committee, by rule, to maintain certain portions of an initial proposal as a
             30      protected record;
             31          .    addresses cooperation between a private entity submitting a detailed proposal and
             32      the affected department;
             33          .    requires the Governor's Office of Planning and Budget to prepare an economic
             34      feasibility report concerning a detailed proposal;
             35          .    provides for the acceptance of a detailed proposal and the preparation and execution
             36      of a project agreement;
             37          .    creates a restricted account, comprised of monies collected from fees for submitting
             38      a proposal;
             39          .    establishes uses for which monies may be expended from the restricted account;
             40          .    requires the establishment of fees for proposals and project agreements;
             41          .    allows for the appointment of an advisory committee to assist the committee in
             42      evaluating proposals and preparing project agreements; and
             43          .    makes technical changes.
             44      Monies Appropriated in this Bill:
             45          None
             46      Other Special Clauses:
             47          None
             48      Utah Code Sections Affected:
             49      AMENDS:
             50          53A-20-101, as last amended by Laws of Utah 2005, Chapter 25
             51          63-2-304, as last amended by Laws of Utah 2008, Chapter 3
             52          63-38f-203, as renumbered and amended by Laws of Utah 2005, Chapter 148
             53          63-56-102, as last amended by Laws of Utah 2007, Chapter 329
             54          63F-1-205, as last amended by Laws of Utah 2007, Chapter 306
             55      ENACTS:
             56          63G-6-408.5, Utah Code Annotated 1953
             57          63M-1-2401, Utah Code Annotated 1953
             58          63M-1-2402, Utah Code Annotated 1953


             59          63M-1-2403, Utah Code Annotated 1953
             60          63M-1-2404, Utah Code Annotated 1953
             61          63M-1-2405, Utah Code Annotated 1953
             62          63M-1-2406, Utah Code Annotated 1953
             63          63M-1-2407, Utah Code Annotated 1953
             64          63M-1-2408, Utah Code Annotated 1953
             65          63M-1-2409, Utah Code Annotated 1953
             66          63M-1-2410, Utah Code Annotated 1953
             67          63M-1-2411, Utah Code Annotated 1953
             68          63M-1-2412, Utah Code Annotated 1953
             69          63M-1-2413, Utah Code Annotated 1953
             70     
             71      Be it enacted by the Legislature of the state of Utah:
             72          Section 1. Section 53A-20-101 is amended to read:
             73           53A-20-101. Construction and alteration of schools and plants -- Advertising for
             74      bids -- Payment and performance bonds -- Contracts -- Bidding limitations on local
             75      school boards -- Interest of local school board members.
             76          (1) As used in this section, the word "sealed" does not preclude acceptance of
             77      electronically sealed and submitted bids or proposals in addition to bids or proposals manually
             78      sealed and submitted.
             79          (2) (a) [Prior to] Except as provided in Title 63M, Chapter 1, Part 24, Government
             80      Procurement Private Proposal Program, before the construction of any school or the alteration
             81      of any existing school plant, if the total estimated accumulative building project cost exceeds
             82      $80,000, a local school board shall advertise for bids on the project at least ten days before the
             83      bid due date.
             84          (b) The board shall have the advertisement published in a newspaper having general
             85      circulation throughout the state and in appropriate construction trade publications that offer
             86      free listings.
             87          (c) A similar advertisement is required in a newspaper published or having general
             88      circulation in any city or county that would be affected by the proposed project.
             89          (d) The advertisement shall:


             90          (i) require sealed proposals for the building project in accordance with plans and
             91      specifications furnished by the local school board;
             92          (ii) state where and when the proposals will be opened and shall reserve the right of the
             93      board to reject any and all proposals; and
             94          (iii) require a certified check or bid bond of not less than 5% of the bid to accompany
             95      the bid.
             96          (3) (a) The board shall meet at the time and place specified in the advertisement and
             97      publicly open and read all received proposals.
             98          (b) If satisfactory bids are received, the board shall award the contract to the lowest
             99      responsible bidder.
             100          (c) If none of the proposals are satisfactory, all shall be rejected.
             101          (d) The board shall again advertise in the manner provided in this section.
             102          (e) If, after advertising a second time no satisfactory bid is received, the board may
             103      proceed under its own direction with the required project.
             104          (4) (a) The check or bond required under Subsection (2)(d) shall be drawn in favor of
             105      the local school board.
             106          (b) If the successful bidder fails or refuses to enter into the contract and furnish the
             107      additional bonds required under this section, then the bidder's check or bond is forfeited to the
             108      district.
             109          (5) A local school board shall require payment and performance bonds of the
             110      successful bidder as required in Section 63-56-504 .
             111          (6) (a) A local school board may require in the proposed contract that at least 10% of
             112      the contract price be withheld until the project is completed and accepted by the board.
             113          (b) If money is withheld, the board shall place it in an interest bearing account, and the
             114      interest accrues for the benefit of the contractor and subcontractors.
             115          (c) This money shall be paid upon completion of the project and acceptance by the
             116      board.
             117          (7) (a) A local school board may not bid on projects within the district if the total
             118      accumulative estimated cost exceeds $80,000.
             119          (b) The board may use its resources if no satisfactory bids are received under this
             120      section.


             121          (8) If the local school board determines in accordance with Section 63-56-501 to use a
             122      construction manager/general contractor as its method of construction contracting management
             123      on projects where the total estimated accumulative cost exceeds $80,000, it shall select the
             124      construction manager/general contractor using one of the source selection methods provided
             125      for in Sections 63-56-401 through 63-56-501 .
             126          (9) A local school board member may not have a direct or indirect financial interest in
             127      the construction project contract.
             128          Section 2. Section 63-2-304 is amended to read:
             129           63-2-304. Protected records.
             130          The following records are protected if properly classified by a governmental entity:
             131          (1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret
             132      has provided the governmental entity with the information specified in Section 63-2-308 ;
             133          (2) commercial information or nonindividual financial information obtained from a
             134      person if:
             135          (a) disclosure of the information could reasonably be expected to result in unfair
             136      competitive injury to the person submitting the information or would impair the ability of the
             137      governmental entity to obtain necessary information in the future;
             138          (b) the person submitting the information has a greater interest in prohibiting access
             139      than the public in obtaining access; and
             140          (c) the person submitting the information has provided the governmental entity with
             141      the information specified in Section 63-2-308 ;
             142          (3) commercial or financial information acquired or prepared by a governmental entity
             143      to the extent that disclosure would lead to financial speculations in currencies, securities, or
             144      commodities that will interfere with a planned transaction by the governmental entity or cause
             145      substantial financial injury to the governmental entity or state economy;
             146          (4) records the disclosure of which could cause commercial injury to, or confer a
             147      competitive advantage upon a potential or actual competitor of, a commercial project entity as
             148      defined in Subsection 11-13-103 (4);
             149          (5) test questions and answers to be used in future license, certification, registration,
             150      employment, or academic examinations;
             151          (6) records the disclosure of which would impair governmental procurement


             152      proceedings or give an unfair advantage to any person proposing to enter into a contract or
             153      agreement with a governmental entity, except that this Subsection (6) does not restrict the right
             154      of a person to see bids submitted to or by a governmental entity after bidding has closed;
             155          (7) records that would identify real property or the appraisal or estimated value of real
             156      or personal property, including intellectual property, under consideration for public acquisition
             157      before any rights to the property are acquired unless:
             158          (a) public interest in obtaining access to the information outweighs the governmental
             159      entity's need to acquire the property on the best terms possible;
             160          (b) the information has already been disclosed to persons not employed by or under a
             161      duty of confidentiality to the entity;
             162          (c) in the case of records that would identify property, potential sellers of the described
             163      property have already learned of the governmental entity's plans to acquire the property;
             164          (d) in the case of records that would identify the appraisal or estimated value of
             165      property, the potential sellers have already learned of the governmental entity's estimated value
             166      of the property; or
             167          (e) the property under consideration for public acquisition is a single family residence
             168      and the governmental entity seeking to acquire the property has initiated negotiations to acquire
             169      the property as required under Section 78B-6-505 ;
             170          (8) records prepared in contemplation of sale, exchange, lease, rental, or other
             171      compensated transaction of real or personal property including intellectual property, which, if
             172      disclosed prior to completion of the transaction, would reveal the appraisal or estimated value
             173      of the subject property, unless:
             174          (a) the public interest in access outweighs the interests in restricting access, including
             175      the governmental entity's interest in maximizing the financial benefit of the transaction; or
             176          (b) when prepared by or on behalf of a governmental entity, appraisals or estimates of
             177      the value of the subject property have already been disclosed to persons not employed by or
             178      under a duty of confidentiality to the entity;
             179          (9) records created or maintained for civil, criminal, or administrative enforcement
             180      purposes or audit purposes, or for discipline, licensing, certification, or registration purposes, if
             181      release of the records:
             182          (a) reasonably could be expected to interfere with investigations undertaken for


             183      enforcement, discipline, licensing, certification, or registration purposes;
             184          (b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
             185      proceedings;
             186          (c) would create a danger of depriving a person of a right to a fair trial or impartial
             187      hearing;
             188          (d) reasonably could be expected to disclose the identity of a source who is not
             189      generally known outside of government and, in the case of a record compiled in the course of
             190      an investigation, disclose information furnished by a source not generally known outside of
             191      government if disclosure would compromise the source; or
             192          (e) reasonably could be expected to disclose investigative or audit techniques,
             193      procedures, policies, or orders not generally known outside of government if disclosure would
             194      interfere with enforcement or audit efforts;
             195          (10) records the disclosure of which would jeopardize the life or safety of an
             196      individual;
             197          (11) records the disclosure of which would jeopardize the security of governmental
             198      property, governmental programs, or governmental recordkeeping systems from damage, theft,
             199      or other appropriation or use contrary to law or public policy;
             200          (12) records that, if disclosed, would jeopardize the security or safety of a correctional
             201      facility, or records relating to incarceration, treatment, probation, or parole, that would interfere
             202      with the control and supervision of an offender's incarceration, treatment, probation, or parole;
             203          (13) records that, if disclosed, would reveal recommendations made to the Board of
             204      Pardons and Parole by an employee of or contractor for the Department of Corrections, the
             205      Board of Pardons and Parole, or the Department of Human Services that are based on the
             206      employee's or contractor's supervision, diagnosis, or treatment of any person within the board's
             207      jurisdiction;
             208          (14) records and audit workpapers that identify audit, collection, and operational
             209      procedures and methods used by the State Tax Commission, if disclosure would interfere with
             210      audits or collections;
             211          (15) records of a governmental audit agency relating to an ongoing or planned audit
             212      until the final audit is released;
             213          (16) records prepared by or on behalf of a governmental entity solely in anticipation of


             214      litigation that are not available under the rules of discovery;
             215          (17) records disclosing an attorney's work product, including the mental impressions or
             216      legal theories of an attorney or other representative of a governmental entity concerning
             217      litigation;
             218          (18) records of communications between a governmental entity and an attorney
             219      representing, retained, or employed by the governmental entity if the communications would be
             220      privileged as provided in Section 78B-1-137 ;
             221          (19) (a) (i) personal files of a state legislator, including personal correspondence to or
             222      from a member of the Legislature; and
             223          (ii) notwithstanding Subsection (19)(a)(i), correspondence that gives notice of
             224      legislative action or policy may not be classified as protected under this section; and
             225          (b) (i) an internal communication that is part of the deliberative process in connection
             226      with the preparation of legislation between:
             227          (A) members of a legislative body;
             228          (B) a member of a legislative body and a member of the legislative body's staff; or
             229          (C) members of a legislative body's staff; and
             230          (ii) notwithstanding Subsection (19)(b)(i), a communication that gives notice of
             231      legislative action or policy may not be classified as protected under this section;
             232          (20) (a) records in the custody or control of the Office of Legislative Research and
             233      General Counsel, that, if disclosed, would reveal a particular legislator's contemplated
             234      legislation or contemplated course of action before the legislator has elected to support the
             235      legislation or course of action, or made the legislation or course of action public; and
             236          (b) notwithstanding Subsection (20)(a), the form to request legislation submitted to the
             237      Office of Legislative Research and General Counsel is a public document unless a legislator
             238      asks that the records requesting the legislation be maintained as protected records until such
             239      time as the legislator elects to make the legislation or course of action public;
             240          (21) research requests from legislators to the Office of Legislative Research and
             241      General Counsel or the Office of the Legislative Fiscal Analyst and research findings prepared
             242      in response to these requests;
             243          (22) drafts, unless otherwise classified as public;
             244          (23) records concerning a governmental entity's strategy about collective bargaining or


             245      pending litigation;
             246          (24) records of investigations of loss occurrences and analyses of loss occurrences that
             247      may be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the
             248      Uninsured Employers' Fund, or similar divisions in other governmental entities;
             249          (25) records, other than personnel evaluations, that contain a personal recommendation
             250      concerning an individual if disclosure would constitute a clearly unwarranted invasion of
             251      personal privacy, or disclosure is not in the public interest;
             252          (26) records that reveal the location of historic, prehistoric, paleontological, or
             253      biological resources that if known would jeopardize the security of those resources or of
             254      valuable historic, scientific, educational, or cultural information;
             255          (27) records of independent state agencies if the disclosure of the records would
             256      conflict with the fiduciary obligations of the agency;
             257          (28) records of an institution within the state system of higher education defined in
             258      Section 53B-1-102 regarding tenure evaluations, appointments, applications for admissions,
             259      retention decisions, and promotions, which could be properly discussed in a meeting closed in
             260      accordance with Title 52, Chapter 4, Open and Public Meetings Act, provided that records of
             261      the final decisions about tenure, appointments, retention, promotions, or those students
             262      admitted, may not be classified as protected under this section;
             263          (29) records of the governor's office, including budget recommendations, legislative
             264      proposals, and policy statements, that if disclosed would reveal the governor's contemplated
             265      policies or contemplated courses of action before the governor has implemented or rejected
             266      those policies or courses of action or made them public;
             267          (30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
             268      revenue estimates, and fiscal notes of proposed legislation before issuance of the final
             269      recommendations in these areas;
             270          (31) records provided by the United States or by a government entity outside the state
             271      that are given to the governmental entity with a requirement that they be managed as protected
             272      records if the providing entity certifies that the record would not be subject to public disclosure
             273      if retained by it;
             274          (32) transcripts, minutes, or reports of the closed portion of a meeting of a public body
             275      except as provided in Section 52-4-206 ;


             276          (33) records that would reveal the contents of settlement negotiations but not including
             277      final settlements or empirical data to the extent that they are not otherwise exempt from
             278      disclosure;
             279          (34) memoranda prepared by staff and used in the decision-making process by an
             280      administrative law judge, a member of the Board of Pardons and Parole, or a member of any
             281      other body charged by law with performing a quasi-judicial function;
             282          (35) records that would reveal negotiations regarding assistance or incentives offered
             283      by or requested from a governmental entity for the purpose of encouraging a person to expand
             284      or locate a business in Utah, but only if disclosure would result in actual economic harm to the
             285      person or place the governmental entity at a competitive disadvantage, but this section may not
             286      be used to restrict access to a record evidencing a final contract;
             287          (36) materials to which access must be limited for purposes of securing or maintaining
             288      the governmental entity's proprietary protection of intellectual property rights including patents,
             289      copyrights, and trade secrets;
             290          (37) the name of a donor or a prospective donor to a governmental entity, including an
             291      institution within the state system of higher education defined in Section 53B-1-102 , and other
             292      information concerning the donation that could reasonably be expected to reveal the identity of
             293      the donor, provided that:
             294          (a) the donor requests anonymity in writing;
             295          (b) any terms, conditions, restrictions, or privileges relating to the donation may not be
             296      classified protected by the governmental entity under this Subsection (37); and
             297          (c) except for an institution within the state system of higher education defined in
             298      Section 53B-1-102 , the governmental unit to which the donation is made is primarily engaged
             299      in educational, charitable, or artistic endeavors, and has no regulatory or legislative authority
             300      over the donor, a member of the donor's immediate family, or any entity owned or controlled
             301      by the donor or the donor's immediate family;
             302          (38) accident reports, except as provided in Sections 41-6a-404 , 41-12a-202 , and
             303      73-18-13 ;
             304          (39) a notification of workers' compensation insurance coverage described in Section
             305      34A-2-205 ;
             306          (40) (a) the following records of an institution within the state system of higher


             307      education defined in Section 53B-1-102 , which have been developed, discovered, disclosed to,
             308      or received by or on behalf of faculty, staff, employees, or students of the institution:
             309          (i) unpublished lecture notes;
             310          (ii) unpublished notes, data, and information:
             311          (A) relating to research; and
             312          (B) of:
             313          (I) the institution within the state system of higher education defined in Section
             314      53B-1-102 ; or
             315          (II) a sponsor of sponsored research;
             316          (iii) unpublished manuscripts;
             317          (iv) creative works in process;
             318          (v) scholarly correspondence; and
             319          (vi) confidential information contained in research proposals;
             320          (b) Subsection (40)(a) may not be construed to prohibit disclosure of public
             321      information required pursuant to Subsection 53B-16-302 (2)(a) or (b); and
             322          (c) Subsection (40)(a) may not be construed to affect the ownership of a record;
             323          (41) (a) records in the custody or control of the Office of Legislative Auditor General
             324      that would reveal the name of a particular legislator who requests a legislative audit prior to the
             325      date that audit is completed and made public; and
             326          (b) notwithstanding Subsection (41)(a), a request for a legislative audit submitted to the
             327      Office of the Legislative Auditor General is a public document unless the legislator asks that
             328      the records in the custody or control of the Office of Legislative Auditor General that would
             329      reveal the name of a particular legislator who requests a legislative audit be maintained as
             330      protected records until the audit is completed and made public;
             331          (42) records that provide detail as to the location of an explosive, including a map or
             332      other document that indicates the location of:
             333          (a) a production facility; or
             334          (b) a magazine;
             335          (43) information contained in the database described in Section 62A-3-311.1 ;
             336          (44) information contained in the Management Information System and Licensing
             337      Information System described in Title 62A, Chapter 4a, Child and Family Services;


             338          (45) information regarding National Guard operations or activities in support of the
             339      National Guard's federal mission;
             340          (46) records provided by any pawn or secondhand business to a law enforcement
             341      agency or to the central database in compliance with Title 13, Chapter 32a, Pawnshop and
             342      Secondhand Merchandise Transaction Information Act;
             343          (47) information regarding food security, risk, and vulnerability assessments performed
             344      by the Department of Agriculture and Food;
             345          (48) except to the extent that the record is exempt from this chapter pursuant to Section
             346      63-2-106 , records related to an emergency plan or program prepared or maintained by the
             347      Division of Homeland Security the disclosure of which would jeopardize:
             348          (a) the safety of the general public; or
             349          (b) the security of:
             350          (i) governmental property;
             351          (ii) governmental programs; or
             352          (iii) the property of a private person who provides the Division of Homeland Security
             353      information;
             354          (49) records of the Department of Agriculture and Food relating to the National
             355      Animal Identification System or any other program that provides for the identification, tracing,
             356      or control of livestock diseases, including any program established under Title 4, Chapter 24,
             357      Utah Livestock Brand and Anti-theft Act or Title 4, Chapter 31, Livestock Inspection and
             358      Quarantine;
             359          (50) as provided in Section 26-39-109 :
             360          (a) information or records held by the Department of Health related to a complaint
             361      regarding a child care program or residential child care which the department is unable to
             362      substantiate; and
             363          (b) information or records related to a complaint received by the Department of Health
             364      from an anonymous complainant regarding a child care program or residential child care; [and]
             365          (51) unless otherwise classified as public under Section 63-2-301 and except as
             366      provided under Section 41-1a-116 , an individual's home address, home telephone number, or
             367      personal mobile phone number, if:
             368          (a) the individual is required to provide the information in order to comply with a law,


             369      ordinance, rule, or order of a government entity; and
             370          (b) the subject of the record has a reasonable expectation that this information will be
             371      kept confidential due to:
             372          (i) the nature of the law, ordinance, rule, or order; and
             373          (ii) the individual complying with the law, ordinance, rule, or order[.]; and
             374          (52) an initial proposal under Title 63M, Chapter 1, Part 24, Government Procurement
             375      Private Proposal Program, to the extent not made public by rules made under that chapter.
             376          Section 3. Section 63-38f-203 is amended to read:
             377           63-38f-203. Powers and duties of director.
             378          (1) The director, with the approval of the governor, may:
             379          (a) by following the procedures and requirements of Title 63, Chapter 38e, Federal
             380      Funds Procedures, seek federal grants, loans, or participation in federal programs;
             381          (b) enter into lawful contracts or agreements with other states, any chamber of
             382      commerce organization, [and] any service club[; and], and a private entity pursuant to Section
             383      63M-1-2411 ; and
             384          (c) annually prepare and submit to the governor a budget of the office's financial
             385      requirements.
             386          (2) If any federal program requires the expenditure of state funds as a condition to
             387      participation by the state in any fund, property, or service, with the governor's approval, the
             388      director shall expend whatever funds are necessary out of the money provided by the
             389      Legislature for the use of the office.
             390          Section 4. Section 63-56-102 is amended to read:
             391           63-56-102. Application of chapter.
             392          (1) This chapter applies only to contracts solicited or entered into after the effective
             393      date of this chapter unless the parties agree to its application to a contract solicited or entered
             394      into prior to the effective date.
             395          (2) Except as provided in [Section] Sections 63-56-103 and 63G-6-408.5 , this chapter
             396      shall apply to every expenditure of public funds irrespective of their source, including federal
             397      assistance, by any state agency under any contract.
             398          (3) (a) Only the following sections shall apply to local public procurement units:
             399      Sections 63-56-103 , 63-56-105 , 63-56-301 , 63-56-303 through 63-56-420 , 63-56-422 ,


             400      63-56-501 through 63-56-602 , 63-56-801 through 63-56-806 , and 63-56-815 through
             401      63-56-819 ; provided, however, that, except as provided in Sections 63-56-906 and 63-56-907 ,
             402      the jurisdiction of the procurement appeals board is limited to matters involving state agencies.
             403          (b) Subsections 63-56-208 (1)(b), 63-56-503 (4), and 63-56-504 (2) also apply to local
             404      public procurement units.
             405          (c) For the purpose of application of those sections and subsections to a local public
             406      procurement unit, "state" shall mean "local public procurement unit," "chief procurement
             407      officer" or "head of a purchasing agency" shall mean any person conducting procurement for a
             408      local public procurement unit, and "rules and regulations" shall mean ordinances and rules and
             409      regulations promulgated by a local public procurement unit to implement or supplement those
             410      sections.
             411          (d) In addition to the sections and subsections listed above and except as provided in
             412      Subsection 17B-1-108 (3) relating to local districts, each local public procurement unit shall
             413      adopt ordinances relating to the procurement of architect-engineer services not inconsistent
             414      with the provisions of Part 7, Architect-Engineer Services.
             415          (e) Any other section of this chapter, or its implementing regulations, may be adopted
             416      by any local public procurement unit.
             417          (f) Any other implementing regulations adopted by local public procurement units may
             418      not be inconsistent with the provisions of this chapter.
             419          (4) Unless otherwise provided by statute, this chapter does not apply to procurement of
             420      real property.
             421          Section 5. Section 63G-6-408.5 is enacted to read:
             422          63G-6-408.5. Procurement for submitted proposal.
             423          (1) As used in this section:
             424          (a) "Affected department" is as defined in Section 63M-1-2403 .
             425          (b) "Board of Education" means the Utah State Board of Education.
             426          (c) "Committee" is as defined in Section 63M-1-2403 .
             427          (d) "Confidential Information" is as defined in Section 63M-1-2403 .
             428          (e) "Initial proposal" is a proposal submitted by a private entity under Section
             429      63M-1-2406 .
             430          (f) "Private entity" is as defined in Section 63M-1-2403 .


             431          (g) "Project" is as defined in Section 63M-1-2403 .
             432          (h) "Project agreement" is the final, signed agreement for a project, as described in
             433      Section 63M-1-2410 .
             434          (2) Within 30 days following receipt by the chief procurement officer of a copy of an
             435      initial proposal from the committee in accordance with Subsection 63M-1-2407 (4), including
             436      any comment, suggestion, or modification adopted by the committee and incorporated into the
             437      initial proposal, the chief procurement officer shall issue an invitation for detailed proposals
             438      that includes:
             439          (a) a description of the project, including the portions of the initial proposal that are not
             440      protected records under Title 63, Chapter 2, Government Records Access and Management
             441      Act;
             442          (b) submittal requirements;
             443          (c) reasonable criteria to be used to evaluate each detailed proposal;
             444          (d) the relative weight given to the criteria; and
             445          (e) the deadline by which a detailed proposal may be submitted, which may not be
             446      more than 60 days after the invitation is issued.
             447          (3) The board shall make rules providing for:
             448          (a) public notice of the invitation for detailed proposals;
             449          (b) amendments to the invitation for detailed proposals; and
             450          (c) the preparation of a register of detailed proposals received in response to an
             451      invitation for detailed proposals under this section.
             452          (4) The chief procurement officer may amend a public notice and invitation for detailed
             453      proposals following its issuance to include any comments, suggestions, or modifications to the
             454      project that the chief procurement officer and the committee consider beneficial to the
             455      invitation for detailed proposals or the project.
             456          (5) A qualified private entity that submits a detailed proposal shall acknowledge receipt
             457      of an amendment issued under Subsection (4).
             458          (6) The register of detailed proposals shall be made available for public inspection after
             459      the detailed proposals have been submitted to the committee in accordance with Subsection (9).
             460          (7) (a) A private entity shall be accorded fair and equal treatment with respect to any
             461      opportunity for discussion and revision of detailed proposals.


             462          (b) In conducting discussion under Subsection (7)(a), there shall be no disclosure of
             463      any information derived from detailed proposals submitted by competing private entities.
             464          (8) Revisions to a detailed proposal may be permitted after submission of the detailed
             465      proposal if they occur before the chief procurement officer submits the detailed proposals to the
             466      committee under Subsection (9).
             467          (9) The chief procurement officer shall:
             468          (a) review each detailed proposal; and
             469          (b) submit all detailed proposals that meet the guidelines established under Subsection
             470      63M-1-2409 (1) to the committee for review under Section 63M-1-2410 .
             471          Section 6. Section 63F-1-205 is amended to read:
             472           63F-1-205. Approval of acquisitions of information technology.
             473          (1) (a) [In] Except as provided in Title 63M, Chapter 1, Part 24, Government
             474      Procurement Private Proposal Program, in accordance with Subsection (2), the chief
             475      information officer shall approve the acquisition by an executive branch agency of:
             476          (i) information technology equipment;
             477          (ii) telecommunications equipment;
             478          (iii) software;
             479          (iv) services related to the items listed in Subsections (1)(a)(i) through (iii); and
             480          (v) data acquisition.
             481          (b) The chief information officer may negotiate the purchase, lease, or rental of private
             482      or public information technology or telecommunication services or facilities in accordance with
             483      this section.
             484          (c) Where practical, efficient, and economically beneficial, the chief information
             485      officer shall use existing private and public information technology or telecommunication
             486      resources.
             487          (2) Before negotiating a purchase, lease, or rental under Subsection (1) for an amount
             488      that exceeds the value established by the chief information officer by rule in accordance with
             489      Section 63F-1-206 , the chief information officer shall:
             490          (a) conduct an analysis of the needs of executive branch agencies and subscribers of
             491      services and the ability of the proposed information technology or telecommunications services
             492      or supplies to meet those needs; and


             493          (b) for purchases, leases, or rentals not covered by an existing statewide contract,
             494      provide in writing to the chief procurement officer in the Division of Purchasing and General
             495      Services that:
             496          (i) the analysis required in Subsection (2)(a) was completed; and
             497          (ii) based on the analysis, the proposed purchase, lease, rental, or master contract of
             498      services, products, or supplies is practical, efficient, and economically beneficial to the state
             499      and the executive branch agency or subscriber of services.
             500          (3) In approving an acquisition described in Subsections (1) and (2), the chief
             501      information officer shall:
             502          (a) establish by administrative rule, in accordance with Section 63F-1-206 , standards
             503      under which an agency must obtain approval from the chief information officer before
             504      acquiring the items listed in Subsections (1) and (2);
             505          (b) for those acquisitions requiring approval, determine whether the acquisition is in
             506      compliance with:
             507          (i) the executive branch strategic plan;
             508          (ii) the applicable agency information technology plan;
             509          (iii) the budget for the executive branch agency or department as adopted by the
             510      Legislature; and
             511          (iv) Title 63, Chapter 56, Utah Procurement Code; and
             512          (c) in accordance with Section 63F-1-207 , require coordination of acquisitions between
             513      two or more executive branch agencies if it is in the best interests of the state.
             514          (4) (a) Each executive branch agency shall provide the chief information officer with
             515      complete access to all information technology records, documents, and reports:
             516          (i) at the request of the chief information officer; and
             517          (ii) related to the executive branch agency's acquisition of any item listed in Subsection
             518      (1).
             519          (b) Beginning July 1, 2006 and in accordance with administrative rules established by
             520      the department under Section 63F-1-206 , no new technology projects may be initiated by an
             521      executive branch agency or the department unless the technology project is described in a
             522      formal project plan and the business case analysis has been approved by the chief information
             523      officer and agency head. The project plan and business case analysis required by this


             524      Subsection (4) shall be in the form required by the chief information officer, and shall include:
             525          (i) a statement of work to be done and existing work to be modified or displaced;
             526          (ii) total cost of system development and conversion effort, including system analysis
             527      and programming costs, establishment of master files, testing, documentation, special
             528      equipment cost and all other costs, including overhead;
             529          (iii) savings or added operating costs that will result after conversion;
             530          (iv) other advantages or reasons that justify the work;
             531          (v) source of funding of the work, including ongoing costs;
             532          (vi) consistency with budget submissions and planning components of budgets; and
             533          (vii) whether the work is within the scope of projects or initiatives envisioned when the
             534      current fiscal year budget was approved.
             535          (5) (a) The chief information officer and the Division of Purchasing and General
             536      Services shall work cooperatively to establish procedures under which the chief information
             537      officer shall monitor and approve acquisitions as provided in this section.
             538          (b) The procedures established under this section shall include at least the written
             539      certification required by Subsection 63-56-204 (8).
             540          Section 7. Section 63M-1-2401 is enacted to read:
             541     
Part 24. Government Procurement Private Proposal Program

             542          63M-1-2401. Title.
             543          This part is known as "Government Procurement Private Proposal Program."
             544          Section 8. Section 63M-1-2402 is enacted to read:
             545          63M-1-2402. Legislative findings.
             546          The Legislature finds that:
             547          (1) there is a public need for timely and efficient acquisition, design, construction,
             548      improvement, renovation, expansion, equipping, maintenance, operation, implementation, or
             549      installation of information technology and telecommunications products and services and
             550      education facilities;
             551          (2) the public need for information technology and telecommunications products and
             552      services, or for construction of and improvements to education facilities, may not be wholly
             553      satisfied by existing methods of procurement in which qualifying projects are acquired,
             554      designed, constructed, improved, renovated, expanded, equipped, maintained, operated,


             555      implemented, or installed by the state;
             556          (3) principles that produce efficient projects in the private sector are equally applicable
             557      to projects within the public sector;
             558          (4) there exists, in the private sector, favorable alternative methods for providing
             559      information technology and telecommunications products and services, and construction and
             560      improvements to school sites, buildings, equipment, and furniture that are currently being
             561      provided by the state; and
             562          (5) authorizing the private sector to develop, operate, or provide one or more qualifying
             563      projects may result in the development, operation, or provision of products and services to the
             564      public in a more timely, more efficient, or less costly fashion, thereby benefitting the state.
             565          Section 9. Section 63M-1-2403 is enacted to read:
             566          63M-1-2403. Definitions.
             567          As used in this part:
             568          (1) "Affected department" means, as applicable, the Board of Education or the
             569      Department of Technology Services.
             570          (2) "Board" means the Board of Business and Economic Development created under
             571      Section 63M-1-301 .
             572          (3) "Board of Education" means the Utah State Board of Education.
             573          (4) "Chief procurement officer" means the chief procurement officer appointed under
             574      Section 63-56-203 .
             575          (5) "Committee" means the proposal review committee created under Section
             576      63M-1-2405 .
             577          (6) "Construction" is as defined in Section 63-56-105 .
             578          (7) "Day" means a calendar day.
             579          (8) "Director" is as defined in Section 63-38f-102 .
             580          (9) "Education Facilities" includes a school site, building, equipment, and furnishings.
             581          (10) "Executive Appropriations Committee" means the Legislature's Executive
             582      Appropriations Committee.
             583          (11) "Information technology" is as defined in Section 63F-1-102 .
             584          (12) "Office" means the Governor's Office of Economic Development created under
             585      Section 63-38f-201 .


             586          (13) "Private entity" means a person submitting a proposal under this part for the
             587      purpose of entering into a project.
             588          (14) "Project" means the subject of a proposal or an agreement for the procurement or
             589      disposal of:
             590          (a) information technology or telecommunications products or services;
             591          (b) improvements to or construction of educational facilities; or
             592          (c) supplies, services, or construction for or on behalf of the Department of Technology
             593      Services or the Board of Education.
             594          (15) "Proposal" means an unsolicited offer by a private entity to undertake a project,
             595      including an initial proposal under Section 63M-1-2406 and a detailed proposal under Section
             596      63M-1-2409 .
             597          (16) "School" means a public school.
             598          (17) "Services" is as defined in Section 63-56-105 .
             599          (18) "Supplies" is as defined in Section 63-56-105 .
             600          (19) "Telecommunications" is as defined in Section 63F-1-102 .
             601          Section 10. Section 63M-1-2404 is enacted to read:
             602          63M-1-2404. Government Procurement Private Proposal Program -- Proposals --
             603      Rulemaking.
             604          (1) There is created within the office the Government Procurement Private Proposal
             605      Program.
             606          (2) In accordance with this part, the board may:
             607          (a) accept a proposal for a project;
             608          (b) solicit comments, suggestions, and modifications to a project in accordance with
             609      Section 63G-6-408.5 ; and
             610          (c) make rules in accordance with Title 63, Chapter 46a, Utah Administrative
             611      Rulemaking Act, establishing requirements for the procurement of a project.
             612          Section 11. Section 63M-1-2405 is enacted to read:
             613          63M-1-2405. Committee for reviewing proposals -- Appointment -- Accepting or
             614      rejecting proposal.
             615          (1) The director shall appoint a committee composed of members of the board to
             616      review and evaluate a proposal submitted in accordance with this part.


             617          (2) The director shall determine the number of board members that constitute a
             618      committee.
             619          (3) The committee shall, at all times, consist of less than a quorum of the members of
             620      the board, as established under Section 63M-1-302 .
             621          (4) A committee member shall serve on the committee until:
             622          (a) replaced by the director; or
             623          (b) the committee member ceases to be a member of the board.
             624          (5) The director may fill a vacancy on the committee.
             625          (6) The committee shall include the following nonvoting members in addition to the
             626      members appointed under Subsection (1):
             627          (a) a member of the Senate, appointed by the president of the Senate; and
             628          (b) a member of the House of Representatives, appointed by the speaker of the House
             629      of Representatives.
             630          (7) A committee member is subject to Title 67, Chapter 16, Utah Public Officers' and
             631      Employees' Ethics Act, and any additional requirement established by the board in accordance
             632      with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             633          (8) The committee shall inform a private entity of the committee's decision to approve
             634      or reject a proposal in writing.
             635          (9) If the committee, in its sole discretion, accepts a proposal, the proposal shall be
             636      evaluated under this part.
             637          (10) If the committee, in its sole discretion, rejects a proposal, the committee shall
             638      notify the private entity of the reason for the rejection and shall return any remaining portion of
             639      the fee required under Section 63M-1-2413 .
             640          Section 12. Section 63M-1-2406 is enacted to read:
             641          63M-1-2406. Initial proposal -- Requirements.
             642          (1) In accordance with this part, a private entity may at any time submit to the
             643      committee an initial proposal for a project.
             644          (2) An initial proposal shall include:
             645          (a) a conceptual description of the project;
             646          (b) a description of the economic benefit of the project to the state and the affected
             647      department;


             648          (c) information concerning the information technology and telecommunications
             649      products and services, or educational facilities currently owned by, or being provided by, the
             650      state that are similar to the project, if applicable;
             651          (d) an estimate of the following costs associated with the project:
             652          (i) design;
             653          (ii) construction;
             654          (iii) implementation;
             655          (iv) operation and maintenance; and
             656          (v) any other related project cost; and
             657          (e) the name and address of a person who may be contacted for further information
             658      concerning the initial proposal.
             659          (3) A private entity submitting an initial proposal under this section shall pay the fee
             660      required by Section 63M-1-2413 when the initial proposal is submitted.
             661          (4) An initial proposal submitted under this section is a protected record under Title 63,
             662      Chapter 2, Government Records Access and Management Act, until the chief procurement
             663      officer issues an invitation for detailed proposals in accordance with Section 63G-6-408.5 .
             664          (5) The committee shall make rules in accordance with Title 63, Chapter 46a, Utah
             665      Administrative Rulemaking Act, detailing the portions of an initial proposal that remain
             666      protected after the chief procurement officer issues an invitation for detailed proposals.
             667          Section 13. Section 63M-1-2407 is enacted to read:
             668          63M-1-2407. Review of initial proposal -- Affected department review.
             669          (1) The committee shall review and evaluate an initial proposal submitted in
             670      accordance with:
             671          (a) this part; and
             672          (b) any rule established by the board under Subsection 63M-1-2404 (2)(c).
             673          (2) If, within 15 days after receipt of an initial proposal, the committee, in its sole
             674      discretion, determines to proceed with the initial proposal, the committee shall submit a copy
             675      of the initial proposal to the affected department.
             676          (3) An affected department receiving a copy of the initial proposal under Subsection
             677      (2) shall review the initial proposal and provide the committee with any comment, suggestion,
             678      or modification to the project no later than 15 days after the day on which the committee


             679      submits the initial proposal to the affected department.
             680          (4) If, within 30 days after receipt of the affected department's review of the initial
             681      proposal under Subsection (3), the committee determines to accept an initial proposal, the
             682      committee shall submit a copy of the initial proposal, including any comment, suggestion, or
             683      modification adopted by the committee and incorporated into the initial proposal, to:
             684          (a) the chief procurement officer in accordance with Section 63G-6-408.5 ; and
             685          (b) the Executive Appropriations Committee.
             686          (5) Before taking any action under Subsection (4), the committee shall consider:
             687          (a) any comment, suggestion, or modification to the initial proposal submitted by the
             688      affected department in accordance with Subsection (3);
             689          (b) the extent to which the project is practical, efficient, and economically beneficial to
             690      the state and the affected department; and
             691          (c) any other reasonable factor identified by the committee or required by the board by
             692      rule.
             693          Section 14. Section 63M-1-2408 is enacted to read:
             694          63M-1-2408. Acceptance of initial proposal -- Invitation for detailed proposals.
             695          If an initial proposal is accepted under Section 63M-1-2407 , the chief procurement
             696      officer shall:
             697          (1) take action under Section 63G-6-408.5 to issue an invitation for detailed proposals
             698      that includes the portions of the initial proposal that are not protected records under Title 63,
             699      Chapter 2, Government Records and Access Management Act; and
             700          (2) submit all detailed proposals that meet the guidelines established under Subsection
             701      63M-1-2409 (1) to:
             702          (a) the committee; and
             703          (b) the Governor's Office of Planning and Budget.
             704          Section 15. Section 63M-1-2409 is enacted to read:
             705          63M-1-2409. Detailed proposal -- Requirements -- Cooperation of affected
             706      department.
             707          (1) A detailed proposal submitted in response to an invitation for detailed proposals
             708      under Section 63M-1-2408 shall include:
             709          (a) a conceptual description of the project, including the scope of the work;


             710          (b) a description of the economic benefit of the project to the state and the affected
             711      department;
             712          (c) an estimate of the design, construction, implementation, operation, maintenance, or
             713      other costs associated with the project;
             714          (d) a topographic map indicating the location of the project, if applicable;
             715          (e) plans and specifications for the project, if applicable;
             716          (f) information concerning the information technology or telecommunication product
             717      and service, educational facility or other supply, service, or construction currently provided by
             718      the state that is similar to the project being proposed, if applicable;
             719          (g) a list of any major permit and approval required for the project from a local, state,
             720      or federal agency and a projected schedule for obtaining the permit and approval;
             721          (h) a list of any public utility facility that will be impacted by the project and a
             722      statement of the plans of the private entity to accommodate the public utility facility;
             723          (i) a statement setting forth the private entity's general plan for financing the project,
             724      including any appropriation by the Legislature or other public monies and, if applicable, the
             725      sources of the private entity's funds and identification of any dedicated revenue source or
             726      proposed debt or equity investment on behalf of the private entity;
             727          (j) the name and address of the person who may be contacted for further information
             728      concerning the detailed proposal;
             729          (k) a statement describing the private entity's experience with other similar projects and
             730      a description of why the public entity is best qualified for the project; and
             731          (l) any other information:
             732          (i) reasonably requested by the affected department or the committee, or required by
             733      the board by rule; or
             734          (ii) that the private entity considers necessary or appropriate to complete or describe
             735      the detailed proposal.
             736          (2) To assist each private entity in preparing a detailed proposal:
             737          (a) the affected department shall provide each private entity with access to all
             738      information, records, documents, and reports related to the proposal and the project that are
             739      designated public records under Title 63, Chapter 2, Government Records Access and
             740      Management Act; and


             741          (b) the affected department and the committee shall cooperate with each private entity
             742      to assist the private entity in the development of a detailed proposal that is:
             743          (i) practical;
             744          (ii) efficient; and
             745          (iii) economically beneficial to the state and the affected department.
             746          (3) The committee or any private entity may choose to terminate the development of
             747      the detailed proposal at any time before the submission of the detailed proposal to the chief
             748      procurement officer under Section 63G-6-408.5 .
             749          Section 16. Section 63M-1-2410 is enacted to read:
             750          63M-1-2410. Receipt of detailed proposals -- Economic feasibility report --
             751      Acceptance of a detailed proposal.
             752          (1) If the committee, in its sole discretion, determines that the proposal does not
             753      substantially meet the guidelines established under Subsection 63M-1-2409 (1), the committee
             754      may elect not to review a detailed proposal.
             755          (2) Within 30 days after the day on which it receives a detailed proposal, the
             756      Governor's Office of Planning and Budget shall prepare an economic feasibility report
             757      containing:
             758          (a) a report concerning the economic feasibility and effectiveness of the project based
             759      upon competent evidence;
             760          (b) a dollar amount representing the total estimated fiscal impact of the project to the
             761      affected department and the state; and
             762          (c) any other matter the committee requests or is required by the board by rule.
             763          (3) In determining whether to reject or accept a detailed proposal, the committee shall
             764      consider the following factors:
             765          (a) any comment, suggestion, or modification offered by the affected department in
             766      accordance with Subsection 63M-1-2407 (3);
             767          (b) the economic feasibility report prepared in accordance with Subsection (2)(a);
             768          (c) the source of funding and any resulting constraint necessitated by the funding
             769      source;
             770          (d) any alternative funding proposal;
             771          (e) the extent to which the project is practical, efficient, and economically beneficial to


             772      the state and the affected department; and
             773          (f) any other reasonable factor identified by the committee or required by the board by
             774      rule.
             775          (4) If, within 30 days after the day on which the committee receives the economic
             776      feasibility report prepared under Subsection (2), the committee accepts a detailed proposal, the
             777      accepted detailed proposal shall be submitted to the board for approval.
             778          Section 17. Section 63M-1-2411 is enacted to read:
             779          63M-1-2411. Project agreement.
             780          (1) If, within 30 days after the day on which the committee accepts a detailed proposal
             781      under Section 63M-1-2410 , the board accepts the detailed proposal, the director shall:
             782          (a) prepare a project agreement; and
             783          (b) enter into the project agreement with the private entity.
             784          (2) A project agreement shall be signed by the director and the private entity within 30
             785      days after the day on which the board approves the detailed proposal under Subsection (1).
             786          (3) A project agreement shall include provisions concerning:
             787          (a) the scope of the project;
             788          (b) the pricing method of the project;
             789          (c) the director's or the state's ability to terminate for convenience or for default, and
             790      any termination compensation to be paid to the private entity, if applicable;
             791          (d) the ability to monitor performance under the contract;
             792          (e) the appropriate limits of liability;
             793          (f) the appropriate transition of services, if applicable;
             794          (g) the exceptions from applicable rules and procedures for the implementation and
             795      administration of the project by the affected department; if any;
             796          (h) the clauses and remedies applicable to state contracts under Title 63, Chapter 56,
             797      Part 6, Contract Clauses; and
             798          (i) any other matter reasonably requested by the committee or required by the board by
             799      rule.
             800          (4) A copy of the signed project agreement shall be submitted to:
             801          (a) the affected department; and
             802          (b) the Executive Appropriations Committee.


             803          (5) The affected department shall implement and administer the project agreement in
             804      accordance with rules made under Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             805      except as modified by the project agreement under Subsection (3)(g).
             806          Section 18. Section 63M-1-2412 is enacted to read:
             807          63M-1-2412. Advisory committee.
             808          (1) The director may appoint an advisory committee comprised of:
             809          (a) representatives of:
             810          (i) the affected department for the proposal;
             811          (ii) the Department of Human Resource Management; and
             812          (iii) the Division of Risk Management;
             813          (b) members of the public; and
             814          (c) other members.
             815          (2) Members of an advisory committee shall receive no compensation or benefits for
             816      their services, but may receive per diem and expenses incurred in the performance of the
             817      members' official duties at the rates established by the Division of Finance under Sections
             818      63A-3-106 and 63A-3-107 .
             819          (3) Members of an advisory committee may decline to receive per diem and expenses
             820      for their service.
             821          (4) An advisory committee appointed in accordance with Subsection (1) may not
             822      participate in the final decision-making of the committee or the board.
             823          (5) The staff, any outside consultant, and any advisory subcommittee shall:
             824          (a) provide the committee and the board with professional services, including
             825      architectural, engineering, legal, and financial services, to develop rules and guidelines to
             826      implement the program described in this part; and
             827          (b) assist the committee and the board in:
             828          (i) reviewing and commenting on initial proposals;
             829          (ii) reviewing and commenting on detailed proposals; and
             830          (iii) preparing and negotiating the terms of any project agreement.
             831          Section 19. Section 63M-1-2413 is enacted to read:
             832          63M-1-2413. Private Proposal Restricted Account -- Fees.
             833          (1) There is created a restricted account within the General Fund called the Private


             834      Proposal Restricted Account.
             835          (2) Monies collected from the payment of a fee required by this part shall be deposited
             836      in the Private Proposal Restricted Account.
             837          (3) The board or the committee may use the monies in the Private Proposal Restricted
             838      Account to offset the expense of hiring staff and engaging any outside consultant.
             839          (4) The board shall establish a fee in accordance with Section 63-38-3.2 for:
             840          (a) reviewing an initial proposal;
             841          (b) reviewing any detailed proposal; and
             842          (c) preparing any project agreement.
             843          (5) The board may waive the fee established under Subsection (4) if the board
             844      determines that it is:
             845          (a) reasonable; and
             846          (b) in the best interest of the state.




Legislative Review Note
    as of 2-8-08 1:30 PM


Office of Legislative Research and General Counsel


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