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H.B. 94

This document includes House Committee Amendments incorporated into the bill on Wed, Feb 8, 2012 at 2:19 PM by lerror. -->              1     





Chief Sponsor: Johnny Anderson

Senate Sponsor: ____________

             8      LONG TITLE
             9      General Description:
             10          This bill amends and enacts provisions relating to a government entity engaging in
             11      commercial activity.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    requires a government entity to conduct a study and contact private enterprise before
             16      engaging in certain commercial activity;
             17          .    requires the Privatization Policy Board to hold a public meeting and issue an
             18      advisory opinion about a government entity's proposed commercial activity;
             19          .    grants a private enterprise a private right of action to compel compliance with
             20      requirements of the part;
             21          .    addresses attorney fees and court costs; and
             22          .    makes technical changes.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:

             28      AMENDS:
             29          63G-7-301, as renumbered and amended by Laws of Utah 2008, Chapter 382
             30          63I-4-101, as enacted by Laws of Utah 2008, Chapter 147
             31          63I-4-202, as renumbered and amended by Laws of Utah 2008, Chapter 147
             32      ENACTS:
             33          63I-4-401, Utah Code Annotated 1953
             34          63I-4-402, Utah Code Annotated 1953
             35          63I-4-403, Utah Code Annotated 1953
             36          63I-4-404, Utah Code Annotated 1953
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 63G-7-301 is amended to read:
             40           63G-7-301. Waivers of immunity -- Exceptions.
             41          (1) (a) Immunity from suit of each governmental entity is waived as to any contractual
             42      obligation.
             43          (b) Actions arising out of contractual rights or obligations are not subject to the
             44      requirements of Sections 63G-7-401 , 63G-7-402 , 63G-7-403 , or 63G-7-601 .
             45          (c) The Division of Water Resources is not liable for failure to deliver water from a
             46      reservoir or associated facility authorized by Title 73, Chapter 26, Bear River Development
             47      Act, if the failure to deliver the contractual amount of water is due to drought, other natural
             48      condition, or safety condition that causes a deficiency in the amount of available water.
             49          (2) Immunity from suit of each governmental entity is waived:
             50          (a) as to any action brought to recover, obtain possession of, or quiet title to real or
             51      personal property;
             52          (b) as to any action brought to foreclose mortgages or other liens on real or personal
             53      property, to determine any adverse claim on real or personal property, or to obtain an
             54      adjudication about any mortgage or other lien that the governmental entity may have or claim
             55      on real or personal property;
             56          (c) as to any action based on the negligent destruction, damage, or loss of goods,
             57      merchandise, or other property while it is in the possession of any governmental entity or
             58      employee, if the property was seized for the purpose of forfeiture under any provision of state

             59      law;
             60          (d) subject to Subsection 63G-7-302 (1), as to any action brought under the authority of
             61      Article I, Section 22, of the Utah Constitution, for the recovery of compensation from the
             62      governmental entity when the governmental entity has taken or damaged private property for
             63      public uses without just compensation;
             64          (e) subject to Subsection 63G-7-302 (2), as to any action brought to recover attorney
             65      fees under Sections 63I-4-404 , 63G-2-405 , and 63G-2-802 ;
             66          (f) for actual damages under Title 67, Chapter 21, Utah Protection of Public Employees
             67      Act; or
             68          (g) as to any action brought to obtain relief from a land use regulation that imposes a
             69      substantial burden on the free exercise of religion under Title 63L, Chapter 5, Utah Religious
             70      Land Use Act.
             71          (3) (a) Except as provided in Subsection (3)(b), immunity from suit of each
             72      governmental entity is waived as to any injury caused by:
             73          (i) a defective, unsafe, or dangerous condition of any highway, road, street, alley,
             74      crosswalk, sidewalk, culvert, tunnel, bridge, viaduct, or other structure located on them; or
             75          (ii) any defective or dangerous condition of a public building, structure, dam, reservoir,
             76      or other public improvement.
             77          (b) Immunity from suit of each governmental entity is not waived if the injury arises
             78      out of, in connection with, or results from:
             79          (i) a latent dangerous or latent defective condition of any highway, road, street, alley,
             80      crosswalk, sidewalk, culvert, tunnel, bridge, viaduct, or other structure located on them; or
             81          (ii) a latent dangerous or latent defective condition of any public building, structure,
             82      dam, reservoir, or other public improvement.
             83          (4) Immunity from suit of each governmental entity is waived as to any injury
             84      proximately caused by a negligent act or omission of an employee committed within the scope
             85      of employment.
             86          (5) Immunity from suit of each governmental entity is not waived under Subsections
             87      (3) and (4) if the injury arises out of, in connection with, or results from:
             88          (a) the exercise or performance, or the failure to exercise or perform, a discretionary
             89      function, whether or not the discretion is abused;

             90          (b) assault, battery, false imprisonment, false arrest, malicious prosecution, intentional
             91      trespass, abuse of process, libel, slander, deceit, interference with contract rights, infliction of
             92      mental anguish, or violation of civil rights;
             93          (c) the issuance, denial, suspension, or revocation of, or by the failure or refusal to
             94      issue, deny, suspend, or revoke, any permit, license, certificate, approval, order, or similar
             95      authorization;
             96          (d) a failure to make an inspection or by making an inadequate or negligent inspection;
             97          (e) the institution or prosecution of any judicial or administrative proceeding, even if
             98      malicious or without probable cause;
             99          (f) a misrepresentation by an employee whether or not it is negligent or intentional;
             100          (g) riots, unlawful assemblies, public demonstrations, mob violence, and civil
             101      disturbances;
             102          (h) the collection of and assessment of taxes;
             103          (i) the activities of the Utah National Guard;
             104          (j) the incarceration of any person in any state prison, county or city jail, or other place
             105      of legal confinement;
             106          (k) any natural condition on publicly owned or controlled lands;
             107          (l) any condition existing in connection with an abandoned mine or mining operation;
             108          (m) any activity authorized by the School and Institutional Trust Lands Administration
             109      or the Division of Forestry, Fire, and State Lands;
             110          (n) the operation or existence of a pedestrian or equestrian trail that is along a ditch,
             111      canal, stream, or river, regardless of ownership or operation of the ditch, canal, stream, or river,
             112      if:
             113          (i) the trail is designated under a general plan adopted by a municipality under Section
             114      10-9a-401 or by a county under Section 17-27a-401 ;
             115          (ii) the trail right-of-way or the right-of-way where the trail is located is open to public
             116      use as evidenced by a written agreement between the owner or operator of the trail
             117      right-of-way, or of the right-of-way where the trail is located, and the municipality or county
             118      where the trail is located; and
             119          (iii) the written agreement:
             120          (A) contains a plan for operation and maintenance of the trail; and

             121          (B) provides that an owner or operator of the trail right-of-way or of the right-of-way
             122      where the trail is located has, at minimum, the same level of immunity from suit as the
             123      governmental entity in connection with or resulting from the use of the trail[.];
             124          (o) research or implementation of cloud management or seeding for the clearing of fog;
             125          (p) the management of flood waters, earthquakes, or natural disasters;
             126          (q) the construction, repair, or operation of flood or storm systems;
             127          (r) the operation of an emergency vehicle, while being driven in accordance with the
             128      requirements of Section 41-6a-212 ;
             129          (s) the activities of:
             130          (i) providing emergency medical assistance;
             131          (ii) fighting fire;
             132          (iii) regulating, mitigating, or handling hazardous materials or hazardous wastes;
             133          (iv) emergency evacuations;
             134          (v) transporting or removing injured persons to a place where emergency medical
             135      assistance can be rendered or where the person can be transported by a licensed ambulance
             136      service; or
             137          (vi) intervening during dam emergencies;
             138          (t) the exercise or performance, or the failure to exercise or perform, any function
             139      pursuant to Title 73, Chapter 10, Board of Water Resources - Division of Water Resources; or
             140          (u) unauthorized access to government records, data, or electronic information systems
             141      by any person or entity.
             142          Section 2. Section 63I-4-101 is amended to read:


             145           63I-4-101. Title.
             146          This chapter is known as [the] "Privatization Policy [Board Act] and Government
             147      Competition with Private Enterprise."
             148          Section 3. Section 63I-4-202 is amended to read:
             149           63I-4-202. Privatization Policy Board -- Duties.
             150          (1) The board shall:
             151          (a) review whether or not a good or service provided by an agency could be privatized

             152      to provide the same types and quality of a good or service that would result in cost savings;
             153          (b) review privatization of a good or service at the request of:
             154          (i) an agency; or
             155          (ii) a private enterprise;
             156          (c) review issues concerning agency competition with one or more private enterprises
             157      to determine:
             158          (i) whether privatization:
             159          (A) would be feasible;
             160          (B) would result in cost savings; and
             161          (C) would result in equal or better quality of a good or service; and
             162          (ii) ways to eliminate any unfair competition with a private enterprise;
             163          (d) in accordance with Section 63I-4-403 :
             164          (i) conduct a public meeting to hear a study by a government entity; and
             165          (ii) issue an advisory opinion;
             166          [(d)] (e) recommend privatization to an agency if a proposed privatization is
             167      demonstrated to provide a more cost efficient and effective manner of providing a good or
             168      service;
             169          [(e)] (f) comply with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, in
             170      making rules establishing privatization standards, procedures, and requirements;
             171          [(f)] (g) maintain communication with and access information from, other entities
             172      promoting privatization;
             173          [(g)] (h) comply with Part 3, Commercial Activities Inventory and Review; and
             174          [(h)] (i) (i) prepare an annual report for each calendar year that contains:
             175          (A) information about the board's activities;
             176          (B) recommendations on privatizing a good or service provided by an agency; and
             177          (C) the status of the inventory created under Part 3, Commercial Activities Inventory
             178      and Review;
             179          (ii) submit the annual report to the Legislature and the governor by no later than
             180      January 15 immediately following the calendar year for which the report is made; and
             181          (iii) provide each interim an oral report to the Government Operations Interim
             182      Committee.

             183          (2) In addition to filing a copy of recommendations for privatization with an agency
             184      head, the board shall file a copy of its recommendations for privatization with:
             185          (a) the governor's office; and
             186          (b) the Office of Legislative Fiscal Analyst for submission to the relevant legislative
             187      appropriation subcommittee.
             188          (3) (a) The board may appoint advisory groups to conduct studies, research, or
             189      analyses, and make reports and recommendations with respect to a matter within the
             190      jurisdiction of the board.
             191          (b) At least one member of the board shall serve on each advisory group.
             192          (4) (a) Subject to Subsection (4)(b), this chapter does not preclude an agency from
             193      privatizing the provision of a good or service independent of the board.
             194          (b) If an agency privatizes the provision of a good or service, the agency shall include
             195      as part of the contract that privatizes the provision of the good or service that any contractor
             196      assumes all liability to provide the good or service.
             197          (5) The board may review upon the request of a local entity a matter relevant to:
             198          (a) (i) privatization; or
             199          (ii) unfair competition with one or more private enterprises; and
             200          (b) an activity or proposed activity of the local entity.
             201          Section 4. Section 63I-4-401 is enacted to read:
Part 4. Government Competition with Private Enterprise

             203          63I-4-401. Title.
             204          This part is known as "Government Competition with Private Enterprise."
             205          Section 5. Section 63I-4-402 is enacted to read:
             206          63I-4-402. Definitions.
             207          As used in this part:
             208          (1) "Commercial activity" is as defined in Section 63I-4-102 except commercial
             209      activity does not include an activity by an institution of higher education related to technology
             210      transfer, as defined in Section 53B-16-301 .
             211          (2) H. (a) .H "Government entity" means:
             212           H. [ (a) ] (i) .H the state;
             213           H. [ (b) ] (ii) .H an entity of the state, including a branch, department, office, division,
             213a      authority,

             214      commission, or board;
             215           H. [ (c) ] (iii) .H an independent entity; or
             216           H. [ (d) ] (iv) .H a political subdivision.
             216a      H. (b) "Government entity" does not mean:
             216b          (i) the School and Institutional Trust Lands Administration, established in
             216c      Section 53C-1-201; or
             216d          (ii) a laboratory established or provided by:
             216e          (A) the Department of Health, created in Section 26-1-4; or
             216f          (B) the Department of Public Safety, created in Section 53-1-103. .H
             217          Section 6. Section 63I-4-403 is enacted to read:
             218          63I-4-403. Study required for certain commercial activity.
             219          (1) A government entity shall conduct a study, contact private enterprise, and receive
             220      an advisory opinion from the board before engaging in commercial activity or contracting with
             221      a person to engage in a commercial activity that:
             222          (a) generates revenue for the government entity from a person who is not a government
             223      entity; and
             224          (b) the government entity has not engaged in or contracted with a person to engage in
             225      before July 1, 2012.
             226          (2) The study shall:
             227          (a) identify the government entity's purposes for engaging in the commercial activity;
             228          (b) identify whether the commercial activity is needed by a person who is not a
             229      government entity;
             230          (c) identify each private enterprise that offers the commercial activity within the
             231      geographic area in which the government entity would engage in the commercial activity;
             232          (d) evaluate the impact the commercial activity would have on a private enterprise; and
             233          (e) evaluate the feasibility of cooperating with private enterprise to accomplish the
             234      purposes identified in Subsection (2)(a) without the government entity engaging in the
             235      commercial activity.
             236          (3) The government entity shall contact a private enterprise identified under Subsection
             237      (2)(c) to make the evaluations required by Subsections (2)(d) and (e).
             238          (4) (a) The government entity shall present the study to the board in a public meeting.
             239          (b) The board shall issue an advisory opinion to the government entity that:
             240          (i) (A) recommends the government entity engage in the commercial activity; or
             241          (B) recommends the government entity does not engage in the commercial activity; and

             242          (ii) identifies potential negative impacts, if any, on private enterprise.
             243          Section 7. Section 63I-4-404 is enacted to read:
             244          63I-4-404. Enforcement -- Private right of action.

             245          (1) A private enterprise that engages in a commercial activity within the geographic
             246      area in which the government entity engages in the commercial activity described in Subsection
             247      63I-4-403 (1) has a private right of action to file an action for:
             248          (a) a writ of mandamus to compel a noncompliant government entity to comply with
             249      Section 63I-4-403 ; and
             250          (b) an injunction to enjoin the government entity from engaging in the commercial
             251      activity until the government entity complies with Section 63I-4-403 .
             252          (2) (a) If the private enterprise prevails in an action brought under this section, the
             253      court may order that the government entity pay the reasonable attorney fees and court costs of
             254      the private enterprise.
             255          (b) A claim for attorney fees as provided in this section is subject to Title 63G, Chapter
             256      7, Governmental Immunity Act of Utah.

Legislative Review Note
    as of 1-23-12 6:19 PM

Office of Legislative Research and General Counsel

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