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First Substitute S.B. 153

Senator Wayne L. Niederhauser proposes the following substitute bill:


             1     
PROCUREMENT AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Wayne L. Niederhauser

             5     
House Sponsor: Melvin R. Brown

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill recodifies and amends the Utah Procurement Code.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    describes requirements and procedures relating to procurements and procurement
             14      processes by public entities;
             15          .    describes the applicability of the Utah Procurement Code;
             16          .    grants rulemaking authority;
             17          .    describes the duties and powers of the Division of Purchasing and General Services;
             18          .    provides for exemptions from certain provisions of the Utah Procurement Code;
             19          .    describes the duties and powers of the Utah State Procurement Policy Board and the
             20      procurement advisory councils;
             21          .    describes the duties and powers of the chief procurement officer;
             22          .    provides for exceptions to procurement process requirements;
             23          .    addresses cancellations, rejections, and debarment;
             24          .    addresses reciprocal preferences and purchase from community rehabilitation
             25      programs;


             26          .    describes the duties and powers of the Purchasing from Persons with Disabilities
             27      Advisory Board;
             28          .    describes bid security and bond requirements;
             29          .    describes requirements relating to contracts and change orders;
             30          .    describes requirements relating to construction procurement and contracts;
             31          .    describes requirements relating to architect-engineer services;
             32          .    describes procedures, requirements, and limitations relating to controversies,
             33      protests, appeals, and judicial action;
             34          .    addresses the retention of records;
             35          .    addresses interaction between public procurement units;
             36          .    establishes ethical practice provisions relating to procurements;
             37          .    amends existing, and enacts new, criminal provisions and penalties relating to
             38      procurements; and
             39          .    makes technical changes.
             40      Money Appropriated in this Bill:
             41          None
             42      Other Special Clauses:
             43          This bill takes effect on January 1, 2013.
             44      Utah Code Sections Affected:
             45      AMENDS:
             46          7-1-323, as last amended by Laws of Utah 2008, Chapter 382
             47          7-2-21, as last amended by Laws of Utah 2008, Chapter 382
             48          9-4-704, as last amended by Laws of Utah 2011, Chapter 342
             49          9-4-906, as last amended by Laws of Utah 2008, Chapter 382
             50          9-4-1602, as enacted by Laws of Utah 2011, Chapter 217
             51          10-3-1304, as last amended by Laws of Utah 2008, Chapter 382
             52          10-3-1305, as last amended by Laws of Utah 2008, Chapter 382
             53          10-7-86, as last amended by Laws of Utah 2008, Chapter 382
             54          11-17-20, as last amended by Laws of Utah 2008, Chapter 382
             55          11-39-101, as last amended by Laws of Utah 2008, Chapters 360 and 382
             56          11-39-107, as last amended by Laws of Utah 2011, Chapter 387


             57          11-44-202, as enacted by Laws of Utah 2010, Chapter 244
             58          11-44-301, as enacted by Laws of Utah 2010, Chapter 244
             59          13-2-9, as last amended by Laws of Utah 2008, Chapter 382
             60          14-1-18, as last amended by Laws of Utah 2008, Chapter 382
             61          17-16a-4, as last amended by Laws of Utah 2008, Chapter 382
             62          17-43-202, as last amended by Laws of Utah 2008, Chapter 382
             63          17-43-302, as last amended by Laws of Utah 2008, Chapter 382
             64          17-53-225, as last amended by Laws of Utah 2008, Chapter 382
             65          17-53-313, as last amended by Laws of Utah 2008, Chapter 382
             66          17B-1-108, as last amended by Laws of Utah 2008, Chapter 382
             67          17B-2a-818, as last amended by Laws of Utah 2010, Chapter 281
             68          17B-2a-818.5, as last amended by Laws of Utah 2011, Chapters 297 and 400
             69          17D-1-106, as last amended by Laws of Utah 2011, Chapters 40, 106, 205, and 209
             70          17D-2-108, as enacted by Laws of Utah 2008, Chapter 360
             71          19-1-206, as last amended by Laws of Utah 2011, Chapters 297 and 400
             72          20A-11-701, as last amended by Laws of Utah 2011, Chapter 396
             73          26-8a-405.3, as last amended by Laws of Utah 2011, Chapter 297
             74          26-8a-405.5, as last amended by Laws of Utah 2011, Chapter 297
             75          26-10-8, as enacted by Laws of Utah 2010, Chapter 413
             76          26-10b-102, as last amended by Laws of Utah 2011, Chapter 297
             77          26-18-2.6, as enacted by Laws of Utah 2011, Chapter 344
             78          26-40-110, as last amended by Laws of Utah 2011, Chapter 297
             79          30-3-11.3, as last amended by Laws of Utah 2011, Chapter 51
             80          30-3-11.4, as last amended by Laws of Utah 2011, Chapter 51
             81          30-3-38, as last amended by Laws of Utah 2008, Chapters 44 and 382
             82          31A-29-110, as last amended by Laws of Utah 2008, Chapter 382
             83          31A-29-111, as last amended by Laws of Utah 2008, Chapters 382 and 385
             84          31A-33-104, as last amended by Laws of Utah 2008, Chapter 382
             85          31A-33-107, as last amended by Laws of Utah 2008, Chapter 382
             86          34A-2-203, as last amended by Laws of Utah 2008, Chapter 382
             87          35A-5-202, as last amended by Laws of Utah 2008, Chapter 382


             88          38-1-30, as last amended by Laws of Utah 2011, Chapter 299
             89          38-1-39, as last amended by Laws of Utah 2008, Chapter 382
             90          41-12a-803, as last amended by Laws of Utah 2011, Chapter 342
             91          53-2-404, as last amended by Laws of Utah 2011, Chapter 342
             92          53A-1-706, as last amended by Laws of Utah 2008, Chapter 382
             93          53A-1a-511, as last amended by Laws of Utah 2008, Chapter 382
             94          53A-20-101, as last amended by Laws of Utah 2008, Chapter 382
             95          53A-25b-105, as enacted by Laws of Utah 2009, Chapter 294
             96          53C-1-201 (Effective 07/01/12), as last amended by Laws of Utah 2011, Chapters 247
             97      and 353
             98          54-3-29, as last amended by Laws of Utah 2011, Chapter 340
             99          54-8b-10, as last amended by Laws of Utah 2011, Chapters 329 and 342
             100          62A-1-108.5, as last amended by Laws of Utah 2011, Chapter 366
             101          62A-3-104, as last amended by Laws of Utah 2008, Chapter 382
             102          62A-3-104.1, as last amended by Laws of Utah 2008, Chapter 382
             103          62A-14-109, as last amended by Laws of Utah 2008, Chapter 382
             104          63A-5-205, as last amended by Laws of Utah 2011, Chapter 400
             105          63A-5-208, as last amended by Laws of Utah 2008, Chapter 382
             106          63A-5-302, as last amended by Laws of Utah 2010, Chapter 324
             107          63B-2-102, as last amended by Laws of Utah 2008, Chapter 382
             108          63B-3-102, as last amended by Laws of Utah 2008, Chapter 382
             109          63B-4-102, as last amended by Laws of Utah 2008, Chapter 382
             110          63B-5-102, as last amended by Laws of Utah 2008, Chapter 382
             111          63B-6-102, as last amended by Laws of Utah 2008, Chapter 382
             112          63B-6-402, as last amended by Laws of Utah 2008, Chapter 382
             113          63B-7-102, as last amended by Laws of Utah 2008, Chapter 382
             114          63B-7-402, as last amended by Laws of Utah 2008, Chapter 382
             115          63B-8-102, as last amended by Laws of Utah 2008, Chapter 382
             116          63B-8-402, as last amended by Laws of Utah 2008, Chapter 382
             117          63B-9-103, as last amended by Laws of Utah 2008, Chapter 382
             118          63B-11-202, as last amended by Laws of Utah 2008, Chapter 382


             119          63C-7-210, as last amended by Laws of Utah 2008, Chapter 382
             120          63C-9-301, as last amended by Laws of Utah 2008, Chapters 10 and 382
             121          63C-9-403, as last amended by Laws of Utah 2011, Chapter 400
             122          63E-2-109, as last amended by Laws of Utah 2008, Chapter 382
             123          63F-1-205, as last amended by Laws of Utah 2011, Chapter 376
             124          63G-7-804, as renumbered and amended by Laws of Utah 2008, Chapter 382
             125          63G-10-403, as enacted by Laws of Utah 2011, Chapter 361
             126          63H-2-504, as enacted by Laws of Utah 2009, Chapter 378
             127          63H-3-109, as renumbered and amended by Laws of Utah 2011, Chapter 370
             128          63H-4-108, as renumbered and amended by Laws of Utah 2011, Chapter 370
             129          63H-5-108, as renumbered and amended by Laws of Utah 2011, Chapter 370
             130          63H-6-103, as renumbered and amended by Laws of Utah 2011, Chapter 370
             131          63I-1-263, as last amended by Laws of Utah 2011, Chapters 199, 370, 408, and 411
             132          63M-1-2602, as enacted by Laws of Utah 2008, Chapter 352
             133          63M-1-2603, as enacted by Laws of Utah 2008, Chapter 352
             134          63M-1-2605, as enacted by Laws of Utah 2008, Chapter 352
             135          63M-1-2606, as enacted by Laws of Utah 2008, Chapter 352
             136          63M-1-2607, as enacted by Laws of Utah 2008, Chapter 352
             137          63M-1-2608, as enacted by Laws of Utah 2008, Chapter 352
             138          63M-1-2610, as enacted by Laws of Utah 2008, Chapter 352
             139          64-13a-13, as last amended by Laws of Utah 2008, Chapter 382
             140          67-16-4, as last amended by Laws of Utah 2008, Chapter 382
             141          67-16-5, as last amended by Laws of Utah 2008, Chapter 382
             142          67-16-5.3, as last amended by Laws of Utah 2008, Chapter 382
             143          67-16-6, as last amended by Laws of Utah 2008, Chapter 382
             144          72-6-107, as last amended by Laws of Utah 2010, Chapter 90
             145          72-6-107.5, as last amended by Laws of Utah 2011, Chapter 400
             146          72-6-108, as last amended by Laws of Utah 2009, Chapter 388
             147          72-6-205, as last amended by Laws of Utah 2009, Chapter 183
             148          72-7-504, as last amended by Laws of Utah 2008, Chapter 382
             149          73-10-27, as last amended by Laws of Utah 2008, Chapters 267 and 382


             150          73-23-3, as last amended by Laws of Utah 2008, Chapter 382
             151          76-10-1602, as last amended by Laws of Utah 2011, Chapter 320
             152          78A-2-112, as renumbered and amended by Laws of Utah 2008, Chapter 3
             153          79-2-404, as last amended by Laws of Utah 2011, Chapter 400
             154          79-4-203, as renumbered and amended by Laws of Utah 2009, Chapter 344
             155      ENACTS:
             156          63G-6a-104, Utah Code Annotated 1953
             157          63G-6a-110, Utah Code Annotated 1953
             158          63G-6a-201, Utah Code Annotated 1953
             159          63G-6a-301, Utah Code Annotated 1953
             160          63G-6a-401, Utah Code Annotated 1953
             161          63G-6a-402, Utah Code Annotated 1953
             162          63G-6a-403, Utah Code Annotated 1953
             163          63G-6a-404, Utah Code Annotated 1953
             164          63G-6a-405, Utah Code Annotated 1953
             165          63G-6a-406, Utah Code Annotated 1953
             166          63G-6a-408, Utah Code Annotated 1953
             167          63G-6a-501, Utah Code Annotated 1953
             168          63G-6a-502, Utah Code Annotated 1953
             169          63G-6a-503, Utah Code Annotated 1953
             170          63G-6a-504, Utah Code Annotated 1953
             171          63G-6a-601, Utah Code Annotated 1953
             172          63G-6a-602, Utah Code Annotated 1953
             173          63G-6a-603, Utah Code Annotated 1953
             174          63G-6a-604, Utah Code Annotated 1953
             175          63G-6a-605, Utah Code Annotated 1953
             176          63G-6a-606, Utah Code Annotated 1953
             177          63G-6a-607, Utah Code Annotated 1953
             178          63G-6a-608, Utah Code Annotated 1953
             179          63G-6a-609, Utah Code Annotated 1953
             180          63G-6a-610, Utah Code Annotated 1953


             181          63G-6a-611, Utah Code Annotated 1953
             182          63G-6a-612, Utah Code Annotated 1953
             183          63G-6a-701, Utah Code Annotated 1953
             184          63G-6a-702, Utah Code Annotated 1953
             185          63G-6a-703, Utah Code Annotated 1953
             186          63G-6a-704, Utah Code Annotated 1953
             187          63G-6a-705, Utah Code Annotated 1953
             188          63G-6a-706, Utah Code Annotated 1953
             189          63G-6a-707, Utah Code Annotated 1953
             190          63G-6a-708, Utah Code Annotated 1953
             191          63G-6a-709, Utah Code Annotated 1953
             192          63G-6a-710, Utah Code Annotated 1953
             193          63G-6a-801, Utah Code Annotated 1953
             194          63G-6a-803, Utah Code Annotated 1953
             195          63G-6a-901, Utah Code Annotated 1953
             196          63G-6a-1001, Utah Code Annotated 1953
             197          63G-6a-1004, Utah Code Annotated 1953
             198          63G-6a-1101, Utah Code Annotated 1953
             199          63G-6a-1201, Utah Code Annotated 1953
             200          63G-6a-1204, Utah Code Annotated 1953
             201          63G-6a-1301, Utah Code Annotated 1953
             202          63G-6a-1401, Utah Code Annotated 1953
             203          63G-6a-1501, Utah Code Annotated 1953
             204          63G-6a-1601, Utah Code Annotated 1953
             205          63G-6a-1701, Utah Code Annotated 1953
             206          63G-6a-1801, Utah Code Annotated 1953
             207          63G-6a-1901, Utah Code Annotated 1953
             208          63G-6a-2001, Utah Code Annotated 1953
             209          63G-6a-2101, Utah Code Annotated 1953
             210          63G-6a-2201, Utah Code Annotated 1953
             211          63G-6a-2202, Utah Code Annotated 1953


             212          63G-6a-2301, Utah Code Annotated 1953
             213          63G-6a-2303, Utah Code Annotated 1953
             214          63G-6a-2304, Utah Code Annotated 1953
             215          63G-6a-2305, Utah Code Annotated 1953
             216          63G-6a-2306, Utah Code Annotated 1953
             217          63G-6a-2307, Utah Code Annotated 1953
             218      RENUMBERS AND AMENDS:
             219          63G-6a-101, (Renumbered from 63G-6-101, as enacted by Laws of Utah 2008, Chapter
             220      382)
             221          63G-6a-102, (Renumbered from 63G-6-102, as renumbered and amended by Laws of
             222      Utah 2008, Chapter 382)
             223          63G-6a-103, (Renumbered from 63G-6-103, as last amended by Laws of Utah 2011,
             224      Chapter 376)
             225          63G-6a-105, (Renumbered from 63G-6-104, as renumbered and amended by Laws of
             226      Utah 2008, Chapter 382)
             227          63G-6a-106, (Renumbered from 63G-6-207, as last amended by Laws of Utah 2008,
             228      Chapter 3 and renumbered and amended by Laws of Utah 2008, Chapter 382)
             229          63G-6a-109, (Renumbered from 63G-6-105, as renumbered and amended by Laws of
             230      Utah 2008, Chapter 382)
             231          63G-6a-202, (Renumbered from 63G-6-201, as last amended by Laws of Utah 2011,
             232      Chapter 376)
             233          63G-6a-203, (Renumbered from 63G-6-202, as last amended by Laws of Utah 2011,
             234      Chapter 376)
             235          63G-6a-204, (Renumbered from 63G-6-208, as last amended by Laws of Utah 2009,
             236      Chapter 132)
             237          63G-6a-205, (Renumbered from 63G-6-209, as renumbered and amended by Laws of
             238      Utah 2008, Chapter 382)
             239          63G-6a-302, (Renumbered from 63G-6-203, as renumbered and amended by Laws of
             240      Utah 2008, Chapter 382)
             241          63G-6a-303, (Renumbered from 63G-6-204, as last amended by Laws of Utah 2008,
             242      Chapter 352 and renumbered and amended by Laws of Utah 2008, Chapter 382)


             243          63G-6a-304, (Renumbered from 63G-6-205, as last amended by Laws of Utah 2008,
             244      Chapter 352 and renumbered and amended by Laws of Utah 2008, Chapter 382)
             245          63G-6a-305, (Renumbered from 63G-6-302, as last amended by Laws of Utah 2011,
             246      Chapter 376)
             247          63G-6a-407, (Renumbered from 63G-6-303, as renumbered and amended by Laws of
             248      Utah 2008, Chapter 382)
             249          63G-6a-711, (Renumbered from 63G-6-408.5, as enacted by Laws of Utah 2008,
             250      Chapter 352)
             251          63G-6a-802, (Renumbered from 63G-6-410, as renumbered and amended by Laws of
             252      Utah 2008, Chapter 382)
             253          63G-6a-804, (Renumbered from 63G-6-423, as renumbered and amended by Laws of
             254      Utah 2008, Chapter 382)
             255          63G-6a-805, (Renumbered from 63G-6-425, as renumbered and amended by Laws of
             256      Utah 2008, Chapter 382)
             257          63G-6a-902, (Renumbered from 63G-6-412, as renumbered and amended by Laws of
             258      Utah 2008, Chapter 382)
             259          63G-6a-903, (Renumbered from 63G-6-413, as renumbered and amended by Laws of
             260      Utah 2008, Chapter 382)
             261          63G-6a-904, (Renumbered from 63G-6-804, as renumbered and amended by Laws of
             262      Utah 2008, Chapter 382)
             263          63G-6a-1002, (Renumbered from 63G-6-404, as renumbered and amended by Laws of
             264      Utah 2008, Chapter 382)
             265          63G-6a-1003, (Renumbered from 63G-6-405, as renumbered and amended by Laws of
             266      Utah 2008, Chapter 382)
             267          63G-6a-1102, (Renumbered from 63G-6-504, as renumbered and amended by Laws of
             268      Utah 2008, Chapter 382)
             269          63G-6a-1103, (Renumbered from 63G-6-505, as renumbered and amended by Laws of
             270      Utah 2008, Chapter 382)
             271          63G-6a-1104, (Renumbered from 63G-6-506, as last amended by Laws of Utah 2011,
             272      Chapter 299)
             273          63G-6a-1105, (Renumbered from 63G-6-507, as renumbered and amended by Laws of


             274      Utah 2008, Chapter 382)
             275          63G-6a-1202, (Renumbered from 63G-6-601, as renumbered and amended by Laws of
             276      Utah 2008, Chapter 382)
             277          63G-6a-1203, (Renumbered from 63G-6-603, as enacted by Laws of Utah 2009,
             278      Chapter 217)
             279          63G-6a-1205, (Renumbered from 63G-6-416, as renumbered and amended by Laws of
             280      Utah 2008, Chapter 382)
             281          63G-6a-1206, (Renumbered from 63G-6-415, as renumbered and amended by Laws of
             282      Utah 2008, Chapter 382)
             283          63G-6a-1207, (Renumbered from 63G-6-602, as renumbered and amended by Laws of
             284      Utah 2008, Chapter 382)
             285          63G-6a-1302, (Renumbered from 63G-6-501, as renumbered and amended by Laws of
             286      Utah 2008, Chapter 382)
             287          63G-6a-1303, (Renumbered from 63G-6-604, as enacted by Laws of Utah 2010,
             288      Chapter 18)
             289          63G-6a-1402, (Renumbered from 63G-6-502, as last amended by Laws of Utah 2010,
             290      Chapter 358)
             291          63G-6a-1403, (Renumbered from 63G-6-503, as renumbered and amended by Laws of
             292      Utah 2008, Chapter 382)
             293          63G-6a-1502, (Renumbered from 63G-6-701, as renumbered and amended by Laws of
             294      Utah 2008, Chapter 382)
             295          63G-6a-1503, (Renumbered from 63G-6-702, as renumbered and amended by Laws of
             296      Utah 2008, Chapter 382)
             297          63G-6a-1504, (Renumbered from 63G-6-703, as renumbered and amended by Laws of
             298      Utah 2008, Chapter 382)
             299          63G-6a-1505, (Renumbered from 63G-6-704, as renumbered and amended by Laws of
             300      Utah 2008, Chapter 382)
             301          63G-6a-1506, (Renumbered from 63G-6-705, as renumbered and amended by Laws of
             302      Utah 2008, Chapter 382)
             303          63G-6a-1602, (Renumbered from 63G-6-805, as renumbered and amended by Laws of
             304      Utah 2008, Chapter 382)


             305          63G-6a-1603, (Renumbered from 63G-6-801, as last amended by Laws of Utah 2011,
             306      Chapter 361)
             307          63G-6a-1604, (Renumbered from 63G-6-806, as renumbered and amended by Laws of
             308      Utah 2008, Chapter 382)
             309          63G-6a-1605, (Renumbered from 63G-6-907, as renumbered and amended by Laws of
             310      Utah 2008, Chapter 382)
             311          63G-6a-1606, (Renumbered from 63G-6-802, as renumbered and amended by Laws of
             312      Utah 2008, Chapter 382)
             313          63G-6a-1607, (Renumbered from 63G-6-803, as renumbered and amended by Laws of
             314      Utah 2008, Chapter 382)
             315          63G-6a-1702, (Renumbered from 63G-6-807, as last amended by Laws of Utah 2010,
             316      Chapter 286)
             317          63G-6a-1703, (Renumbered from 63G-6-810, as renumbered and amended by Laws of
             318      Utah 2008, Chapter 382)
             319          63G-6a-1704, (Renumbered from 63G-6-808, as renumbered and amended by Laws of
             320      Utah 2008, Chapter 382)
             321          63G-6a-1705, (Renumbered from 63G-6-809, as renumbered and amended by Laws of
             322      Utah 2008, Chapter 382)
             323          63G-6a-1706, (Renumbered from 63G-6-811, as renumbered and amended by Laws of
             324      Utah 2008, Chapter 382)
             325          63G-6a-1707, (Renumbered from 63G-6-812, as renumbered and amended by Laws of
             326      Utah 2008, Chapter 382)
             327          63G-6a-1708, (Renumbered from 63G-6-813, as renumbered and amended by Laws of
             328      Utah 2008, Chapter 382)
             329          63G-6a-1802, (Renumbered from 63G-6-814, as renumbered and amended by Laws of
             330      Utah 2008, Chapter 382)
             331          63G-6a-1803, (Renumbered from 63G-6-815, as renumbered and amended by Laws of
             332      Utah 2008, Chapter 382)
             333          63G-6a-1804, (Renumbered from 63G-6-817, as renumbered and amended by Laws of
             334      Utah 2008, Chapter 382)
             335          63G-6a-1805, (Renumbered from 63G-6-816, as renumbered and amended by Laws of


             336      Utah 2008, Chapter 382)
             337          63G-6a-1902, (Renumbered from 63G-6-419, as renumbered and amended by Laws of
             338      Utah 2008, Chapter 382)
             339          63G-6a-1903, (Renumbered from 63G-6-818, as renumbered and amended by Laws of
             340      Utah 2008, Chapter 382)
             341          63G-6a-1904, (Renumbered from 63G-6-819, as renumbered and amended by Laws of
             342      Utah 2008, Chapter 382)
             343          63G-6a-1905, (Renumbered from 63G-6-820, as renumbered and amended by Laws of
             344      Utah 2008, Chapter 382)
             345          63G-6a-2002, (Renumbered from 63G-6-106, as renumbered and amended by Laws of
             346      Utah 2008, Chapter 382)
             347          63G-6a-2003, (Renumbered from 63G-6-421, as renumbered and amended by Laws of
             348      Utah 2008, Chapter 382)
             349          63G-6a-2004, (Renumbered from 63G-6-905, as renumbered and amended by Laws of
             350      Utah 2008, Chapter 382)
             351          63G-6a-2102, (Renumbered from 63G-6-901, as renumbered and amended by Laws of
             352      Utah 2008, Chapter 382)
             353          63G-6a-2103, (Renumbered from 63G-6-902, as renumbered and amended by Laws of
             354      Utah 2008, Chapter 382)
             355          63G-6a-2104, (Renumbered from 63G-6-904, as renumbered and amended by Laws of
             356      Utah 2008, Chapter 382)
             357          63G-6a-2105, (Renumbered from 63G-6-424, as renumbered and amended by Laws of
             358      Utah 2008, Chapter 382)
             359          63G-6a-2302, (Renumbered from 63G-6-420, as renumbered and amended by Laws of
             360      Utah 2008, Chapter 382)
             361      REPEALS:
             362          10-7-87, as last amended by Laws of Utah 2008, Chapter 382
             363          11-37-101, as last amended by Laws of Utah 2008, Chapter 382
             364          17-15-24, as last amended by Laws of Utah 2008, Chapter 382
             365          17B-1-109, as renumbered and amended by Laws of Utah 2007, Chapter 329
             366          26A-1-108.7, as last amended by Laws of Utah 2008, Chapter 382


             367          63G-6-206, as renumbered and amended by Laws of Utah 2008, Chapter 382
             368          63G-6-301, as last amended by Laws of Utah 2011, Chapter 376
             369          63G-6-401, as last amended by Laws of Utah 2009, Chapter 388
             370          63G-6-402, as renumbered and amended by Laws of Utah 2008, Chapter 382
             371          63G-6-403, as renumbered and amended by Laws of Utah 2008, Chapter 382
             372          63G-6-406, as renumbered and amended by Laws of Utah 2008, Chapter 382
             373          63G-6-407, as renumbered and amended by Laws of Utah 2008, Chapter 382
             374          63G-6-408, as renumbered and amended by Laws of Utah 2008, Chapter 382
             375          63G-6-409, as renumbered and amended by Laws of Utah 2008, Chapter 382
             376          63G-6-411, as renumbered and amended by Laws of Utah 2008, Chapter 382
             377          63G-6-414, as renumbered and amended by Laws of Utah 2008, Chapter 382
             378          63G-6-417, as renumbered and amended by Laws of Utah 2008, Chapter 382
             379          63G-6-418, as renumbered and amended by Laws of Utah 2008, Chapter 382
             380          63G-6-422, as renumbered and amended by Laws of Utah 2008, Chapter 382
             381          63G-6-426, as renumbered and amended by Laws of Utah 2008, Chapter 382
             382          63G-6-903, as renumbered and amended by Laws of Utah 2008, Chapter 382
             383          63G-6-906, as renumbered and amended by Laws of Utah 2008, Chapter 382
             384          63G-6-1001, as renumbered and amended by Laws of Utah 2008, Chapter 382
             385          63G-6-1002, as renumbered and amended by Laws of Utah 2008, Chapter 382
             386     
             387      Be it enacted by the Legislature of the state of Utah:
             388          Section 1. Section 7-1-323 is amended to read:
             389           7-1-323. Regulation of interstate operations -- Coordination of efforts.
             390          (1) The commissioner may:
             391          (a) examine, supervise, and regulate a branch operated in this state by a depository
             392      institution chartered by another state and take any action or issue any order with regard to that
             393      branch;
             394          (b) examine, supervise, and regulate a branch operated in another state by a depository
             395      institution chartered by this state and take any action or issue any order with regard to that
             396      branch; and
             397          (c) coordinate these activities with any other state or federal agency that shares


             398      jurisdiction over the institution.
             399          (2) The commissioner may coordinate the examination, supervision, and regulation of
             400      any depository institution chartered by this state with the examination, supervision, and
             401      regulation of an affiliated depository institution operating in another state.
             402          (3) The commissioner may take any reasonable and lawful action in furtherance of
             403      coordinating the regulation of interstate operations, including:
             404          (a) negotiating and entering into cooperative agreements with an agency of another
             405      state or of the federal government;
             406          (b) sharing information and reports in accordance with Section 7-1-802 with an agency
             407      that shares jurisdiction over the institution;
             408          (c) accepting as sufficient, if appropriate, examination reports and other information
             409      compiled or generated by or for an agency that shares jurisdiction over the institution;
             410          (d) contracting with an agency that shares jurisdiction over the institution to engage the
             411      services of its examiners at a reasonable rate of compensation;
             412          (e) offering the services of the department's examiners at a reasonable rate of
             413      compensation to an agency that shares jurisdiction over the institution;
             414          (f) collecting fees on behalf of, or receiving payment of fees through, an agency that
             415      shares jurisdiction over the institution; and
             416          (g) cooperating in any other way with other supervisory agencies and professional
             417      associations to promote the efficient, safe, and sound operation and regulation of interstate
             418      depository institution activities, including the formulation of interstate examination policies
             419      and procedures and the drafting of model laws, rules, and agreements.
             420          (4) A contract between the department and an agency that shares jurisdiction over a
             421      depository institution to provide examiners to aid in interstate examination and regulation is
             422      considered a sole source contract under Section [ 63G-6-410 ] 63G-6a-802 .
             423          Section 2. Section 7-2-21 is amended to read:
             424           7-2-21. Applicability of Utah Procurement Code.
             425          No action of the commissioner taken under this chapter or Chapter 19, Acquisition of
             426      Failing Depository Institutions or Holding Companies, is subject to the provisions of Title 63G,
             427      Chapter [6] 6a, Utah Procurement Code.
             428          Section 3. Section 9-4-704 is amended to read:


             429           9-4-704. Distribution of fund money.
             430          (1) The executive director shall:
             431          (a) make grants and loans from the fund for any of the activities authorized by Section
             432      9-4-705 , as directed by the board;
             433          (b) establish the criteria with the approval of the board by which loans and grants will
             434      be made; and
             435          (c) determine with the approval of the board the order in which projects will be funded.
             436          (2) The executive director shall distribute, as directed by the board, any federal money
             437      contained in the fund according to the procedures, conditions, and restrictions placed upon the
             438      use of the money by the federal government.
             439          (3) (a) The executive director shall distribute, as directed by the board, any funds
             440      received pursuant to Section 17C-1-412 to pay the costs of providing income targeted housing
             441      within the community that created the community development and renewal agency under Title
             442      17C, Limited Purpose Local Government Entities - Community Development and Renewal
             443      Agencies Act.
             444          (b) As used in Subsection (3)(a):
             445          (i) "Community" has the meaning as defined in Section 17C-1-102 .
             446          (ii) "Income targeted housing" has the meaning as defined in Section 17C-1-102 .
             447          (4) Except federal money and money received under Section 17C-1-412 , the executive
             448      director shall distribute, as directed by the board, all other money from the fund according to
             449      the following requirements:
             450          (a) Not less than 30% of all fund money shall be distributed to rural areas of the state.
             451          (b) At least 50% of the money in the fund shall be distributed as loans to be repaid to
             452      the fund by the entity receiving them.
             453          (i) (A) Of the fund money distributed as loans, at least 50% shall be distributed to
             454      benefit persons whose annual income is at or below 50% of the median family income for the
             455      state.
             456          (B) The remaining loan money shall be distributed to benefit persons whose annual
             457      income is at or below 80% of the median family income for the state.
             458          (ii) The executive director or the executive director's designee shall lend money in
             459      accordance with this Subsection (4) at a rate based upon the borrower's ability to pay.


             460          (c) Any fund money not distributed as loans shall be distributed as grants.
             461          (i) At least 90% of the fund money distributed as grants shall be distributed to benefit
             462      persons whose annual income is at or below 50% of the median family income for the state.
             463          (ii) The remaining fund money distributed as grants may be used by the executive
             464      director to obtain federal matching funds or for other uses consistent with the intent of this part,
             465      including the payment of reasonable loan servicing costs, but no more than 3% of the revenues
             466      of the fund may be used to offset other department or board administrative expenses.
             467          (5) The executive director may with the approval of the board:
             468          (a) enact rules to establish procedures for the grant and loan process by following the
             469      procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             470      and
             471          (b) service or contract, pursuant to Title 63G, Chapter [6] 6a, Utah Procurement Code,
             472      for the servicing of loans made by the fund.
             473          Section 4. Section 9-4-906 is amended to read:
             474           9-4-906. Relation to certain acts.
             475          (1) The corporation is exempt from:
             476          (a) Title 51, Chapter 5, Funds Consolidation Act;
             477          (b) Title 51, Chapter 7, State Money Management Act;
             478          (c) Title 63A, Utah Administrative Services Code; [and]
             479          (d) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             480          (e) Title 63J, Chapter 1, Budgetary Procedures Act;
             481          (f) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             482          (g) Title 67, Chapter 19, Utah State Personnel Management Act.
             483          (2) The corporation shall comply with:
             484          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             485          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             486          Section 5. Section 9-4-1602 is amended to read:
             487           9-4-1602. Distribution of fund money.
             488          (1) (a) The director shall make loans and loan guarantees from the fund for the Small
             489      Business Credit Initiative created under the federal government's Small Business Jobs Act of
             490      2010, to use federal money for programs that leverage private lending to help finance small


             491      businesses and manufacturers that are creditworthy but not receiving the loans needed to
             492      expand and create jobs.
             493          (b) In making loans and loan guarantees under this part, the director shall give due
             494      consideration to small businesses in underserved communities throughout the state that have
             495      been deeply impacted by recession and not seen a comparable resurgence in their economies.
             496          (2) The director shall distribute any federal money in the fund according to the
             497      procedures, conditions, and restrictions placed upon the use of the money by the federal
             498      government.
             499          (3) The director may, with the approval of the executive director of the department:
             500          (a) enact rules to establish procedures for the loan and loan guarantee process by
             501      following the procedures and requirements of Title 63G, Chapter 3, Utah Administrative
             502      Rulemaking Act; and
             503          (b) service or contract, under Title 63G, Chapter [6] 6a, Utah Procurement Code, for
             504      the servicing of loans made by the fund.
             505          Section 6. Section 10-3-1304 is amended to read:
             506           10-3-1304. Use of office for personal benefit prohibited.
             507          (1) As used in this section, "economic benefit tantamount to a gift" includes:
             508          (a) a loan at an interest rate that is substantially lower than the commercial rate then
             509      currently prevalent for similar loans; and
             510          (b) compensation received for private services rendered at a rate substantially
             511      exceeding the fair market value of the services.
             512          (2) It is an offense for an elected or appointed officer or municipal employee, under
             513      circumstances not amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 ,
             514      to:
             515          (a) disclose or improperly use private, controlled, or protected information acquired by
             516      reason of the officer's or employee's official position or in the course of official duties in order
             517      to further substantially the officer's or employee's personal economic interest or to secure
             518      special privileges or exemptions for the officer or employee or for others;
             519          (b) use or attempt to use the officer's or employee's official position to:
             520          (i) further substantially the officer's or employee's personal economic interest; or
             521          (ii) secure special privileges for the officer or employee or for others; or


             522          (c) knowingly receive, accept, take, seek, or solicit, directly or indirectly, for the officer
             523      or employee or for another, a gift of substantial value or a substantial economic benefit
             524      tantamount to a gift that:
             525          (i) would tend improperly to influence a reasonable person in the person's position to
             526      depart from the faithful and impartial discharge of the person's public duties; or
             527          (ii) the person knows or that a reasonable person in that position should know under
             528      the circumstances is primarily for the purpose of rewarding the person for official action taken.
             529          (3) Subsection (2)(c) does not apply to:
             530          (a) an occasional nonpecuniary gift having a value of less than $50;
             531          (b) an award publicly presented in recognition of public services;
             532          (c) any bona fide loan made in the ordinary course of business; or
             533          (d) a political campaign contribution.
             534          Section 7. Section 10-3-1305 is amended to read:
             535           10-3-1305. Compensation for assistance in transaction involving municipality --
             536      Public disclosure and filing required.
             537          (1) As used in this section, "municipal body" means any public board, commission,
             538      committee, or other public group organized to make public policy decisions or to advise
             539      persons who make public policy decisions.
             540          (2) It is an offense for an elected officer, or appointed officer, who is a member of a
             541      public body, under circumstances not amounting to a violation of Section [ 63G-6-1001 ]
             542      63G-6a-2304 or 76-8-105 , to receive or agree to receive compensation for assisting any person
             543      or business entity in any transaction involving the municipality in which the member is an
             544      officer unless the member:
             545          (a) files with the mayor a sworn statement giving the information required by this
             546      section; and
             547          (b) discloses the information required by Subsection (5) in an open meeting to the
             548      members of the body of which the officer is a member immediately before the discussion.
             549          (3) It is an offense for an appointed officer who is not a member of a public body or a
             550      municipal employee to receive or agree to receive compensation for assisting any person or
             551      business entity in any transaction involving the municipality by which the person is employed
             552      unless the officer or employee:


             553          (a) files with the mayor a sworn statement giving the information required by this
             554      section; and
             555          (b) discloses the information required by Subsection (5) to:
             556          (i) the officer or employee's immediate supervisor; and
             557          (ii) any other municipal officer or employee who may rely upon the employee's
             558      representations in evaluating or approving the transaction.
             559          (4) (a) The officer or employee shall file the statement required to be filed by this
             560      section 10 days before the date of any agreement between the elected or appointed officer or
             561      municipal employee and the person or business entity being assisted or 10 days before the
             562      receipt of compensation by the officer or employee, whichever is earlier.
             563          (b) The statement is public information and shall be available for examination by the
             564      public.
             565          (5) The statement and disclosure shall contain:
             566          (a) the name and address of the officer or municipal employee;
             567          (b) the name and address of the person or business entity being or to be assisted or in
             568      which the appointed or elected official or municipal employee has a substantial interest; and
             569          (c) a brief description of the transaction as to which service is rendered or is to be
             570      rendered and of the nature of the service performed or to be performed.
             571          Section 8. Section 10-7-86 is amended to read:
             572           10-7-86. Municipality may adopt Utah Procurement Code -- Hiring of
             573      professional architect, engineer, or surveyor.
             574          (1) The governing body of any municipality may adopt any or all of the provisions of
             575      Title 63G, Chapter [6] 6a, Utah Procurement Code, or the rules promulgated pursuant to that
             576      code.
             577          (2) Notwithstanding Subsection (1), the governing body of each municipality that
             578      engages the services of a professional architect, engineer, or surveyor and considers more than
             579      one such professional for the engagement:
             580          (a) shall consider, as a minimum, in the selection process:
             581          (i) the qualifications, experience, and background of each firm submitting a proposal;
             582          (ii) the specific individuals assigned to the project and the time commitments of each
             583      to the project; and


             584          (iii) the project schedule and the approach to the project that the firm will take; and
             585          (b) may engage the services of a professional architect, engineer, or surveyor based on
             586      the criteria under Subsection (2)(a) rather than solely on lowest cost.
             587          Section 9. Section 11-17-20 is amended to read:
             588           11-17-20. Power of the State Charter School Finance Authority.
             589          (1) The State Charter School Finance Authority may exercise the powers granted to
             590      municipalities and counties by this chapter, subject to the same limitations as that imposed on a
             591      municipality or county under the chapter, except as provided by Title 53A, Chapter 20b, State
             592      Charter School Finance Authority Act.
             593          (2) As used in this chapter, "governing body" when applied to the State Charter School
             594      Finance Authority means the authority's governing board as described in Section 53A-20b-103 .
             595          (3) Notwithstanding Section 11-17-15 , a charter school that receives financing under
             596      this chapter is subject to Title 63G, Chapter [6] 6a, Utah Procurement Code.
             597          Section 10. Section 11-39-101 is amended to read:
             598           11-39-101. Definitions.
             599          As used in this chapter:
             600          (1) "Bid limit" means:
             601          (a) for a building improvement:
             602          (i) for the year 2003, $40,000; and
             603          (ii) for each year after 2003, the amount of the bid limit for the previous year, plus an
             604      amount calculated by multiplying the amount of the bid limit for the previous year by the lesser
             605      of 3% or the actual percent change in the Consumer Price Index during the previous calendar
             606      year; and
             607          (b) for a public works project:
             608          (i) for the year 2003, $125,000; and
             609          (ii) for each year after 2003, the amount of the bid limit for the previous year, plus an
             610      amount calculated by multiplying the amount of the bid limit for the previous year by the lesser
             611      of 3% or the actual percent change in the Consumer Price Index during the previous calendar
             612      year.
             613          (2) "Building improvement":
             614          (a) means the construction or repair of a public building or structure; and


             615          (b) does not include construction or repair at an international airport.
             616          (3) "Consumer Price Index" means the Consumer Price Index for All Urban
             617      Consumers as published by the Bureau of Labor Statistics of the United States Department of
             618      Labor.
             619          (4) "Design-build project":
             620          (a) means a building improvement or public works project costing over $250,000 with
             621      respect to which both the design and construction are provided for in a single contract with a
             622      contractor or combination of contractors capable of providing design-build services; and
             623          (b) does not include a building improvement or public works project:
             624          (i) that is undertaken by a local entity under contract with a construction manager that
             625      guarantees the contract price and is at risk for any amount over the contract price; and
             626          (ii) each component of which is competitively bid.
             627          (5) "Design-build services" means the engineering, architectural, and other services
             628      necessary to formulate and implement a design-build project, including its actual construction.
             629          (6) "Emergency repairs" means a building improvement or public works project
             630      undertaken on an expedited basis to:
             631          (a) eliminate an imminent risk of damage to or loss of public or private property;
             632          (b) remedy a condition that poses an immediate physical danger; or
             633          (c) reduce a substantial, imminent risk of interruption of an essential public service.
             634          (7) "Governing body" means:
             635          (a) for a county, city, or town, the legislative body of the county, city, or town;
             636          (b) for a local district, the board of trustees of the local district; and
             637          (c) for a special service district:
             638          (i) the legislative body of the county, city, or town that established the special service
             639      district, if no administrative control board has been appointed under Section 17D-1-301 ; or
             640          (ii) the administrative control board of the special service district, if an administrative
             641      control board has been appointed under Section 17D-1-301 .
             642          (8) "Local district" has the same meaning as defined in Section 17B-1-102 .
             643          (9) "Local entity" means a county, city, town, local district, or special service district.
             644          (10) "Lowest responsive responsible bidder" means a prime contractor who:
             645          (a) has submitted a bid in compliance with the invitation to bid and within the


             646      requirements of the plans and specifications for the building improvement or public works
             647      project;
             648          (b) is the lowest bidder that satisfies the local entity's criteria relating to financial
             649      strength, past performance, integrity, reliability, and other factors that the local entity uses to
             650      assess the ability of a bidder to perform fully and in good faith the contract requirements;
             651          (c) has furnished a bid bond or equivalent in money as a condition to the award of a
             652      prime contract; and
             653          (d) furnishes a payment and performance bond as required by law.
             654          (11) "Procurement code" means the provisions of Title 63G, Chapter [6] 6a, Utah
             655      Procurement Code.
             656          (12) "Public works project":
             657          (a) means the construction of:
             658          (i) a park or recreational facility; or
             659          (ii) a pipeline, culvert, dam, canal, or other system for water, sewage, storm water, or
             660      flood control; and
             661          (b) does not include:
             662          (i) the replacement or repair of existing infrastructure on private property;
             663          (ii) construction commenced before June 1, 2003; and
             664          (iii) construction or repair at an international airport.
             665          (13) "Special service district" has the same meaning as defined in Section 17D-1-102 .
             666          Section 11. Section 11-39-107 is amended to read:
             667           11-39-107. Procurement code.
             668          (1) This chapter may not be construed to:
             669          (a) prohibit a county or municipal legislative body from adopting the procedures of the
             670      procurement code; or
             671          (b) limit the application of the procurement code to a local district or special service
             672      district.
             673          (2) A local entity may adopt procedures for the following construction contracting
             674      methods:
             675          (a) construction manager/general contractor, as defined in Section [ 63G-6-103 ]
             676      63G-6a-103 ; or


             677          (b) a method that requires that the local entity draft a plan, specifications, and an
             678      estimate for the building improvement or public works project.
             679          (3) For a public works project only and that costs $10,000,000 or more, the following
             680      may enter into a contract for design-build, as defined in Section [ 63G-6-103 ] 63G-6a-103 , and
             681      adopt the procedures and follow the provisions of the procurement code for the procurement of
             682      and as the procedures and provisions relate to a design-build:
             683          (a) a city of the first class;
             684          (b) a local district; or
             685          (c) a special service district.
             686          (4) (a) In seeking bids and awarding a contract for a building improvement or public
             687      works project, a county or a municipal legislative body may elect to follow the provisions of
             688      the procurement code, as the county or municipal legislative body considers appropriate under
             689      the circumstances, for specification preparation, source selection, or contract formation.
             690          (b) A county or municipal legislative body's election to adopt the procedures of the
             691      procurement code may not excuse the county or municipality, respectively, from complying
             692      with the requirements to award a contract for work in excess of the bid limit and to publish
             693      notice of the intent to award.
             694          (c) An election under Subsection (4)(a) may be made on a case-by-case basis, unless
             695      the county or municipality has previously adopted [the procurement code as permitted by
             696      Subsection 63G-6-104 (3)(e)] the provisions of Title 63G, Chapter 6a, Utah Procurement Code.
             697          (d) The county or municipal legislative body shall:
             698          (i) make each election under Subsection (4)(a) in an open meeting; and
             699          (ii) specify in its action the portions of the procurement code to be followed.
             700          (5) If the estimated cost of the building improvement or public works project proposed
             701      by a local district or special service district exceeds the bid limit, the governing body of the
             702      local district or special service district may, if it determines to proceed with the building
             703      improvement or public works project, use the competitive procurement procedures of the
             704      procurement code in place of the comparable provisions of this chapter.
             705          Section 12. Section 11-44-202 is amended to read:
             706           11-44-202. Types of agreements.
             707          Notwithstanding Section [ 63G-6-416 ] 63G-6a-1205 , a political subdivision shall


             708      structure an energy service agreement as a guaranteed energy savings performance contract,
             709      which shall include:
             710          (1) the design and installation of an energy efficiency measure, if applicable;
             711          (2) operation and maintenance of any energy efficiency measure implemented; and
             712          (3) guaranteed annual cost savings that meet or exceed the total annual contract
             713      payments by the political subdivision under the contract, including financing charges incurred
             714      by the political subdivision over the life of the contract.
             715          Section 13. Section 11-44-301 is amended to read:
             716           11-44-301. Selection.
             717          (1) A political subdivision shall follow the procedures outlined in Title 63G, Chapter
             718      [6] 6a, Utah Procurement Code, when selecting a qualified energy service provider.
             719          (2) The Division of Purchasing shall maintain a list of qualified energy service
             720      providers.
             721          (3) The qualified energy service provider selected from the bid process shall prepare an
             722      investment grade energy audit, which shall become part of the final contract between the
             723      political subdivision and the qualified energy service provider.
             724          (4) The audit shall include:
             725          (a) a detailed description of the energy efficiency measure;
             726          (b) an estimated cost; and
             727          (c) a projected cost savings.
             728          Section 14. Section 13-2-9 is amended to read:
             729           13-2-9. Internet -- Consumer education.
             730          (1) The Division of Consumer Protection shall, subject to appropriation, contract with
             731      a person to make public service announcements advising consumers about the dangers of using
             732      the Internet, especially:
             733          (a) material harmful to minors;
             734          (b) steps a consumer may take to learn more about the dangers of using the Internet;
             735          (c) information about how a service provider can help a consumer learn more about the
             736      dangers of using the Internet, including the service provider's duties created by this bill; and
             737          (d) how a consumer can monitor the Internet usage of family members.
             738          (2) Money appropriated under Subsection (1) shall be paid by the Division of


             739      Consumer Protection to a person only if:
             740          (a) the person is a nonprofit organization; and
             741          (b) the person agrees to spend private money amounting to two times the amount of
             742      money provided by the Division of Consumer Protection during each fiscal year in accordance
             743      with Subsection (1).
             744          (3) In administering any money appropriated for use under this section, the Division of
             745      Consumer Protection shall comply with Title 63G, Chapter [6] 6a, Utah Procurement Code.
             746          Section 15. Section 14-1-18 is amended to read:
             747           14-1-18. Definitions -- Application of Procurement Code to payment and
             748      performance bonds.
             749          (1) (a) For purposes of this chapter, "political subdivision" means any county, city,
             750      town, school district, local district, special service district, community development and
             751      renewal agency, public corporation, institution of higher education of the state, public agency
             752      of any political subdivision, and, to the extent provided by law, any other entity which expends
             753      public funds for construction.
             754          (b) For purposes of applying Section [ 63G-6-505 ] 63G-6a-1103 to a political
             755      subdivision, "state" includes "political subdivision."
             756          (2) [Section 63G-6-505 ] Notwithstanding any provision of Title 63G, Chapter 6a, Utah
             757      Procurement Code, to the contrary, Section 63G-6a-1103 applies to all contracts for the
             758      construction, alteration, or repair of any public building or public work of the state or a
             759      political subdivision of the state.
             760          Section 16. Section 17-16a-4 is amended to read:
             761           17-16a-4. Prohibited use of official position -- Exception.
             762          (1) Except as provided in Subsection (3), it is an offense for an elected or appointed
             763      officer, under circumstances not amounting to a violation of Section [ 63G-6-1001 ]
             764      63G-6a-2304 or 76-8-105 , to:
             765          (a) disclose confidential information acquired by reason of the officer's official position
             766      or use that information to secure special privileges or exemptions for himself or others;
             767          (b) use or attempt to use the officer's official position to secure special privileges for
             768      the officer or for others; or
             769          (c) knowingly receive, accept, take, seek or solicit, directly or indirectly, any gift or


             770      loan for the officer or for another, if the gift or loan tends to influence the officer in the
             771      discharge of the officer's official duties.
             772          (2) This section is inapplicable to:
             773          (a) an occasional nonpecuniary gift having a value of less than $50;
             774          (b) an award publicly presented;
             775          (c) any bona fide loan made in the ordinary course of business; or
             776          (d) political campaign contributions actually used in a political campaign.
             777          (3) A member of a county legislative body who is also a member of the governing
             778      board of a provider of mental health or substance abuse services under contract with the county
             779      does not commit an offense under Subsection (1)(a) or (b) by discharging, in good faith, the
             780      duties and responsibilities of each position, if the county legislative body member does not
             781      participate in the process of selecting the mental health or substance abuse service provider.
             782          Section 17. Section 17-43-202 is amended to read:
             783           17-43-202. Local substance abuse authorities -- Requirements prior to
             784      distributing public funds.
             785          (1) Each local substance abuse authority shall award all public funds in compliance
             786      with:
             787          (a) the requirements of Title 63G, Chapter [6] 6a, Utah Procurement Code; or
             788          (b) a county procurement ordinance that requires similar procurement practices.
             789          (2) If all initial bids on the project are rejected, the authority shall publish a new
             790      invitation to bid. If no satisfactory bid is received by the authority when the bids received from
             791      the second invitation are opened, the authority may execute a contract without requiring
             792      competitive bidding.
             793          (3) A local substance abuse authority need not comply with the procurement provisions
             794      of this section when it disburses public funds to another political subdivision of the state or an
             795      institution of higher education of the state.
             796          (4) Each contract awarded by a local substance abuse authority shall be for a fixed
             797      amount and limited period. A contract may be modified due to changes in available funding
             798      for the same contract purpose without competition.
             799          Section 18. Section 17-43-302 is amended to read:
             800           17-43-302. Local mental health authorities -- Requirements prior to distributing


             801      public funds.
             802          (1) Each local mental health authority shall award all public funds by complying with
             803      the requirements of Title 63G, Chapter [6] 6a, Utah Procurement Code, or by complying with a
             804      county procurement ordinance which requires similar procurement practices.
             805          (2) If all initial bids on the project are rejected, the authority shall publish a new
             806      invitation to bid in the manner specified in this section. If no satisfactory bid is received by the
             807      authority when the bids received from the second invitation are opened, the authority may
             808      execute a contract without requiring competitive bidding.
             809          (3) The local mental health authority need not comply with the procurement provisions
             810      of this section when it disburses public funds to another political subdivision of the state or an
             811      institution of higher education of the state.
             812          (4) Each contract awarded by a local mental health authority shall be for a fixed
             813      amount and limited period. A contract may be modified due to changes in available funding
             814      for the same contract purpose without competition.
             815          Section 19. Section 17-53-225 is amended to read:
             816           17-53-225. County legislative body may adopt Utah Procurement Code --
             817      Retention of records.
             818          (1) A county legislative body may adopt any or all of the provisions of Title 63G,
             819      Chapter [6] 6a, Utah Procurement Code, or the rules promulgated pursuant to that code.
             820          (2) Whenever any county is required by law to receive bids for purchases, construction,
             821      repairs, or any other purpose requiring the expenditure of funds, that county shall keep on file
             822      all bids received, together with proof of advertisement by publication or otherwise, for:
             823          (a) at least three years following the letting of any contract pursuant to those bids; or
             824          (b) three years following the first advertisement for the bids, if all bids pursuant to that
             825      advertisement are rejected.
             826          Section 20. Section 17-53-313 is amended to read:
             827           17-53-313. Hiring of professional architect, engineer, or surveyor.
             828          Notwithstanding the adoption of some or all of the provisions of Title 63G, Chapter [6]
             829      6a, Utah Procurement Code, under Section 17-53-225 , each county executive that engages the
             830      services of a professional architect, engineer, or surveyor and considers more than one such
             831      professional for the engagement:


             832          (1) shall consider, as a minimum, in the selection process:
             833          (a) the qualifications, experience, and background of each firm submitting a proposal;
             834          (b) the specific individuals assigned to the project and the time commitments of each to
             835      the project; and
             836          (c) the project schedule and the approach to the project that the firm will take; and
             837          (2) may engage the services of a professional architect, engineer, or surveyor based on
             838      the criteria under Subsection (1) rather than solely on lowest cost.
             839          Section 21. Section 17B-1-108 is amended to read:
             840           17B-1-108. Restrictions on local district procurement of architect-engineer
             841      services.
             842          (1) As used in this section:
             843          (a) "Architect-engineer services" means those professional services within the scope of
             844      the practice of architecture as defined in Section 58-3a-102 .
             845          (b) "Engineer services" means those professional services within the scope of the
             846      practice of professional engineering as defined in Section 58-22-102 .
             847          (2) When a local district elects to obtain architect services or engineering services by
             848      using a competitive procurement process and has provided public notice of its competitive
             849      procurement process:
             850          (a) a higher education entity, or any part of one, may not submit a proposal in response
             851      to the local district's competitive procurement process; and
             852          (b) the local district may not award a contract to perform the architect services or
             853      engineering services solicited in the competitive procurement process to a higher education
             854      entity or any part of one.
             855          (3) Notwithstanding Subsection [ 63G-6-104 (3)(d)] 63G-6a-105 (3), each local district
             856      board that engages the services of a professional architect, engineer, or surveyor and considers
             857      more than one such professional for the engagement:
             858          (a) shall consider, as a minimum, in the selection process:
             859          (i) the qualifications, experience, and background of each firm submitting a proposal;
             860          (ii) the specific individuals assigned to the project and the time commitments of each
             861      to the project; and
             862          (iii) the project schedule and the approach to the project that the firm will take; and


             863          (b) may engage the services of a professional architect, engineer, or surveyor based on
             864      the criteria under Subsection (3)(a) rather than solely on lowest cost.
             865          Section 22. Section 17B-2a-818 is amended to read:
             866           17B-2a-818. Requirements applicable to public transit district contracts.
             867          (1) A public transit district shall comply with the applicable provisions of Title 63G,
             868      Chapter [6] 6a, Utah Procurement Code.
             869          (2) If construction of a district facility or work exceeds $750,000, the construction shall
             870      be let as provided in:
             871          (a) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             872          (b) Section 17B-2a-818.5 .
             873          Section 23. Section 17B-2a-818.5 is amended to read:
             874           17B-2a-818.5. Contracting powers of public transit districts -- Health insurance
             875      coverage.
             876          (1) For purposes of this section:
             877          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             878      34A-2-104 who:
             879          (i) works at least 30 hours per calendar week; and
             880          (ii) meets employer eligibility waiting requirements for health care insurance which
             881      may not exceed the first day of the calendar month following 90 days from the date of hire.
             882          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             883          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             884          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             885          (2) (a) Except as provided in Subsection (3), this section applies to a design or
             886      construction contract entered into by the public transit district on or after July 1, 2009, and to a
             887      prime contractor or to a subcontractor in accordance with Subsection (2)(b).
             888          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             889      amount of $1,500,000 or greater.
             890          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             891      $750,000 or greater.
             892          (3) This section does not apply if:
             893          (a) the application of this section jeopardizes the receipt of federal funds;


             894          (b) the contract is a sole source contract; or
             895          (c) the contract is an emergency procurement.
             896          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             897      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             898      threshold required by Subsection (2).
             899          (b) A person who intentionally uses change orders or contract modifications to
             900      circumvent the requirements of Subsection (2) is guilty of an infraction.
             901          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the public transit
             902      district that the contractor has and will maintain an offer of qualified health insurance coverage
             903      for the contractor's employees and the employee's dependents during the duration of the
             904      contract.
             905          (b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
             906      shall demonstrate to the public transit district that the subcontractor has and will maintain an
             907      offer of qualified health insurance coverage for the subcontractor's employees and the
             908      employee's dependents during the duration of the contract.
             909          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             910      the duration of the contract is subject to penalties in accordance with an ordinance adopted by
             911      the public transit district under Subsection (6).
             912          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             913      requirements of Subsection (5)(b).
             914          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             915      the duration of the contract is subject to penalties in accordance with an ordinance adopted by
             916      the public transit district under Subsection (6).
             917          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             918      requirements of Subsection (5)(a).
             919          (6) The public transit district shall adopt ordinances:
             920          (a) in coordination with:
             921          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             922          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             923          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             924          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ; and


             925          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             926          (b) which establish:
             927          (i) the requirements and procedures a contractor shall follow to demonstrate to the
             928      public transit district compliance with this section which shall include:
             929          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             930      (b) more than twice in any 12-month period; and
             931          (B) that the actuarially equivalent determination required for the qualified health
             932      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             933      department or division with a written statement of actuarial equivalency from either:
             934          (I) the Utah Insurance Department;
             935          (II) an actuary selected by the contractor or the contractor's insurer; or
             936          (III) an underwriter who is responsible for developing the employer group's premium
             937      rates;
             938          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             939      violates the provisions of this section, which may include:
             940          (A) a three-month suspension of the contractor or subcontractor from entering into
             941      future contracts with the public transit district upon the first violation;
             942          (B) a six-month suspension of the contractor or subcontractor from entering into future
             943      contracts with the public transit district upon the second violation;
             944          (C) an action for debarment of the contractor or subcontractor in accordance with
             945      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             946          (D) monetary penalties which may not exceed 50% of the amount necessary to
             947      purchase qualified health insurance coverage for employees and dependents of employees of
             948      the contractor or subcontractor who were not offered qualified health insurance coverage
             949      during the duration of the contract; and
             950          (iii) a website on which the district shall post the benchmark for the qualified health
             951      insurance coverage identified in Subsection (1)(c).
             952          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(b)(ii), a contractor
             953      or subcontractor who intentionally violates the provisions of this section shall be liable to the
             954      employee for health care costs that would have been covered by qualified health insurance
             955      coverage.


             956          (ii) An employer has an affirmative defense to a cause of action under Subsection
             957      (7)(a)(i) if:
             958          (A) the employer relied in good faith on a written statement of actuarial equivalency
             959      provided by an:
             960          (I) actuary; or
             961          (II) underwriter who is responsible for developing the employer group's premium rates;
             962      or
             963          (B) a department or division determines that compliance with this section is not
             964      required under the provisions of Subsection (3) or (4).
             965          (b) An employee has a private right of action only against the employee's employer to
             966      enforce the provisions of this Subsection (7).
             967          (8) Any penalties imposed and collected under this section shall be deposited into the
             968      Medicaid Restricted Account created in Section 26-18-402 .
             969          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             970      coverage as required by this section:
             971          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             972      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             973      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             974          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             975      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             976      or construction.
             977          Section 24. Section 17D-1-106 is amended to read:
             978           17D-1-106. Special service districts subject to other provisions.
             979          (1) A special service district is, to the same extent as if it were a local district, subject
             980      to and governed by:
             981          (a) Sections 17B-1-105 , 17B-1-107 , 17B-1-108 , [ 17B-1-109 ,] 17B-1-110 , 17B-1-111 ,
             982      17B-1-112 , 17B-1-113 , 17B-1-116 , 17B-1-118 , 17B-1-119 , 17B-1-120 , and 17B-1-121 ;
             983          (b) Subsections 17B-1-301 (3) and (4), Sections 17B-1-304 , 17B-1-305 , 17B-1-306 ,
             984      17B-1-307 , 17B-1-310 , 17B-1-312 , 17B-1-313 , and 17B-1-314 ;
             985          (c) Section 20A-1-512 ;
             986          (d) Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts;


             987          (e) Title 17B, Chapter 1, Part 7, Local District Budgets and Audit Reports;
             988          (f) Title 17B, Chapter 1, Part 8, Local District Personnel Management; and
             989          (g) Title 17B, Chapter 1, Part 9, Collection of Service Fees and Charges.
             990          (2) For purposes of applying the provisions listed in Subsection (1) to a special service
             991      district, each reference in those provisions to the local district board of trustees means the
             992      governing body.
             993          Section 25. Section 17D-2-108 is amended to read:
             994           17D-2-108. Other statutory provisions.
             995          (1) This chapter is supplemental to existing laws relating to a local entity's acquisition,
             996      use, maintenance, management, or operation of a project.
             997          (2) Except as provided in this chapter, a local entity or local building authority that
             998      complies with the provisions of this chapter need not comply with any other statutory provision
             999      concerning the acquisition, construction, use, or maintenance of a project, including:
             1000          (a) a statute relating to public bidding; and
             1001          (b) Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1002          (3) A local building authority is, to the same extent as if it were a local district, subject
             1003      to and governed by:
             1004          (a) Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts;
             1005          (b) Title 17B, Chapter 1, Part 8, Local District Personnel Management; and
             1006          (c) Section 17B-1-108 .
             1007          Section 26. Section 19-1-206 is amended to read:
             1008           19-1-206. Contracting powers of department -- Health insurance coverage.
             1009          (1) For purposes of this section:
             1010          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             1011      34A-2-104 who:
             1012          (i) works at least 30 hours per calendar week; and
             1013          (ii) meets employer eligibility waiting requirements for health care insurance which
             1014      may not exceed the first day of the calendar month following 90 days from the date of hire.
             1015          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             1016          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             1017          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .


             1018          (2) (a) Except as provided in Subsection (3), this section applies to a design or
             1019      construction contract entered into by or delegated to the department or a division or board of
             1020      the department on or after July 1, 2009, and to a prime contractor or subcontractor in
             1021      accordance with Subsection (2)(b).
             1022          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             1023      amount of $1,500,000 or greater.
             1024          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             1025      $750,000 or greater.
             1026          (3) This section does not apply to contracts entered into by the department or a division
             1027      or board of the department if:
             1028          (a) the application of this section jeopardizes the receipt of federal funds;
             1029          (b) the contract or agreement is between:
             1030          (i) the department or a division or board of the department; and
             1031          (ii) (A) another agency of the state;
             1032          (B) the federal government;
             1033          (C) another state;
             1034          (D) an interstate agency;
             1035          (E) a political subdivision of this state; or
             1036          (F) a political subdivision of another state;
             1037          (c) the executive director determines that applying the requirements of this section to a
             1038      particular contract interferes with the effective response to an immediate health and safety
             1039      threat from the environment; or
             1040          (d) the contract is:
             1041          (i) a sole source contract; or
             1042          (ii) an emergency procurement.
             1043          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             1044      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             1045      threshold required by Subsection (2).
             1046          (b) A person who intentionally uses change orders or contract modifications to
             1047      circumvent the requirements of Subsection (2) is guilty of an infraction.
             1048          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the executive


             1049      director that the contractor has and will maintain an offer of qualified health insurance
             1050      coverage for the contractor's employees and the employees' dependents during the duration of
             1051      the contract.
             1052          (b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall
             1053      demonstrate to the executive director that the subcontractor has and will maintain an offer of
             1054      qualified health insurance coverage for the subcontractor's employees and the employees'
             1055      dependents during the duration of the contract.
             1056          (c) (i) (A) A contractor who fails to comply with Subsection (5)(a) during the duration
             1057      of the contract is subject to penalties in accordance with administrative rules adopted by the
             1058      department under Subsection (6).
             1059          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             1060      requirements of Subsection (5)(b).
             1061          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             1062      the duration of the contract is subject to penalties in accordance with administrative rules
             1063      adopted by the department under Subsection (6).
             1064          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             1065      requirements of Subsection (5)(a).
             1066          (6) The department shall adopt administrative rules:
             1067          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             1068          (b) in coordination with:
             1069          (i) a public transit district in accordance with Section 17B-2a-818.5 ;
             1070          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             1071          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             1072          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             1073          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             1074          (vi) the Legislature's Administrative Rules Review Committee; and
             1075          (c) which establish:
             1076          (i) the requirements and procedures a contractor shall follow to demonstrate to the
             1077      public transit district compliance with this section that shall include:
             1078          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             1079      (b) more than twice in any 12-month period; and


             1080          (B) that the actuarially equivalent determination required for the qualified health
             1081      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             1082      department or division with a written statement of actuarial equivalency from either:
             1083          (I) the Utah Insurance Department;
             1084          (II) an actuary selected by the contractor or the contractor's insurer; or
             1085          (III) an underwriter who is responsible for developing the employer group's premium
             1086      rates;
             1087          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             1088      violates the provisions of this section, which may include:
             1089          (A) a three-month suspension of the contractor or subcontractor from entering into
             1090      future contracts with the state upon the first violation;
             1091          (B) a six-month suspension of the contractor or subcontractor from entering into future
             1092      contracts with the state upon the second violation;
             1093          (C) an action for debarment of the contractor or subcontractor in accordance with
             1094      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             1095          (D) notwithstanding Section 19-1-303 , monetary penalties which may not exceed 50%
             1096      of the amount necessary to purchase qualified health insurance coverage for an employee and
             1097      the dependents of an employee of the contractor or subcontractor who was not offered qualified
             1098      health insurance coverage during the duration of the contract; and
             1099          (iii) a website on which the department shall post the benchmark for the qualified
             1100      health insurance coverage identified in Subsection (1)(c).
             1101          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c), a contractor or
             1102      subcontractor who intentionally violates the provisions of this section shall be liable to the
             1103      employee for health care costs that would have been covered by qualified health insurance
             1104      coverage.
             1105          (ii) An employer has an affirmative defense to a cause of action under Subsection
             1106      (7)(a)(i) if:
             1107          (A) the employer relied in good faith on a written statement of actuarial equivalency
             1108      provided by:
             1109          (I) an actuary; or
             1110          (II) an underwriter who is responsible for developing the employer group's premium


             1111      rates; or
             1112          (B) the department determines that compliance with this section is not required under
             1113      the provisions of Subsection (3) or (4).
             1114          (b) An employee has a private right of action only against the employee's employer to
             1115      enforce the provisions of this Subsection (7).
             1116          (8) Any penalties imposed and collected under this section shall be deposited into the
             1117      Medicaid Restricted Account created in Section 26-18-402 .
             1118          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             1119      coverage as required by this section:
             1120          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             1121      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             1122      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             1123          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             1124      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             1125      or construction.
             1126          Section 27. Section 20A-11-701 is amended to read:
             1127           20A-11-701. Campaign financial reporting by corporations -- Filing requirements
             1128      -- Statement contents.
             1129          (1) (a) Each corporation that has made expenditures for political purposes that total at
             1130      least $750 during a calendar year shall file a verified financial statement with the lieutenant
             1131      governor's office:
             1132          (i) on January 10, reporting expenditures as of December 31 of the previous year;
             1133          (ii) seven days before the regular primary election date;
             1134          (iii) on August 31; and
             1135          (iv) seven days before the regular general election date.
             1136          (b) The corporation shall report:
             1137          (i) a detailed listing of all expenditures made since the last statement;
             1138          (ii) for financial statements filed under Subsections (1)(a)(ii) through (iv), all
             1139      expenditures as of five days before the required filing date of the financial statement; and
             1140          (iii) whether the corporation, including an officer of the corporation, director of the
             1141      corporation, or person with at least 10% ownership in the corporation:


             1142          (A) has bid since the last financial statement on a contract, as defined in Section
             1143      [ 63G-6-103 ] 63G-6a-103 , in excess of $100,000;
             1144          (B) is currently bidding on a contract, as defined in Section [ 63G-6-103 ] 63G-6a-103 ,
             1145      in excess of $100,000; or
             1146          (C) is a party to a contract, as defined in Section [ 63G-6-103 ] 63G-6a-103 , in excess of
             1147      $100,000.
             1148          (c) The corporation need not file a financial statement under this section if the
             1149      corporation made no expenditures during the reporting period.
             1150          (2) The financial statement shall include:
             1151          (a) the name and address of each reporting entity that received an expenditure from the
             1152      corporation, and the amount of each expenditure;
             1153          (b) the total amount of expenditures disbursed by the corporation; and
             1154          (c) a statement by the corporation's treasurer or chief financial officer certifying the
             1155      accuracy of the financial statement.
             1156          Section 28. Section 26-8a-405.3 is amended to read:
             1157           26-8a-405.3. Use of competitive sealed proposals -- Procedure -- Appeal rights.
             1158          (1) (a) Competitive sealed proposals for paramedic or 911 ambulance services under
             1159      Section 26-8a-405.2 , or for non-911 services under Section 26-8a-405.4 , shall be solicited
             1160      through a request for proposal and the provisions of this section.
             1161          (b) The governing body of the political subdivision shall approve the request for
             1162      proposal prior to the notice of the request for proposals under Subsection (1)(c).
             1163          (c) (i) Notice of the request for proposals shall be published:
             1164          (A) at least once a week for three consecutive weeks in a newspaper of general
             1165      circulation published in the county; or
             1166          (B) if there is no such newspaper, then notice shall be posted for at least 20 days in at
             1167      least five public places in the county; and
             1168          (ii) in accordance with Section 45-1-101 for at least 20 days.
             1169          (2) (a) Proposals shall be opened so as to avoid disclosure of contents to competing
             1170      offerors during the process of negotiations.
             1171          (b) (i) Subsequent to the published notice, and prior to selecting an applicant, the
             1172      political subdivision shall hold a presubmission conference with interested applicants for the


             1173      purpose of assuring full understanding of, and responsiveness to, solicitation requirements.
             1174          (ii) A political subdivision shall allow at least 90 days from the presubmission
             1175      conference for the proposers to submit proposals.
             1176          (c) Subsequent to the presubmission conference, the political subdivision may issue
             1177      addenda to the request for proposals. An addenda to a request for proposal shall be finalized
             1178      and posted by the political subdivision at least 45 days before the day on which the proposal
             1179      must be submitted.
             1180          (d) Offerors to the request for proposals shall be accorded fair and equal treatment with
             1181      respect to any opportunity for discussion and revisions of proposals, and revisions may be
             1182      permitted after submission and before a contract is awarded for the purpose of obtaining best
             1183      and final offers.
             1184          (e) In conducting discussions, there shall be no disclosures of any information derived
             1185      from proposals submitted by competing offerors.
             1186          (3) (a) (i) A political subdivision may select an applicant approved by the department
             1187      under Section 26-8a-404 to provide 911 ambulance or paramedic services by contract to the
             1188      most responsible offeror as defined in [Subsection 63G-6-103 (24)] Section 63G-6a-103 .
             1189          (ii) An award under Subsection (3)(a)(i) shall be made to the responsible offeror whose
             1190      proposal is determined in writing to be the most advantageous to the political subdivision,
             1191      taking into consideration price and the evaluation factors set forth in the request for proposal.
             1192          (b) The applicants who are approved under Section 26-8a-405 and who are selected
             1193      under this section may be the political subdivision issuing the request for competitive sealed
             1194      proposals, or any other public entity or entities, any private person or entity, or any
             1195      combination thereof.
             1196          (c) A political subdivision may reject all of the competitive proposals.
             1197          (4) In seeking competitive sealed proposals and awarding contracts under this section,
             1198      a political subdivision:
             1199          (a) shall apply the public convenience and necessity factors listed in Subsections
             1200      26-8a-408 (2) through (6);
             1201          (b) shall require the applicant responding to the proposal to disclose how the applicant
             1202      will meet performance standards in the request for proposal;
             1203          (c) may not require or restrict an applicant to a certain method of meeting the


             1204      performance standards, including:
             1205          (i) requiring ambulance medical personnel to also be a firefighter; or
             1206          (ii) mandating that offerors use fire stations or dispatch services of the political
             1207      subdivision;
             1208          (d) shall require an applicant to submit the proposal:
             1209          (i) based on full cost accounting in accordance with generally accepted accounting
             1210      principals; and
             1211          (ii) if the applicant is a governmental entity, in addition to the requirements of
             1212      Subsection (4)(e)(i), in accordance with generally accepted government auditing standards and
             1213      in compliance with the State of Utah Legal Compliance Audit Guide; and
             1214          (e) shall set forth in the request for proposal:
             1215          (i) the method for determining full cost accounting in accordance with generally
             1216      accepted accounting principles, and require an applicant to submit the proposal based on such
             1217      full cost accounting principles;
             1218          (ii) guidelines established to further competition and provider accountability; and
             1219          (iii) a list of the factors that will be considered by the political subdivision in the award
             1220      of the contract, including by percentage, the relative weight of the factors established under this
             1221      Subsection (4)(e), which may include such things as:
             1222          (A) response times;
             1223          (B) staging locations;
             1224          (C) experience;
             1225          (D) quality of care; and
             1226          (E) cost, consistent with the cost accounting method in Subsection (4)(e)(i).
             1227          (5) (a) Notwithstanding [the provisions of Subsection 63G-6-104 (3), the] any provision
             1228      of Title 63G, Chapter 6a, Utah Procurement Code, to the contrary, the provisions of Title 63G,
             1229      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code, apply to the
             1230      procurement process required by this section, except as provided in Subsection (5)(c).
             1231          (b) [The Procurement Appeals Board created in Section 63G-6-807 ] An appeals board,
             1232      as defined in Section 63G-6a-103 , shall have jurisdiction to review and determine an appeal of
             1233      an offeror under this section in the same manner as provided in Section [ 63G-6-810 ]
             1234      63G-6a-1703 .


             1235          (c) (i) An offeror may appeal the solicitation or award as provided by the political
             1236      subdivision's procedures. After all political subdivision appeal rights are exhausted, the offeror
             1237      may appeal under the provisions of Subsections (5)(a) and (b).
             1238          (ii) The factual determination required by Subsection [ 63G-6-813 ] 63G-6a-1708 (1)
             1239      shall be based on whether the solicitation or award was made in accordance with the
             1240      procedures set forth in this section and Section 26-8a-405.2 .
             1241          (d) The determination of an issue of fact by the appeals board shall be final and
             1242      conclusive unless arbitrary and capricious or clearly erroneous as provided in Section
             1243      [ 63G-6-813 ] 63G-6a-1708 .
             1244          Section 29. Section 26-8a-405.5 is amended to read:
             1245           26-8a-405.5. Use of competitive sealed proposals -- Procedure -- Appeal rights.
             1246          (1) (a) The department shall issue a request for proposal for non-911 services in a
             1247      geographic service area if the department receives a request from a political subdivision under
             1248      Subsection 26-8a-405.4 (3)(a)(ii)(B) to issue a request for proposal for non-911 services.
             1249          (b) Competitive sealed proposals for non-911 services under Subsection (1)(a) shall be
             1250      solicited through a request for proposal and the provisions of this section.
             1251          (c) (i) Notice of the request for proposals shall be published:
             1252          (A) at least once a week for three consecutive weeks in a newspaper of general
             1253      circulation published in the county; or
             1254          (B) if there is no such newspaper, then notice shall be posted for at least 20 days in at
             1255      least five public places in the county; and
             1256          (ii) in accordance with Section 45-1-101 for at least 20 days.
             1257          (2) (a) Proposals shall be opened so as to avoid disclosure of contents to competing
             1258      offerors during the process of negotiations.
             1259          (b) (i) Subsequent to the published notice, and prior to selecting an applicant, the
             1260      department shall hold a presubmission conference with interested applicants for the purpose of
             1261      assuring full understanding of, and responsiveness to, solicitation requirements.
             1262          (ii) The department shall allow at least 90 days from the presubmission conference for
             1263      the proposers to submit proposals.
             1264          (c) Subsequent to the presubmission conference, the department may issue addenda to
             1265      the request for proposals. An addenda to a request for proposal shall be finalized and posted by


             1266      the department at least 45 days before the day on which the proposal must be submitted.
             1267          (d) Offerors to the request for proposals shall be accorded fair and equal treatment with
             1268      respect to any opportunity for discussion and revisions of proposals, and revisions may be
             1269      permitted after submission and before a contract is awarded for the purpose of obtaining best
             1270      and final offers.
             1271          (e) In conducting discussions, there shall be no disclosures of any information derived
             1272      from proposals submitted by competing offerors.
             1273          (3) (a) (i) The department may select an applicant approved by the department under
             1274      Section 26-8a-404 to provide non-911 services by contract to the most responsible offeror as
             1275      defined in [Subsection 63G-6-103 (24)] Section 63G-6a-103 .
             1276          (ii) An award under Subsection (3)(a)(i) shall be made to the responsible offeror whose
             1277      proposal is determined in writing to be the most advantageous to the public, taking into
             1278      consideration price and the evaluation factors set forth in the request for proposal.
             1279          (b) The applicants who are approved under Section 26-8a-405 and who are selected
             1280      under this section may be the political subdivision responding to the request for competitive
             1281      sealed proposals, or any other public entity or entities, any private person or entity, or any
             1282      combination thereof.
             1283          (c) The department may reject all of the competitive proposals.
             1284          (4) In seeking competitive sealed proposals and awarding contracts under this section,
             1285      the department:
             1286          (a) shall consider the public convenience and necessity factors listed in Subsections
             1287      26-8a-408 (2) through (6);
             1288          (b) shall require the applicant responding to the proposal to disclose how the applicant
             1289      will meet performance standards in the request for proposal;
             1290          (c) may not require or restrict an applicant to a certain method of meeting the
             1291      performance standards, including:
             1292          (i) requiring ambulance medical personnel to also be a firefighter; or
             1293          (ii) mandating that offerors use fire stations or dispatch services of the political
             1294      subdivision;
             1295          (d) shall require an applicant to submit the proposal:
             1296          (i) based on full cost accounting in accordance with generally accepted accounting


             1297      principals; and
             1298          (ii) if the applicant is a governmental entity, in addition to the requirements of
             1299      Subsection (4)(e)(i), in accordance with generally accepted government auditing standards and
             1300      in compliance with the State of Utah Legal Compliance Audit Guide; and
             1301          (e) shall set forth in the request for proposal:
             1302          (i) the method for determining full cost accounting in accordance with generally
             1303      accepted accounting principles, and require an applicant to submit the proposal based on such
             1304      full cost accounting principles;
             1305          (ii) guidelines established to further competition and provider accountability; and
             1306          (iii) a list of the factors that will be considered by the department in the award of the
             1307      contract, including by percentage, the relative weight of the factors established under this
             1308      Subsection (4)(e), which may include such things as:
             1309          (A) response times;
             1310          (B) staging locations;
             1311          (C) experience;
             1312          (D) quality of care; and
             1313          (E) cost, consistent with the cost accounting method in Subsection (4)(e)(i).
             1314          (5) A license issued under this section:
             1315          (a) is for the exclusive geographic service area approved by the department;
             1316          (b) is valid for four years;
             1317          (c) is not subject to a request for license from another applicant under the provisions of
             1318      Sections 26-8a-406 through 26-8a-409 during the four-year term, unless the applicant's license
             1319      is revoked under Section 26-8a-504 ;
             1320          (d) is subject to supervision by the department under Sections 26-8a-503 and
             1321      26-8a-504 ; and
             1322          (e) except as provided in Subsection (4)(a), is not subject to the provisions of Sections
             1323      26-8a-406 through 26-8a-409 .
             1324          Section 30. Section 26-10-8 is amended to read:
             1325           26-10-8. Request for proposal required for non-state supplied services.
             1326          (1) Funds provided to the department through Sections 51-9-201 and 59-14-204 to be
             1327      used to provide services, shall be awarded to non-governmental entities based on a competitive


             1328      process consistent with Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1329          (2) Beginning July 1, 2010, and not more than every five years thereafter, the
             1330      department shall issue requests for proposals for new or renewing contracts to award funding
             1331      for programs under Subsection (1).
             1332          Section 31. Section 26-10b-102 is amended to read:
             1333           26-10b-102. Department to award grants and contracts -- Applications.
             1334          (1) (a) Within appropriations specified by the Legislature for this purpose, the
             1335      department may make grants to public and nonprofit entities for the cost of operation of
             1336      providing primary health care services to medically underserved populations.
             1337          (b) The department may, as funding permits, contract with community based
             1338      organizations for the purpose of developing culturally and linguistically appropriate programs
             1339      and services for low income and medically underserved populations through a pilot program to
             1340      accomplish one or more of the following:
             1341          (i) to educate individuals:
             1342          (A) to use private and public health care coverage programs, products, services, and
             1343      resources in a timely, effective, and responsible manner;
             1344          (B) to make prudent use of private and public health care resources;
             1345          (C) to pursue preventive health care, health screenings, and disease management; and
             1346          (D) to locate health care programs and services;
             1347          (ii) to assist individuals to develop:
             1348          (A) personal health management;
             1349          (B) self-sufficiency in daily care; and
             1350          (C) life and disease management skills;
             1351          (iii) to support translation of health materials and information;
             1352          (iv) to facilitate an individual's access to primary care services and providers, including
             1353      mental health services; and
             1354          (v) to measure and report empirical results of the pilot project.
             1355          (2) (a) Grants by the department shall be awarded based on:
             1356          (i) applications submitted to the department in the manner and form prescribed by the
             1357      department; and
             1358          (ii) the criteria established in Section 26-10b-103 .


             1359          (b) The application for a grant under Subsection (2)(a) shall contain:
             1360          (i) a requested award amount;
             1361          (ii) a budget; and
             1362          (iii) a narrative plan of the manner in which the applicant intends to provide the
             1363      primary health care services described in Subsection 26-10b-101 (7).
             1364          (c) A contract bid for a service under Subsection (1)(b):
             1365          (i) shall be awarded in accordance with Title 63G, Chapter [6] 6a, Utah Procurement
             1366      Code;
             1367          (ii) shall include the information described in Section 26-10b-103 ; and
             1368          (iii) is subject to Subsection (3) [of this section].
             1369          (3) (a) An applicant under this chapter shall demonstrate to the department that the
             1370      applicant will not deny services to a person because of the person's inability to pay for the
             1371      services.
             1372          (b) Subsection (3)(a) does not preclude an applicant from seeking payment from the
             1373      person receiving services, a third party, or a government agency if:
             1374          (i) the applicant is authorized to charge for the services; and
             1375          (ii) the person, third party, or government agency is under legal obligation to pay the
             1376      charges.
             1377          (4) The department shall maximize the use of federal matching funds received for
             1378      services under Subsection (1)(b) to fund additional contracts under Subsection (1)(b).
             1379          Section 32. Section 26-18-2.6 is amended to read:
             1380           26-18-2.6. Dental benefits.
             1381          (1) (a) The division shall establish a competitive bid process to bid out Medicaid dental
             1382      benefits under this chapter.
             1383          (b) The division may bid out the Medicaid dental benefits separately from other
             1384      program benefits.
             1385          (2) The division shall use the following criteria to evaluate dental bids:
             1386          (a) ability to manage dental expenses;
             1387          (b) proven ability to handle dental insurance;
             1388          (c) efficiency of claim paying procedures;
             1389          (d) provider contracting, discounts, and adequacy of network; and


             1390          (e) other criteria established by the department.
             1391          (3) The division shall request bids for the program's benefits:
             1392          (a) in 2011; and
             1393          (b) at least once every five years thereafter.
             1394          (4) The division's contract with dental plans for the program's benefits shall include
             1395      risk sharing provisions in which the dental plan must accept 100% of the risk for any difference
             1396      between the division's premium payments per client and actual dental expenditures.
             1397          (5) The division may not award contracts to:
             1398          (a) more than three responsive bidders under this section; or
             1399          (b) an insurer that does not have a current license in the state.
             1400          (6) (a) The division may cancel the request for proposals if:
             1401          (i) there are no responsive bidders; or
             1402          (ii) the division determines that accepting the bids would increase the program's costs.
             1403          (b) If the division cancels the request for proposals under Subsection (6)(a), the
             1404      division shall report to the Health and Human Services Committee regarding the reasons for
             1405      the decision.
             1406          (7) Title 63G, Chapter [6] 6a, Utah Procurement Code, shall apply to this section.
             1407          Section 33. Section 26-40-110 is amended to read:
             1408           26-40-110. Managed care -- Contracting for services.
             1409          (1) Program benefits provided to enrollees under the program, as described in Section
             1410      26-40-106 , shall be delivered in a managed care system if the department determines that
             1411      adequate services are available where the enrollee lives or resides.
             1412          (2) (a) The department shall use the following criteria to evaluate bids from health
             1413      plans:
             1414          (i) ability to manage medical expenses, including mental health costs;
             1415          (ii) proven ability to handle accident and health insurance;
             1416          (iii) efficiency of claim paying procedures;
             1417          (iv) proven ability for managed care and quality assurance;
             1418          (v) provider contracting and discounts;
             1419          (vi) pharmacy benefit management;
             1420          (vii) an estimate of total charges for administering the pool;


             1421          (viii) ability to administer the pool in a cost-efficient manner;
             1422          (ix) the ability to provide adequate providers and services in the state; and
             1423          (x) other criteria established by the department.
             1424          (b) The dental benefits required by Section 26-40-106 may be bid out separately from
             1425      other program benefits.
             1426          (c) Except for dental benefits, the department shall request bids for the program's
             1427      benefits in 2008. The department shall request bids for the program's dental benefits in 2009.
             1428      The department shall request bids for the program's benefits at least once every five years
             1429      thereafter.
             1430          (d) The department's contract with health plans for the program's benefits shall include
             1431      risk sharing provisions in which the health plan shall accept at least 75% of the risk for any
             1432      difference between the department's premium payments per client and actual medical
             1433      expenditures.
             1434          (3) The executive director shall report to and seek recommendations from the Health
             1435      Advisory Council created in Section 26-1-7.5 :
             1436          (a) if the division receives less than two bids or proposals under this section that are
             1437      acceptable to the division or responsive to the bid; and
             1438          (b) before awarding a contract to a managed care system.
             1439          (4) (a) The department shall award contracts to responsive bidders if the department
             1440      determines that a bid is acceptable and meets the criteria of Subsections (2)(a) and (d).
             1441          (b) The department may contract with the Group Insurance Division within the Utah
             1442      State Retirement Office to provide services under Subsection (1) if:
             1443          (i) the executive director seeks the recommendation of the Health Advisory Council
             1444      under Subsection (3); and
             1445          (ii) the executive director determines that the bids were not acceptable to the
             1446      department.
             1447          (c) In accordance with Section 49-20-201 , a contract awarded under Subsection (4)(b)
             1448      is not subject to the risk sharing required by Subsection (2)(d).
             1449          (5) Title 63G, Chapter [6] 6a, Utah Procurement Code, shall apply to this section.
             1450          Section 34. Section 30-3-11.3 is amended to read:
             1451           30-3-11.3. Mandatory educational course for divorcing parents -- Purpose --


             1452      Curriculum -- Exceptions.
             1453          (1) The Judicial Council shall approve and implement a mandatory course for
             1454      divorcing parents in all judicial districts. The mandatory course is designed to educate and
             1455      sensitize divorcing parties to their children's needs both during and after the divorce process.
             1456          (2) The Judicial Council shall adopt rules to implement and administer this program.
             1457          (3) As a prerequisite to receiving a divorce decree, both parties are required to attend a
             1458      mandatory course on their children's needs after filing a complaint for divorce and receiving a
             1459      docket number, unless waived under Section 30-3-4 . If that requirement is waived, the court
             1460      may permit the divorce action to proceed.
             1461          (4) The court may require unmarried parents to attend this educational course when
             1462      those parents are involved in a visitation or custody proceeding before the court.
             1463          (5) The mandatory course shall instruct both parties:
             1464          (a) about divorce and its impacts on:
             1465          (i) their child or children;
             1466          (ii) their family relationship; and
             1467          (iii) their financial responsibilities for their child or children; and
             1468          (b) that domestic violence has a harmful effect on children and family relationships.
             1469          (6) The Administrative Office of the Courts shall administer the course pursuant to
             1470      Title 63G, Chapter [6] 6a, Utah Procurement Code, through private or public contracts and
             1471      organize the program in each of Utah's judicial districts. The contracts shall provide for the
             1472      recoupment of administrative expenses through the costs charged to individual parties,
             1473      pursuant to Subsection (8).
             1474          (7) A certificate of completion constitutes evidence to the court of course completion
             1475      by the parties.
             1476          (8) (a) Each party shall pay the costs of the course to the independent contractor
             1477      providing the course at the time and place of the course. A fee of $8 shall be collected, as part
             1478      of the course fee paid by each participant, and deposited in the Children's Legal Defense
             1479      Account, described in Section 51-9-408 .
             1480          (b) Each party who is unable to pay the costs of the course may attend the course
             1481      without payment upon a prima facie showing of impecuniosity as evidenced by an affidavit of
             1482      impecuniosity filed in the district court. In those situations, the independent contractor shall be


             1483      reimbursed for its costs from the appropriation to the Administrative Office of the Courts for
             1484      "Mandatory Educational Course for Divorcing Parents Program." Before a decree of divorce
             1485      may be entered, the court shall make a final review and determination of impecuniosity and
             1486      may order the payment of the costs if so determined.
             1487          (9) Appropriations from the General Fund to the Administrative Office of the Courts
             1488      for the "Mandatory Educational Course for Divorcing Parents Program" shall be used to pay
             1489      the costs of an indigent parent who makes a showing as provided in Subsection (8)(b).
             1490          (10) The Administrative Office of the Courts shall adopt a program to evaluate the
             1491      effectiveness of the mandatory educational course. Progress reports shall be provided if
             1492      requested by the Judiciary Interim Committee.
             1493          Section 35. Section 30-3-11.4 is amended to read:
             1494           30-3-11.4. Mandatory orientation course for divorcing parties -- Purpose --
             1495      Curriculum -- Exceptions.
             1496          (1) There is established a mandatory divorce orientation course for all parties with
             1497      minor children who file a petition for temporary separation or for a divorce. A couple with no
             1498      minor children are not required, but may choose to attend the course. The purpose of the
             1499      course shall be to educate parties about the divorce process and reasonable alternatives.
             1500          (2) A petitioner shall attend a divorce orientation course no more than 60 days after
             1501      filing a petition for divorce.
             1502          (3) The respondent shall attend the divorce orientation course no more than 30 days
             1503      after being served with a petition for divorce.
             1504          (4) The clerk of the court shall provide notice to a petitioner of the requirement for the
             1505      course, and information regarding the course shall be included with the petition or motion,
             1506      when served on the respondent.
             1507          (5) The divorce orientation course shall be neutral, unbiased, at least one hour in
             1508      duration, and include:
             1509          (a) options available as alternatives to divorce;
             1510          (b) resources available from courts and administrative agencies for resolving custody
             1511      and support issues without filing for divorce;
             1512          (c) resources available to improve or strengthen the marriage;
             1513          (d) a discussion of the positive and negative consequences of divorce;


             1514          (e) a discussion of the process of divorce;
             1515          (f) options available for proceeding with a divorce, including:
             1516          (i) mediation;
             1517          (ii) collaborative law; and
             1518          (iii) litigation; and
             1519          (g) a discussion of post-divorce resources.
             1520          (6) The course may be provided in conjunction with the mandatory course for
             1521      divorcing parents required by Section 30-3-11.3 .
             1522          (7) The Administrative Office of the Courts shall administer the course pursuant to
             1523      Title 63G, Chapter [6] 6a, Utah Procurement Code, through private or public contracts.
             1524          (8) Each participant shall pay the costs of the course, which may not exceed $20, to the
             1525      independent contractor providing the course at the time and place of the course.
             1526          (a) A fee of $5 shall be collected, as part of the course fee paid by each participant, and
             1527      deposited in the Children's Legal Defense Account described in Section 51-9-408 .
             1528          (b) A participant who is unable to pay the costs of the course may attend without
             1529      payment and request an Affidavit of Impecuniosity from the provider to be filed with the
             1530      petition or motion. The provider shall be reimbursed for its costs by the Administrative Office
             1531      of the Courts. A petitioner who is later determined not to meet the qualifications for
             1532      impecuniosity may be ordered to pay the costs of the course.
             1533          (9) Appropriations from the General Fund to the Administrative Office of the Courts
             1534      for the divorce orientation course shall be used to pay the costs of an indigent petitioner who is
             1535      determined to be impecunious as provided in Subsection (8)(b).
             1536          (10) The Online Court Assistance Program shall include instructions with the forms for
             1537      divorce which inform the petitioner of the requirement of this section.
             1538          (11) Both parties shall attend a divorce orientation course before a divorce decree may
             1539      be entered, unless waived by the court. A certificate of completion constitutes evidence to the
             1540      court of course completion by the parties.
             1541          (12) It shall be an affirmative defense in all divorce actions that the divorce orientation
             1542      requirement was not complied with, and the action may not continue until a party has
             1543      complied.
             1544          (13) The Administrative Office of the Courts shall adopt a program to evaluate the


             1545      effectiveness of the mandatory educational course. Progress reports shall be provided if
             1546      requested by the Judiciary Interim Committee.
             1547          Section 36. Section 30-3-38 is amended to read:
             1548           30-3-38. Expedited Parent-time Enforcement Program.
             1549          (1) There is established an Expedited Parent-time Enforcement Program in the third
             1550      judicial district to be administered by the Administrative Office of the Courts.
             1551          (2) As used in this section:
             1552          (a) "Mediator" means a person who:
             1553          (i) is qualified to mediate parent-time disputes under criteria established by the
             1554      Administrative Office of the Courts; and
             1555          (ii) agrees to follow billing guidelines established by the Administrative Office of the
             1556      Courts and this section.
             1557          (b) "Services to facilitate parent-time" or "services" means services designed to assist
             1558      families in resolving parent-time problems through:
             1559          (i) counseling;
             1560          (ii) supervised parent-time;
             1561          (iii) neutral drop-off and pick-up;
             1562          (iv) educational classes; and
             1563          (v) other related activities.
             1564          (3) (a) If a parent files a motion in the third district court alleging that court-ordered
             1565      parent-time rights are being violated, the clerk of the court, after assigning the case to a judge,
             1566      shall refer the case to the administrator of this program for assignment to a mediator, unless a
             1567      parent is incarcerated or otherwise unavailable. Unless the court rules otherwise, a parent
             1568      residing outside of the state is not unavailable. The director of the program for the courts, the
             1569      court, or the mediator may excuse either party from the requirement to mediate for good cause.
             1570          (b) Upon receipt of a case, the mediator shall:
             1571          (i) meet with the parents to address parent-time issues within 15 days of the motion
             1572      being filed;
             1573          (ii) assess the situation;
             1574          (iii) facilitate an agreement on parent-time between the parents; and
             1575          (iv) determine whether a referral to a service provider under Subsection (3)(c) is


             1576      warranted.
             1577          (c) While a case is in mediation, a mediator may refer the parents to a service provider
             1578      designated by the Department of Human Services for services to facilitate parent-time if:
             1579          (i) the services may be of significant benefit to the parents; or
             1580          (ii) (A) a mediated agreement between the parents is unlikely; and
             1581          (B) the services may facilitate an agreement.
             1582          (d) At any time during mediation, a mediator shall terminate mediation and transfer the
             1583      case to the administrator of the program for referral to the judge or court commissioner to
             1584      whom the case was assigned under Subsection (3)(a) if:
             1585          (i) a written agreement between the parents is reached; or
             1586          (ii) the parents are unable to reach an agreement through mediation and:
             1587          (A) the parents have received services to facilitate parent-time;
             1588          (B) both parents object to receiving services to facilitate parent-time; or
             1589          (C) the parents are unlikely to benefit from receiving services to facilitate parent-time.
             1590          (e) Upon receiving a case from the administrator of the program, a judge or court
             1591      commissioner may:
             1592          (i) review the agreement of the parents and, if acceptable, sign it as an order;
             1593          (ii) order the parents to receive services to facilitate parent-time;
             1594          (iii) proceed with the case; or
             1595          (iv) take other appropriate action.
             1596          (4) (a) If a parent makes a particularized allegation of physical or sexual abuse of a
             1597      child who is the subject of a parent-time order against the other parent or a member of the other
             1598      parent's household to a mediator or service provider, the mediator or service provider shall
             1599      immediately report that information to:
             1600          (i) the judge assigned to the case who may immediately issue orders and take other
             1601      appropriate action to resolve the allegation and protect the child; and
             1602          (ii) the Division of Child and Family Services within the Department of Human
             1603      Services in the manner required by Title 62A, Chapter 4a, Part 4, Child Abuse or Neglect
             1604      Reporting Requirements.
             1605          (b) If an allegation under Subsection (4)(a) is made against a parent with parent-time
             1606      rights or a member of that parent's household, parent-time by that parent shall, pursuant to an


             1607      order of the court, be supervised until:
             1608          (i) the allegation has been resolved; or
             1609          (ii) a court orders otherwise.
             1610          (c) Notwithstanding an allegation under Subsection (4)(a), a mediator may continue to
             1611      mediate parent-time problems and a service provider may continue to provide services to
             1612      facilitate parent-time unless otherwise ordered by a court.
             1613          (5) (a) The Department of Human Services may contract with one or more entities in
             1614      accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code, to provide:
             1615          (i) services to facilitate parent-time;
             1616          (ii) case management services; and
             1617          (iii) administrative services.
             1618          (b) An entity who contracts with the Department of Human Services under Subsection
             1619      (5)(a) shall:
             1620          (i) be qualified to provide one or more of the services listed in Subsection (5)(a); and
             1621          (ii) agree to follow billing guidelines established by the Department of Human Services
             1622      and this section.
             1623          (6) (a) Except as provided in Subsection (6)(b), the cost of mediation shall be:
             1624          (i) reduced to a sum certain;
             1625          (ii) divided equally between the parents; and
             1626          (iii) charged against each parent taking into account the ability of that parent to pay
             1627      under billing guidelines adopted in accordance with this section.
             1628          (b) A judge may order a parent to pay an amount in excess of that provided for in
             1629      Subsection (6)(a) if the parent:
             1630          (i) failed to participate in good faith in mediation or services to facilitate parent-time;
             1631      or
             1632          (ii) made an unfounded assertion or claim of physical or sexual abuse of a child.
             1633          (c) (i) The cost of mediation and services to facilitate parent-time may be charged to
             1634      parents at periodic intervals.
             1635          (ii) Mediation and services to facilitate parent-time may only be terminated on the
             1636      ground of nonpayment if both parents are delinquent.
             1637          (7) (a) The Judicial Council may make rules to implement and administer the


             1638      provisions of this program related to mediation.
             1639          (b) The Department of Human Services may make rules to implement and administer
             1640      the provisions of this program related to services to facilitate parent-time.
             1641          (8) (a) The Administrative Office of the Courts shall adopt outcome measures to
             1642      evaluate the effectiveness of the mediation component of this program. Progress reports shall
             1643      be provided to the Judiciary Interim Committee as requested by the committee.
             1644          (b) The Department of Human Services shall adopt outcome measures to evaluate the
             1645      effectiveness of the services component of this program. Progress reports shall be provided to
             1646      the Judiciary Interim Committee as requested by the committee.
             1647          (c) The Administrative Office of the Courts and the Department of Human Services
             1648      may adopt joint outcome measures and file joint reports to satisfy the requirements of
             1649      Subsections (7)(a) and (b).
             1650          (9) The Department of Human Services shall, by following the procedures and
             1651      requirements of Title 63J, Chapter 5, Federal Funds Procedures, apply for federal funds as
             1652      available.
             1653          Section 37. Section 31A-29-110 is amended to read:
             1654           31A-29-110. Pool administrator -- Selection -- Powers.
             1655          (1) The board shall select a pool administrator in accordance with Title 63G, Chapter
             1656      [6] 6a, Utah Procurement Code. The board shall evaluate bids based on criteria established by
             1657      the board, which shall include:
             1658          (a) ability to manage medical expenses;
             1659          (b) proven ability to handle accident and health insurance;
             1660          (c) efficiency of claim paying procedures;
             1661          (d) marketing and underwriting;
             1662          (e) proven ability for managed care and quality assurance;
             1663          (f) provider contracting and discounts;
             1664          (g) pharmacy benefit management;
             1665          (h) an estimate of total charges for administering the pool; and
             1666          (i) ability to administer the pool in a cost-efficient manner.
             1667          (2) A pool administrator may be:
             1668          (a) a health insurer;


             1669          (b) a health maintenance organization;
             1670          (c) a third-party administrator; or
             1671          (d) any person or entity which has demonstrated ability to meet the criteria in
             1672      Subsection (1).
             1673          (3) (a) The pool administrator shall serve for a period of three years, with two one-year
             1674      extension options, subject to the terms, conditions, and limitations of the contract between the
             1675      board and the administrator.
             1676          (b) At least one year prior to the expiration of the contract between the board and the
             1677      pool administrator, the board shall invite all interested parties, including the current pool
             1678      administrator, to submit bids to serve as the pool administrator.
             1679          (c) Selection of the pool administrator for a succeeding period shall be made at least
             1680      six months prior to the expiration of the period of service under Subsection (3)(a).
             1681          (4) The pool administrator is responsible for all operational functions of the pool and
             1682      shall:
             1683          (a) have access to all nonpatient specific experience data, statistics, treatment criteria,
             1684      and guidelines compiled or adopted by the Medicaid program, the Public Employees Health
             1685      Plan, the Department of Health, or the Insurance Department, and which are not otherwise
             1686      declared by statute to be confidential;
             1687          (b) perform all marketing, eligibility, enrollment, member agreements, and
             1688      administrative claim payment functions relating to the pool;
             1689          (c) establish, administer, and operate a monthly premium billing procedure for
             1690      collection of premiums from enrollees;
             1691          (d) perform all necessary functions to assure timely payment of benefits to enrollees,
             1692      including:
             1693          (i) making information available relating to the proper manner of submitting a claim
             1694      for benefits to the pool administrator and distributing forms upon which submission shall be
             1695      made; and
             1696          (ii) evaluating the eligibility of each claim for payment by the pool;
             1697          (e) submit regular reports to the board regarding the operation of the pool, the
             1698      frequency, content, and form of which reports shall be determined by the board;
             1699          (f) following the close of each calendar year, determine net written and earned


             1700      premiums, the expense of administration, and the paid and incurred losses for the year and
             1701      submit a report of this information to the board, the commissioner, and the Division of Finance
             1702      on a form prescribed by the commissioner; and
             1703          (g) be paid as provided in the plan of operation for expenses incurred in the
             1704      performance of the pool administrator's services.
             1705          Section 38. Section 31A-29-111 is amended to read:
             1706           31A-29-111. Eligibility -- Limitations.
             1707          (1) (a) Except as provided in Subsection (1)(b), an individual who is not HIPAA
             1708      eligible is eligible for pool coverage if the individual:
             1709          (i) pays the established premium;
             1710          (ii) is a resident of this state; and
             1711          (iii) meets the health underwriting criteria under Subsection (5)(a).
             1712          (b) Notwithstanding Subsection (1)(a), an individual who is not HIPAA eligible is not
             1713      eligible for pool coverage if one or more of the following conditions apply:
             1714          (i) the individual is eligible for health care benefits under Medicaid or Medicare,
             1715      except as provided in Section 31A-29-112 ;
             1716          (ii) the individual has terminated coverage in the pool, unless:
             1717          (A) 12 months have elapsed since the termination date; or
             1718          (B) the individual demonstrates that creditable coverage has been involuntarily
             1719      terminated for any reason other than nonpayment of premium;
             1720          (iii) the pool has paid the maximum lifetime benefit to or on behalf of the individual;
             1721          (iv) the individual is an inmate of a public institution;
             1722          (v) the individual is eligible for a public health plan, as defined in federal regulations
             1723      adopted pursuant to 42 U.S.C. 300gg;
             1724          (vi) the individual's health condition does not meet the criteria established under
             1725      Subsection (5);
             1726          (vii) the individual is eligible for coverage under an employer group that offers a health
             1727      benefit plan or a self-insurance arrangement to its eligible employees, dependents, or members
             1728      as:
             1729          (A) an eligible employee;
             1730          (B) a dependent of an eligible employee; or


             1731          (C) a member;
             1732          (viii) the individual is covered under any other health benefit plan;
             1733          (ix) at the time of application, the individual has not resided in Utah for at least 12
             1734      consecutive months preceding the date of application; or
             1735          (x) the individual's employer pays any part of the individual's health benefit plan
             1736      premium, either as an insured or a dependent, for pool coverage.
             1737          (2) (a) Except as provided in Subsection (2)(b), an individual who is HIPAA eligible is
             1738      eligible for pool coverage if the individual:
             1739          (i) pays the established premium; and
             1740          (ii) is a resident of this state.
             1741          (b) Notwithstanding Subsection (2)(a), a HIPAA eligible individual is not eligible for
             1742      pool coverage if one or more of the following conditions apply:
             1743          (i) the individual is eligible for health care benefits under Medicaid or Medicare,
             1744      except as provided in Section 31A-29-112 ;
             1745          (ii) the individual is eligible for a public health plan, as defined in federal regulations
             1746      adopted pursuant to 42 U.S.C. 300gg;
             1747          (iii) the individual is covered under any other health benefit plan;
             1748          (iv) the individual is eligible for coverage under an employer group that offers a health
             1749      benefit plan or self-insurance arrangements to its eligible employees, dependents, or members
             1750      as:
             1751          (A) an eligible employee;
             1752          (B) a dependent of an eligible employee; or
             1753          (C) a member;
             1754          (v) the pool has paid the maximum lifetime benefit to or on behalf of the individual;
             1755          (vi) the individual is an inmate of a public institution; or
             1756          (vii) the individual's employer pays any part of the individual's health benefit plan
             1757      premium, either as an insured or a dependent, for pool coverage.
             1758          (3) (a) Notwithstanding Subsection (1)(b)(ix), if otherwise eligible under Subsection
             1759      (1)(a), an individual whose health care insurance coverage from a state high risk pool with
             1760      similar coverage is terminated because of nonresidency in another state is eligible for coverage
             1761      under the pool subject to the conditions of Subsections (1)(b)(i) through (viii).


             1762          (b) Coverage sought under Subsection (3)(a) shall be applied for within 63 days after
             1763      the termination date of the previous high risk pool coverage.
             1764          (c) The effective date of this state's pool coverage shall be the date of termination of
             1765      the previous high risk pool coverage.
             1766          (d) The waiting period of an individual with a preexisting condition applying for
             1767      coverage under this chapter shall be waived:
             1768          (i) to the extent to which the waiting period was satisfied under a similar plan from
             1769      another state; and
             1770          (ii) if the other state's benefit limitation was not reached.
             1771          (4) (a) If an eligible individual applies for pool coverage within 30 days of being
             1772      denied coverage by an individual carrier, the effective date for pool coverage shall be no later
             1773      than the first day of the month following the date of submission of the completed insurance
             1774      application to the carrier.
             1775          (b) Notwithstanding Subsection (4)(a), for individuals eligible for coverage under
             1776      Subsection (3), the effective date shall be the date of termination of the previous high risk pool
             1777      coverage.
             1778          (5) (a) The board shall establish and adjust, as necessary, health underwriting criteria
             1779      based on:
             1780          (i) health condition; and
             1781          (ii) expected claims so that the expected claims are anticipated to remain within
             1782      available funding.
             1783          (b) The board, with approval of the commissioner, may contract with one or more
             1784      providers under Title 63G, Chapter [6] 6a, Utah Procurement Code, to develop underwriting
             1785      criteria under Subsection (5)(a).
             1786          (c) If an individual is denied coverage by the pool under the criteria established in
             1787      Subsection (5)(a), the pool shall issue a certificate of insurability to the individual for coverage
             1788      under Subsection 31A-30-108 (3).
             1789          Section 39. Section 31A-33-104 is amended to read:
             1790           31A-33-104. Workers' Compensation Fund exempted.
             1791          (1) The Workers' Compensation Fund is exempt from the provisions of:
             1792          (a) Title 52, Chapter 4, Open and Public Meetings Act;


             1793          (b) Title 63G, Chapter 2, Government Records Access and Management Act; and
             1794          (c) Title 63A, Utah Administrative Services Code.
             1795          (2) The board may specifically exempt the Workers' Compensation Fund from any
             1796      provisions of:
             1797          (a) Title 67, Chapter 19, Utah State Personnel Management Act; and
             1798          (b) Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1799          (3) The provisions of Title 63G, Chapter 4, Administrative Procedures Act, do not
             1800      govern the initial determination of any person's eligibility for benefits under Title 34A, Chapter
             1801      2, Workers' Compensation Act, and Title 34A, Chapter 3, Utah Occupational Disease Act.
             1802          Section 40. Section 31A-33-107 is amended to read:
             1803           31A-33-107. Duties of board -- Creation of subsidiaries -- Entering into joint
             1804      enterprises.
             1805          (1) The board shall:
             1806          (a) appoint a chief executive officer to administer the Workers' Compensation Fund;
             1807          (b) receive and act upon financial, management, and actuarial reports covering the
             1808      operations of the Workers' Compensation Fund;
             1809          (c) ensure that the Workers' Compensation Fund is administered according to law;
             1810          (d) examine and approve an annual operating budget for the Workers' Compensation
             1811      Fund;
             1812          (e) serve as investment trustees and fiduciaries of the Injury Fund;
             1813          (f) receive and act upon recommendations of the chief executive officer;
             1814          (g) develop broad policy for the long-term operation of the Workers' Compensation
             1815      Fund, consistent with its mission and fiduciary responsibility;
             1816          (h) subject to Chapter 19a, Part 4, Workers' Compensation Rates, approve any rating
             1817      plans that would modify a policyholder's premium;
             1818          (i) subject to Chapter 19a, Part 4, Workers' Compensation Rates, approve the amount
             1819      of deviation, if any, from standard insurance rates;
             1820          (j) approve the amount of the dividends, if any, to be returned to policyholders;
             1821          (k) adopt a procurement policy consistent with the provisions of Title 63G, Chapter [6]
             1822      6a, Utah Procurement Code;
             1823          (l) develop and publish an annual report to policyholders, the governor, the Legislature,


             1824      and interested parties that describes the financial condition of the Injury Fund, including a
             1825      statement of expenses and income and what measures were taken or will be necessary to keep
             1826      the Injury Fund actuarially sound;
             1827          (m) establish a fiscal year;
             1828          (n) determine and establish an actuarially sound price for insurance offered by the
             1829      fund;
             1830          (o) establish conflict of interest requirements that govern the board, officers, and
             1831      employees;
             1832          (p) establish compensation and reasonable expenses to be paid to directors on the board
             1833      subject to the requirements of Section 31A-33-106 , so that the board may not approve
             1834      compensation that exceeds the amount described in Subsection 31A-33-106 (18)(a)(i)(B); and
             1835          (q) perform all other acts necessary for the policymaking and oversight of the Workers'
             1836      Compensation Fund.
             1837          (2) Subject to board review and its responsibilities under Subsection (1)(e), the board
             1838      may delegate authority to make daily investment decisions.
             1839          (3) The fund may form or acquire a subsidiary or enter into a joint enterprise:
             1840          (a) only if that action is approved by the board; and
             1841          (b) subject to the limitations in Section 31A-33-103.5 .
             1842          Section 41. Section 34A-2-203 is amended to read:
             1843           34A-2-203. Payment of premiums for workers' compensation.
             1844          (1) Until June 30, 2007, a department, commission, board, or other agency of the state
             1845      shall pay the insurance premium on its employees direct to the Workers' Compensation Fund.
             1846          (2) Beginning July 1, 2007, the state shall secure the payment of workers'
             1847      compensation benefits for its employees:
             1848          (a) by:
             1849          (i) insuring, and keeping insured, the payment of this compensation with the Workers'
             1850      Compensation Fund;
             1851          (ii) insuring, and keeping insured, the payment of this compensation with any stock
             1852      corporation or mutual association authorized to transact the business of workers' compensation
             1853      insurance in this state; or
             1854          (iii) paying direct compensation as a self-insured employer in the amount, in the


             1855      manner, and when due as provided for in this chapter or Chapter 3, Utah Occupational Disease
             1856      Act;
             1857          (b) in accordance with Title 63A, Chapter 4, Risk Management; and
             1858          (c) subject to Subsection (3).
             1859          (3) (a) If the state determines to secure the payment of workers' compensation benefits
             1860      for its employees by paying direct compensation as a self-insured employer in the amount, in
             1861      the manner, and due as provided for in this chapter or Chapter 3, Utah Occupational Disease
             1862      Act, the state is:
             1863          (i) exempt from Section 34A-2-202.5 and Subsection 34A-2-704 (14); and
             1864          (ii) required to pay a premium assessment as provided in Section 34A-2-202 .
             1865          (b) If the state chooses to pay workers' compensation benefits for its employees
             1866      through insuring under Subsection (2)(a)(i) or (ii), the state shall obtain that insurance in
             1867      accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code.
             1868          Section 42. Section 35A-5-202 is amended to read:
             1869           35A-5-202. Contracts with providers.
             1870          (1) In compliance with Title 63G, Chapter [6] 6a, Utah Procurement Code, the
             1871      department shall enter into a contract with one or more qualified providers to implement the
             1872      workforce improvement plan created under Section 35A-5-201 .
             1873          (2) A contract entered into under this section shall be:
             1874          (a) performance based; and
             1875          (b) structured so that the provider receives reimbursement based on:
             1876          (i) job development;
             1877          (ii) participant placement in jobs;
             1878          (iii) wages and benefits provided; and
             1879          (iv) participant retention in jobs over at least a 12-month period.
             1880          (3) If the department determines through the procurement process that there are no
             1881      qualified providers to implement the workforce improvement plan, the department may
             1882      implement the plan.
             1883          Section 43. Section 38-1-30 is amended to read:
             1884           38-1-30. Third party contract -- Designated agent.
             1885          (1) The division shall contract in accordance with Title 63G, Chapter [6] 6a, Utah


             1886      Procurement Code, with a third party to establish and maintain the database for the purposes
             1887      established under this section, Section 38-1-27 , and Sections 38-1-31 through 38-1-36 .
             1888          (2) (a) The third party under contract under this section is the division's designated
             1889      agent, and shall develop and maintain a database from the information provided by:
             1890          (i) local government entities issuing building permits;
             1891          (ii) original contractors;
             1892          (iii) subcontractors; and
             1893          (iv) other interested persons.
             1894          (b) The database shall accommodate filings by third parties on behalf of clients.
             1895          (c) The division and the designated agent shall design, develop, and test the database
             1896      for full implementation on May 1, 2005.
             1897          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1898      division shall make rules and develop procedures for:
             1899          (a) the division to oversee and enforce this section, Section 38-1-27 , and Sections
             1900      38-1-31 through 38-1-36 ;
             1901          (b) the designated agent to administer this section, Section 38-1-27 , and Sections
             1902      38-1-31 through 38-1-36 ; and
             1903          (c) the form of submission of an alternate filing, which may include procedures for
             1904      rejecting an illegible or incomplete filing.
             1905          (4) (a) The designated agent shall archive computer data files at least semiannually for
             1906      auditing purposes.
             1907          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1908      division shall make rules to allow the designated agent to periodically archive projects from the
             1909      database.
             1910          (c) A project shall be archived no earlier than:
             1911          (i) one year after the day on which a notice of completion is filed for a project;
             1912          (ii) if no notice of completion is filed, two years after the last filing activity for a
             1913      project; or
             1914          (iii) one year after the day on which a filing is cancelled under Subsection
             1915      38-1-32 (6)(c) or 38-1-33 (2)(c).
             1916          (d) The division may audit the designated agent's administration of the database as


             1917      often as the division considers necessary.
             1918          (5) The designated agent shall carry errors and omissions insurance in the amounts
             1919      established by rule made by the division in accordance with Title 63G, Chapter 3, Utah
             1920      Administrative Rulemaking Act.
             1921          (6) (a) The designated agent shall make reasonable efforts to assure the accurate entry
             1922      into the database of information provided in alternate filings.
             1923          (b) The designated agent shall meet or exceed standards established by the division for
             1924      the accuracy of data entry for alternate filings.
             1925          (7) The designated agent is not liable for the correctness of the information contained
             1926      in an alternate filing it enters into the database.
             1927          Section 44. Section 38-1-39 is amended to read:
             1928           38-1-39. Waiver or impairment of a lien right -- Forms -- Scope.
             1929          (1) As used in this section:
             1930          (a) "Check" means a payment instrument on a depository institution including:
             1931          (i) a check;
             1932          (ii) a draft;
             1933          (iii) an order; or
             1934          (iv) other instrument.
             1935          (b) "Depository institution" is as defined in Section 7-1-103 .
             1936          (c) "Lien claimant" means a person that claims a lien under this chapter.
             1937          (d) "Receives payment" means, in the case of a restrictive endorsement, a payee has
             1938      endorsed a check and the check is presented to and paid by the depository institution on which
             1939      it is drawn.
             1940          (2) Notwithstanding Section 38-1-29 , a written consent given by a lien claimant that
             1941      waives or limits the lien claimant's lien rights is enforceable only if the lien claimant:
             1942          (a) (i) executes a waiver and release that is signed by the lien claimant or the lien
             1943      claimant's authorized agent; or
             1944          (ii) for a restrictive endorsement on a check, includes a restrictive endorsement on a
             1945      check that is:
             1946          (A) signed by the lien claimant or the lien claimant's authorized agent; and
             1947          (B) in substantially the same form set forth in Subsection (4)(d); and


             1948          (b) receives payment of the amount identified in the waiver and release or check that
             1949      includes the restrictive endorsement:
             1950          (i) including payment by a joint payee check; and
             1951          (ii) for a progress payment, only to the extent of the payment.
             1952          (3) (a) Notwithstanding the language of a waiver and release described in Subsection
             1953      (2), Subsection (3)(b) applies if:
             1954          (i) the payment given in exchange for any waiver and release of lien is made by check;
             1955      and
             1956          (ii) the check fails to clear the depository institution on which it is drawn for any
             1957      reason.
             1958          (b) If the conditions of Subsection (3)(a) are met:
             1959          (i) the waiver and release described in Subsection (3)(a) is null, void, and of no legal
             1960      effect; and
             1961          (ii) the following will not be affected by the lien claimant's execution of the waiver and
             1962      release:
             1963          (A) any lien;
             1964          (B) any lien right;
             1965          (C) any bond right;
             1966          (D) any contract right; or
             1967          (E) any other right to recover payment afforded to the lien claimant in law or equity.
             1968          (4) (a) A waiver and release given by a lien claimant meets the requirements of this
             1969      section if it is in substantially the form provided in this Subsection (4) for the circumstance
             1970      provided in this Subsection (4).
             1971          (b) A waiver and release may be in substantially the following form if the lien claimant
             1972      is required to execute a waiver and release in exchange for or to induce the payment of a
             1973      progress billing:
             1974     
"UTAH CONDITIONAL WAIVER AND RELEASE UPON PROGRESS PAYMENT

             1975      Property Name: _____________________________________________________________
             1976      Property Location: ___________________________________________________________
             1977      Undersigned's Customer: _____________________________________________________
             1978      Invoice/Payment Application Number: __________________________________________


             1979      Payment Amount: ___________________________________________________________
             1980      Payment Period: ____________________________________________________________
             1981          To the extent provided below, this document becomes effective to release and the
             1982      undersigned is considered to waive any notice of lien or right under Utah Code Ann., Title 38,
             1983      Chapter 1, Mechanics' Liens, or any bond right under Utah Code Ann., Title 14, Contractors'
             1984      Bonds, or Section [ 63G-6-505 ] 63G-6a-1103 related to payment rights the undersigned has on
             1985      the above described Property once:
             1986          (1) the undersigned endorses a check in the above referenced Payment Amount payable
             1987      to the undersigned; and
             1988          (2) the check is paid by the depository institution on which it is drawn.
             1989          This waiver and release applies to a progress payment for the work, materials,
             1990      equipment, or a combination of work, materials, and equipment furnished by the undersigned
             1991      to the Property or to the Undersigned's Customer which are the subject of the Invoice or
             1992      Payment Application, but only to the extent of the Payment Amount. This waiver and release
             1993      does not apply to any retention withheld; any items, modifications, or changes pending
             1994      approval; disputed items and claims; or items furnished or invoiced after the Payment Period.
             1995          The undersigned warrants that the undersigned either has already paid or will use the
             1996      money the undersigned receives from this progress payment promptly to pay in full all the
             1997      undersigned's laborers, subcontractors, materialmen, and suppliers for all work, materials,
             1998      equipment, or combination of work, materials, and equipment that are the subject of this
             1999      waiver and release.
             2000      Dated: ________________________
             2001      ___________________________________________________________(Company Name)
             2002      _____________________________________________________By:__________________
             2003      _____________________________________________________Its:__________________"
             2004          (c) A waiver and release may be in substantially the following form if the lien claimant
             2005      is required to execute a waiver and release in exchange for or to induce the payment of a final
             2006      billing:
             2007     
"UTAH WAIVER AND RELEASE UPON FINAL PAYMENT

             2008      Property Name: ____________________________________________________________
             2009      Property Location: __________________________________________________________


             2010      Undersigned's Customer: _____________________________________________________
             2011      Invoice/Payment Application Number: __________________________________________
             2012      Payment Amount: ___________________________________________________________
             2013          To the extent provided below, this document becomes effective to release and the
             2014      undersigned is considered to waive any notice of lien or right under Utah Code Ann., Title 38,
             2015      Chapter 1, Mechanics' Liens, or any bond right under Utah Code Ann., Title 14, Contractors'
             2016      Bonds, or Section [ 63G-6-505 ] 63G-6a-1103 related to payment rights the undersigned has on
             2017      the above described Property once:
             2018          (1) the undersigned endorses a check in the above referenced Payment Amount payable
             2019      to the undersigned; and
             2020          (2) the check is paid by the depository institution on which it is drawn.
             2021          This waiver and release applies to the final payment for the work, materials, equipment,
             2022      or combination of work, materials, and equipment furnished by the undersigned to the Property
             2023      or to the Undersigned's Customer.
             2024          The undersigned warrants that the undersigned either has already paid or will use the
             2025      money the undersigned receives from the final payment promptly to pay in full all the
             2026      undersigned's laborers, subcontractors, materialmen, and suppliers for all work, materials,
             2027      equipment, or combination of work, materials, and equipment that are the subject of this
             2028      waiver and release.
             2029      Dated: ________________________
             2030      ___________________________________________________________(Company Name)
             2031      _____________________________________________________By:__________________
             2032      _____________________________________________________Its:__________________"
             2033          (d) A restrictive endorsement placed on a check to effectuate a waiver and release
             2034      described in this Subsection (4) meets the requirements of this section if it is in substantially
             2035      the following form:
             2036          "This check is a progress/ final payment for property described on this check sufficient
             2037      for identification. Endorsement of this check is an acknowledgment by the endorser that the
             2038      waiver and release to which the payment applies is effective to the extent provided in Utah
             2039      Code Ann. Subsection 38-1-39 (4)(b) or (c) respectively."
             2040          (e) (i) If using a restrictive endorsement under Subsection (4)(d), the person preparing


             2041      the check shall indicate whether the check is for a progress payment or a final payment by
             2042      circling the word "progress" if the check is for a progress payment, or the word "final" if the
             2043      check is for a final payment.
             2044          (ii) If a restrictive endorsement does not indicate whether the check is for a progress
             2045      payment or a final payment, it is considered to be for a progress payment.
             2046          (5) (a) If the conditions of Subsection (5)(b) are met, this section does not affect the
             2047      enforcement of:
             2048          (i) an accord and satisfaction regarding a bona fide dispute; or
             2049          (ii) an agreement made in settlement of an action pending in any court or arbitration.
             2050          (b) Pursuant to Subsection (5)(a), this section does not affect enforcement of an accord
             2051      and satisfaction or settlement described in Subsection (5)(a) if the accord and satisfaction or
             2052      settlement:
             2053          (i) is in a writing signed by the lien claimant; and
             2054          (ii) specifically references the lien rights waived or impaired.
             2055          Section 45. Section 41-12a-803 is amended to read:
             2056           41-12a-803. Program creation -- Administration -- Selection of designated agent
             2057      -- Duties -- Rulemaking -- Audits.
             2058          (1) There is created the Uninsured Motorist Identification Database Program to:
             2059          (a) establish an Uninsured Motorist Identification Database to verify compliance with
             2060      motor vehicle owner's or operator's security requirements under Section 41-12a-301 and other
             2061      provisions under this part;
             2062          (b) assist in reducing the number of uninsured motor vehicles on the highways of the
             2063      state;
             2064          (c) assist in increasing compliance with motor vehicle registration and sales and use tax
             2065      laws;
             2066          (d) assist in protecting a financial institution's bona fide security interest in a motor
             2067      vehicle; and
             2068          (e) assist in the identification and prevention of identity theft and other crimes.
             2069          (2) The program shall be administered by the department with the assistance of the
             2070      designated agent and the Motor Vehicle Division.
             2071          (3) (a) The department shall contract in accordance with Title 63G, Chapter [6] 6a,


             2072      Utah Procurement Code, with a third party to establish and maintain an Uninsured Motorist
             2073      Identification Database for the purposes established under this part.
             2074          (b) The contract may not obligate the department to pay the third party more money
             2075      than is available in the account.
             2076          (4) (a) The third party under contract under this section is the department's designated
             2077      agent, and shall develop and maintain a computer database from the information provided by:
             2078          (i) insurers under Section 31A-22-315 ;
             2079          (ii) the division under Subsection (6); and
             2080          (iii) the Motor Vehicle Division under Section 41-1a-120 .
             2081          (b) (i) The database shall be developed and maintained in accordance with guidelines
             2082      established by the department so that state and local law enforcement agencies and financial
             2083      institutions as defined in Section 7-1-103 can efficiently access the records of the database,
             2084      including reports useful for the implementation of the provisions of this part.
             2085          (ii) (A) The reports shall be in a form and contain information approved by the
             2086      department.
             2087          (B) The reports may be made available through the Internet or through other electronic
             2088      medium, if the department determines that sufficient security is provided to ensure compliance
             2089      with Section 41-12a-805 regarding limitations on disclosure of information in the database.
             2090          (5) With information provided by the department and the Motor Vehicle Division, the
             2091      designated agent shall, at least monthly for submissions under Subsection 31A-22-315 (2)(b) or
             2092      at least twice a month for submissions under Subsection 31A-22-315 (2)(a):
             2093          (a) update the database with the motor vehicle insurance information provided by the
             2094      insurers in accordance with Section 31A-22-315 ; and
             2095          (b) compare all current motor vehicle registrations against the database.
             2096          (6) The division shall provide the designated agent with the name, date of birth,
             2097      address, and driver license number of all persons on the driver license database.
             2098          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2099      department shall make rules and develop procedures in cooperation with the Motor Vehicle
             2100      Division to use the database for the purpose of administering and enforcing this part.
             2101          (8) (a) The designated agent shall archive computer data files at least semi-annually for
             2102      auditing purposes.


             2103          (b) The internal audit unit of the tax commission provided under Section 59-1-206
             2104      shall audit the program at least every three years.
             2105          (c) The audit under Subsection (8)(b) shall include verification of:
             2106          (i) billings made by the designated agent; and
             2107          (ii) the accuracy of the designated agent's matching of vehicle registration with
             2108      insurance data.
             2109          Section 46. Section 53-2-404 is amended to read:
             2110           53-2-404. State costs for emergency disaster services.
             2111          (1) Subject to this section and Section 53-2-403 , the division shall expend or commit to
             2112      expend money described in Subsection 53-2-403 (1)(d)(i) to fund costs to the state of
             2113      emergency disaster services.
             2114          (2) Money paid by the division under this section to government entities and private
             2115      persons providing emergency disaster services are subject to Title 63G, Chapter [6] 6a, Utah
             2116      Procurement Code.
             2117          Section 47. Section 53A-1-706 is amended to read:
             2118           53A-1-706. Purchases of educational technology.
             2119          (1) (a) A school district or college of education shall comply with Title 63G, Chapter
             2120      [6] 6a, Utah Procurement Code, in purchasing technology, except as otherwise provided in
             2121      Subsection (1)(b).
             2122          (b) A school district may purchase computers from, and contract for the repair or
             2123      refurbishing of computers with, the Utah Correctional Industries without going through the
             2124      bidding or competition procedures outlined in Title 63G, Chapter [6, Part 4, Source Selections
             2125      and Contract Formation] 6a, Utah Procurement Code.
             2126          (2) A school district or college of education may purchase technology through
             2127      cooperative purchasing contracts administered by the state Division of Purchasing or through
             2128      its own established purchasing program.
             2129          Section 48. Section 53A-1a-511 is amended to read:
             2130           53A-1a-511. Waivers from state board rules -- Application of statutes and rules
             2131      to charter schools.
             2132          (1) A charter school shall operate in accordance with its charter and is subject to Title
             2133      53A, State System of Public Education, and other state laws applicable to public schools,


             2134      except as otherwise provided in this part.
             2135          (2) (a) A charter school or any other public school or school district may apply to the
             2136      State Board of Education for a waiver of any state board rule that inhibits or hinders the school
             2137      or the school district from accomplishing its mission or educational goals set out in its strategic
             2138      plan or charter.
             2139          (b) The state board may grant the waiver, unless:
             2140          (i) the waiver would cause the school district or the school to be in violation of state or
             2141      federal law; or
             2142          (ii) the waiver would threaten the health, safety, or welfare of students in the district or
             2143      at the school.
             2144          (c) If the State Board of Education denies the waiver, the reason for the denial shall be
             2145      provided in writing to the waiver applicant.
             2146          (3) (a) Except as provided in Subsection (3)(b), State Board of Education rules
             2147      governing the following do not apply to a charter school:
             2148          (i) school libraries;
             2149          (ii) required school administrative and supervisory services; and
             2150          (iii) required expenditures for instructional supplies.
             2151          (b) A charter school shall comply with rules implementing statutes that prescribe how
             2152      state appropriations may be spent.
             2153          (4) The following provisions of Title 53A, State System of Public Education, and rules
             2154      adopted under those provisions, do not apply to a charter school:
             2155          (a) Sections 53A-1a-108 and 53A-1a-108.5 , requiring the establishment of a school
             2156      community council and school improvement plan;
             2157          (b) Sections 53A-3-413 and 53A-3-414 , pertaining to the use of school buildings as
             2158      civic centers;
             2159          (c) Section 53A-3-420 , requiring the use of activity disclosure statements;
             2160          (d) Section 53A-12-207 , requiring notification of intent to dispose of textbooks;
             2161          (e) Section 53A-13-107 , requiring annual presentations on adoption;
             2162          (f) Chapter 19, Part 1, Fiscal Procedures, pertaining to fiscal procedures of school
             2163      districts and local school boards; and
             2164          (g) Section 53A-14-107 , requiring an independent evaluation of instructional materials.


             2165          (5) For the purposes of Title 63G, Chapter [6] 6a, Utah Procurement Code, a charter
             2166      school shall be considered a local public procurement unit.
             2167          (6) Each charter school shall be subject to:
             2168          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             2169          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             2170          (7) (a) The State Charter School Board shall, in concert with the charter schools, study
             2171      existing state law and administrative rules for the purpose of determining from which laws and
             2172      rules charter schools should be exempt.
             2173          (b) (i) The State Charter School Board shall present recommendations for exemption to
             2174      the State Board of Education for consideration.
             2175          (ii) The State Board of Education shall consider the recommendations of the State
             2176      Charter School Board and respond within 60 days.
             2177          Section 49. Section 53A-20-101 is amended to read:
             2178           53A-20-101. Construction and alteration of schools and plants -- Advertising for
             2179      bids -- Payment and performance bonds -- Contracts -- Bidding limitations on local
             2180      school boards -- Interest of local school board members.
             2181          (1) As used in this section, the word "sealed" does not preclude acceptance of
             2182      electronically sealed and submitted bids or proposals in addition to bids or proposals manually
             2183      sealed and submitted.
             2184          (2) (a) Prior to the construction of any school or the alteration of any existing school
             2185      plant, if the total estimated accumulative building project cost exceeds $80,000, a local school
             2186      board shall advertise for bids on the project at least 10 days before the bid due date.
             2187          (b) The board shall have the advertisement published in a newspaper having general
             2188      circulation throughout the state and in appropriate construction trade publications that offer
             2189      free listings.
             2190          (c) A similar advertisement is required in a newspaper published or having general
             2191      circulation in any city or county that would be affected by the proposed project.
             2192          (d) The advertisement shall:
             2193          (i) require sealed proposals for the building project in accordance with plans and
             2194      specifications furnished by the local school board;
             2195          (ii) state where and when the proposals will be opened and shall reserve the right of the


             2196      board to reject any and all proposals; and
             2197          (iii) require a certified check or bid bond of not less than 5% of the bid to accompany
             2198      the bid.
             2199          (3) (a) The board shall meet at the time and place specified in the advertisement and
             2200      publicly open and read all received proposals.
             2201          (b) If satisfactory bids are received, the board shall award the contract to the lowest
             2202      responsible bidder.
             2203          (c) If none of the proposals are satisfactory, all shall be rejected.
             2204          (d) The board shall again advertise in the manner provided in this section.
             2205          (e) If, after advertising a second time no satisfactory bid is received, the board may
             2206      proceed under its own direction with the required project.
             2207          (4) (a) The check or bond required under Subsection (2)(d) shall be drawn in favor of
             2208      the local school board.
             2209          (b) If the successful bidder fails or refuses to enter into the contract and furnish the
             2210      additional bonds required under this section, then the bidder's check or bond is forfeited to the
             2211      district.
             2212          (5) A local school board shall require payment and performance bonds of the
             2213      successful bidder as required in Section [ 63G-6-505 ] 63G-6a-1103 .
             2214          (6) (a) A local school board may require in the proposed contract that at least 10% of
             2215      the contract price be withheld until the project is completed and accepted by the board.
             2216          (b) If money is withheld, the board shall place it in an interest bearing account, and the
             2217      interest accrues for the benefit of the contractor and subcontractors.
             2218          (c) This money shall be paid upon completion of the project and acceptance by the
             2219      board.
             2220          (7) (a) A local school board may not bid on projects within the district if the total
             2221      accumulative estimated cost exceeds $80,000.
             2222          (b) The board may use its resources if no satisfactory bids are received under this
             2223      section.
             2224          (8) If the local school board determines in accordance with Section [ 63G-6-501 ]
             2225      63G-6a-1302 to use a construction manager/general contractor as its method of construction
             2226      contracting management on projects where the total estimated accumulative cost exceeds


             2227      $80,000, it shall select the construction manager/general contractor [using one of the source
             2228      selection methods provided for in Sections 63G-6-401 through 63G-6-501 ] in accordance with
             2229      the requirements of Title 63G, Chapter 6a, Utah Procurement Code.
             2230          (9) A local school board member may not have a direct or indirect financial interest in
             2231      the construction project contract.
             2232          Section 50. Section 53A-25b-105 is amended to read:
             2233           53A-25b-105. Applicability of statutes to the Utah Schools for the Deaf and the
             2234      Blind.
             2235          (1) The Utah Schools for the Deaf and the Blind is subject to Title 53A, State System
             2236      of Public Education, and other state laws applicable to public schools, except as otherwise
             2237      provided by this chapter.
             2238          (2) The following provisions of Title 53A, State System of Public Education, do not
             2239      apply to the Utah Schools for the Deaf and the Blind:
             2240          (a) provisions governing the budgets, funding, or finances of school districts or charter
             2241      schools; and
             2242          (b) provisions governing school construction.
             2243          (3) Except as provided in this chapter, the Utah Schools for the Deaf and the Blind is
             2244      subject to state laws governing state agencies, including:
             2245          (a) Title 51, Chapter 5, Funds Consolidation Act;
             2246          (b) Title 51, Chapter 7, State Money Management Act;
             2247          (c) Title 52, Chapter 4, Open and Public Meetings Act;
             2248          (d) Title 63A, Utah Administrative Services Code;
             2249          (e) Title 63G, Chapter 2, Government Records Access and Management Act;
             2250          (f) Title 63G, Chapter 4, Administrative Procedures Act;
             2251          (g) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             2252          (h) Title 63J, Chapter 1, Budgetary Procedures Act;
             2253          (i) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             2254          (j) Title 67, Chapter 19, Utah State Personnel Management Act.
             2255          Section 51. Section 53C-1-201 (Effective 07/01/12) is amended to read:
             2256           53C-1-201 (Effective 07/01/12). Creation of administration -- Purpose -- Director.
             2257          (1) (a) There is established within state government the School and Institutional Trust


             2258      Lands Administration.
             2259          (b) The administration shall manage all school and institutional trust lands and assets
             2260      within the state, except as otherwise provided in Title 53C, Chapter 3, Deposit and Allocation
             2261      of Revenue from Trust Lands, and Sections 51-7a-201 and 51-7a-202 .
             2262          (2) The administration is an independent state agency and not a division of any other
             2263      department.
             2264          (3) (a) It is subject to the usual legislative and executive department controls except as
             2265      provided in this Subsection (3).
             2266          (b) (i) The director may make rules as approved by the board that allow the
             2267      administration to classify a business proposal submitted to the administration as protected
             2268      under Section 63G-2-305 , for as long as is necessary to evaluate the proposal.
             2269          (ii) The administration shall return the proposal to the party who submitted the
             2270      proposal, and incur no further duties under Title 63G, Chapter 2, Government Records Access
             2271      and Management Act, if the administration determines not to proceed with the proposal.
             2272          (iii) The administration shall classify the proposal pursuant to law if it decides to
             2273      proceed with the proposal.
             2274          (iv) Section 63G-2-403 does not apply during the review period.
             2275          (c) The director shall make rules in compliance with Title 63G, Chapter 3, Utah
             2276      Administrative Rulemaking Act, except that the administration is not subject to Subsections
             2277      63G-3-301 (6) and (7) and Section 63G-3-601 , and the director, with the board's approval, may
             2278      establish a procedure for the expedited approval of rules, based on written findings by the
             2279      director showing:
             2280          (i) the changes in business opportunities affecting the assets of the trust;
             2281          (ii) the specific business opportunity arising out of those changes which may be lost
             2282      without the rule or changes to the rule;
             2283          (iii) the reasons the normal procedures under Section 63G-3-301 cannot be met without
             2284      causing the loss of the specific opportunity;
             2285          (iv) approval by at least five board members; and
             2286          (v) that the director has filed a copy of the rule and a rule analysis, stating the specific
             2287      reasons and justifications for its findings, with the Division of Administrative Rules and
             2288      notified interested parties as provided in Subsection 63G-3-301 (10).


             2289          (d) (i) The administration shall comply with Title 67, Chapter 19, Utah State Personnel
             2290      Management Act, except as provided in this Subsection (3)(d).
             2291          (ii) The board may approve, upon recommendation of the director, that exemption for
             2292      specific positions under Subsections 67-19-12 (2) and 67-19-15 (1) is required in order to enable
             2293      the administration to efficiently fulfill its responsibilities under the law. The director shall
             2294      consult with the executive director of the Department of Human Resource Management prior
             2295      to making such a recommendation.
             2296          (iii) The positions of director, deputy director, associate director, assistant director,
             2297      legal counsel appointed under Section 53C-1-305 , administrative assistant, and public affairs
             2298      officer are exempt under Subsections 67-19-12 (2) and 67-19-15 (1).
             2299          (iv) Salaries for exempted positions, except for the director, shall be set by the director,
             2300      after consultation with the executive director of the Department of Human Resource
             2301      Management, within ranges approved by the board. The board and director shall consider
             2302      salaries for similar positions in private enterprise and other public employment when setting
             2303      salary ranges.
             2304          (v) The board may create an annual incentive and bonus plan for the director and other
             2305      administration employees designated by the board, based upon the attainment of financial
             2306      performance goals and other measurable criteria defined and budgeted in advance by the board.
             2307          (e) The administration shall comply with Title 63G, Chapter [6] 6a, Utah Procurement
             2308      Code, except where the board approves, upon recommendation of the director, exemption from
             2309      the Utah Procurement Code, and simultaneous adoption of rules under Title 63G, Chapter 3,
             2310      Utah Administrative Rulemaking Act, for procurement, which enable the administration to
             2311      efficiently fulfill its responsibilities under the law.
             2312          (f) (i) Except as provided in Subsection (3)(f)(ii), the administration is not subject to
             2313      the fee agency requirements of Section 63J-1-504 .
             2314          (ii) The following fees of the administration are subject to the requirements of Section
             2315      63J-1-504 : application, assignment, amendment, affidavit for lost documents, name change,
             2316      reinstatement, grazing nonuse, extension of time, partial conveyance, patent reissue, collateral
             2317      assignment, electronic payment, and processing.
             2318          (4) The administration is managed by a director of school and institutional trust lands
             2319      appointed by a majority vote of the board of trustees with the consent of the governor.


             2320          (5) (a) The board of trustees shall provide policies for the management of the
             2321      administration and for the management of trust lands and assets.
             2322          (b) The board shall provide policies for the ownership and control of Native American
             2323      remains that are discovered or excavated on school and institutional trust lands in consultation
             2324      with the Division of Indian Affairs and giving due consideration to Title 9, Chapter 9, Part 4,
             2325      Native American Grave Protection and Repatriation Act. The director may make rules in
             2326      accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement
             2327      policies provided by the board regarding Native American remains.
             2328          (6) In connection with joint ventures and other transactions involving trust lands and
             2329      minerals approved under Sections 53C-1-303 and 53C-2-401 , the administration, with board
             2330      approval, may become a member of a limited liability company under Title 48, Chapter 3, Utah
             2331      Revised Uniform Limited Liability Company Act, and is considered a person under Section
             2332      48-3-102 .
             2333          Section 52. Section 54-3-29 is amended to read:
             2334           54-3-29. Removal, relocation, or alteration of utility facility in public highway
             2335      construction or reconstruction -- Notice -- Cooperation.
             2336          (1) As used in this section:
             2337          (a) "Design-build" means a design-build transportation project for which a design-build
             2338      transportation project contract is issued, within the meaning of Section [ 63G-6-502 ]
             2339      63G-6a-1402 .
             2340          (b) "Municipality" is as defined in Section 10-1-104 .
             2341          (c) "Political subdivision" means a:
             2342          (i) county; or
             2343          (ii) municipality.
             2344          (d) "Public agency" means an entity of state government or a political subdivision.
             2345          (e) "Public highway" means a highway, street, road, or alley constructed for public use
             2346      in the state.
             2347          (f) "Utility company" means a privately, cooperatively, or publicly owned utility,
             2348      including a utility owned by a political subdivision, that provides service using a utility facility.
             2349          (g) "Utility facility" means:
             2350          (i) a telecommunications, gas, electricity, cable television, water, sewer, or data


             2351      facility;
             2352          (ii) a video transmission line;
             2353          (iii) a drainage and irrigation system; or
             2354          (iv) a facility similar to those listed in Subsections (1)(g)(i) through (iii) located in, on,
             2355      along, across, over, through, or under any public highway.
             2356          (2) If a public agency engages in or proposes to engage in a construction or
             2357      reconstruction project on a public highway that may require the removal, relocation, or
             2358      alteration of a utility facility, the public agency shall:
             2359          (a) contact an association, established under Title 54, Chapter 8a, Damage to
             2360      Underground Utility Facilities, to identify each utility company that may have a utility facility
             2361      in the area of the construction or reconstruction project;
             2362          (b) identify a utility company that has an above-ground utility facility in the area of the
             2363      proposed construction or reconstruction project; and
             2364          (c) electronically notify each utility company identified in accordance with Subsections
             2365      (2)(a) and (b).
             2366          (3) The notice required by Subsection (2)(c) shall:
             2367          (a) be made as early as practicable and at least 30 days:
             2368          (i) before the preliminary design or project development meeting;
             2369          (ii) before issuance of a request for proposal for a design-build project; or
             2370          (iii) after a change in scope of a design-build project;
             2371          (b) include:
             2372          (i) information concerning the proposed project design;
             2373          (ii) the proposed date of a required removal, relocation, or alteration of a utility facility;
             2374          (iii) the federal identifying project number, if applicable; and
             2375          (c) advise the utility company if the proposed project may qualify for aid for the utility
             2376      company's expense in removing, relocating, or altering a utility facility.
             2377          (4) A public agency shall permit a utility company notified under Subsection (2) to
             2378      participate in the preliminary design or project development meeting, or similar meeting at
             2379      which the project design is addressed.
             2380          (5) (a) A public agency shall, not less than 30 days after providing notice under
             2381      Subsection (2) to each utility company, provide the utility company an opportunity to meet


             2382      with the public agency to allow the utility company to:
             2383          (i) review project plans;
             2384          (ii) understand the objectives and funding sources for the proposed project;
             2385          (iii) provide and discuss recommendations to the public agency that may reasonably
             2386      eliminate or minimize utility removal, relocation, or alteration costs, limit the disruption of
             2387      utility company services, or eliminate or reduce the need for present or future utility facility
             2388      removal, relocation, or alteration; and
             2389          (iv) provide reasonable schedules to enable coordination of the construction project
             2390      and removal, relocation, or alteration of a utility facility.
             2391          (b) If a public agency provides a utility company with reasonable opportunities to meet
             2392      in accordance with Subsection (5)(a), the utility company's failure to meet does not affect the
             2393      public agency's ability to proceed with the project.
             2394          (6) While recognizing the essential goals and objectives of the public highway agency
             2395      in proceeding with and completing a project, the parties shall use their best efforts to find ways
             2396      to:
             2397          (a) eliminate the cost to the utility of relocation of the utility facilities; or
             2398          (b) if elimination of the costs is not feasible, minimize the relocation costs to the extent
             2399      reasonably possible.
             2400          (7) A utility company notified under Subsection (2) shall coordinate with the public
             2401      agency concerning the utility facility removal, relocation, or alteration, including the
             2402      scheduling of the utility facility removal, relocation, or alteration.
             2403          (8) A public agency and a utility company may address the removal, relocation, or
             2404      alteration of a utility facility in relation to a construction or reconstruction project on a public
             2405      highway in a franchise agreement in lieu of this section, if the public agency is otherwise
             2406      permitted to enter into the franchise agreement.
             2407          (9) This chapter does not affect a public agency's authority over a public right-of-way,
             2408      including any rule, ordinance, order to relocate a utility as provided in Section 72-6-116 , or
             2409      other valid provision governing the use of the public right-of-way.
             2410          Section 53. Section 54-8b-10 is amended to read:
             2411           54-8b-10. Imposing a surcharge to provide hearing and speech impaired persons
             2412      with telecommunication devices -- Definitions -- Procedures for establishing program --


             2413      Surcharge -- Administration and disposition of surcharge money.
             2414          (1) As used in this section:
             2415          (a) "Certified deaf or severely hearing or speech impaired person" means any state
             2416      resident who:
             2417          (i) is so certified by:
             2418          (A) a licensed physician;
             2419          (B) an otolaryngologist;
             2420          (C) a speech language pathologist;
             2421          (D) an audiologist; or
             2422          (E) a qualified state agency; and
             2423          (ii) qualifies for assistance under any low income public assistance program
             2424      administered by a state agency.
             2425          (b) "Certified interpreter" means a person who is a certified interpreter under Title
             2426      53A, Chapter 26a, Interpreter Services for the Hearing Impaired Act.
             2427          (c) (i) "Telecommunication device" means any mechanical adaptation device that
             2428      enables a deaf or severely hearing or speech impaired person to use the telephone.
             2429          (ii) "Telecommunication device" includes:
             2430          (A) telecommunication devices for the deaf (TDD);
             2431          (B) telephone amplifiers;
             2432          (C) telephone signal devices;
             2433          (D) artificial larynxes; and
             2434          (E) adaptive equipment for TDD keyboard access.
             2435          (2) The commission shall hold hearings to establish a program whereby a certified deaf
             2436      or severely hearing or speech impaired customer of a telecommunications corporation that
             2437      provides service through a local exchange or of a wireless telecommunications provider may
             2438      obtain a telecommunication device capable of serving the customer at no charge to the
             2439      customer beyond the rate for basic service.
             2440          (3) (a) The program described in Subsection (2) shall provide a dual party relay system
             2441      using third party intervention to connect a certified deaf or severely hearing or speech impaired
             2442      person with a normal hearing person by way of telecommunication devices designed for that
             2443      purpose.


             2444          (b) The commission may, by rule, establish the type of telecommunications device to
             2445      be provided to ensure functional equivalence.
             2446          (4) (a) The commission shall impose a surcharge on each residential and business
             2447      access line of each customer of local-exchange telephone service in this state, and each
             2448      residential and business telephone number of each customer of mobile telephone service in this
             2449      state, not including a telephone number used exclusively to transfer data to and from a mobile
             2450      device, which shall be collected by the telecommunications corporation providing public
             2451      telecommunications service to the customer, to cover the costs of:
             2452          (i) the program described in Subsection (2); and
             2453          (ii) payments made under Subsection (5).
             2454          (b) The commission shall establish by rule the amount to be charged under this section,
             2455      provided that:
             2456          (i) the surcharge does not exceed 20 cents per month for each residential and business
             2457      access line for local-exchange telephone service, and for each residential and business
             2458      telephone number for mobile telephone service, not including a telephone number used
             2459      exclusively to transfer data to and from a mobile device; and
             2460          (ii) if the surcharge is related to a mobile telecommunications service, the surcharge
             2461      may be imposed, billed, and collected only to the extent permitted by the Mobile
             2462      Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.
             2463          (c) The telecommunications corporation shall collect the surcharge from its customers
             2464      and transfer the money collected to the commission under rules adopted by the commission.
             2465          (d) The surcharge shall be separately identified on each bill to a customer.
             2466          (5) (a) Money collected from the surcharge imposed under Subsection (4) shall be
             2467      deposited in the state treasury as dedicated credits to be administered as determined by the
             2468      commission.
             2469          (b) These dedicated credits may be used only:
             2470          (i) for the purchase, maintenance, repair, and distribution of telecommunication
             2471      devices;
             2472          (ii) for the acquisition, operation, maintenance, and repair of a dual party relay system;
             2473          (iii) to reimburse telephone corporations for the expenses incurred in collecting and
             2474      transferring to the commission the surcharge imposed by the commission;


             2475          (iv) for the general administration of the program;
             2476          (v) to train persons in the use of telecommunications devices; and
             2477          (vi) by the commission to contract, in compliance with Title 63G, Chapter [6] 6a, Utah
             2478      Procurement Code, with:
             2479          (A) an institution within the state system of higher education listed in Section
             2480      53B-1-102 for a program approved by the Board of Regents that trains persons to qualify as
             2481      certified interpreters; or
             2482          (B) the Division of Services to the Deaf and Hard of Hearing for a program that trains
             2483      persons to qualify as certified interpreters.
             2484          (c) (i) The commission shall make rules under Title 63G, Chapter 3, Utah
             2485      Administrative Rulemaking Act, for the administration of money under Subsection (5)(b)(vi).
             2486          (ii) In the initial rulemaking to determine the administration of money under
             2487      Subsection (5)(b)(vi), the commission shall give notice and hold a public hearing.
             2488          (d) Money received by the commission under Subsection (4) is nonlapsing.
             2489          (6) (a) The telephone surcharge need not be collected by a telecommunications
             2490      corporation if the amount collected would be less than the actual administrative costs of the
             2491      collection.
             2492          (b) If Subsection (6)(a) applies, the telecommunications corporation shall submit to the
             2493      commission, in lieu of the revenue from the surcharge collection, a breakdown of the
             2494      anticipated costs and the expected revenue from the collection, showing that the costs exceed
             2495      the revenue.
             2496          (7) The commission shall solicit the advice, counsel, and physical assistance of
             2497      severely hearing or speech impaired persons and the organizations serving them in the design
             2498      and implementation of the program.
             2499          Section 54. Section 62A-1-108.5 is amended to read:
             2500           62A-1-108.5. Mental illness and intellectual disability examinations --
             2501      Responsibilities of the department.
             2502          (1) In accomplishing its duties to conduct mental illness and intellectual disability
             2503      examinations under Title 77, Utah Code of Criminal Procedure, the department shall proceed
             2504      as outlined in this section and within appropriations authorized by the Legislature. The
             2505      executive director may delegate the executive director's responsibilities under this section to


             2506      one or more divisions within the department.
             2507          (2) When the department is ordered by the court to conduct a mental illness or
             2508      intellectual disability examination, the executive director shall:
             2509          (a) direct that the examination be performed at the Utah State Hospital; or
             2510          (b) designate at least one examiner, selected under Subsection (3), to examine the
             2511      defendant in the defendant's current custody or status.
             2512          (3) The department shall establish criteria, in consultation with the Commission on
             2513      Criminal and Juvenile Justice, and shall contract with persons or organizations to conduct
             2514      mental illness and intellectual disability examinations under Subsection (2)(b). In making this
             2515      selection, the department shall follow the provisions of Title 63G, Chapter [6] 6a, Utah
             2516      Procurement Code.
             2517          (4) Nothing in this section prohibits the executive director, at the request of defense
             2518      counsel or a prosecuting attorney in a criminal proceeding under Title 77, Utah Code of
             2519      Criminal Procedure, and for good cause shown, from proposing a person who has not been
             2520      previously selected under Subsection (3) to contract with the department to conduct the
             2521      examination. In selecting that person, the criteria of the department established under
             2522      Subsection (3) and the provisions of Title 63G, Chapter [6] 6a, Utah Procurement Code, shall
             2523      be met.
             2524          Section 55. Section 62A-3-104 is amended to read:
             2525           62A-3-104. Authority of division.
             2526          (1) The division is the sole state agency, as defined by the Older Americans Act of
             2527      1965, 42 U.S.C. 3001 et seq., to:
             2528          (a) serve as an effective and visible advocate for the aging and adult population of this
             2529      state;
             2530          (b) develop and administer a state plan under the policy direction of the board; and
             2531          (c) take primary responsibility for state activities relating to provisions of the Older
             2532      Americans Act of 1965, as amended.
             2533          (2) (a) The division has authority to designate:
             2534          (i) planning and service areas for the state; and
             2535          (ii) an area agency on aging within each planning and service area to design and
             2536      implement a comprehensive and coordinated system of services and programs for the aged


             2537      within appropriations from the Legislature.
             2538          (b) Designation as an area agency on aging may be withdrawn:
             2539          (i) upon request of the area agency on aging; or
             2540          (ii) upon noncompliance with the provisions of the:
             2541          (A) Older Americans Act of 1965, 42 U.S.C. 3001 et seq.;
             2542          (B) federal regulations enacted under the Older Americans Act of 1965, 42 U.S.C.
             2543      3001 et seq.;
             2544          (C) provisions of this chapter; or
             2545          (D) rules, policies, or procedures established by the division.
             2546          (3) (a) The division has the authority to designate:
             2547          (i) planning and service areas for the state; and
             2548          (ii) subject to Subsection (3)(b), an area agency on high risk adults within each
             2549      planning and service area to design and implement a comprehensive and coordinated system of
             2550      case management and programs for high risk adults within appropriations from the Legislature.
             2551          (b) For purposes of Subsection (3)(a)(ii), before October 1, 1998, the division shall
             2552      designate as the area agency on high risk adults in a planning and service area:
             2553          (i) the area agency on aging that operates within the same geographic area if that
             2554      agency requests, before July 1, 1998, to expand that agency's current contract with the division
             2555      to include the responsibility of:
             2556          (A) being the area agency on high risk adults; or
             2557          (B) operating the area agency on high risk adults:
             2558          (I) through joint cooperation with one or more existing area agencies on aging; and
             2559          (II) without reducing geographical coverage in any service area; or
             2560          (ii) a public or private nonprofit agency or office if the area agency on aging that
             2561      operates within the same geographic area has not made a request in accordance with Subsection
             2562      (3)(b)(i).
             2563          (c) (i) Area agencies on high risk adults shall be in operation before July 1, 1999.
             2564          (ii) The division's efforts to establish area agencies on high risk adults shall start with
             2565      counties with a population of more than 150,000 people.
             2566          (d) Designation as an area agency on high risk adults may be withdrawn:
             2567          (i) upon request by the area agency; or


             2568          (ii) upon noncompliance with:
             2569          (A) state law;
             2570          (B) federal law; or
             2571          (C) rules, policies, or procedures established by the division.
             2572          (4) (a) The division may, by following the procedures and requirements of Title 63J,
             2573      Chapter 5, Federal Funds Procedures:
             2574          (i) seek federal grants, loans, or participation in federal programs; and
             2575          (ii) receive and distribute state and federal funds for the division's programs and
             2576      services to the aging and adult populations of the state.
             2577          (b) The division may not disburse public funds to a personal care attendant as payment
             2578      for personal services rendered to an aged person or high risk adult, except as provided in
             2579      Section 62A-3-104.3 .
             2580          (5) The division has authority to establish, either directly or by contract, programs of
             2581      advocacy, monitoring, evaluation, technical assistance, and public education to enhance the
             2582      quality of life for aging and adult citizens of the state.
             2583          (6) In accordance with the rules of the division and Title 63G, Chapter [6] 6a, Utah
             2584      Procurement Code, the division may contract with:
             2585          (a) the governing body of an area agency to provide a comprehensive program of
             2586      services; or
             2587          (b) public and private entities for special services.
             2588          (7) The division has authority to provide for collection, compilation, and dissemination
             2589      of information, statistics, and reports relating to issues facing aging and adult citizens.
             2590          (8) The division has authority to prepare and submit reports regarding the operation
             2591      and administration of the division to the department, the Legislature, and the governor, as
             2592      requested.
             2593          (9) The division shall:
             2594          (a) implement and enforce policies established by the board governing all aspects of
             2595      the division's programs for aging and adult persons in the state;
             2596          (b) in order to ensure compliance with all applicable state and federal statutes, policies,
             2597      and procedures, monitor and evaluate programs provided by or under contract with:
             2598          (i) the division;


             2599          (ii) area agencies; and
             2600          (iii) an entity that receives funds from an area agency;
             2601          (c) examine expenditures of public funds;
             2602          (d) withhold funds from programs based on contract noncompliance;
             2603          (e) review and approve plans of area agencies in order to ensure:
             2604          (i) compliance with division policies; and
             2605          (ii) a statewide comprehensive program;
             2606          (f) in order to further programs for aging and adult persons and prevent duplication of
             2607      services, promote and establish cooperative relationships with:
             2608          (i) state and federal agencies;
             2609          (ii) social and health agencies;
             2610          (iii) education and research organizations; and
             2611          (iv) other related groups;
             2612          (g) advocate for the aging and adult populations;
             2613          (h) promote and conduct research on the problems and needs of aging and adult
             2614      persons;
             2615          (i) submit recommendations for changes in policies, programs, and funding to the:
             2616          (i) governor; and
             2617          (ii) Legislature; and
             2618          (j) (i) accept contributions to and administer the funds contained in the "Out and
             2619      About" Homebound Transportation Assistance Fund created in Section 62A-3-110 ; and
             2620          (ii) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             2621      Rulemaking Act, to facilitate the administration of the "Out and About" Homebound
             2622      Transportation Assistance Fund in accordance with Section 62A-3-110 .
             2623          Section 56. Section 62A-3-104.1 is amended to read:
             2624           62A-3-104.1. Powers and duties of area agencies.
             2625          (1) An area agency that provides services to an aged person, or a high risk adult shall
             2626      within the area agency's respective jurisdiction:
             2627          (a) advocate by monitoring, evaluating, and providing input on all policies, programs,
             2628      hearings, and levies that affect a person described in this Subsection (1);
             2629          (b) design and implement a comprehensive and coordinated system of services within a


             2630      designated planning and service area;
             2631          (c) conduct periodic reviews and evaluations of needs and services;
             2632          (d) prepare and submit to the division plans for funding and service delivery for
             2633      services within the designated planning and service area;
             2634          (e) establish, either directly or by contract, programs licensed under Chapter 2,
             2635      Licensure of Programs and Facilities;
             2636          (f) (i) appoint an area director;
             2637          (ii) prescribe the area director's duties; and
             2638          (iii) provide adequate and qualified staff to carry out the area plan described in
             2639      Subsection (1)(d);
             2640          (g) establish rules not contrary to policies of the board and rules of the division,
             2641      regulating local services and facilities;
             2642          (h) operate other services and programs funded by sources other than those
             2643      administered by the division;
             2644          (i) establish mechanisms to provide direct citizen input, including an area agency
             2645      advisory council with a majority of members who are eligible for services from the area
             2646      agency;
             2647          (j) establish fee schedules; and
             2648          (k) comply with the requirements and procedures of:
             2649          (i) Title 11, Chapter 13, Interlocal Cooperation Act; and
             2650          (ii) Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
             2651      Organizations, and Other Local Entities Act.
             2652          (2) Before disbursing any public funds, an area agency shall require that all entities
             2653      receiving any public funds agree in writing that:
             2654          (a) the division may examine the entity's program and financial records; and
             2655          (b) the auditor of the local area agency may examine and audit the entity's program and
             2656      financial records, if requested by the local area agency.
             2657          (3) An area agency on aging may not disburse public funds to a personal care attendant
             2658      as payment for personal services rendered to an aged person or high risk adult, except as
             2659      provided in Section 62A-3-104.3 .
             2660          (4) (a) For the purpose of providing services pursuant to this part, a local area agency


             2661      may receive:
             2662          (i) property;
             2663          (ii) grants;
             2664          (iii) gifts;
             2665          (iv) supplies;
             2666          (v) materials;
             2667          (vi) any benefit derived from the items described in Subsections (4)(a)(i) through (v);
             2668      and
             2669          (vii) contributions.
             2670          (b) If a gift is conditioned upon the gift's use for a specified service or program, the gift
             2671      shall be used for the specific service or program.
             2672          (5) (a) Area agencies shall award all public funds in compliance with:
             2673          (i) the requirements of Title 63G, Chapter [6] 6a, Utah Procurement Code; or
             2674          (ii) a county procurement ordinance that requires procurement procedures similar to
             2675      those described in Subsection (5)(a)(i).
             2676          (b) (i) If all initial bids on a project are rejected, the area agency shall publish a new
             2677      invitation to bid.
             2678          (ii) If no satisfactory bid is received by the area agency described in Subsection
             2679      (5)(b)(i), when the bids received from the second invitation are opened the area agency may
             2680      execute a contract without requiring competitive bidding.
             2681          (c) (i) An area agency need not comply with the procurement provisions of this section
             2682      when it disburses public funds to another governmental entity.
             2683          (ii) For purposes of this Subsection (5)(c), "governmental entity" means any political
             2684      subdivision or institution of higher education of the state.
             2685          (d) (i) Contracts awarded by an area agency shall be for a:
             2686          (A) fixed amount; and
             2687          (B) limited period.
             2688          (ii) The contracts described in Subsection (5)(d)(i) may be modified due to changes in
             2689      available funding for the same contract purpose without competition.
             2690          (6) Local area agencies shall comply with:
             2691          (a) applicable state and federal:


             2692          (i) statutes;
             2693          (ii) policies; and
             2694          (iii) audit requirements; and
             2695          (b) directives resulting from an audit described in Subsection (6)(a)(iii).
             2696          Section 57. Section 62A-14-109 is amended to read:
             2697           62A-14-109. Contract for services.
             2698          (1) In accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code, the office
             2699      may contract with one or more providers to perform guardian and conservator duties.
             2700          (2) The office shall review and monitor the services provided by a contract provider to
             2701      a ward for whom the office has been appointed guardian or conservator.
             2702          Section 58. Section 63A-5-205 is amended to read:
             2703           63A-5-205. Contracting powers of director -- Retainage -- Health insurance
             2704      coverage.
             2705          (1) As used in this section:
             2706          (a) "Capital developments" has the same meaning as provided in Section 63A-5-104 .
             2707          (b) "Capital improvements" has the same meaning as provided in Section 63A-5-104 .
             2708          (c) "Employee" means an "employee," "worker," or "operative" as defined in Section
             2709      34A-2-104 who:
             2710          (i) works at least 30 hours per calendar week; and
             2711          (ii) meets employer eligibility waiting requirements for health care insurance which
             2712      may not exceed the first day of the calendar month following 90 days from the date of hire.
             2713          (d) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             2714          (e) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             2715          (f) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             2716          (2) In accordance with Title 63G, Chapter [6] 6a, Utah Procurement Code, the director
             2717      may:
             2718          (a) subject to Subsection (3), enter into contracts for any work or professional services
             2719      which the division or the State Building Board may do or have done; and
             2720          (b) as a condition of any contract for architectural or engineering services, prohibit the
             2721      architect or engineer from retaining a sales or agent engineer for the necessary design work.
             2722          (3) (a) Except as provided in Subsection (3)(b), this Subsection (3) applies to all design


             2723      or construction contracts entered into by the division or the State Building Board on or after
             2724      July 1, 2009, and:
             2725          (i) applies to a prime contractor if the prime contract is in the amount of $1,500,000 or
             2726      greater; and
             2727          (ii) applies to a subcontractor if the subcontract is in the amount of $750,000 or greater.
             2728          (b) This Subsection (3) does not apply:
             2729          (i) if the application of this Subsection (3) jeopardizes the receipt of federal funds;
             2730          (ii) if the contract is a sole source contract;
             2731          (iii) if the contract is an emergency procurement; or
             2732          (iv) to a change order as defined in Section [ 63G-6-103 ] 63G-6a-103 , or a modification
             2733      to a contract, when the contract does not meet the threshold required by Subsection (3)(a).
             2734          (c) A person who intentionally uses change orders or contract modifications to
             2735      circumvent the requirements of Subsection (3)(a) is guilty of an infraction.
             2736          (d) (i) A contractor subject to Subsection (3)(a) shall demonstrate to the director that
             2737      the contractor has and will maintain an offer of qualified health insurance coverage for the
             2738      contractor's employees and the employees' dependents.
             2739          (ii) If a subcontractor of the contractor is subject to Subsection (3)(a), the contractor
             2740      shall demonstrate to the director that the subcontractor has and will maintain an offer of
             2741      qualified health insurance coverage for the subcontractor's employees and the employees'
             2742      dependents.
             2743          (e) (i) (A) A contractor who fails to meet the requirements of Subsection (3)(d)(i)
             2744      during the duration of the contract is subject to penalties in accordance with administrative
             2745      rules adopted by the division under Subsection (3)(f).
             2746          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             2747      requirements of Subsection (3)(d)(ii).
             2748          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (3)(d)(ii)
             2749      during the duration of the contract is subject to penalties in accordance with administrative
             2750      rules adopted by the division under Subsection (3)(f).
             2751          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             2752      requirements of Subsection (3)(d)(i).
             2753          (f) The division shall adopt administrative rules:


             2754          (i) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             2755          (ii) in coordination with:
             2756          (A) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             2757          (B) the Department of Natural Resources in accordance with Section 79-2-404 ;
             2758          (C) a public transit district in accordance with Section 17B-2a-818.5 ;
             2759          (D) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             2760          (E) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             2761          (F) the Legislature's Administrative Rules Review Committee; and
             2762          (iii) which establish:
             2763          (A) the requirements and procedures a contractor must follow to demonstrate to the
             2764      director compliance with this Subsection (3) which shall include:
             2765          (I) that a contractor will not have to demonstrate compliance with Subsection (3)(d)(i)
             2766      or (ii) more than twice in any 12-month period; and
             2767          (II) that the actuarially equivalent determination required for the qualified health
             2768      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             2769      department or division with a written statement of actuarial equivalency from either:
             2770          (Aa) the Utah Insurance Department;
             2771          (Bb) an actuary selected by the contractor or the contractor's insurer; or
             2772          (Cc) an underwriter who is responsible for developing the employer group's premium
             2773      rates;
             2774          (B) the penalties that may be imposed if a contractor or subcontractor intentionally
             2775      violates the provisions of this Subsection (3), which may include:
             2776          (I) a three-month suspension of the contractor or subcontractor from entering into
             2777      future contracts with the state upon the first violation;
             2778          (II) a six-month suspension of the contractor or subcontractor from entering into future
             2779      contracts with the state upon the second violation;
             2780          (III) an action for debarment of the contractor or subcontractor in accordance with
             2781      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             2782          (IV) monetary penalties which may not exceed 50% of the amount necessary to
             2783      purchase qualified health insurance coverage for an employee and the dependents of an
             2784      employee of the contractor or subcontractor who was not offered qualified health insurance


             2785      coverage during the duration of the contract; and
             2786          (C) a website on which the department shall post the benchmark for the qualified
             2787      health insurance coverage identified in Subsection (1)(e).
             2788          (g) (i) In addition to the penalties imposed under Subsection (3)(f)(iii), a contractor or
             2789      subcontractor who intentionally violates the provisions of this section shall be liable to the
             2790      employee for health care costs that would have been covered by qualified health insurance
             2791      coverage.
             2792          (ii) An employer has an affirmative defense to a cause of action under Subsection
             2793      (3)(g)(i) if:
             2794          (A) the employer relied in good faith on a written statement of actuarial equivalency
             2795      provided by:
             2796          (I) an actuary; or
             2797          (II) an underwriter who is responsible for developing the employer group's premium
             2798      rates; or
             2799          (B) the department determines that compliance with this section is not required under
             2800      the provisions of Subsection (3)(b).
             2801          (iii) An employee has a private right of action only against the employee's employer to
             2802      enforce the provisions of this Subsection (3)(g).
             2803          (h) Any penalties imposed and collected under this section shall be deposited into the
             2804      Medicaid Restricted Account created by Section 26-18-402 .
             2805          (i) The failure of a contractor or subcontractor to provide qualified health insurance
             2806      coverage as required by this section:
             2807          (i) may not be the basis for a protest or other action from a prospective bidder, offeror,
             2808      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             2809      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             2810          (ii) may not be used by the procurement entity or a prospective bidder, offeror, or
             2811      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             2812      or construction.
             2813          (4) The judgment of the director as to the responsibility and qualifications of a bidder
             2814      is conclusive, except in case of fraud or bad faith.
             2815          (5) The division shall make all payments to the contractor for completed work in


             2816      accordance with the contract and pay the interest specified in the contract on any payments that
             2817      are late.
             2818          (6) If any payment on a contract with a private contractor to do work for the division or
             2819      the State Building Board is retained or withheld, it shall be retained or withheld and released as
             2820      provided in Section 13-8-5 .
             2821          Section 59. Section 63A-5-208 is amended to read:
             2822           63A-5-208. Definitions -- Certain public construction bids to list subcontractors --
             2823      Changing subcontractors -- Bidders as subcontractors -- Dispute resolution process --
             2824      Penalties.
             2825          (1) As used in this section:
             2826          (a) "First-tier subcontractor" means a subcontractor who contracts directly with the
             2827      prime contractor.
             2828          (b) "Subcontractor" means any person or entity under contract with a contractor or
             2829      another subcontractor to provide services or labor for the construction, installation, or repair of
             2830      an improvement to real property.
             2831          (c) "Subcontractor" includes a trade contractor or specialty contractor.
             2832          (d) "Subcontractor" does not include suppliers who provide only materials, equipment,
             2833      or supplies to a contractor or subcontractor.
             2834          (2) The director shall apply the provisions of this section to achieve fair and
             2835      competitive bidding and to discourage bid-shopping by contractors.
             2836          (3) (a) (i) (A) On each public construction project, the director shall require the
             2837      apparent lowest three bidders to submit a list of their first-tier subcontractors indicating each
             2838      subcontractor's name, bid amount, and other information required by rule.
             2839          (B) Other bidders who are not one of the apparent lowest three bidders may also
             2840      submit a list of their first-tier subcontractors containing the information required by this
             2841      Subsection (3).
             2842          (C) The director may not consider any bid submitted by a bidder if the bidder fails to
             2843      submit a subcontractor list meeting the requirements of this section.
             2844          (ii) On projects where the contractor's total bid is less than $500,000, subcontractors
             2845      whose bid is less than $20,000 need not be listed.
             2846          (iii) On projects where the contractor's total bid is $500,000 or more, subcontractors


             2847      whose bid is less than $35,000 need not be listed.
             2848          (b) (i) The bidders shall submit this list within 24 hours after the bid opening time, not
             2849      including Saturdays, Sundays, and state holidays.
             2850          (ii) This list does not limit the director's right to authorize a change in the listing of any
             2851      subcontractor.
             2852          (c) The bidders shall verify that all subcontractors listed as part of their bids are
             2853      licensed as required by state law.
             2854          (d) Twenty-four hours after the bid opening, the contractor may change the contractor's
             2855      subcontractors only after:
             2856          (i) receiving permission from the director; and
             2857          (ii) establishing that:
             2858          (A) the change is in the best interest of the state; and
             2859          (B) the contractor establishes reasons for the change that meet the standards established
             2860      by the State Building Board.
             2861          (e) If the director approves any changes in subcontractors that result in a net lower
             2862      contract price for subcontracted work, the total of the prime contract may be reduced to reflect
             2863      the changes.
             2864          (4) (a) A bidder may list himself as a subcontractor when the bidder is currently
             2865      licensed to perform the portion of the work for which the bidder lists himself as a subcontractor
             2866      and:
             2867          (i) the bidder intends to perform the work of a subcontractor himself; or
             2868          (ii) the bidder intends to obtain a subcontractor to perform the work at a later date
             2869      because the bidder was unable to:
             2870          (A) obtain a bid from a qualified subcontractor; or
             2871          (B) obtain a bid from a qualified subcontractor at a cost that the bidder considers to be
             2872      reasonable.
             2873          (b) (i) When the bidder intends to perform the work of a subcontractor himself, the
             2874      director may, by written request, require that the bidder provide the director with information
             2875      indicating the bidder's:
             2876          (A) previous experience in the type of work to be performed; and
             2877          (B) qualifications for performing the work.


             2878          (ii) The bidder must respond in writing within five business days of receiving the
             2879      director's written request.
             2880          (iii) If the bidder's submitted information causes the director to reasonably believe that
             2881      self-performance of the portion of the work by the bidder is likely to yield a substandard
             2882      finished product, the director shall:
             2883          (A) require the bidder to use a subcontractor for the portion of the work in question and
             2884      obtain the subcontractor bid under the supervision of the director; or
             2885          (B) reject the bidder's bid.
             2886          (c) (i) When the bidder intends to obtain a subcontractor to perform the work at a later
             2887      date, the bidder shall provide documentation with the subcontractor list describing:
             2888          (A) the bidder's efforts to obtain a bid of a qualified subcontractor at a reasonable cost;
             2889      and
             2890          (B) why the bidder was unable to obtain a qualified subcontractor bid.
             2891          (ii) If the bidder who intends to obtain a subcontractor to perform the work at a later
             2892      date is awarded a contract, the director shall supervise the bidder's efforts to obtain a qualified
             2893      subcontractor bid.
             2894          (iii) The director may not adjust the amount of the contract awarded in order to reflect
             2895      the actual amount of the subcontractor's bid.
             2896          (5) The division may not disclose any subcontractor bid amounts obtained under this
             2897      section until the division has awarded the project to a contractor.
             2898          (6) (a) The director shall, in consultation with the State Building Board, prepare draft
             2899      rules establishing a process for resolving disputes involved with contracts under the division's
             2900      procurement authority.
             2901          (b) The draft rules shall be presented to the Government Operations Interim Committee
             2902      for review, comment, and recommendations before August 31, 2004.
             2903          (c) The director shall consider, and the rules may include:
             2904          (i) requirements regarding preliminary resolution efforts between the parties directly
             2905      involved with the dispute;
             2906          (ii) requirements for the filing of claims, including notification, timeframes, and
             2907      documentation;
             2908          (iii) identification of the types of costs eligible for allocation and a method for


             2909      allocating costs among the parties to the dispute;
             2910          (iv) required time periods, not to exceed 60 days, for the resolution of the claim;
             2911          (v) provision for an independent hearing officer, panel, or arbitrator to extend the time
             2912      period for resolution of the claim by not to exceed 60 additional days for good cause;
             2913          (vi) provision for the extension of required time periods if the claimant agrees;
             2914          (vii) requirements that decisions be issued in writing;
             2915          (viii) provisions for administrative appeals of the decision;
             2916          (ix) provisions for the timely payment of claims after resolution of the dispute,
             2917      including any appeals;
             2918          (x) a requirement that the final determination resulting from the dispute resolution
             2919      process provided for in the rules is a final agency action subject to judicial review as provided
             2920      in Sections 63G-4-401 and 63G-4-402 ;
             2921          (xi) a requirement that a claim or dispute that does not include a monetary claim
             2922      against the division or its agents is not limited to the dispute resolution process provided for in
             2923      this Subsection (6);
             2924          (xii) requirements for claims and disputes to be eligible for this dispute resolution
             2925      process;
             2926          (xiii) the use of an independent hearing officer, panel, arbitration, or mediation; and
             2927          (xiv) the circumstances under which a subcontractor may file a claim directly with the
             2928      division.
             2929          (d) Persons pursuing claims under the process required by this Subsection (6):
             2930          (i) are bound by the decision reached under this process unless the decision is properly
             2931      appealed; and
             2932          (ii) may not pursue claims or disputes under the dispute resolution process established
             2933      in Sections [ 63G-6-805 through 63G-6-814 ] 63G-6a-1602 through 63G-6a-1802 .
             2934          (7) In addition to all other reasons allowed by law or rule, the director may reject all
             2935      bids if none of the bidders whose bid is within the budget of the project submit a subcontractor
             2936      list that meets the requirements of this section.
             2937          (8) Any violation of this section, or any fraudulent misrepresentation by a contractor,
             2938      subcontractor, or supplier, may be grounds for:
             2939          (a) the contractor, subcontractor, or supplier to be suspended or debarred by the


             2940      director; or
             2941          (b) the contractor or subcontractor to be disciplined by the Division of Professional and
             2942      Occupational Licensing.
             2943          Section 60. Section 63A-5-302 is amended to read:
             2944           63A-5-302. Leasing responsibilities of the director.
             2945          (1) The director shall:
             2946          (a) lease, in the name of the division, all real property space to be occupied by an
             2947      agency;
             2948          (b) in leasing space, comply with:
             2949          (i) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             2950          (ii) any legislative mandates contained in the appropriations act or other specific
             2951      legislation;
             2952          (c) apply the criteria contained in Subsection (1)(e) to prepare a report evaluating each
             2953      high-cost lease at least 12 months before it expires;
             2954          (d) evaluate each lease under the division's control and apply the criteria contained in
             2955      Subsection (1)(e), when appropriate, to evaluate those leases;
             2956          (e) in evaluating leases:
             2957          (i) determine whether or not the lease is cost-effective when the needs of the agency to
             2958      be housed in the leased facilities are considered;
             2959          (ii) determine whether or not another option such as construction, use of other
             2960      state-owned space, or a lease-purchase agreement is more cost-effective than leasing;
             2961          (iii) determine whether or not the significant lease terms are cost-effective and provide
             2962      the state with sufficient flexibility and protection from liability;
             2963          (iv) compare the proposed lease payments to the current market rates, and evaluate
             2964      whether or not the proposed lease payments are reasonable under current market conditions;
             2965          (v) compare proposed significant lease terms to the current market, and recommend
             2966      whether or not these proposed terms are reasonable under current market conditions; and
             2967          (vi) if applicable, recommend that the lease or modification to a lease be approved or
             2968      disapproved;
             2969          (f) based upon the evaluation, include in the report recommendations that identify
             2970      viable alternatives to:


             2971          (i) make the lease cost-effective; or
             2972          (ii) meet the agency's needs when the lease expires; and
             2973          (g) upon request, provide the information included in the report to:
             2974          (i) the agency benefitted by the lease; and
             2975          (ii) the Office of Legislative Fiscal Analyst.
             2976          (2) The director may:
             2977          (a) subject to legislative appropriation, enter into facility leases with terms of up to 10
             2978      years when the length of the lease's term is economically advantageous to the state; and
             2979          (b) with the approval of the State Building Board and subject to legislative
             2980      appropriation, enter into facility leases with terms of more than 10 years when the length of the
             2981      lease's term is economically advantageous to the state.
             2982          Section 61. Section 63B-2-102 is amended to read:
             2983           63B-2-102. Maximum amount -- Projects authorized.
             2984          (1) The total amount of bonds issued under this part may not exceed $80,000,000.
             2985          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             2986      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             2987      Subsection (2).
             2988          (b) These costs may include the cost of acquiring land, interests in land, easements and
             2989      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             2990      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             2991      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             2992      covered by construction of the projects plus a period of six months after the end of the
             2993      construction period and all related engineering, architectural, and legal fees.
             2994          (c) For the division, proceeds shall be provided for the following:
             2995      CAPITAL IMPROVEMENTS
             2996      1 Alterations, Repairs, and Improvements $8,413,900
             2997      TOTAL IMPROVEMENTS $8,413,900
             2998      CAPITAL FACILITIES CONSTRUCTION
             2999     


PROJECT
PRIORITY



    PROJECT
    DESCRIPTION



AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS
             3000      1 Corrections - Northern Utah
Community Corrections Center Phase II
$2,729,700 $158,000
             3001      2 University of Utah
Marriot Library Phase II
$10,200,000 $881,600
             3002      3 Ogden Courts Building Phase II $12,096,000 $340,000
             3003      4 Utah National Guard -
Southeast Utah Armory Phase II
$397,800 $70,500
             3004      5 Southern Utah University
Library Phase II
$7,004,400 $427,000
             3005      6 Utah Valley Special Events
Center Phase II
$11,845,300 $536,900
             3006      7 Salt Lake Community College - Land $1,300,000 $0
             3007      8 Tax Commission Building $14,224,000 $812,000
             3008      9 Dixie College Business Building $2,823,300 $187,800
             3009      10 Salt Lake Community College
South City 3rd Floor and Boiler
$4,009,500 $257,600
             3010      11 Public Education -
Deaf and Blind Classrooms
$3,456,100 $124,800
             3011      TOTAL CONSTRUCTION $70,086,100
             3012      TOTAL IMPROVEMENTS AND     
    CONSTRUCTION
$78,500,000
             3013          (d) For purposes of this section, operations and maintenance costs:
             3014          (i) are estimates only;
             3015          (ii) may include any operations and maintenance costs already funded in existing


             3016      agency budgets; and
             3017          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3018      operations and maintenance costs.
             3019          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3020      constitute a limitation on the amount that may be expended for any project.
             3021          (b) The board may revise these estimates and redistribute the amount estimated for a
             3022      project among the projects authorized.
             3023          (c) The commission, by resolution and in consultation with the board, may delete one
             3024      or more projects from this list if the inclusion of that project or those projects in the list could
             3025      be construed to violate state law or federal law or regulation.
             3026          (4) (a) The division may enter into agreements related to these projects before the
             3027      receipt of proceeds of bonds issued under this chapter.
             3028          (b) The division shall make those expenditures from unexpended and unencumbered
             3029      building funds already appropriated to the Capital Projects Fund.
             3030          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3031      of bonds issued under this chapter.
             3032          (d) The commission may, by resolution, make any statement of intent relating to that
             3033      reimbursement that is necessary or desirable to comply with federal tax law.
             3034          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3035      it is the intent of the Legislature that the balance necessary to complete the projects be
             3036      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3037      of bonds.
             3038          (b) For those phased projects, the division may enter into contracts for amounts not to
             3039      exceed the anticipated full project funding but may not allow work to be performed on those
             3040      contracts in excess of the funding already authorized by the Legislature.
             3041          (c) Those contracts shall contain a provision for termination of the contract for the
             3042      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3043          (d) It is also the intent of the Legislature that this authorization to the division does not
             3044      bind future Legislatures to fund projects initiated from this authorization.
             3045          Section 62. Section 63B-3-102 is amended to read:
             3046           63B-3-102. Maximum amount -- Projects authorized.


             3047          (1) The total amount of bonds issued under this part may not exceed $64,600,000.
             3048          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3049      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3050      Subsection (2).
             3051          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3052      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3053      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3054      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3055      covered by construction of the projects plus a period of six months after the end of the
             3056      construction period and all related engineering, architectural, and legal fees.
             3057          (c) For the division, proceeds shall be provided for the following:
             3058      CAPITAL IMPROVEMENTS
             3059      1 Alterations, Repairs, and Improvements
$5,000,000        
             3060      TOTAL IMPROVEMENTS
$5,000,000
             3061      CAPITAL AND ECONOMIC DEVELOPMENT
             3062     


PRIORITY
PROJECT



PROJECT
DESCRIPTION



AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS
             3063      1 University of Utah
Marriott Library Phase III (Final)
$13,811,500 $881,600
             3064      2 Bridgerland Applied Technology Center
Utah State University Space
$2,400,000
$0
             3065      3 Weber State University -
Heat Plant
$2,332,100 $9,600
             3066      4 Department of Human Services -
Division of Youth Corrections renamed
in 2003 to the Division of Juvenile
Justice Services
$4,180,000 $400,000
             3067      5 Snow College - Administrative
Services/Student Center
$3,885,100 $224,500
             3068      6 Ogden Weber Applied Technology
Center - Metal Trades Building Design
and Equipment Purchase
$750,000 $0
             3069      7 Department of Corrections B-Block
Remodel
$1,237,100 $72,000
             3070      8 Utah State University - Old Main Phase
III Design
$550,000 $0
             3071      9 Department of Corrections - 144 bed
Uintah Expansion
$6,700,000 $168,800
             3072      10 Southern Utah University
Administrative Services/Student Center
$5,630,400 $314,200
             3073      11 Anasazi Museum $760,200 $8,500
             3074      12 Hill Air Force Base - Easements
Purchase
$9,500,000 $0
             3075      13 Signetics Building Remodel $2,000,000 $0
             3076      14 Antelope Island Visitors Center $750,000 $30,000
             3077      15 State Fair Park - Master Study $150,000 $0
             3078      16 Utah National Guard - Draper Land $380,800 $0
             3079      17 Davis Applied Technology Center -
Design
$325,000 $0
             3080      18 Palisade State Park - Land and Park
Development
$800,000 $0
             3081      19 Department of Human Services - Cedar
City Land
$80,000 $0
             3082      20 Department of Human Services -
Clearfield Land
$163,400 $0
             3083      21 Electronic technology, equipment, and
hardware
$2,500,000 $0
             3084      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT        $58,885,600
             3085      TOTAL IMPROVEMENTS AND CAPITAL
AND ECONOMIC DEVELOPMENT                $63,885,600
             3086          (d) For purposes of this section, operations and maintenance costs:
             3087          (i) are estimates only;
             3088          (ii) may include any operations and maintenance costs already funded in existing
             3089      agency budgets; and
             3090          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3091      operations and maintenance costs.
             3092          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3093      constitute a limitation on the amount that may be expended for any project.
             3094          (b) The board may revise these estimates and redistribute the amount estimated for a
             3095      project among the projects authorized.
             3096          (c) The commission, by resolution and in consultation with the board, may delete one
             3097      or more projects from this list if the inclusion of that project or those projects in the list could
             3098      be construed to violate state law or federal law or regulation.
             3099          (4) (a) The division may enter into agreements related to these projects before the
             3100      receipt of proceeds of bonds issued under this chapter.
             3101          (b) The division shall make those expenditures from unexpended and unencumbered
             3102      building funds already appropriated to the Capital Projects Fund.
             3103          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3104      of bonds issued under this chapter.
             3105          (d) The commission may, by resolution, make any statement of intent relating to that
             3106      reimbursement that is necessary or desirable to comply with federal tax law.


             3107          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3108      it is the intent of the Legislature that the balance necessary to complete the projects be
             3109      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3110      of bonds.
             3111          (b) For those phased projects, the division may enter into contracts for amounts not to
             3112      exceed the anticipated full project funding but may not allow work to be performed on those
             3113      contracts in excess of the funding already authorized by the Legislature.
             3114          (c) Those contracts shall contain a provision for termination of the contract for the
             3115      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3116          (d) It is also the intent of the Legislature that this authorization to the division does not
             3117      bind future Legislatures to fund projects initiated from this authorization.
             3118          Section 63. Section 63B-4-102 is amended to read:
             3119           63B-4-102. Maximum amount -- Projects authorized.
             3120          (1) The total amount of bonds issued under this part may not exceed $45,300,000.
             3121          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3122      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3123      Subsection (2).
             3124          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3125      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3126      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3127      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3128      covered by construction of the projects plus a period of six months after the end of the
             3129      construction period, and all related engineering, architectural, and legal fees.
             3130          (c) For the division, proceeds shall be provided for the following:
             3131      CAPITAL IMPROVEMENTS
             3132      Alterations, Repairs, and Improvements $7,200,000
             3133          TOTAL IMPROVEMENTS $7,200,000
             3134      CAPITAL AND ECONOMIC DEVELOPMENT
             3135     


    PROJECT
    DESCRIPTION



AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS
             3136      Corrections - Uinta IVA $11,300,000 $212,800
             3137      Utah County Youth Correctional Facility $6,650,000 $245,000
             3138      Ogden Weber Applied Technology Center -
Metal Trades
$5,161,000 $176,000
             3139      Project Reserve Fund     $3,500,000 None
             3140      Weber State University - Browning Center
Remodel
$3,300,000 None
             3141      Heber Wells Building Remodel $2,000,000 None
             3142      Higher Education Davis County - Land Purchase $1,600,000 None
             3143      National Guard -- Provo Armory $1,500,000 $128,000
             3144      Department of Natural Resources - Pioneer
Trails Visitor Center
$900,000 $65,000
             3145      Higher Education Design Projects $800,000 Varies depending
upon projects
selected
             3146      Salt Lake Community College - South Valley
Planning
$300,000 None
             3147      Division of Youth Corrections renamed in 2003
to the Division of Juvenile Justice Services -
Logan Land Purchase
$120,000 None
             3148      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT $37,131,000
             3149      TOTAL IMPROVEMENTS AND CAPITAL AND ECONOMIC
DEVELOPMENT
$44,331,000
             3150          (d) For purposes of this section, operations and maintenance costs:
             3151          (i) are estimates only;


             3152          (ii) may include any operations and maintenance costs already funded in existing
             3153      agency budgets; and
             3154          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3155      operations and maintenance costs.
             3156          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3157      constitute a limitation on the amount that may be expended for any project.
             3158          (b) The board may revise these estimates and redistribute the amount estimated for a
             3159      project among the projects authorized.
             3160          (c) The commission, by resolution and in consultation with the board, may delete one
             3161      or more projects from this list if the inclusion of that project or those projects in the list could
             3162      be construed to violate state law or federal law or regulation.
             3163          (4) (a) The division may enter into agreements related to these projects before the
             3164      receipt of proceeds of bonds issued under this chapter.
             3165          (b) The division shall make those expenditures from unexpended and unencumbered
             3166      building funds already appropriated to the Capital Projects Fund.
             3167          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3168      of bonds issued under this chapter.
             3169          (d) The commission may, by resolution, make any statement of intent relating to that
             3170      reimbursement that is necessary or desirable to comply with federal tax law.
             3171          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3172      it is the intent of the Legislature that the balance necessary to complete the projects be
             3173      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3174      of bonds.
             3175          (b) For those phased projects, the division may enter into contracts for amounts not to
             3176      exceed the anticipated full project funding but may not allow work to be performed on those
             3177      contracts in excess of the funding already authorized by the Legislature.
             3178          (c) Those contracts shall contain a provision for termination of the contract for the
             3179      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3180          (d) It is also the intent of the Legislature that this authorization to the division does not
             3181      bind future Legislatures to fund projects initiated from this authorization.
             3182          Section 64. Section 63B-5-102 is amended to read:


             3183           63B-5-102. Maximum amount -- Projects authorized.
             3184          (1) The total amount of bonds issued under this part may not exceed $32,000,000.
             3185          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3186      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3187      Subsection (2).
             3188          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3189      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3190      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3191      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3192      covered by construction of the projects plus a period of six months after the end of the
             3193      construction period, and all related engineering, architectural, and legal fees.
             3194          (c) For the division, proceeds shall be provided for the following:
             3195      CAPITAL IMPROVEMENTS
             3196      Alterations, Repairs, and Improvements $7,600,000
             3197          TOTAL IMPROVEMENTS $7,600,000
             3198      CAPITAL AND ECONOMIC DEVELOPMENT
             3199     



PROJECT DESCRIPTION



AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS
             3200      Corrections - Gunnison (192 Beds) $13,970,000 $210,000
             3201      University of Utah -- Gardner Hall $7,361,000 $203,900
             3202      Weber State University Davis Campus -- Land
Purchase
$771,000 None
             3203      Department of Workforce Services Cedar City
-- Land Purchase
$148,000 None
             3204      College of Eastern Utah Durrant School --
Land Purchase
$400,000 None
             3205      State Hospital - Forensic Design (200 beds) $750,000 $575,000
             3206      TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT
$23,400,000
             3207      TOTAL IMPROVEMENTS AND CAPITAL AND
ECONOMIC DEVELOPMENT
$31,000,000
             3208          (d) For purposes of this section, operations and maintenance costs:
             3209          (i) are estimates only;
             3210          (ii) may include any operations and maintenance costs already funded in existing
             3211      agency budgets; and
             3212          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3213      operations and maintenance costs.
             3214          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3215      constitute a limitation on the amount that may be expended for any project.
             3216          (b) The board may revise these estimates and redistribute the amount estimated for a
             3217      project among the projects authorized.
             3218          (c) The commission, by resolution and in consultation with the board, may delete one
             3219      or more projects from this list if the inclusion of that project or those projects in the list could
             3220      be construed to violate state law or federal law or regulation.
             3221          (4) (a) The division may enter into agreements related to these projects before the
             3222      receipt of proceeds of bonds issued under this chapter.
             3223          (b) The division shall make those expenditures from unexpended and unencumbered
             3224      building funds already appropriated to the Capital Projects Fund.
             3225          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3226      of bonds issued under this chapter.
             3227          (d) The commission may, by resolution, make any statement of intent relating to that
             3228      reimbursement that is necessary or desirable to comply with federal tax law.
             3229          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3230      it is the intent of the Legislature that the balance necessary to complete the projects be
             3231      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3232      of bonds.
             3233          (b) For those phased projects, the division may enter into contracts for amounts not to
             3234      exceed the anticipated full project funding but may not allow work to be performed on those


             3235      contracts in excess of the funding already authorized by the Legislature.
             3236          (c) Those contracts shall contain a provision for termination of the contract for the
             3237      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3238          (d) It is also the intent of the Legislature that this authorization to the division does not
             3239      bind future Legislatures to fund projects initiated from this authorization.
             3240          Section 65. Section 63B-6-102 is amended to read:
             3241           63B-6-102. Maximum amount -- Projects authorized.
             3242          (1) The total amount of bonds issued under this part may not exceed $57,000,000.
             3243          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3244      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3245      Subsection (2).
             3246          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3247      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3248      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3249      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3250      covered by construction of the projects plus a period of six months after the end of the
             3251      construction period, and all related engineering, architectural, and legal fees.
             3252          (c) For the division, proceeds shall be provided for the following:
             3253      CAPITAL AND ECONOMIC DEVELOPMENT
             3254     


PROJECT DESCRIPTION


AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
             3255      Youth Corrections - Carbon / Emery (18 beds) $2,298,100 $70,000
             3256      State Hospital - 100 bed Forensic Facility $13,800,700 $320,600
             3257      Utah State University - Widtsoe Hall $23,986,700 $750,200
             3258      Davis Applied Technology Center - Medical/Health
Tech Addition
$6,344,900 $144,000
             3259      Southern Utah University -- Physical Education
Building (Design)
$1,100,000 $456,100
             3260      Salt Lake Community College -- High Technology
Building, 90th So. Campus (Design)
$1,165,000 $718,500
             3261      Department of Natural Resources - Antelope Island
Road
$3,600,000 None
             3262      Youth Corrections - Region 1 72 Secured Bed
Facility
$1,500,000 None
             3263      Department of Natural Resources - Dead Horse
Point Visitors Center
$1,350,000 $5,700
             3264      TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT
$55,145,400
             3265          (d) For purposes of this section, operations and maintenance costs:
             3266          (i) are estimates only;
             3267          (ii) may include any operations and maintenance costs already funded in existing
             3268      agency budgets; and
             3269          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3270      operations and maintenance costs.
             3271          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3272      constitute a limitation on the amount that may be expended for any project.
             3273          (b) The board may revise these estimates and redistribute the amount estimated for a
             3274      project among the projects authorized.
             3275          (c) The commission, by resolution and in consultation with the board, may delete one
             3276      or more projects from this list if the inclusion of that project or those projects in the list could
             3277      be construed to violate state law or federal law or regulation.
             3278          (4) (a) The division may enter into agreements related to these projects before the
             3279      receipt of proceeds of bonds issued under this chapter.
             3280          (b) The division shall make those expenditures from unexpended and unencumbered
             3281      building funds already appropriated to the Capital Projects Fund.
             3282          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3283      of bonds issued under this chapter.
             3284          (d) The commission may, by resolution, make any statement of intent relating to that


             3285      reimbursement that is necessary or desirable to comply with federal tax law.
             3286          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3287      it is the intent of the Legislature that the balance necessary to complete the projects be
             3288      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3289      of bonds.
             3290          (b) For those phased projects, the division may enter into contracts for amounts not to
             3291      exceed the anticipated full project funding but may not allow work to be performed on those
             3292      contracts in excess of the funding already authorized by the Legislature.
             3293          (c) Those contracts shall contain a provision for termination of the contract for the
             3294      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3295          (d) It is also the intent of the Legislature that this authorization to the division does not
             3296      bind future Legislatures to fund projects initiated from this authorization.
             3297          Section 66. Section 63B-6-402 is amended to read:
             3298           63B-6-402. Maximum amount -- Projects authorized.
             3299          (1) The total amount of bonds issued under this part may not exceed $9,000,000.
             3300          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             3301      Commission to provide funds to pay all or part of the cost of the project described in this
             3302      Subsection (2).
             3303          (b) These costs may include:
             3304          (i) the cost of acquisition, development, and conversion of computer hardware and
             3305      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             3306          (ii) interest estimated to accrue on these bonds during the period to be covered by that
             3307      development and conversion, plus a period of six months following the completion of the
             3308      development and conversion; and
             3309          (iii) all related engineering, consulting, and legal fees.
             3310          (c) For the State Tax Commission, proceeds shall be provided for the following:
             3311      PROJECT
DESCRIPTION
AMOUNT
FUNDED
             3312      UTAX SYSTEMS ACQUISITION AND
DEVELOPMENT
$8,500,000
             3313          (3) The commission, by resolution may decline to issue bonds if the project could be


             3314      construed to violate state law or federal law or regulation.
             3315          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it
             3316      is the intent of the Legislature that the balance necessary to complete the project be addressed
             3317      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             3318          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             3319      anticipated full project funding but may not allow work to be performed on those contracts in
             3320      excess of the funding already authorized by the Legislature.
             3321          (c) Those contracts shall contain a provision for termination of the contract for the
             3322      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3323          (d) It is also the intent of the Legislature that this authorization to the State Tax
             3324      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             3325          Section 67. Section 63B-7-102 is amended to read:
             3326           63B-7-102. Maximum amount -- Projects authorized.
             3327          (1) The total amount of bonds issued under this part may not exceed $33,600,000.
             3328          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3329      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3330      Subsection (2).
             3331          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3332      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3333      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3334      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3335      covered by construction of the projects plus a period of six months after the end of the
             3336      construction period, and all related engineering, architectural, and legal fees.
             3337          (c) For the division, proceeds shall be provided for the following:
             3338     

PROJECT
DESCRIPTION


AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
             3339      Southern Utah University Land Purchase $4,600,000 $0
             3340      Salt Lake Community College High Tech Center
- Jordan Campus
$3,980,700 $507,900
             3341      Children's Special Health Care Needs Clinic $755,400 $247,600
             3342      Youth Corrections - 2 @ 32 beds
(Vernal / Logan)
$419,500 $276,000
             3343      Corrections - Gunnison 288 bed and Lagoon
Expansion
$8,425,600 $0
             3344      University of Utah - Cowles Building $445,500 $101,700
             3345      Utah Valley State College - Technical Building $1,166,300 $391,000
             3346      Sevier Valley Applied Technology Center - Shop
Expansion
$3,014,300 $443,300
             3347      Division of Parks and Recreation Statewide
Restrooms
$1,000,000 $22,700
             3348      Murray Highway Patrol Office $2,300,000 $81,000
             3349      Department of Workforce Services - Davis
County Employment Center
$2,780,000 $128,100
             3350      State Hospital - Rampton II $1,600,000 $462,000
             3351      Courts - 4th District Land - Provo $1,368,000 $0
             3352      Dixie College - Land $1,000,000 $0
             3353      TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT
$32,855,300
             3354          (d) For purposes of this section, operations and maintenance costs:
             3355          (i) are estimates only;
             3356          (ii) may include any operations and maintenance costs already funded in existing
             3357      agency budgets; and
             3358          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3359      operations and maintenance costs.
             3360          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3361      constitute a limitation on the amount that may be expended for any project.
             3362          (b) The board may revise these estimates and redistribute the amount estimated for a
             3363      project among the projects authorized.
             3364          (c) The commission, by resolution and in consultation with the board, may delete one


             3365      or more projects from this list if the inclusion of that project or those projects in the list could
             3366      be construed to violate state law or federal law or regulation.
             3367          (4) (a) The division may enter into agreements related to these projects before the
             3368      receipt of proceeds of bonds issued under this chapter.
             3369          (b) The division shall make those expenditures from unexpended and unencumbered
             3370      building funds already appropriated to the Capital Projects Fund.
             3371          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3372      of bonds issued under this chapter.
             3373          (d) The commission may, by resolution, make any statement of intent relating to that
             3374      reimbursement that is necessary or desirable to comply with federal tax law.
             3375          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3376      it is the intent of the Legislature that the balance necessary to complete the projects be
             3377      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3378      of bonds.
             3379          (b) For those phased projects, the division may enter into contracts for amounts not to
             3380      exceed the anticipated full project funding but may not allow work to be performed on those
             3381      contracts in excess of the funding already authorized by the Legislature.
             3382          (c) Those contracts shall contain a provision for termination of the contract for the
             3383      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3384          (d) It is also the intent of the Legislature that this authorization to the division does not
             3385      bind future Legislatures to fund projects initiated from this authorization.
             3386          Section 68. Section 63B-7-402 is amended to read:
             3387           63B-7-402. Maximum amount -- Projects authorized.
             3388          (1) The total amount of bonds issued under this part may not exceed $16,500,000.
             3389          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             3390      Commission to provide funds to pay all or part of the cost of the project described in this
             3391      Subsection (2).
             3392          (b) These costs may include:
             3393          (i) the cost of acquisition, development, and conversion of computer hardware and
             3394      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             3395          (ii) interest estimated to accrue on these bonds during the period to be covered by that


             3396      development and conversion, plus a period of six months following the completion of the
             3397      development and conversion; and
             3398          (iii) all related engineering, consulting, and legal fees.
             3399          (c) For the State Tax Commission, proceeds shall be provided for the following:
             3400      PROJECT
DESCRIPTION
AMOUNT
FUNDED
             3401      UTAX SYSTEMS ACQUISITION AND
DEVELOPMENT
$15,650,000
             3402          (3) The commission, by resolution may decline to issue bonds if the project could be
             3403      construed to violate state law or federal law or regulation.
             3404          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it
             3405      is the intent of the Legislature that the balance necessary to complete the project be addressed
             3406      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             3407          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             3408      anticipated full project funding but may not allow work to be performed on those contracts in
             3409      excess of the funding already authorized by the Legislature.
             3410          (c) Those contracts shall contain a provision for termination of the contract for the
             3411      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3412          (d) It is also the intent of the Legislature that this authorization to the State Tax
             3413      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             3414          Section 69. Section 63B-8-102 is amended to read:
             3415           63B-8-102. Maximum amount -- Projects authorized.
             3416          (1) The total amount of bonds issued under this part may not exceed $48,500,000.
             3417          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3418      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3419      Subsection (2).
             3420          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3421      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3422      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3423      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3424      covered by construction of the projects plus a period of six months after the end of the


             3425      construction period, and all related engineering, architectural, and legal fees.
             3426          (c) For the division, proceeds shall be provided for the following:
             3427     

PROJECT
DESCRIPTION


AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
             3428      Southern Utah University - Physical Education
Building
$2,493,200 $447,744
             3429      Utah Valley State College - Information Sciences
Building
$29,000,000 $721,875
             3430      University of Utah - Cowles Building Renovation $7,268,500 $140,217
             3431      Vernal District Court $4,539,500 $149,989
             3432      Salt Lake Community College - Applied Education
Center
$4,200,000 $281,784
             3433      TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT
$47,501,200
             3434          (d) For purposes of this section, operations and maintenance costs:
             3435          (i) are estimates only;
             3436          (ii) may include any operations and maintenance costs already funded in existing
             3437      agency budgets; and
             3438          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3439      operations and maintenance costs.
             3440          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3441      constitute a limitation on the amount that may be expended for any project.
             3442          (b) The board may revise these estimates and redistribute the amount estimated for a
             3443      project among the projects authorized.
             3444          (c) The commission, by resolution and in consultation with the board, may delete one
             3445      or more projects from this list if the inclusion of that project or those projects in the list could
             3446      be construed to violate state law or federal law or regulation.
             3447          (4) (a) The division may enter into agreements related to these projects before the


             3448      receipt of proceeds of bonds issued under this chapter.
             3449          (b) The division shall make those expenditures from unexpended and unencumbered
             3450      building funds already appropriated to the Capital Projects Fund.
             3451          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3452      of bonds issued under this chapter.
             3453          (d) The commission may, by resolution, make any statement of intent relating to that
             3454      reimbursement that is necessary or desirable to comply with federal tax law.
             3455          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3456      it is the intent of the Legislature that the balance necessary to complete the projects be
             3457      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3458      of bonds.
             3459          (b) For those phased projects, the division may enter into contracts for amounts not to
             3460      exceed the anticipated full project funding but may not allow work to be performed on those
             3461      contracts in excess of the funding already authorized by the Legislature.
             3462          (c) Those contracts shall contain a provision for termination of the contract for the
             3463      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3464          (d) It is also the intent of the Legislature that this authorization to the division does not
             3465      bind future Legislatures to fund projects initiated from this authorization.
             3466          Section 70. Section 63B-8-402 is amended to read:
             3467           63B-8-402. Maximum amount -- Projects authorized.
             3468          (1) The total amount of bonds issued under this part may not exceed $7,400,000.
             3469          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3470      funds to pay all or part of the cost of acquiring and constructing the project listed in this
             3471      Subsection (2).
             3472          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3473      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3474      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3475      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3476      covered by construction of the projects plus a period of six months after the end of the
             3477      construction period, and all related engineering, architectural, and legal fees.
             3478          (c) For the division, proceeds shall be provided for the following:


             3479     

PROJECT
DESCRIPTION


AMOUNT
FUNDED
ESTIMATED
OPERATIONS
AND
MAINTENANCE
             3480      State Hospital - Rampton II     $7,000,000 $462,000
             3481          (d) For purposes of this section, operations and maintenance costs:
             3482          (i) are estimates only;
             3483          (ii) may include any operations and maintenance costs already funded in existing
             3484      agency budgets; and
             3485          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3486      operations and maintenance costs.
             3487          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3488      constitute a limitation on the amount that may be expended for any project.
             3489          (b) The board may revise these estimates and redistribute the amount estimated for a
             3490      project among the projects authorized.
             3491          (c) The commission, by resolution and in consultation with the board, may delete one
             3492      or more projects from this list if the inclusion of that project or those projects in the list could
             3493      be construed to violate state law or federal law or regulation.
             3494          (4) (a) The division may enter into agreements related to these projects before the
             3495      receipt of proceeds of bonds issued under this chapter.
             3496          (b) The division shall make those expenditures from unexpended and unencumbered
             3497      building funds already appropriated to the Capital Projects Fund.
             3498          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3499      of bonds issued under this chapter.
             3500          (d) The commission may, by resolution, make any statement of intent relating to that
             3501      reimbursement that is necessary or desirable to comply with federal tax law.
             3502          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3503      it is the intent of the Legislature that the balance necessary to complete the projects be
             3504      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3505      of bonds.
             3506          (b) For those phased projects, the division may enter into contracts for amounts not to


             3507      exceed the anticipated full project funding but may not allow work to be performed on those
             3508      contracts in excess of the funding already authorized by the Legislature.
             3509          (c) Those contracts shall contain a provision for termination of the contract for the
             3510      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3511          (d) It is also the intent of the Legislature that this authorization to the division does not
             3512      bind future Legislatures to fund projects initiated from this authorization.
             3513          Section 71. Section 63B-9-103 is amended to read:
             3514           63B-9-103. Other capital facility authorizations and intent language.
             3515          (1) It is the intent of the Legislature that:
             3516          (a) Utah State University use institutional funds to plan, design, and construct a
             3517      renovation and expansion of the Edith Bowen School under the direction of the director of the
             3518      Division of Facilities Construction and Management unless supervisory authority has been
             3519      delegated;
             3520          (b) no state funds be used for any portion of this project; and
             3521          (c) the university may request state funds for operations and maintenance to the extent
             3522      that the university is able to demonstrate to the Board of Regents that the facility meets
             3523      approved academic and training purposes under Board of Regents policy R710.
             3524          (2) It is the intent of the Legislature that:
             3525          (a) the University of Utah use institutional funds to plan, design, and construct a
             3526      College of Science Math Center under the direction of the director of the Division of Facilities
             3527      Construction and Management unless supervisory authority has been delegated;
             3528          (b) no state funds be used for any portion of this project; and
             3529          (c) the university may request state funds for operations and maintenance to the extent
             3530      that the university is able to demonstrate to the Board of Regents that the facility meets
             3531      approved academic and training purposes under Board of Regents policy R710.
             3532          (3) It is the intent of the Legislature that:
             3533          (a) the University of Utah use institutional funds to plan, design, and construct a
             3534      Burbidge Athletics and Academics Building under the direction of the director of the Division
             3535      of Facilities Construction and Management unless supervisory authority has been delegated;
             3536          (b) no state funds be used for any portion of this project; and
             3537          (c) the university may not request state funds for operations and maintenance.


             3538          (4) It is the intent of the Legislature that:
             3539          (a) the University of Utah use institutional funds to plan, design, and construct an
             3540      expansion to the bookstore under the direction of the director of the Division of Facilities
             3541      Construction and Management unless supervisory authority has been delegated;
             3542          (b) no state funds be used for any portion of this project; and
             3543          (c) the university may not request state funds for operations and maintenance.
             3544          (5) It is the intent of the Legislature that:
             3545          (a) the University of Utah use institutional funds to plan, design, and construct a Health
             3546      Sciences/Basic Sciences Building under the direction of the director of the Division of
             3547      Facilities Construction and Management unless supervisory authority has been delegated;
             3548          (b) no state funds be used for any portion of this project; and
             3549          (c) the university may request state funds for operations and maintenance to the extent
             3550      that the university is able to demonstrate to the Board of Regents that the facility meets
             3551      approved academic and training purposes under Board of Regents policy R710.
             3552          (6) It is the intent of the Legislature that:
             3553          (a) Weber State University use institutional funds to plan, design, and construct an
             3554      expansion to the stadium under the direction of the director of the Division of Facilities
             3555      Construction and Management unless supervisory authority has been delegated;
             3556          (b) no state funds be used for any portion of this project; and
             3557          (c) the university may not request state funds for operations and maintenance.
             3558          (7) It is the intent of the Legislature that:
             3559          (a) Utah Valley State College use institutional funds to plan, design, and construct a
             3560      baseball stadium under the direction of the director of the Division of Facilities Construction
             3561      and Management unless supervisory authority has been delegated;
             3562          (b) no state funds be used for any portion of this project; and
             3563          (c) the college may not request state funds for operations and maintenance.
             3564          (8) It is the intent of the Legislature that:
             3565          (a) Southern Utah University use institutional funds to plan, design, and construct a
             3566      weight training room under the direction of the director of the Division of Facilities
             3567      Construction and Management unless supervisory authority has been delegated;
             3568          (b) no state funds be used for any portion of this project; and


             3569          (c) the university may not request state funds for operations and maintenance.
             3570          (9) It is the intent of the Legislature that:
             3571          (a) Snow College may lease land at the Snow College Richfield campus to a private
             3572      developer for the construction and operation of student housing;
             3573          (b) the oversight and inspection of the construction comply with Section 63A-5-206 ;
             3574          (c) no state funds be used for any portion of this project; and
             3575          (d) the college may not request state funds for operations and maintenance.
             3576          (10) It is the intent of the Legislature that:
             3577          (a) Salt Lake Community College may lease land at the Jordan campus to Jordan
             3578      School District for the construction and operation of an Applied Technology Education Center;
             3579          (b) the oversight and inspection of the construction comply with Section 63A-5-206 ;
             3580          (c) no state funds be used for any portion of this project; and
             3581          (d) the college may not request state funds for operations and maintenance.
             3582          (11) It is the intent of the Legislature that:
             3583          (a) the Department of Transportation exchange its maintenance station at Kimball
             3584      Junction for property located near Highway 40 in Summit County; and
             3585          (b) the Department of Transportation use federal funds, rent paid by the Salt Lake
             3586      Organizing Committee for the use of the maintenance station, and any net proceeds resulting
             3587      from the exchange of property to construct a replacement facility under the direction of the
             3588      director of the Division of Facilities Construction and Management unless supervisory
             3589      authority has been delegated.
             3590          (12) It is the intent of the Legislature that:
             3591          (a) the Department of Transportation sell surplus property in Utah County;
             3592          (b) the Department of Transportation use funds from that sale to remodel existing
             3593      space and add an addition to the Region 3 Complex; and
             3594          (c) the project cost not exceed the funds received through sale of property.
             3595          (13) It is the intent of the Legislature that the Department of Workforce Services use
             3596      proceeds from property sales to purchase additional property adjacent to its state-owned facility
             3597      in Logan.
             3598          (14) (a) It is the intent of the Legislature that, because only partial funding is provided
             3599      for the Heat Plant/Infrastructure Project at Utah State University, the balance necessary to


             3600      complete this project be addressed by future Legislatures, either through appropriations or
             3601      through the issuance of bonds.
             3602          (b) (i) In compliance with Section 63A-5-207 , the division may enter into contracts for
             3603      amounts not to exceed the anticipated full project funding but may not allow work to be
             3604      performed on those contracts in excess of the funding already authorized by the Legislature.
             3605          (ii) Those contracts shall contain a provision for termination of the contract for the
             3606      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3607          (c) It is also the intent of the Legislature that this authorization to the division does not
             3608      bind future Legislatures to fund the Heat Plant/Infrastructure Project at Utah State University.
             3609          Section 72. Section 63B-11-202 is amended to read:
             3610           63B-11-202. Maximum amount -- Projects authorized.
             3611          (1) (a) The total amount of bonds issued under this part may not exceed $21,250,000.
             3612          (b) When Utah State University certifies to the commission that the university has
             3613      obtained reliable commitments, convertible to cash, of $5,000,000 or more in nonstate funds to
             3614      construct an addition to the new engineering building and demolish the existing engineering
             3615      classroom building, the commission may issue and sell general obligation bonds in a total
             3616      amount not to exceed $6,100,000.
             3617          (c) When the University of Utah certifies to the commission that the university has
             3618      obtained reliable commitments, convertible to cash, of $13,000,000 or more in nonstate funds
             3619      to construct a new engineering building, the commission may issue and sell general obligation
             3620      bonds in a total amount not to exceed $15,150,000.
             3621          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             3622      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             3623      Subsection (2).
             3624          (b) These costs may include the cost of acquiring land, interests in land, easements and
             3625      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             3626      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             3627      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             3628      covered by construction of the projects plus a period of six months after the end of the
             3629      construction period, and all related engineering, architectural, and legal fees.
             3630          (c) For the division, proceeds shall be provided for the following:


             3631     


PROJECT
DESCRIPTION



AMOUNT
FUNDED
ESTIMATED
OPERATING
AND
MAINTENANCE
COSTS
             3632      1. Utah State University Engineering Building
Renovation
$5,943,500 $425,000
             3633      2. University of Utah New Engineering Building $15,000,000 $489,000
             3634      COSTS OF ISSUANCE $306,500
             3635      TOTAL CAPITAL AND ECONOMIC DEVELOPMENT $21,250,000
             3636          (d) For purposes of this section, operations and maintenance costs:
             3637          (i) are estimates only;
             3638          (ii) may include any operations and maintenance costs already funded in existing
             3639      agency budgets; and
             3640          (iii) are not commitments by this Legislature or future Legislatures to fund those
             3641      operations and maintenance costs.
             3642          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             3643      constitute a limitation on the amount that may be expended for any project.
             3644          (b) The board may revise these estimates and redistribute the amount estimated for a
             3645      project among the projects authorized.
             3646          (c) The commission, by resolution and in consultation with the board, may delete one
             3647      or more projects from this list if the inclusion of that project or those projects in the list could
             3648      be construed to violate state law or federal law or regulation.
             3649          (4) (a) The division may enter into agreements related to these projects before the
             3650      receipt of proceeds of bonds issued under this chapter.
             3651          (b) The division shall make those expenditures from unexpended and unencumbered
             3652      building funds already appropriated to the Capital Projects Fund.
             3653          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             3654      of bonds issued under this chapter.
             3655          (d) The commission may, by resolution, make any statement of intent relating to that


             3656      reimbursement that is necessary or desirable to comply with federal tax law.
             3657          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             3658      it is the intent of the Legislature that the balance necessary to complete the projects be
             3659      addressed by future Legislatures, either through appropriations or through the issuance or sale
             3660      of bonds.
             3661          (b) For those phased projects, the division may enter into contracts for amounts not to
             3662      exceed the anticipated full project funding but may not allow work to be performed on those
             3663      contracts in excess of the funding already authorized by the Legislature.
             3664          (c) Those contracts shall contain a provision for termination of the contract for the
             3665      convenience of the state as required by Section [ 63G-6-601 ] 63G-6a-1202 .
             3666          (d) It is also the intent of the Legislature that this authorization to the division does not
             3667      bind future Legislatures to fund projects initiated from this authorization.
             3668          Section 73. Section 63C-7-210 is amended to read:
             3669           63C-7-210. Exemption from certain acts.
             3670          (1) The Utah Communications Agency Network is exempt from:
             3671          (a) Title 63J, Chapter 1, Budgetary Procedures Act;
             3672          (b) Title 63A, Utah Administrative Services Code, except as provided in Section
             3673      63A-4-205.5 ;
             3674          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             3675          (d) Title 63G, Chapter 4, Administrative Procedures Act; and
             3676          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             3677          (2) The board shall adopt budgetary procedures, accounting, procurement, and
             3678      personnel policies substantially similar to those from which they have been exempted in
             3679      Subsection (1).
             3680          Section 74. Section 63C-9-301 is amended to read:
             3681           63C-9-301. Board powers -- Subcommittees.
             3682          (1) The board shall:
             3683          (a) except as provided in Subsection (2), exercise complete jurisdiction and
             3684      stewardship over capitol hill facilities, capitol hill grounds, and the capitol hill complex;
             3685          (b) preserve, maintain, and restore the capitol hill complex, capitol hill facilities,
             3686      capitol hill grounds, and their contents;


             3687          (c) before October 1 of each year, review and approve the executive director's annual
             3688      budget request for submittal to the governor and Legislature;
             3689          (d) by October 1 of each year, prepare and submit a recommended budget request for
             3690      the upcoming fiscal year for the capitol hill complex to:
             3691          (i) the governor, through the Governor's Office of Planning and Budget; and
             3692          (ii) the Legislature's appropriations subcommittee responsible for capitol hill facilities,
             3693      through the Office of Legislative Fiscal Analyst;
             3694          (e) review and approve the executive director's:
             3695          (i) annual work plan;
             3696          (ii) long-range master plan for the capitol hill complex, capitol hill facilities, and
             3697      capitol hill grounds; and
             3698          (iii) furnishings plan for placement and care of objects under the care of the board;
             3699          (f) approve all changes to the buildings and their grounds, including:
             3700          (i) restoration, remodeling, and rehabilitation projects;
             3701          (ii) usual maintenance program; and
             3702          (iii) any transfers or loans of objects under the board's care;
             3703          (g) define and identify all significant aspects of the capitol hill complex, capitol hill
             3704      facilities, and capitol hill grounds, after consultation with the:
             3705          (i) Division of Facilities Construction and Management;
             3706          (ii) State Library Division;
             3707          (iii) Division of Archives and Records Service;
             3708          (iv) Division of State History;
             3709          (v) Office of Museum Services; and
             3710          (vi) Arts Council;
             3711          (h) inventory, define, and identify all significant contents of the buildings and all
             3712      state-owned items of historical significance that were at one time in the buildings, after
             3713      consultation with the:
             3714          (i) Division of Facilities Construction and Management;
             3715          (ii) State Library Division;
             3716          (iii) Division of Archives and Records Service;
             3717          (iv) Division of State History;


             3718          (v) Office of Museum Services; and
             3719          (vi) Arts Council;
             3720          (i) maintain archives relating to the construction and development of the buildings, the
             3721      contents of the buildings and their grounds, including documents such as plans, specifications,
             3722      photographs, purchase orders, and other related documents, the original copies of which shall
             3723      be maintained by the Division of Archives and Records Service;
             3724          (j) comply with federal and state laws related to program and facility accessibility; and
             3725          (k) establish procedures for receiving, hearing, and deciding complaints or other issues
             3726      raised about the capitol hill complex, capitol hill facilities, and capitol hill grounds, or their
             3727      use.
             3728          (2) (a) Notwithstanding Subsection (1)(a), the supervision and control of the legislative
             3729      area, as defined in Section 36-5-1 , is reserved to the Legislature; and
             3730          (b) the supervision and control of the governor's area, as defined in Section 67-1-16 , is
             3731      reserved to the governor.
             3732          (3) (a) The board shall make rules to govern, administer, and regulate the capitol hill
             3733      complex, capitol hill facilities, and capitol hill grounds by following the procedures and
             3734      requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             3735          (b) A person who violates a rule adopted by the board under the authority of this
             3736      Subsection (3) is subject to a civil penalty not to exceed $2,500 for each violation, plus the
             3737      amount of any actual damages, expenses, and costs related to the violation of the rule that are
             3738      incurred by the state.
             3739          (c) The board may take any other legal action allowed by law.
             3740          (d) If any violation of a rule adopted by the board is also an offense under Title 76,
             3741      Utah Criminal Code, the violation is subject to the civil penalty, damages, expenses, and costs
             3742      allowed under this Subsection (3) in addition to any criminal prosecution.
             3743          (e) The board may not apply this section or rules adopted under the authority of this
             3744      section in a manner that violates a person's rights under the Utah Constitution or the First
             3745      Amendment to the United States Constitution, including the right of persons to peaceably
             3746      assemble.
             3747          (f) The board shall send proposed rules under this section to the legislative general
             3748      counsel and the governor's general counsel for review and comment before the board adopts the


             3749      rules.
             3750          (4) The board is exempt from the requirements of Title 63G, Chapter [6] 6a, Utah
             3751      Procurement Code, but shall adopt procurement rules substantially similar to the requirements
             3752      of that chapter.
             3753          (5) (a) The board may:
             3754          (i) establish subcommittees made up of board members and members of the public to
             3755      assist and support the executive director in accomplishing the executive director's duties;
             3756          (ii) establish fees for the use of capitol hill facilities and capitol hill grounds;
             3757          (iii) assign and allocate specific duties and responsibilities to any other state agency, if
             3758      the other agency agrees to perform the duty or accept the responsibility;
             3759          (iv) contract with another state agency to provide services;
             3760          (v) delegate by specific motion of the board any authority granted to it by this section
             3761      to the executive director;
             3762          (vi) in conjunction with Salt Lake City, expend money to improve or maintain public
             3763      property contiguous to East Capitol Boulevard and capitol hill;
             3764          (vii) provide wireless Internet service to the public without a fee in any capitol hill
             3765      facility; and
             3766          (viii) when necessary, consult with the:
             3767          (A) Division of Facilities Construction and Management;
             3768          (B) State Library Division;
             3769          (C) Division of Archives and Records Service;
             3770          (D) Division of State History;
             3771          (E) Office of Museum Services; and
             3772          (F) Arts Council.
             3773          (b) The board's provision of wireless Internet service under Subsection (5)(a)(vii) shall
             3774      be discontinued in the legislative area if the president of the Senate and the speaker of the
             3775      House of Representatives each submit a signed letter to the board indicating that the service is
             3776      disruptive to the legislative process and is to be discontinued.
             3777          (c) If a budget subcommittee is established by the board, the following shall serve as ex
             3778      officio, nonvoting members of the budget subcommittee:
             3779          (i) the legislative fiscal analyst, or the analyst's designee, who shall be from the Office


             3780      of Legislative Fiscal Analyst; and
             3781          (ii) the director of the Governor's Office of Planning and Budget, or the director's
             3782      designee, who shall be from the Governor's Office of Planning and Budget.
             3783          (d) If a preservation and maintenance subcommittee is established by the board, the
             3784      board may, by majority vote, appoint one or each of the following to serve on the
             3785      subcommittee as voting members of the subcommittee:
             3786          (i) an architect, who shall be selected from a list of three architects submitted by the
             3787      American Institute of Architects; or
             3788          (ii) an engineer, who shall be selected from a list of three engineers submitted by the
             3789      American Civil Engineers Council.
             3790          (e) If the board establishes any subcommittees, the board may, by majority vote,
             3791      appoint up to two people who are not members of the board to serve, at the will of the board, as
             3792      nonvoting members of a subcommittee.
             3793          (f) Members of each subcommittee shall, at the first meeting of each calendar year,
             3794      select one individual to act as chair of the subcommittee for a one-year term.
             3795          (6) (a) The board, and the employees of the board, may not move the office of the
             3796      governor, lieutenant governor, president of the Senate, speaker of the House of
             3797      Representatives, or a member of the Legislature from the State Capitol unless the removal is
             3798      approved by:
             3799          (i) the governor, in the case of the governor's office;
             3800          (ii) the lieutenant governor, in the case of the lieutenant governor's office;
             3801          (iii) the president of the Senate, in the case of the president's office or the office of a
             3802      member of the Senate; or
             3803          (iv) the speaker of the House of Representatives, in the case of the speaker's office or
             3804      the office of a member of the House.
             3805          (b) The board and the employees of the board have no control over the furniture,
             3806      furnishings, and decorative objects in the offices of the governor, lieutenant governor, or the
             3807      members of the Legislature except as necessary to inventory or conserve items of historical
             3808      significance owned by the state.
             3809          (c) The board and the employees of the board have no control over records and
             3810      documents produced by or in the custody of a state agency, official, or employee having an


             3811      office in a building on the capitol hill complex.
             3812          (d) Except for items identified by the board as having historical significance, and
             3813      except as provided in Subsection (6)(b), the board and the employees of the board have no
             3814      control over moveable furnishings and equipment in the custody of a state agency, official, or
             3815      employee having an office in a building on the capitol hill complex.
             3816          Section 75. Section 63C-9-403 is amended to read:
             3817           63C-9-403. Contracting power of executive director -- Health insurance coverage.
             3818          (1) For purposes of this section:
             3819          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             3820      34A-2-104 who:
             3821          (i) works at least 30 hours per calendar week; and
             3822          (ii) meets employer eligibility waiting requirements for health care insurance which
             3823      may not exceed the first of the calendar month following 90 days from the date of hire.
             3824          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             3825          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             3826          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             3827          (2) (a) Except as provided in Subsection (3), this section applies to a design or
             3828      construction contract entered into by the board or on behalf of the board on or after July 1,
             3829      2009, and to a prime contractor or a subcontractor in accordance with Subsection (2)(b).
             3830          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             3831      amount of $1,500,000 or greater.
             3832          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             3833      $750,000 or greater.
             3834          (3) This section does not apply if:
             3835          (a) the application of this section jeopardizes the receipt of federal funds;
             3836          (b) the contract is a sole source contract; or
             3837          (c) the contract is an emergency procurement.
             3838          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             3839      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             3840      threshold required by Subsection (2).
             3841          (b) A person who intentionally uses change orders or contract modifications to


             3842      circumvent the requirements of Subsection (2) is guilty of an infraction.
             3843          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the executive
             3844      director that the contractor has and will maintain an offer of qualified health insurance
             3845      coverage for the contractor's employees and the employees' dependents during the duration of
             3846      the contract.
             3847          (b) If a subcontractor of the contractor is subject to Subsection (2)(b), the contractor
             3848      shall demonstrate to the executive director that the subcontractor has and will maintain an offer
             3849      of qualified health insurance coverage for the subcontractor's employees and the employees'
             3850      dependents during the duration of the contract.
             3851          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             3852      the duration of the contract is subject to penalties in accordance with administrative rules
             3853      adopted by the division under Subsection (6).
             3854          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             3855      requirements of Subsection (5)(b).
             3856          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             3857      the duration of the contract is subject to penalties in accordance with administrative rules
             3858      adopted by the department under Subsection (6).
             3859          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             3860      requirements of Subsection (5)(a).
             3861          (6) The department shall adopt administrative rules:
             3862          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             3863          (b) in coordination with:
             3864          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             3865          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             3866          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             3867          (iv) a public transit district in accordance with Section 17B-2a-818.5 ;
             3868          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             3869          (vi) the Legislature's Administrative Rules Review Committee; and
             3870          (c) which establish:
             3871          (i) the requirements and procedures a contractor must follow to demonstrate to the
             3872      executive director compliance with this section which shall include:


             3873          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             3874      (b) more than twice in any 12-month period; and
             3875          (B) that the actuarially equivalent determination required for the qualified health
             3876      insurance coverage in Subsection (1) is met by the contractor if the contractor provides the
             3877      department or division with a written statement of actuarial equivalency from either:
             3878          (I) the Utah Insurance Department;
             3879          (II) an actuary selected by the contractor or the contractor's insurer; or
             3880          (III) an underwriter who is responsible for developing the employer group's premium
             3881      rates;
             3882          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             3883      violates the provisions of this section, which may include:
             3884          (A) a three-month suspension of the contractor or subcontractor from entering into
             3885      future contracts with the state upon the first violation;
             3886          (B) a six-month suspension of the contractor or subcontractor from entering into future
             3887      contracts with the state upon the second violation;
             3888          (C) an action for debarment of the contractor or subcontractor in accordance with
             3889      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             3890          (D) monetary penalties which may not exceed 50% of the amount necessary to
             3891      purchase qualified health insurance coverage for employees and dependents of employees of
             3892      the contractor or subcontractor who were not offered qualified health insurance coverage
             3893      during the duration of the contract; and
             3894          (iii) a website on which the department shall post the benchmark for the qualified
             3895      health insurance coverage identified in Subsection (1)(c).
             3896          (7) (a) (i) In addition to the penalties imposed under Subsection (6)(c), a contractor or
             3897      subcontractor who intentionally violates the provisions of this section shall be liable to the
             3898      employee for health care costs that would have been covered by qualified health insurance
             3899      coverage.
             3900          (ii) An employer has an affirmative defense to a cause of action under Subsection
             3901      (7)(a)(i) if:
             3902          (A) the employer relied in good faith on a written statement of actuarial equivalency
             3903      provided by:


             3904          (I) an actuary; or
             3905          (II) an underwriter who is responsible for developing the employer group's premium
             3906      rates; or
             3907          (B) the department determines that compliance with this section is not required under
             3908      the provisions of Subsection (3) or (4).
             3909          (b) An employee has a private right of action only against the employee's employer to
             3910      enforce the provisions of this Subsection (7).
             3911          (8) Any penalties imposed and collected under this section shall be deposited into the
             3912      Medicaid Restricted Account created in Section 26-18-402 .
             3913          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             3914      coverage as required by this section:
             3915          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             3916      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             3917      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             3918          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             3919      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             3920      or construction.
             3921          Section 76. Section 63E-2-109 is amended to read:
             3922           63E-2-109. State statutes.
             3923          (1) Except as specifically modified in its authorizing statute, each independent
             3924      corporation shall be exempt from the statutes governing state agencies, including:
             3925          (a) Title 51, Chapter 5, Funds Consolidation Act;
             3926          (b) Title 51, Chapter 7, State Money Management Act;
             3927          (c) Title 63A, Utah Administrative Services Code;
             3928          (d) Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             3929          (e) Title 63G, Chapter 4, Administrative Procedures Act;
             3930          (f) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             3931          (g) Title 63J, Chapter 1, Budgetary Procedures Act;
             3932          (h) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             3933          (i) Title 67, Chapter 19, Utah Personnel Management Act.
             3934          (2) Except as specifically modified in its authorizing statute, each independent


             3935      corporation shall be subject to:
             3936          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
             3937          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
             3938          (3) Each independent corporation board may adopt its own policies and procedures
             3939      governing its:
             3940          (a) funds management;
             3941          (b) audits; and
             3942          (c) personnel.
             3943          Section 77. Section 63F-1-205 is amended to read:
             3944           63F-1-205. Approval of acquisitions of information technology.
             3945          (1) (a) Except as provided in Title 63M, Chapter 1, Part 26, Government Procurement
             3946      Private Proposal Program, in accordance with Subsection (2), the chief information officer
             3947      shall approve the acquisition by an executive branch agency of:
             3948          (i) information technology equipment;
             3949          (ii) telecommunications equipment;
             3950          (iii) software;
             3951          (iv) services related to the items listed in Subsections (1)(a)(i) through (iii); and
             3952          (v) data acquisition.
             3953          (b) The chief information officer may negotiate the purchase, lease, or rental of private
             3954      or public information technology or telecommunication services or facilities in accordance with
             3955      this section.
             3956          (c) Where practical, efficient, and economically beneficial, the chief information
             3957      officer shall use existing private and public information technology or telecommunication
             3958      resources.
             3959          (d) Notwithstanding another provision of this section, an acquisition authorized by this
             3960      section shall comply with rules made by the [State Procurement Policy Board] applicable
             3961      rulemaking authority under Title 63G, Chapter [6] 6a, Utah Procurement Code.
             3962          (2) Before negotiating a purchase, lease, or rental under Subsection (1) for an amount
             3963      that exceeds the value established by the chief information officer by rule in accordance with
             3964      Section 63F-1-206 , the chief information officer shall:
             3965          (a) conduct an analysis of the needs of executive branch agencies and subscribers of


             3966      services and the ability of the proposed information technology or telecommunications services
             3967      or supplies to meet those needs; and
             3968          (b) for purchases, leases, or rentals not covered by an existing statewide contract,
             3969      provide in writing to the chief procurement officer in the Division of Purchasing and General
             3970      Services that:
             3971          (i) the analysis required in Subsection (2)(a) was completed; and
             3972          (ii) based on the analysis, the proposed purchase, lease, rental, or master contract of
             3973      services, products, or supplies is practical, efficient, and economically beneficial to the state
             3974      and the executive branch agency or subscriber of services.
             3975          (3) In approving an acquisition described in Subsections (1) and (2), the chief
             3976      information officer shall:
             3977          (a) establish by administrative rule, in accordance with Section 63F-1-206 , standards
             3978      under which an agency must obtain approval from the chief information officer before
             3979      acquiring the items listed in Subsections (1) and (2);
             3980          (b) for those acquisitions requiring approval, determine whether the acquisition is in
             3981      compliance with:
             3982          (i) the executive branch strategic plan;
             3983          (ii) the applicable agency information technology plan;
             3984          (iii) the budget for the executive branch agency or department as adopted by the
             3985      Legislature; and
             3986          (iv) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             3987          (c) in accordance with Section 63F-1-207 , require coordination of acquisitions between
             3988      two or more executive branch agencies if it is in the best interests of the state.
             3989          (4) (a) Each executive branch agency shall provide the chief information officer with
             3990      complete access to all information technology records, documents, and reports:
             3991          (i) at the request of the chief information officer; and
             3992          (ii) related to the executive branch agency's acquisition of any item listed in Subsection
             3993      (1).
             3994          (b) Beginning July 1, 2006 and in accordance with administrative rules established by
             3995      the department under Section 63F-1-206 , no new technology projects may be initiated by an
             3996      executive branch agency or the department unless the technology project is described in a


             3997      formal project plan and the business case analysis has been approved by the chief information
             3998      officer and agency head. The project plan and business case analysis required by this
             3999      Subsection (4) shall be in the form required by the chief information officer, and shall include:
             4000          (i) a statement of work to be done and existing work to be modified or displaced;
             4001          (ii) total cost of system development and conversion effort, including system analysis
             4002      and programming costs, establishment of master files, testing, documentation, special
             4003      equipment cost and all other costs, including overhead;
             4004          (iii) savings or added operating costs that will result after conversion;
             4005          (iv) other advantages or reasons that justify the work;
             4006          (v) source of funding of the work, including ongoing costs;
             4007          (vi) consistency with budget submissions and planning components of budgets; and
             4008          (vii) whether the work is within the scope of projects or initiatives envisioned when the
             4009      current fiscal year budget was approved.
             4010          (5) (a) The chief information officer and the Division of Purchasing and General
             4011      Services shall work cooperatively to establish procedures under which the chief information
             4012      officer shall monitor and approve acquisitions as provided in this section.
             4013          (b) The procedures established under this section shall include at least the written
             4014      certification required by Subsection [ 63G-6-204 (8)] 63G-6a-303 (5).
             4015          Section 78. Section 63G-6a-101 , which is renumbered from Section 63G-6-101 is
             4016      renumbered and amended to read:
             4017     
CHAPTER 6a. UTAH PROCUREMENT CODE

             4018     
Part 1. General Procurement Provisions

             4019           [63G-6-101].     63G-6a-101. Title.
             4020          (1) This chapter is known as the "Utah Procurement Code."
             4021          (2) This part is known as "General Procurement Provisions."
             4022          Section 79. Section 63G-6a-102 , which is renumbered from Section 63G-6-102 is
             4023      renumbered and amended to read:
             4024           [63G-6-102].     63G-6a-102. Purpose of chapter.
             4025          The underlying purposes and policies of this chapter are:
             4026          (1) to simplify, clarify, and modernize the law governing procurement by this state;
             4027          (2) to ensure the fair and equitable treatment of all persons who deal with the


             4028      procurement system of this state;
             4029          (3) to provide increased economy in state procurement activities; and
             4030          (4) to foster effective broad-based competition within the free enterprise system.
             4031          Section 80. Section 63G-6a-103 , which is renumbered from Section 63G-6-103 is
             4032      renumbered and amended to read:
             4033           [63G-6-103].     63G-6a-103. Definitions.
             4034          As used in this chapter:
             4035          (1) "Appeals board" means:
             4036          (a) the Procurement Appeals Board created under Subsection 63G-6a-1702 (1); or
             4037          (b) a board created under Subsection 63G-6a-1702 (5).
             4038          (2) "Applicable rulemaking authority" means:
             4039          (a) as it relates to the state legislative branch, the Legislative Management Committee,
             4040      except to the extent that the Legislature passes a rule that supercedes or conflicts with a rule
             4041      made by the Legislative Management Committee;
             4042          (b) as it relates to the state judicial branch, the Judicial Council;
             4043          (c) as it relates to a local public procurement unit, other than a local public
             4044      procurement unit described in Subsections (2)(d) through (g), the board; or
             4045          (d) as it relates to a municipality or county that adopts this chapter, the legislative body
             4046      of the municipality or county, not as a delegation of authority from the Legislature, but under
             4047      the municipality's or county's own legislative authority;
             4048          (e) as it relates to a school district or a public school, the Procurement Policy Board,
             4049      except to the extent that a school district makes its own non-administrative rules, with respect
             4050      to a particular subject, that do not conflict with the provisions of this chapter;
             4051          (f) as it relates to a state institution of higher education, the State Board of Regents;
             4052          (g) as it relates to a public transit district organized under Title 17B, Chapter 2a, Part 8,
             4053      Public Transit District Act, the governing board of the public transit district;
             4054          (h) as it relates to the following entities, but only to the extent that the rules relate to
             4055      procurement authority expressly granted to the entity by statute:
             4056          (i) the State Building Board, created in Section 63A-5-101 ;
             4057          (ii) the Division of Facilities Construction and Management created in Section
             4058      63A-5-201 ;


             4059          (iii) the attorney general's office; or
             4060          (iv) the Department of Transportation, created in Section 72-1-201 ;
             4061          (i) as it relates to the state executive branch and all public procurement units other than
             4062      those described in Subsections (2)(a) through (g), the board; or
             4063          (j) as it relates to an entity described in Subsection (2)(h), except to the extent that the
             4064      rules relate to procurement authority expressly granted to the entity by statute, the board.
             4065          [(1)] (3) "Architect-engineer services" [are those] means:
             4066          (a) professional services within the scope of the practice of architecture as defined in
             4067      Section 58-3a-102 [,] or
             4068          (b) professional engineering as defined in Section 58-22-102 .
             4069          [(2) "Business" means any corporation, partnership, individual, sole proprietorship,
             4070      joint stock company, joint venture, or any other private legal entity.]
             4071          (4) "Bidder" means a person who responds to an invitation for bids.
             4072          (5) "Board" means the Utah State Procurement Policy Board, created in Section
             4073      63G-6a-202 .
             4074          (6) "Building Board" means the State Building Board created in Section 63A-5-101 .
             4075          [(3)] (7) "Change order" means:
             4076          (a) a written order signed by the procurement officer[, directing] that directs the
             4077      contractor to suspend work or make changes, [which the appropriate clauses of the contract
             4078      authorize the procurement officer to order] as authorized by contract, without the consent of the
             4079      contractor; or [any]
             4080          (b) a written alteration in specifications, delivery point, rate of delivery, period of
             4081      performance, price, quantity, or other provisions of [any contract accomplished by mutual
             4082      action] a contract, upon mutual agreement of the parties to the contract.
             4083          (8) "Chief procurement officer" means the chief procurement officer appointed under
             4084      Subsection 63G-6a-302 (1).
             4085          [(4)] (9) (a) "Construction" means the process of building, [renovation, alteration,
             4086      improvement, or repair of any] renovating, altering, improving, or repairing a public building
             4087      or public work.
             4088          (b) "Construction" does not [mean] include the routine operation, routine repair, or
             4089      routine maintenance of an existing [structures, buildings] structure, building, or real property.


             4090          [(5)] (10) (a) "Construction manager/general contractor" means [any] a contractor who
             4091      enters into a contract for the management of a construction project when [that] the contract
             4092      allows the contractor to subcontract for additional labor and materials that [were] are not
             4093      included in the contractor's cost proposal submitted at the time of the procurement of the
             4094      [Construction Manager/General] contractor's services.
             4095          (b) "Construction manager/general contractor" does not [mean] include a contractor
             4096      whose only subcontract work not included in the contractor's cost proposal submitted as part of
             4097      the procurement of [construction] the contractor's services is to meet subcontracted portions of
             4098      change orders approved within the scope of the project.
             4099          [(6)] (11) "Contract" means [any state] an agreement for the procurement or disposal of
             4100      [supplies, services, or construction] a procurement item.
             4101          (12) "Contractor" means a person who is awarded a contract with a public procurement
             4102      unit.
             4103          [(7)] (13) "Cooperative purchasing" means procurement conducted by, or on behalf of,
             4104      more than one public procurement unit, or by a public procurement unit [with] and an external
             4105      procurement unit.
             4106          [(8)] (14) "Cost-reimbursement contract" means a contract under which a contractor is
             4107      reimbursed for costs which are allowed and allocated in accordance with the contract terms and
             4108      the provisions of this chapter, and a fee, if any.
             4109          (15) "Days" means calendar days, unless expressly provided otherwise.
             4110          [(9) (a)] (16) "Design-build" means the procurement of architect-engineer services and
             4111      construction by the use of a single contract with the design-build provider.
             4112          [(b) This method of design and construction can include the design-build provider
             4113      supplying the site as part of the contract.]
             4114          (17) "Director" means the director of the division.
             4115          (18) "Division" means the Division of Purchasing and General Services.
             4116          [(10)] (19) "Established catalogue price" means the price included in a catalogue, price
             4117      list, schedule, or other form that:
             4118          (a) is regularly maintained by a manufacturer or contractor;
             4119          (b) is either published or otherwise available for inspection by customers; and
             4120          (c) states prices at which sales are currently or were last made to a significant number


             4121      of any category of buyers or buyers constituting the general buying public for the supplies or
             4122      services involved.
             4123          [(11) "External procurement unit" means any buying organization not located in this
             4124      state which, if located in this state, would qualify as a public procurement unit. An agency of
             4125      the United States is an external procurement unit.]
             4126          [(12)] (20) (a) "Grant" means [the] furnishing, by [the state] a public entity or by any
             4127      other public or private source [assistance, whether financial or otherwise, to any], financial or
             4128      other assistance to a person to support a program authorized by law. [It]
             4129          (b) "Grant" does not include:
             4130          (i) an award whose primary purpose is to procure an end product[, whether in the form
             4131      of supplies, services, or construction. A contract resulting from the award is not a grant but a
             4132      procurement contract.] or procurement item; or
             4133          (ii) a contract that is awarded as a result of a procurement or a procurement process.
             4134          [(13) "Invitation for bids" means all documents, whether attached or incorporated by
             4135      reference, utilized for soliciting bids.]
             4136          [(14) "Local public procurement unit" means any political subdivision or institution of
             4137      higher education of the state or public agency of any subdivision, public authority, educational,
             4138      health, or other institution, and to the extent provided by law, any other entity which expends
             4139      public funds for the procurement of supplies, services, and construction, but not counties,
             4140      municipalities, political subdivisions created by counties or municipalities under the Interlocal
             4141      Cooperation Act, the Utah Housing Corporation, or the Legislature and its staff offices. It
             4142      includes two or more local public procurement units acting under legislation which authorizes
             4143      intergovernmental cooperation.]
             4144          [(15) "Person" means any business, individual, union, committee, club, other
             4145      organization, or group of individuals, not including a state agency or a local public
             4146      procurement unit.]
             4147          [(16) "Policy board" means the procurement policy board created by Section
             4148      63G-6-201 .]
             4149          (21) "Head of a public procurement unit" means:
             4150          (a) as it relates to the state legislative branch, any person designated by legislative rule;
             4151          (b) as it relates to the state executive branch:


             4152          (i) the director of a division; or
             4153          (ii) any other person designated by the board, by rule;
             4154          (c) as it relates to the state judicial branch:
             4155          (i) the Judicial Council; or
             4156          (ii) any other person designated by the Judicial Council, by rule;
             4157          (d) as it relates to a local public procurement unit, other than a local public
             4158      procurement unit described in Subsections (21)(e) through (h):
             4159          (i) the appointed or elected head of the local public procurement unit; or
             4160          (ii) any other person designated by the board, by rule;
             4161          (e) as it relates to a local public procurement unit that is a municipality or a county:
             4162          (i) the legislative body of the municipality or county; or
             4163          (ii) any other person designated by the municipality or county;
             4164          (f) as it relates to a school district or any school or entity within a school district, the
             4165      board of the school district, or the board's designee;
             4166          (g) as it relates to a charter school, the individual or body with executive authority over
             4167      the charter school, or the individual's or body's designee; or
             4168          (h) as it relates to an institution of higher education of the state, the president of the
             4169      institution of higher education, or the president's designee.
             4170          (22) "Head of an authorized purchasing entity" means:
             4171          (a) as it relates to the division, the chief procurement officer;
             4172          (b) to the extent that the entities have express statutory authority to engage in a
             4173      procurement without the involvement of the division:
             4174          (i) as it relates to the State Building Board, created in Section 63A-5-101 , the State
             4175      Building Board;
             4176          (ii) as it relates to the Division of Facilities Construction and Management created in
             4177      Section 63A-5-201 , the director of the Division of Facilities Construction and Management;
             4178          (iii) as it relates to the attorney general's office, the attorney general;
             4179          (iv) as it relates to the Department of Transportation, created in Section 72-1-201 , the
             4180      executive director of the Department of Transportation; or
             4181          (v) as it relates to a district court, a person designated by the Judicial Council, by rule;
             4182          (c) as it relates to an institution of higher education of the state, the president of the


             4183      institution of higher education of the state;
             4184          (d) as it relates to a school district, the board of the school district;
             4185          (e) as it relates to a public school, including a local school board, the board of the
             4186      school district;
             4187          (f) as it relates to a charter school, a person designated by the charter school; or
             4188          (g) as it relates to a non-executive state procurement unit, a person designated by the
             4189      applicable rulemaking authority.
             4190          (23) "Invitation for bids" includes all documents, including documents that are attached
             4191      or incorporated by reference, used for soliciting bids to provide a procurement item to a public
             4192      procurement unit.
             4193          (24) "Multiple award contracts" means the award of a contract for an indefinite
             4194      quantity of a procurement item to more than one bidder or offeror.
             4195          (25) "Multiyear contract" means a contract that extends beyond a one-year period,
             4196      including a contract that permits renewal of the contract, without competition, beyond the first
             4197      year of the contract.
             4198          (26) "Municipality" means a city or a town.
             4199          (27) "Offeror" means a person who responds to a request for proposals.
             4200          [(17)] (28) "Preferred bidder" means a bidder that is entitled to receive a reciprocal
             4201      preference under the requirements of this chapter.
             4202          [(18)] (29) (a) "Procure" or "procurement" means buying, purchasing, renting, leasing,
             4203      leasing with an option to purchase, or otherwise acquiring [any supplies, services, or
             4204      construction. It also] a procurement item.
             4205          (b) "Procure" or "procurement" includes all functions that pertain to the obtaining of
             4206      [any supply, service, or construction] a procurement item, including:
             4207          (i) the description of requirements[,];
             4208          (ii) the selection[, and] process;
             4209          (iii) solicitation of sources[,];
             4210          (iv) the preparation[, and] for soliciting a procurement item;
             4211          (v) the award of a contract[,]; and
             4212          (vi) all phases of contract administration.
             4213          [(19) "Procurement officer" means any person or board duly authorized to enter into


             4214      and administer contracts and make written determinations with respect thereto. It also includes
             4215      an authorized representative acting within the limits of authority.]
             4216          [(20) "Public procurement unit" means either a local public procurement unit or a state
             4217      public procurement unit.]
             4218          [(21) "Purchase description" means the words used in a solicitation to describe the
             4219      supplies, services, or construction to be purchased, and includes specifications attached to or
             4220      made a part of the solicitation.]
             4221          [(22) "Purchasing agency" means any state agency other than the Division of
             4222      Purchasing and General Services that is authorized by this chapter or its implementing
             4223      regulations, or by delegation from the chief procurement officer, to enter into contracts.]
             4224          [(23) "Request for proposals" means all documents, whether attached or incorporated
             4225      by reference, used for soliciting proposals.]
             4226          [(24) "Responsible bidder or offeror" means a person who has the capability in all
             4227      respects to perform fully the contract requirements and who has the integrity and reliability
             4228      which will assure good faith performance.]
             4229          [(25) "Responsive bidder" means a person who has submitted a bid which conforms in
             4230      all material respects to the invitation for bids.]
             4231          (30) "Procurement item" means a supply, a service, construction, or technology.
             4232          (31) "Procurement officer" means:
             4233          (a) as it relates to the state legislative branch, the head of a public procurement unit in
             4234      the legislative branch;
             4235          (b) as it relates to the state judicial branch, the head of a public procurement unit in the
             4236      state judicial branch;
             4237          (c) as it relates to the state executive branch, the chief procurement officer;
             4238          (d) as it relates to a local public procurement unit other than a local public procurement
             4239      unit described in Subsection (31)(e) or (f), the chief procurement officer;
             4240          (e) as it relates to a municipality or county that adopts this chapter, the legislative body
             4241      of the municipality or county; or
             4242          (f) as it relates to a state purchasing unit, the head of the state purchasing unit, or a
             4243      designee of the head of the state purchasing unit.
             4244          (32) "Professional service" means a service that requires a high degree of specialized


             4245      knowledge and discretion in the performance of the service, including:
             4246          (a) legal services;
             4247          (b) consultation services;
             4248          (c) architectural services;
             4249          (d) engineering;
             4250          (e) design;
             4251          (f) underwriting;
             4252          (g) bond counsel;
             4253          (h) financial advice; or
             4254          (i) construction management.
             4255          (33) "Request for information" means a nonbinding process where a public
             4256      procurement unit requests information relating to a procurement item.
             4257          (34) "Request for proposals" includes all documents, including documents that are
             4258      attached or incorporated by reference, used for soliciting proposals to provide a procurement
             4259      item to a public procurement unit.
             4260          (35) "Responsible" means that a bidder or offeror:
             4261          (i) is capable, in all respects, to fully perform the contract requirements solicited in an
             4262      invitation for bids or a request for proposals; and
             4263          (ii) has the integrity and reliability to ensure good faith performance.
             4264          (36) "Responsive" means that a bidder or offeror submits a response to an invitation for
             4265      bids or a request for proposals that conforms in all material respects to the invitation for bids or
             4266      request for proposals.
             4267          [(26)] (37) "Sealed" [does not preclude acceptance of] means manually or
             4268      electronically sealed and submitted bids or proposals [in addition to bids or proposals manually
             4269      sealed and submitted].
             4270          [(27)] (38) (a) "Services" means the furnishing of labor, time, or effort by a contractor,
             4271      not involving the delivery of a specific end product other than [reports which are merely] a
             4272      report that is incidental to the required performance. [It]
             4273          (b) "Services" does not include an employment [agreements] agreement or a collective
             4274      bargaining [agreements] agreement.
             4275          [(28)] (39) "Specification" means any description of the physical or functional


             4276      characteristics, or [of the] nature of a [supply, service, technology, or construction item. It may
             4277      include] procurement item included in an invitation for bids or a request for proposals, or
             4278      otherwise specified or agreed to by a public procurement unit, including a description of [any]:
             4279          (a) a requirement for inspecting[, testing,] or testing a procurement item; or
             4280          (b) preparing a [supply, service, technology, or construction] procurement item for
             4281      delivery.
             4282          [(29) "State agency" or "the state" means any department, division, commission,
             4283      council, board, bureau, committee, institution, government corporation, or other establishment,
             4284      official, or employee of this state.]
             4285          [(30) "State public procurement unit" means the Division of Purchasing and General
             4286      Services and any other purchasing agency of this state.]
             4287          (40) "Standard procurement process" means one of the following methods of obtaining
             4288      a procurement item:
             4289          (a) bidding, as described in Part 6, Bidding;
             4290          (b) request for proposals, as described in Part 7, Request for Proposals; or
             4291          (c) small purchases, in accordance with the requirements established under Section
             4292      63G-6a-408 .
             4293          (41) (a) "Subcontractor" means a person under contract with a contractor or another
             4294      subcontractor to provide services or labor for design or construction.
             4295          (b) "Subcontractor" includes a trade contractor or specialty contractor.
             4296          (c) "Subcontractor" does not include a supplier who provides only materials,
             4297      equipment, or supplies to a contractor or subcontractor.
             4298          [(31)] (42) "Supplies" means all property, including equipment, materials, and printing.
             4299          [(32) "Using agency" means any state agency which utilizes any supplies, services, or
             4300      construction procured under this chapter.]
             4301          (43) "Tie bid" means that the lowest responsive and responsible bids are identical in
             4302      price.
             4303          Section 81. Section 63G-6a-104 is enacted to read:
             4304          63G-6a-104. Definitions of government entities.
             4305          As used in this chapter:
             4306          (1) "Authorized purchasing entity" means:


             4307          (a) a non-executive state procurement unit; or
             4308          (b) a state purchasing unit.
             4309          (2) "External procurement unit" means:
             4310          (a) a buying organization not located in this state which, if located in this state, would
             4311      qualify as a public procurement unit; or
             4312          (b) an agency of the United States.
             4313          (3) "Local government unit" means:
             4314          (a) a county;
             4315          (b) a municipality;
             4316          (c) a political subdivision created by counties or municipalities under Title 11, Chapter
             4317      13, Interlocal Cooperation Act; or
             4318          (d) the Utah Housing Corporation.
             4319          (4) "Local public procurement unit" means:
             4320          (a) a local district, as defined in Section 17B-1-102 ;
             4321          (b) a special service district, as defined in Section 17D-1-102 ;
             4322          (c) a local building authority, as defined in Section 17D-2-102 ;
             4323          (d) a conservation district, as described in Title 17D, Chapter 3, Conservation District
             4324      Act;
             4325          (e) a public corporation, other than the Utah Housing Corporation;
             4326          (f) a community development and renewal agency;
             4327          (g) a school district;
             4328          (h) a public school, including a local school board or a charter school;
             4329          (i) Utah Schools for the Deaf and Blind;
             4330          (j) the Utah Education Network;
             4331          (k) an institution of higher education of the state;
             4332          (l) a county or municipality, and each office or agency of the county or municipality,
             4333      unless the county or municipality adopts its own procurement code by ordinance;
             4334          (m) a county or municipality, and each office or agency of the county or municipality,
             4335      that has adopted this entire chapter by ordinance;
             4336          (n) a county or municipality, and each office or agency of the county or municipality,
             4337      that has adopted a portion of this chapter by ordinance, to the extent that the term is used in the


             4338      adopted portion of this chapter; or
             4339          (o) two or more of the entities described in this Subsection (4), acting under legislation
             4340      that authorizes intergovernmental cooperation.
             4341          (5) "Non-executive state procurement unit" means:
             4342          (a) the state legislative branch;
             4343          (b) a public procurement unit in the state legislative branch;
             4344          (c) the state judicial branch;
             4345          (d) a public procurement unit in the state judicial branch; or
             4346          (e) a public transit district, organized under Title 17B, Chapter 2a, Part 8, Public
             4347      Transit District Act.
             4348          (6) "Public entity" means any state or local government entity, located in Utah,
             4349      including:
             4350          (a) the state legislative branch, including the Legislature and each house, staff office,
             4351      committee, subcommittee, or other part of the state legislative branch;
             4352          (b) the state executive branch, including the governor's office and each department,
             4353      division, agency, office, and bureau in the state executive branch;
             4354          (c) the state judicial branch, including the Utah Supreme Court, the Utah Court of
             4355      Appeals, the Judicial Council, and each court, office, and other part of the state judicial branch;
             4356          (d) a municipality or county, regardless of whether the municipality or county has
             4357      adopted this chapter or any part of this chapter;
             4358          (e) a public procurement unit; and
             4359          (f) any other entity that expends public funds.
             4360          (7) "Public procurement unit" means:
             4361          (a) the Senate;
             4362          (b) the House of Representatives;
             4363          (c) a staff office of the state legislative branch;
             4364          (d) a state executive branch department, division, office, bureau, or agency;
             4365          (e) the Utah State Supreme Court;
             4366          (f) the Judicial Council;
             4367          (g) a state judicial district; or
             4368          (h) a local public procurement unit.


             4369          (8) "State purchasing unit" means:
             4370          (a) the division;
             4371          (b) the following entities, to the extent that the entities have express statutory authority
             4372      to engage in a procurement without the involvement of the division:
             4373          (i) the State Building Board, created in Section 63A-5-101 ;
             4374          (ii) the Division of Facilities Construction and Management, created in Section
             4375      63A-5-201 ;
             4376          (iii) the attorney general's office;
             4377          (iv) the Department of Transportation, created in Section 72-1-201 ; or
             4378          (v) a district court;
             4379          (c) an institution of higher education of the state;
             4380          (d) a school district; or
             4381          (e) a public school, including a local school board or a charter school.
             4382          Section 82. Section 63G-6a-105 , which is renumbered from Section 63G-6-104 is
             4383      renumbered and amended to read:
             4384           [63G-6-104].     63G-6a-105. Application of chapter.
             4385          [(1) This chapter applies only to contracts solicited or entered into after the effective
             4386      date of this chapter unless the parties agree to its application to a contract solicited or entered
             4387      into prior to the effective date.]
             4388          (1) The provisions of this chapter that are enacted on July 1, 2012, apply only to a
             4389      procurement advertised, or begun on or after July 1, 2012, unless the parties agree to have the
             4390      provisions apply with respect to a procurement that was advertised or begun before July 1,
             4391      2012, but is not completed before July 1, 2012.
             4392          (2) Except as provided in Section [ 63G-6-105 ] 63G-6a-109 , this chapter shall apply to
             4393      every expenditure of public funds irrespective of [their source] the source of the funds,
             4394      including federal assistance, by any [state agency] public procurement unit, under any contract.
             4395          [(3) (a) Only the following sections shall apply to local public procurement units:
             4396      Sections 63G-6-103 , 63G-6-105 , 63G-6-301 , 63G-6-303 through 63G-6-420 , 63G-6-422 ,
             4397      63G-6-501 through 63G-6-602 , 63G-6-801 through 63G-6-806 , and 63G-6-815 through
             4398      63G-6-819 ; provided, however, that, except as provided in Sections 63G-6-906 and
             4399      63G-6-907 , the jurisdiction of the procurement appeals board is limited to matters involving


             4400      state agencies.]
             4401          [(b) Subsections 63G-6-208 (1)(b), 63G-6-504 (4), and 63G-6-505 (2) also apply to local
             4402      public procurement units.]
             4403          [(c) For the purpose of application of those sections and subsections to a local public
             4404      procurement unit, "state" shall mean "local public procurement unit," "chief procurement
             4405      officer" or "head of a purchasing agency" shall mean any person conducting procurement for a
             4406      local public procurement unit, and "rules and regulations" shall mean ordinances and rules and
             4407      regulations promulgated by a local public procurement unit to implement or supplement those
             4408      sections.]
             4409          [(d) In addition to the sections and subsections listed above and except]
             4410          (3) Except as provided in Subsection 17B-1-108 (3) relating to local districts, each local
             4411      public procurement unit shall adopt ordinances relating to the procurement of
             4412      architect-engineer services not inconsistent with the provisions of Part [7] 15,
             4413      Architect-Engineer Services.
             4414          [(e)] (4) Any [other] section of this chapter, or its implementing regulations, may be
             4415      adopted by any local [public procurement] government unit.
             4416          [(f) Any other implementing regulations adopted by local public procurement units
             4417      may not be inconsistent with the provisions of this chapter.]
             4418          (5) Rules adopted under this chapter shall be consistent with the provisions of this
             4419      chapter.
             4420          (6) A state purchasing unit or a public procurement unit may not adopt rules, policies,
             4421      or regulations that are inconsistent with this chapter.
             4422          [(4)] (7) Unless otherwise provided by statute, this chapter does not apply to
             4423      procurement of real property.
             4424          Section 83. Section 63G-6a-106 , which is renumbered from Section 63G-6-207 is
             4425      renumbered and amended to read:
             4426           [63G-6-207].     63G-6a-106. Specific statutory authority -- Limitations on
             4427      authority of chief procurement officer and division.
             4428          (1) The [authority to procure certain supplies, services, and construction given the
             4429      public procurement units governed by] procurement authority given to a public entity under the
             4430      following provisions shall be retained, and shall be applied only to the extent described in those


             4431      provisions:
             4432          (a) Title 53B, State System of Higher Education;
             4433          (b) Title 63A, Chapter 5, State Building Board - Division of Facilities Construction
             4434      and Management;
             4435          (c) Title 67, Chapter 5, Attorney General;
             4436          (d) Title 72, Transportation Code; and
             4437          (e) Title 78A, Chapter 5, District Courts.
             4438          (2) [This authority extends only to supplies, services, and construction to the extent
             4439      provided in the cited chapters.] Except as otherwise provided in Sections [63G-6-104 and
             4440      63G-6-105 , the respective purchasing agencies shall procure supplies, services, and
             4441      construction] 63G-6a-105 and 63G-6a-109 , a public procurement unit shall conduct a
             4442      procurement in accordance with this chapter.
             4443          (3) (a) The Department of Transportation may make rules governing the procurement
             4444      of highway construction or improvement.
             4445          (b) This Subsection (3) supersedes Subsections (1) and (2).
             4446          [(4) The Legislature may procure supplies and services for its own needs.]
             4447          (4) Except to the extent otherwise agreed to in a memorandum of understanding
             4448      between the division and the following entities, the authority of the chief procurement officer
             4449      and of the division does not extend to:
             4450          (a) a non-executive state procurement unit;
             4451          (b) a local government unit; or
             4452          (c) a state purchasing unit, other than the division.
             4453          (5) An entity described in Subsection (4) or a state purchasing unit, other than the
             4454      division, may, without supervision, interference, or involvement by the chief procurement
             4455      officer or the division, but consistent with the requirements of this chapter:
             4456          (a) engage in a procurement process;
             4457          (b) procure an item under an exception, as provided in this chapter, to the requirement
             4458      to use a procurement process; or
             4459          (c) otherwise engage in an act authorized or required by this chapter.
             4460          (6) The attorney general may, in accordance with the provisions of this chapter, but
             4461      without involvement by the division or the chief procurement officer:


             4462          (a) retain outside counsel; or
             4463          (b) procure litigation support services, including retaining an expert witness.
             4464          (7) A public procurement unit, or a state purchasing unit, that is not represented by the
             4465      attorney general's office may, in accordance with the provisions of this chapter, but without
             4466      involvement by the division or the chief procurement officer:
             4467          (a) retain outside counsel; or
             4468          (b) procure litigation support services, including retaining an expert witness.
             4469          (8) The state auditor's office may, in accordance with the provisions of this chapter, but
             4470      without involvement by the division or the chief procurement officer, procure audit services.
             4471          Section 84. Section 63G-6a-109 , which is renumbered from Section 63G-6-105 is
             4472      renumbered and amended to read:
             4473           [63G-6-105].     63G-6a-109. Exemptions from chapter -- Compliance with
             4474      federal law.
             4475          (1) [This chapter is] Except for Part 23, Unlawful Conduct and Penalties, the
             4476      provisions of this chapter are not applicable to:
             4477          (a) funds administered under the Percent-for-Art Program of the Utah Percent-for-Art
             4478      Act[.];
             4479          [(2) This chapter is not applicable to]
             4480          (b) grants awarded by the state or contracts between the state and a local public
             4481      procurement [units] unit, except as provided in Part [9] 21, Intergovernmental Relations[.]; or
             4482          (c) any action taken by a majority of both houses of the Legislature.
             4483          [(3)] (2) This chapter [shall] does not prevent the state or a local public procurement
             4484      unit from complying with the terms and conditions of any grant, gift, or bequest that is
             4485      otherwise consistent with law.
             4486          [(4)] (3) [When] Notwithstanding any conflicting provision of this chapter, when a
             4487      procurement involves the expenditure of federal assistance [or], federal contract funds, or
             4488      federal financial participation funds, the [chief procurement officer or head of a purchasing
             4489      agency] public procurement unit or state purchasing unit shall comply with mandatory
             4490      applicable federal law and regulations not reflected in this chapter.
             4491          [(5)] (4) This chapter [may] does not supersede the requirements for retention or
             4492      withholding of construction proceeds and release of construction proceeds as provided in


             4493      Section 13-8-5 .
             4494          Section 85. Section 63G-6a-110 is enacted to read:
             4495          63G-6a-110. Procurements under direction and control of division -- Exception.
             4496          (1) Except as provided in Subsection (2), a public procurement unit may not engage in
             4497      a procurement unless:
             4498          (a) the procurement is made under the direction and control of the division; or
             4499          (b) the division, pursuant to rules made by the board, permits the public procurement
             4500      unit to make the procurement on its own.
             4501          (2) Subsection (1) does not apply to a public procurement unit that is:
             4502          (a) a non-executive state procurement unit;
             4503          (b) a local government unit; or
             4504          (c) a state purchasing unit, other than the division.
             4505          Section 86. Section 63G-6a-201 is enacted to read:
             4506     
Part 2. Procurement Policy Board

             4507          63G-6a-201. Title.
             4508          This part is known as "Procurement Policy Board."
             4509          Section 87. Section 63G-6a-202 , which is renumbered from Section 63G-6-201 is
             4510      renumbered and amended to read:
             4511           [63G-6-201].     63G-6a-202. Creation of procurement policy board.
             4512          (1) [(a)] There is created [a state procurement policy board] the Utah State
             4513      Procurement Policy Board.
             4514          [(b)] (2) The [policy board shall consist of] board consists of up to 10 members as
             4515      follows:
             4516          [(i)] (a) an employee of a state institution of higher education, appointed by the board
             4517      of regents;
             4518          [(ii)] (b) an employee of the Department of Human Services, appointed by the
             4519      executive director of that department;
             4520          [(iii)] (c) an employee of the Department of Transportation, appointed by the executive
             4521      director of that department;
             4522          [(iv)] (d) an employee of a school district appointed by a cooperative purchasing entity
             4523      for school districts;


             4524          [(v)] (e) an employee of the Division of Facilities Construction and Management
             4525      appointed by the director of that division;
             4526          [(vi)] (f) an employee of a county, appointed by the Utah Association of Counties;
             4527          [(vii)] (g) an employee of a city, appointed by the Utah League of Cities and Towns;
             4528          [(viii)] (h) an employee of a local district or special service district, appointed by the
             4529      Utah Association of Special Districts;
             4530          [(ix)] (i) the executive director of the Department of Technology Services or the
             4531      executive director's designee; and
             4532          [(x)] (j) the chief procurement officer or the chief procurement officer's designee.
             4533          [(c)] (3) Members of the [policy] board shall be knowledgeable and experienced in,
             4534      and have supervisory responsibility for, procurement in their official positions.
             4535          [(2)] (4) A board member [shall] may serve as long as the member meets the
             4536      description in Subsection [(1)(b)] (2) unless removed by the person or entity [who appointed]
             4537      with the authority to appoint the board member.
             4538          [(3)] (5) (a) The [policy] board shall:
             4539          (i) adopt rules of procedure for conducting its business; and
             4540          (ii) elect a chair to serve for one year.
             4541          (b) The chair of the board shall be selected by a majority of the members of the board
             4542      and may be elected to succeeding terms.
             4543          (c) The chief procurement officer shall designate an employee of the [Division of
             4544      Purchasing and General Services] division to serve as the nonvoting secretary to the policy
             4545      board.
             4546          [(4)] (6) A member of the board may not receive compensation or benefits for the
             4547      member's service, but may receive per diem and travel expenses in accordance with:
             4548          (a) Section 63A-3-106 ;
             4549          (b) Section 63A-3-107 ; and
             4550          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             4551      63A-3-107 .
             4552          Section 88. Section 63G-6a-203 , which is renumbered from Section 63G-6-202 is
             4553      renumbered and amended to read:
             4554           [63G-6-202].     63G-6a-203. Powers and duties of board.


             4555          [(1) Except as otherwise provided in Section 63G-6-104 and Subsection
             4556      63G-6-208 (1)(b), the policy board shall:]
             4557          [(a) make rules, consistent with this chapter, governing the procurement, management,
             4558      and control of any and all supplies, services, technology, and construction to be procured by the
             4559      state; and]
             4560          [(b)] (1) In addition to making rules in accordance with Section 63G-6a-402 and the
             4561      other provisions of this chapter, the board shall consider and decide matters of policy within
             4562      the provisions of this chapter, including those referred to it by the chief procurement officer.
             4563          (2) (a) The [policy] board may:
             4564          (i) audit and monitor the implementation of its rules and the requirements of this
             4565      chapter;
             4566          (ii) upon the request of a local public procurement unit, review that local public
             4567      procurement unit's proposed rules to ensure that they are not inconsistent with the provisions of
             4568      this chapter or rules made by the board; and
             4569          (iii) approve the use of innovative procurement [methods] processes proposed by local
             4570      public procurement units.
             4571          (b) The [policy] board may not exercise authority over the award or administration of:
             4572          (i) any particular [contact] contract; or
             4573          (ii) [over] any dispute, claim, or litigation pertaining to any particular contract.
             4574          (3) The board does not have authority over a matter involving:
             4575          (a) a non-executive state procurement unit; or
             4576          (b) a local government unit.
             4577          Section 89. Section 63G-6a-204 , which is renumbered from Section 63G-6-208 is
             4578      renumbered and amended to read:
             4579           [63G-6-208].     63G-6a-204. Applicability of rules and regulations of Utah
             4580      State Procurement Policy Board and State Building Board -- Report to interim
             4581      committee.
             4582          [(1) (a) Except as provided in Subsection (2), the policy board shall make rules
             4583      governing state procurement by complying with the procedures and requirements of Title 63G,
             4584      Chapter 3, the Utah Administrative Rulemaking Act.]
             4585          [(b) Except for rules made under Subsection (1)(c), the procurement rules adopted by


             4586      the policy board under this section apply to all local public procurement units unless the local
             4587      public procurement unit's legislative body has adopted separate rules governing procurement.]
             4588          [(c) The rules shall include provisions consistent with federal contract prohibition
             4589      provisions of the Sudan Accountability and Divestment Act of 2007 (Pub. L. No. 110-174) that
             4590      prohibit a state agency from contracting with a person doing business in Sudan.]
             4591          (1) Except as provided in Subsection (2), rules made by the board under this chapter
             4592      shall govern all public procurement units for which the board is the applicable rulemaking
             4593      authority.
             4594          (2) The [State Building Board] building board rules governing procurement of
             4595      construction, architect-engineer services, and leases apply to the procurement of construction,
             4596      architect-engineer services, and leases of real property by the Division of Facilities
             4597      Construction and Management.
             4598          (3) The Legislature may enact its own rules, consistent with this chapter, governing
             4599      procurement by the legislative branch.
             4600          (4) The Judicial Council may enact its own rules, consistent with this chapter,
             4601      governing procurement by the judicial branch.
             4602          [(3)] (5) The board shall make a report [by] on or before July 1 of each year to [an
             4603      appropriate] a legislative interim committee, designated by the Legislative Management
             4604      Committee created under Section 36-12-6 , on the establishment, implementation, and
             4605      enforcement of the rules made under [Subsection (1)(c)] Section 63G-6a-203 .
             4606          Section 90. Section 63G-6a-205 , which is renumbered from Section 63G-6-209 is
             4607      renumbered and amended to read:
             4608           [63G-6-209].     63G-6a-205. Procurement advisory councils.
             4609          [(1) The policy board may establish a Procurement Advisory Council, which shall meet
             4610      at least once a year for the discussion of problems and recommendations for improvement of
             4611      the procurement process. When requested by the policy board, the Procurement Advisory
             4612      Council may conduct studies, research, analyses, and make reports and recommendations with
             4613      respect to subjects or matters within the jurisdiction of the policy board. The Procurement
             4614      Advisory Council shall consist of representatives of state and local government and any other
             4615      persons the policy board considers desirable.]
             4616          [(2)] The chief procurement officer may appoint advisory [groups] councils to provide


             4617      advice regarding any matters within the authority of the chief procurement officer.
             4618          [(3) Members of the Procurement Advisory Council and other advisory groups may be
             4619      reimbursed for expenses incurred in the performance of their duties, as provided by the policy
             4620      board.]
             4621          Section 91. Section 63G-6a-301 is enacted to read:
             4622     
Part 3. Chief Procurement Officer

             4623          63G-6a-301. Title.
             4624          This part is known as "Chief Procurement Officer."
             4625          Section 92. Section 63G-6a-302 , which is renumbered from Section 63G-6-203 is
             4626      renumbered and amended to read:
             4627           [63G-6-203].     63G-6a-302. Chief procurement officer -- Appointment --
             4628      Qualifications -- Authority.
             4629          (1) The executive director of the Department of Administrative Services, with the
             4630      consent of the governor, shall appoint the chief procurement officer after considering
             4631      recommendations from the [policy] board.
             4632          (2) The chief procurement officer shall:
             4633          (a) have a minimum of eight years' experience in the large-scale procurement of
             4634      supplies and services or services and construction, at least five years of which shall have been
             4635      in public or comparable private procurement within 12 years preceding the date of
             4636      appointment; and
             4637          (b) be a person with demonstrated executive and organizational ability.
             4638          (3) The chief procurement officer appointed under Subsection (1) is also the director of
             4639      the Division of Purchasing and General Services.
             4640          (4) Except as otherwise expressly provided in this chapter, the chief procurement
             4641      officer has authority over procurements by a public procurement unit, other than:
             4642          (a) a non-executive procurement unit;
             4643          (b) a local government unit; or
             4644          (c) a state purchasing unit, other than the division.
             4645          Section 93. Section 63G-6a-303 , which is renumbered from Section 63G-6-204 is
             4646      renumbered and amended to read:
             4647           [63G-6-204].     63G-6a-303. Duties of chief procurement officer.


             4648          Except as otherwise specifically provided in this chapter, the chief procurement officer
             4649      serves as the central procurement officer of the state and shall:
             4650          (1) adopt office policies governing the internal functions of the [Division of Purchasing
             4651      and General Services] division;
             4652          (2) procure or supervise [the] each procurement [of all supplies, services, and
             4653      construction needed by the state] over which the chief procurement officer has authority;
             4654          [(3) exercise general supervision and control over all inventories or supplies belonging
             4655      to the state;]
             4656          [(4)] (3) establish and maintain programs for the inspection, testing, and acceptance of
             4657      [supplies, services, and construction] each procurement item over which the chief procurement
             4658      officer has authority;
             4659          [(5)] (4) prepare statistical data concerning [the procurement and usage of all supplies,
             4660      services, and construction] each procurement and procurement usage of a state procurement
             4661      unit;
             4662          [(6) before June 1, 1990, notify all public procurement units of the requirements of
             4663      Section 63G-6-406 regarding purchases of recycled paper and recycled paper products,
             4664      recycling requirements, and provide guidelines on the availability of recycled paper and paper
             4665      products, including the sources of supply and the potential uses of various grades of recycled
             4666      paper;]
             4667          [(7) before July 1, 1992:]
             4668          [(a) establish standards and specifications for determining which supplies are
             4669      considered recycled, based upon the chief procurement officer's review of current definitions
             4670      and standards employed by national procurement, product recycling, and other relevant
             4671      organizations and the federal Environmental Protection Agency;]
             4672          [(b) compile and update as necessary the specifications, a list of recycled supplies
             4673      available on state contract, and sources where the supplies may be obtained;]
             4674          [(c) make the compiled information under Subsection (7)(b) available to:]
             4675          [(i) all local government entities under Section 11-37-101 ;]
             4676          [(ii) all local health departments under Section 26A-1-108.7 ;]
             4677          [(iii) all procurement officers or other persons responsible for purchasing supplies
             4678      within the public school system under Title 53A, State System of Public Education;]


             4679          [(iv) all procurement officers or other persons responsible for purchasing supplies
             4680      within the state system of higher education under Title 53B, State System of Higher Education;
             4681      and]
             4682          [(v) all procurement officers or other persons responsible for purchasing supplies for
             4683      all public procurement units as defined in Section 63G-6-103 ; and]
             4684          [(d) present a written report to the Natural Resources, Agriculture, and Environment
             4685      Interim Committee annually prior to November 30 regarding the purchases of recycled goods
             4686      on state contracts during the prior fiscal year; and]
             4687          [(8)] (5) ensure that:
             4688          (a) before approving a [purchase, lease, or rental] procurement not covered by an
             4689      existing statewide contract for information technology or telecommunications supplies or
             4690      services, the chief information officer and the agency have [provided] stated in writing to the
             4691      division[,] that the needs analysis required in Section 63F-1-205 was completed, unless the
             4692      [purchase, lease, or rental] procurement is approved in accordance with Title 63M, Chapter 1,
             4693      Part 26, Government Procurement Private Proposal Program; and
             4694          (b) the oversight authority required by Subsection [(8)](5)(a) is not delegated outside
             4695      the [Division of Purchasing and General Services.] division; and
             4696          (6) provide training to public procurement units and to persons who do business with
             4697      public procurement units.
             4698          Section 94. Section 63G-6a-304 , which is renumbered from Section 63G-6-205 is
             4699      renumbered and amended to read:
             4700           [63G-6-205].     63G-6a-304. Delegation of authority.
             4701          [Subject to rules and regulations]
             4702          (1) In accordance with rules made by the board, the chief procurement officer may
             4703      delegate authority to designees or to any department, agency, or official.
             4704          (2) For a procurement [process] under Title 63M, Chapter 1, Part 26, Government
             4705      Procurement Private Proposal Program, any delegation by the chief procurement officer under
             4706      this section shall be made to the Governor's Office of Economic Development.
             4707          Section 95. Section 63G-6a-305 , which is renumbered from Section 63G-6-302 is
             4708      renumbered and amended to read:
             4709           [63G-6-302].     63G-6a-305. Duty of chief procurement officer in


             4710      maintaining specifications.
             4711          (1) The chief procurement officer [shall] may prepare, issue, revise, maintain, and
             4712      monitor the use of specifications for [supplies, services, construction, and technology required
             4713      by the state] each procurement over which the chief procurement officer has authority.
             4714          (2) The chief procurement officer shall obtain expert advice and assistance from
             4715      personnel of [using agencies] public procurement units in the development of specifications
             4716      and may delegate in writing to a [using agency] public procurement unit the authority to
             4717      prepare and utilize its own specifications.
             4718          (3) For a procurement [process] under Title 63M, Chapter 1, Part 26, Government
             4719      Procurement Private Proposal Program, any delegation by the chief procurement officer under
             4720      this section shall be made to the Governor's Office of Economic Development.
             4721          Section 96. Section 63G-6a-401 is enacted to read:
             4722     
Part 4. General Procurement Provisions

             4723          63G-6a-401. Title.
             4724          This part is known as "General Procurement Provisions."
             4725          Section 97. Section 63G-6a-402 is enacted to read:
             4726          63G-6a-402. Public procurement unit required to comply with Utah Procurement
             4727      Code and applicable rules -- Rulemaking authority -- Reporting.
             4728          (1) Except as otherwise provided in Section 63G-6a-109 , Section 63G-6a-403 , Part 8,
             4729      Exceptions to Procurement Requirements, or elsewhere in this chapter, a public procurement
             4730      unit may not obtain a procurement item, unless:
             4731          (a) if the public procurement unit is an authorized purchasing entity, the public
             4732      procurement unit:
             4733          (i) uses a procurement process; and
             4734          (ii) complies with:
             4735          (A) the requirements of this chapter; and
             4736          (B) the rules made pursuant to this chapter by the applicable rulemaking authority;
             4737          (b) if the public procurement unit is a local government unit, the public procurement
             4738      unit complies with:
             4739          (i) the requirements of this chapter that are adopted by the local government unit; and
             4740          (ii) all other procurement requirements that the local government unit is required to


             4741      comply with; or
             4742          (c) if the public procurement unit is not a public procurement unit described in
             4743      Subsections (1)(a) or (b), the public procurement unit:
             4744          (i) obtains the procurement item under the direction and approval of the division,
             4745      unless otherwise provided by a rule made by the board;
             4746          (ii) uses a procurement process; and
             4747          (iii) complies with:
             4748          (A) the requirements of this chapter; and
             4749          (B) the rules made pursuant to this chapter by the applicable rulemaking authority.
             4750          (2) Subject to Subsection (3), the applicable rulemaking authority shall make rules
             4751      relating to the management and control of procurements and procurement procedures by a
             4752      public procurement unit.
             4753          (3) (a) Rules made under Subsection (2) shall ensure compliance with the federal
             4754      contract prohibition provisions of the Sudan Accountability and Divestment Act of 2007 (Pub.
             4755      L. No. 110-174) that prohibit contracting with a person doing business in Sudan.
             4756          (b) The State Building Board rules governing procurement of construction,
             4757      architect-engineer services, and leases apply to the procurement of construction,
             4758      architect-engineer services, and leases of real property by the Division of Facilities
             4759      Construction and Management.
             4760          (4) An applicable rulemaking authority that is subject to Title 63G, Chapter 3, Utah
             4761      Administrative Rulemaking Act, shall make the rules described in this chapter in accordance
             4762      with the provisions of Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             4763          (5) The State Building Board shall make a report on or before July 1 of each year to a
             4764      legislative interim committee, designated by the Legislative Management Committee created
             4765      under Section 36-12-6 , on the establishment, implementation, and enforcement of the rules
             4766      made by the State Building Board under this chapter.
             4767          Section 98. Section 63G-6a-403 is enacted to read:
             4768          63G-6a-403. Prequalification of potential bidders or offerers.
             4769          (1) A public procurement unit may, in accordance with this section:
             4770          (a) prequalify potential bidders or offerors to provide any type of procurement item
             4771      specified by the public procurement unit; and


             4772          (b) limit participation in an invitation for bids or a request for proposals to the
             4773      prequalified potential bidders or offerors for the specified type of procurement item.
             4774          (2) To prequalify potential bidders or offerors to provide a specified type of
             4775      procurement item, a public procurement unit shall issue a request for qualifications.
             4776          (3) A public procurement unit that issues a request for qualifications shall:
             4777          (a) publish the request for qualifications in accordance with the requirements of
             4778      Section 63G-6a-402 ;
             4779          (b) state in the request for qualifications:
             4780          (i) the type of procurement item to which the request for qualifications relates;
             4781          (ii) the scope of work to be performed;
             4782          (iii) the instructions and the deadline for providing information in response to the
             4783      request for qualifications;
             4784          (iv) the minimum criteria for prequalification;
             4785          (v) the period of time during which the list of prequalified potential bidders or offerors
             4786      will remain in effect, which may not be longer than 18 months after the list of prequalified
             4787      potential bidders or offerors is made available to the public under Subsection (8)(b); and
             4788          (vi) that a public procurement unit may limit participation in an invitation for bids or a
             4789      request for proposals, during the time period described in Subsection (3)(b)(v), to the potential
             4790      bidders or offerors that are prequalified to provide the specified type of procurement item.
             4791          (4) The minimum criteria described in Subsection (3)(b)(iv):
             4792          (a) shall include the prequalification requirements unique to the procurement;
             4793          (b) may include performance rating criteria; and
             4794          (c) may not be so restrictive that the criteria unreasonably limit competition.
             4795          (5) A public procurement unit may, before making a final list of prequalified bidders or
             4796      offerors, request additional information to clarify responses made to the request for
             4797      prequalifications.
             4798          (6) A potential bidder or offeror shall be included on the list of prequalified potential
             4799      bidders or offerors if the bidder or offeror:
             4800          (a) submits a timely, responsive response to the request for prequalifications; and
             4801          (b) meets the minimum criteria for qualification described in Subsection (3)(b)(iv).
             4802          (7) If a request for qualifications will result in only one potential bidder or offeror


             4803      being placed on the list of prequalified potential bidders or offerors:
             4804          (a) the public procurement unit shall cancel the request for qualifications; and
             4805          (b) the list may not be used by the public procurement unit.
             4806          (8) The public procurement unit shall:
             4807          (a) before making the list of prequalified potential bidders or offerors available to the
             4808      public, provide each potential bidder or offeror who provided information in response to the
             4809      request, but who did not meet the minimum qualifications for placement on the list, a written
             4810      justification statement describing why the potential bidder or offeror did not meet the criteria
             4811      for inclusion on the list; and
             4812          (b) within 30 days after the day of the deadline described in Subsection (3)(b)(iii),
             4813      make the list of prequalified potential bidders or offerors available to the public.
             4814          Section 99. Section 63G-6a-404 is enacted to read:
             4815          63G-6a-404. Approved contractor list.
             4816          (1) An authorized purchasing entity may compile a list of approved contractors from
             4817      which procurement items may be obtained.
             4818          (2) An approved contractor list may only be compiled from:
             4819          (a) timely, responsive bids or responses received in response to:
             4820          (i) an invitation for bids; or
             4821          (ii) a request for proposals; or
             4822          (b) timely, responsive responses to:
             4823          (i) the prequalification process described in Section 63G-6a-403 ; or
             4824          (ii) the process described in Part 15, Architect-Engineer Services.
             4825          (3) In order to ensure equal treatment of all contractors on a contractor list, an
             4826      authorized purchasing entity shall use one of the following methods in an unbiased manner:
             4827          (a) a rotation system, organized alphabetically, numerically, or randomly;
             4828          (b) assigning contractors to a specified geographical area; or
             4829          (c) classifying each contractor based on each contractor's particular expertise or field.
             4830          Section 100. Section 63G-6a-405 is enacted to read:
             4831          63G-6a-405. Multiple award contracts.
             4832          (1) An authorized purchasing entity may enter into multiple award contracts with
             4833      bidders or offerors.


             4834          (2) Multiple award contracts may be in an authorized purchasing entity's best interest if
             4835      award to two or more bidders or offerors for similar procurement items is needed or desired for
             4836      adequate delivery, service, availability, or product compatibility.
             4837          (3) An authorized purchasing entity shall:
             4838          (a) exercise care to protect and promote competition among bidders or offerors when
             4839      seeking to enter into multiple award contracts;
             4840          (b) name all eligible users of the multiple award contracts in the invitation for bids or
             4841      request for proposals; and
             4842          (c) if the authorized purchasing entity anticipates entering into multiple award
             4843      contracts before issuing the invitation for bids or request for proposals, state in the invitation
             4844      for bids or request for proposals that the authorized purchasing entity may enter into multiple
             4845      award contracts at the end of the procurement process.
             4846          (4) An authorized purchasing entity that enters into multiple award contracts shall:
             4847          (a) obtain all of its normal, recurring requirements for the procurement items that are
             4848      the subject of the contracts until the contracts terminate; and
             4849          (b) reserve the right to obtain the procurement items described in Subsection (4)(a)
             4850      separately from the contracts if:
             4851          (i) there is a need to obtain a quantity of the procurement items that exceeds the
             4852      amount specified in the contracts; or
             4853          (ii) the procurement officer makes a written finding that the procurement items
             4854      available under the contract will not effectively or efficiently meet a nonrecurring special need
             4855      of a public procurement unit.
             4856          (5) Notwithstanding Subsection (3)(b), if an authorized purchasing entity enters into a
             4857      multiple award contract under this section, another authorized purchasing entity that is not a
             4858      signatory to the contract may, but is not required to, obtain a procurement item under the
             4859      contract.
             4860          (6) An applicable rulemaking authority may make rules to further regulate a
             4861      procurement under this section.
             4862          Section 101. Section 63G-6a-406 is enacted to read:
             4863          63G-6a-406. Public notice of procurement process.
             4864          (1) An authorized purchasing entity that issues an invitation for bids, a request for


             4865      proposals, or another document required by this chapter to be published in accordance with this
             4866      section, shall provide public notice that includes:
             4867          (a) the name of the authorized purchasing entity and the public procurement unit
             4868      acquiring the procurement item;
             4869          (b) information on how to contact the authorized purchasing entity in relation to the
             4870      invitation for bids, request for proposals, or other document;
             4871          (c) for an invitation for bids or a request for proposals, the date of the opening and
             4872      closing of the invitation for bids or request for proposals;
             4873          (d) information on how to obtain a copy of the invitation for bids, request for
             4874      proposals, or other document; and
             4875          (e) a general description of the procurement items that will be obtained through the
             4876      procurement process.
             4877          (2) Except as provided in Subsection (3), the authorized purchasing entity shall publish
             4878      the notice described in Subsection (1), using at least one of the following methods:
             4879          (a) at least 10 days before the day of the deadline for submission of a bid or other
             4880      response, publish the notice:
             4881          (i) in a newspaper of general circulation in the state; or
             4882          (ii) in a newspaper of local circulation in the area:
             4883          (A) directly impacted by the procurement; or
             4884          (B) over which the public procurement unit has jurisdiction; or
             4885          (b) at least 10 consecutive days before the day of the deadline for submission of a bid
             4886      or other response, publish the notice:
             4887          (i) on the main website for the authorized purchasing entity or public procurement unit;
             4888      or
             4889          (ii) on a state website that is owned, managed by, or provided under contract with, the
             4890      division for posting a public procurement notice.
             4891          (3) An authorized purchasing entity may reduce the 10-day period described in
             4892      Subsection (2), if the procurement officer or the procurement officer's designee signs a written
             4893      statement that:
             4894          (a) states that a shorter time is needed; and
             4895          (b) as it relates to an invitation for bids or a request for proposals, determines that


             4896      competition from multiple sources may be obtained within the shorter period of time.
             4897          (4) An authorized purchasing entity shall make a copy of an invitation for bids, a
             4898      request for proposals, or any other document described in Subsection (1), available for public
             4899      inspection at the main office of the authorized purchasing entity or on the website described in
             4900      Subsection (2)(b).
             4901          Section 102. Section 63G-6a-407 , which is renumbered from Section 63G-6-303 is
             4902      renumbered and amended to read:
             4903           [63G-6-303].     63G-6a-407. Purpose of specifications.
             4904          (1) All specifications shall seek to promote the overall economy and best use for the
             4905      purposes intended and encourage competition in satisfying the [state's] needs of the public
             4906      procurement unit, and [shall] may not be unduly restrictive.
             4907          (2) The requirements of this part regarding the purposes and nonrestrictiveness of
             4908      specifications shall apply to all specifications, including[, but not limited to,] those prepared by
             4909      architects, engineers, designers, and draftsmen for public contracts.
             4910          Section 103. Section 63G-6a-408 is enacted to read:
             4911          63G-6a-408. Small purchases.
             4912          (1) The applicable rulemaking authority may make rules governing small purchases,
             4913      including:
             4914          (a) establishing the maximum expenditure that may qualify as a small purchase, unless
             4915      otherwise provided by statute;
             4916          (b) establishing expenditure thresholds and procurement requirements related to those
             4917      thresholds; and
             4918          (c) the use of electronic, telephone, or written quotes.
             4919          (2) (a) Except as provided in Subsection (2)(b), a public procurement unit may not
             4920      obtain a procurement item through a small purchase procurement process if the procurement
             4921      item may be obtained through a state contract.
             4922          (b) Subsection (2)(a) does not apply:
             4923          (i) to a non-executive state procurement unit;
             4924          (ii) if the procurement officer or the head of the state purchasing unit authorizes an
             4925      exception to the requirement;
             4926          (iii) to an institution of higher education of the state; or


             4927          (iv) to a school district or a public school.
             4928          (c) An entity that is exempt from the requirements of Subsection (2)(a) is encouraged,
             4929      but not required, to comply with Subsection (2)(a).
             4930          (3) A public procurement unit:
             4931          (a) may not use the small purchase procurement process described in this section for
             4932      ongoing, continuous, and regularly scheduled procurements; and
             4933          (b) shall make its ongoing, continuous, and regularly scheduled procurements through
             4934      a contract awarded through a procurement process described in this chapter or an applicable
             4935      exception to a procurement process.
             4936          (4) It is unlawful for a person to intentionally or knowingly divide a procurement into
             4937      one or more smaller procurements with the intent to make a procurement:
             4938          (a) qualify as a small purchase, if, before dividing the procurement, it would not have
             4939      qualified as a small purchase; or
             4940          (b) meet a threshold established by rule made by the applicable rulemaking authority,
             4941      if, before dividing the procurement, it would not have met the threshold.
             4942          (5) A division of a procurement that is prohibited under Subsection (4) includes doing
             4943      any of the following with the intent or knowledge described in Subsection (4):
             4944          (a) making two or more separate purchases;
             4945          (b) dividing an invoice or purchase order into two or more invoices or purchase orders;
             4946      or
             4947          (c) making smaller purchases over a period of time.
             4948          (6) A person who violates Subsection (4) is subject to the criminal penalties described
             4949      in Section 63G-6a-2305 .
             4950          (7) The Division of Finance within the Department of Administrative Services may
             4951      conduct an audit of a public procurement unit in the state executive branch to verify
             4952      compliance with the requirements of this section.
             4953          (8) A public procurement unit in the state executive branch may not make a small
             4954      purchase after January 1, 2013, unless the chief procurement officer certifies that the person
             4955      responsible for procurements in the public procurement unit has satisfactorily completed
             4956      training on this section and the rules made under this section.
             4957          Section 104. Section 63G-6a-501 is enacted to read:


             4958     
Part 5. Request for Information

             4959          63G-6a-501. Title.
             4960          This part is known as "Request for Information."
             4961          Section 105. Section 63G-6a-502 is enacted to read:
             4962          63G-6a-502. Purpose of request for information.
             4963          (1) The purpose of a request for information is to:
             4964          (a) obtain information, comments, or suggestions from potential bidders or offerors
             4965      before issuing an invitation for bids or request for proposals;
             4966          (b) determine whether to issue an invitation for bids or a request for proposals; and
             4967          (c) generate interest in a potential invitation for bids or a request for proposals.
             4968          (2) A request for information may be useful in order to:
             4969          (a) prepare to issue an invitation for bids or request for proposals for an unfamiliar or
             4970      complex procurement;
             4971          (b) determine the market availability of a procurement item; or
             4972          (c) determine best practices, industry standards, performance standards, product
             4973      specifications, and innovations relating to a procurement item.
             4974          Section 106. Section 63G-6a-503 is enacted to read:
             4975          63G-6a-503. Request for information and response nonbinding.
             4976          (1) A request for information is not a procurement process and may not be used to
             4977      make a purchase or enter into a contract. A public procurement unit is required to use a
             4978      procurement process, or comply with an exception to the requirement to use a procurement
             4979      process, in order to make a purchase or enter into a contract.
             4980          (2) A response to a request for information is not an offer and may not be accepted to
             4981      form a binding contract.
             4982          Section 107. Section 63G-6a-504 is enacted to read:
             4983          63G-6a-504. Contents of request for information -- Public notice.
             4984          A request for information may seek a wide range of information, including:
             4985          (1) availability of a procurement item;
             4986          (2) delivery schedules;
             4987          (3) industry standards and practices;
             4988          (4) product specifications;


             4989          (5) training;
             4990          (6) new technologies;
             4991          (7) capabilities of potential providers of a procurement item; and
             4992          (8) alternate solutions.
             4993          Section 108. Section 63G-6a-601 is enacted to read:
             4994     
Part 6. Bidding

             4995          63G-6a-601. Title.
             4996          This part is known as "Bidding."
             4997          Section 109. Section 63G-6a-602 is enacted to read:
             4998          63G-6a-602. Contracts awarded by bidding.
             4999          (1) Except as otherwise provided in this chapter, an authorized purchasing entity shall
             5000      award a contract for a procurement by bidding, in accordance with the rules of the applicable
             5001      rulemaking authority.
             5002          (2) The bidding procurement process is appropriate to use when cost is the major factor
             5003      in determining the award of a procurement.
             5004          Section 110. Section 63G-6a-603 is enacted to read:
             5005          63G-6a-603. Invitation for bids -- Contents -- Notice.
             5006          (1) The bidding procurement process begins when the authorized purchasing entity
             5007      issues an invitation for bids.
             5008          (2) An invitation for bids shall:
             5009          (a) state the period of time during which bids will be accepted;
             5010          (b) describe the manner in which a bid shall be submitted;
             5011          (c) state the place where a bid shall be submitted; and
             5012          (d) include, or incorporate by reference:
             5013          (i) a description of the procurement items sought;
             5014          (ii) the objective criteria that will be used to evaluate the bids; and
             5015          (iii) the required contractual terms and conditions.
             5016          (3) An authorized purchasing entity shall publish an invitation for bids in accordance
             5017      with the requirements of Section 63G-6a-406 .
             5018          Section 111. Section 63G-6a-604 is enacted to read:
             5019          63G-6a-604. Bid opening and acceptance.


             5020          (1) Bids shall be opened:
             5021          (a) publicly, except as provided in Section 63G-6a-611 ;
             5022          (b) in the presence of one or more witnesses, unless an electronic bid opening process
             5023      is used where bidders may see the opening of the bid electronically; and
             5024          (c) at the time and place indicated in the invitation for bids.
             5025          (2) Bids shall be accepted unconditionally, without alteration or correction, except as
             5026      otherwise authorized by this chapter.
             5027          (3) (a) The procurement officer shall reject a bid that is not responsive or responsible.
             5028          (b) A bid that is not responsive includes a bid that:
             5029          (i) is conditional;
             5030          (ii) attempts to modify the bid requirements;
             5031          (iii) contains additional terms or conditions; or
             5032          (iv) fails to conform with the requirements or specifications of the invitation for bids.
             5033          (c) A bid that is not responsible includes a bid where the procurement officer
             5034      reasonably concludes that the bidder or an employee, agent, or subcontractor of the bidder, at
             5035      any tier, is unable to satisfactorily fulfill the bid requirements.
             5036          (4) An authorized purchasing entity may not accept a bid after the time for submission
             5037      of a bid has expired.
             5038          (5) The procurement officer shall:
             5039          (a) record the name of each bidder and the amount of each bid; and
             5040          (b) after the bid is awarded, make the information described in Subsection (5)(a)
             5041      available for public disclosure.
             5042          Section 112. Section 63G-6a-605 is enacted to read:
             5043          63G-6a-605. Correction or withdrawal of bids -- Cancellation of award.
             5044          (1) Correction or withdrawal of inadvertently erroneous bids, or the cancellation of an
             5045      award or a contract that is based on an unintentionally erroneous bid, may be made in
             5046      accordance with the rules of the applicable rulemaking authority.
             5047          (2) Notwithstanding Subsection (1), the following changes may not be made to a bid
             5048      after the bid opening:
             5049          (a) changes in bid pricing;
             5050          (b) changes in the cost evaluation formula; or


             5051          (c) changes in other provisions that are prejudicial to fair competition or to the interest
             5052      of the public procurement unit.
             5053          (3) A decision to permit the correction or withdrawal of a bid or the cancellation of an
             5054      award or a contract under Subsection (1) shall be supported in a written document, signed by
             5055      the procurement officer or the head of the authorized purchasing entity.
             5056          Section 113. Section 63G-6a-606 is enacted to read:
             5057          63G-6a-606. Evaluation of bids -- Award -- Cancellation -- Disqualification.
             5058          (1) An authorized purchasing entity shall evaluate each bid using the objective criteria
             5059      described in the invitation for bids, which may include:
             5060          (a) experience;
             5061          (b) performance ratings;
             5062          (c) inspection;
             5063          (d) testing;
             5064          (e) quality;
             5065          (f) workmanship;
             5066          (g) time and manner of delivery;
             5067          (h) references;
             5068          (i) financial stability;
             5069          (j) cost;
             5070          (k) suitability for a particular purpose; or
             5071          (l) other objective criteria specified in the invitation for bids.
             5072          (2) Criteria not described in the invitation for bids may not be used to evaluate a bid.
             5073          (3) The authorized purchasing entity shall:
             5074          (a) award the contract as soon as practicable to:
             5075          (i) the lowest responsive and responsible bidder who meets the objective criteria
             5076      described in the invitation for bids; or
             5077          (ii) if, in accordance with Subsection (4), the procurement officer or the head of the
             5078      authorized purchasing entity disqualifies the bidder described in Subsection (3)(a)(i), the next
             5079      lowest responsive and responsible bidder who meets the objective criteria described in the
             5080      invitation for bids; or
             5081          (b) cancel the invitation for bids without awarding a contract.


             5082          (4) In accordance with Subsection (5), the procurement officer or the head of the
             5083      authorized purchasing entity may disqualify a bidder for:
             5084          (a) a violation of this chapter;
             5085          (b) a violation of a requirement of the invitation for bids;
             5086          (c) unlawful or unethical conduct; or
             5087          (d) a change in circumstance that, had the change been known at the time the bid was
             5088      submitted, would have caused the bidder to not be the lowest responsive and responsible bidder
             5089      who meets the objective criteria described in the invitation for bids.
             5090          (5) A procurement officer or head of an authorized purchasing entity who disqualifies a
             5091      bidder under Subsection (4) shall:
             5092          (a) make a written finding, stating the reasons for disqualification; and
             5093          (b) provide a copy of the written finding to the disqualified bidder.
             5094          (6) If an authorized purchasing entity cancels an invitation for bids without awarding a
             5095      contract, the authorized purchasing entity shall make available for public inspection a written
             5096      justification for the cancellation.
             5097          Section 114. Section 63G-6a-607 is enacted to read:
             5098          63G-6a-607. Action when all bids are over budget.
             5099          (1) Except as provided in Subsection (2) or (3), if the fiscal officer for the public
             5100      procurement unit certifies that all accepted bids exceed available funds and that the lowest
             5101      responsive and responsible bidder does not exceed the available funds by more than 5%, the
             5102      procurement officer may negotiate an adjustment of the bid price and bid requirements with the
             5103      lowest responsive and responsible bidder in order to bring the bid within the amount of
             5104      available funds.
             5105          (2) A procurement officer may not adjust the bid requirements under Subsection (1) if
             5106      there is a substantial likelihood that, had the adjustment been included in the invitation for
             5107      bids, a person that did not submit a bid would have submitted a responsive, responsible, and
             5108      competitive bid.
             5109          (3) The Division of Facilities Construction and Management is exempt from the
             5110      requirements of this section if:
             5111          (a) the building board adopts rules governing procedures when all accepted bids exceed
             5112      available funds; and


             5113          (b) the Division of Facilities Construction and Management complies with the rules
             5114      described in Subsection (3)(a).
             5115          Section 115. Section 63G-6a-608 is enacted to read:
             5116          63G-6a-608. Tie bids -- Resolution -- Copies provided to attorney general.
             5117          (1) A procurement officer shall resolve a tie bid in accordance with a method
             5118      established by rule made by the applicable rulemaking authority. The method may include
             5119      awarding the tie bid:
             5120          (a) to the tie bidder who:
             5121          (i) is provider of state products, if no other tie bidder is a responsive provider of state
             5122      products;
             5123          (ii) is closest to the point of delivery;
             5124          (iii) received the previous award; or
             5125          (iv) will provide the earliest delivery date;
             5126          (b) by drawing lots; or
             5127          (c) by any other reasonable method of resolving a tie bid.
             5128          (2) The method chosen by the procurement officer to resolve a tie bid shall be at the
             5129      sole discretion of the procurement officer, subject to the rules established under Subsection (1).
             5130          (3) A public procurement unit in the state executive branch shall provide a copy of the
             5131      procurement to the attorney general if an award of a contract to a tie bidder exceeds $100,000
             5132      in expenditures.
             5133          Section 116. Section 63G-6a-609 is enacted to read:
             5134          63G-6a-609. Multiple stage bidding process.
             5135          (1) An authorized purchasing entity may conduct a bid in multiple stages, to:
             5136          (a) narrow the number of bidders who will progress to a subsequent stage;
             5137          (b) prequalify bidders for subsequent stages, in accordance with Section 63G-6a-403 ;
             5138          (c) enter into a contract for a single procurement; or
             5139          (d) award multiple contracts for a series of upcoming procurements.
             5140          (2) The invitation for bids for a multiple stage bidding process shall:
             5141          (a) describe the requirements for, and purpose of, each stage of the process;
             5142          (b) indicate whether the authorized purchasing entity intends to award:
             5143          (i) a single contract; or


             5144          (ii) multiple contracts for a series of upcoming procurements; and
             5145          (c) state that:
             5146          (i) the first stage is for prequalification only;
             5147          (ii) a bidder may not submit any pricing information in the first stage of the process;
             5148      and
             5149          (iii) bids in the second stage will only be accepted from a person who prequalifies in
             5150      the first stage.
             5151          (3) During the first stage, the authorized purchasing entity:
             5152          (a) shall prequalify bidders to participate in subsequent stages, in accordance with
             5153      Section 63G-6a-403 ;
             5154          (b) shall prohibit the submission of pricing information until the final stage; and
             5155          (c) may, before beginning the second stage, request additional information to clarify
             5156      the qualifications of the bidders who submit timely responses.
             5157          (4) Contracts may only be awarded for a procurement item described in stage one of
             5158      the invitation for bids.
             5159          (5) An authorized purchasing entity may conduct a bid in as many stages as it
             5160      determines to be appropriate.
             5161          (6) Except as otherwise expressly provided in this section, an authorized purchasing
             5162      entity shall conduct a multiple stage process in accordance with this part.
             5163          (7) The applicable rulemaking authority may make rules governing the use of a
             5164      multiple stage process described in this section.
             5165          Section 117. Section 63G-6a-610 is enacted to read:
             5166          63G-6a-610. Contracts awarded by reverse auction.
             5167          (1) Reverse auction bidding may be used if the procurement officer determines, in
             5168      writing, that reverse auction bidding will provide the best value to the public procurement unit.
             5169          (2) Reverse auction bidding is appropriate to use when there are multiple prequalified
             5170      providers of a procurement item.
             5171          Section 118. Section 63G-6a-611 is enacted to read:
             5172          63G-6a-611. Invitation for bids for reverse auction -- Notice contents --
             5173      Agreement to terms and conditions.
             5174          (1) The reverse auction bidding process begins when an authorized purchasing entity


             5175      issues an invitation for bids to prequalify bidders to participate in the reverse auction.
             5176          (2) The invitation for bids shall:
             5177          (a) state the period of time during which bids will be accepted;
             5178          (b) state that the bid will be conducted by reverse auction;
             5179          (c) describe the procurement items sought;
             5180          (d) describe the minimum requirements to become prequalified;
             5181          (e) state the required contractual terms and conditions; and
             5182          (f) describe the procedure that the authorized purchasing entity will follow in
             5183      conducting the reverse auction.
             5184          (3) In order to participate in a reverse auction, a bidder shall agree to:
             5185          (a) the specifications, and contractual terms and conditions, of the procurement; and
             5186          (b) be trained in, and abide by, the procedure that the authorized purchasing entity will
             5187      follow in conducting the reverse auction.
             5188          (4) An authorized purchasing entity shall publish an invitation for bids for a reverse
             5189      auction in accordance with the requirements of Section 63G-6a-406 .
             5190          Section 119. Section 63G-6a-612 is enacted to read:
             5191          63G-6a-612. Conduct of reverse auction.
             5192          (1) When conducting a reverse auction, an authorized purchasing entity:
             5193          (a) may conduct the reverse auction at a physical location or by electronic means;
             5194          (b) shall permit all prequalified bidders to participate in the reverse auction;
             5195          (c) may not permit a bidder to participate in the reverse auction if the bidder did not
             5196      prequalify to participate in the reverse auction;
             5197          (d) may not accept a bid after the time for submission of a bid has expired;
             5198          (e) shall update the bids on a real time basis; and
             5199          (f) shall conduct the reverse auction in a manner that permits each bidder to:
             5200          (i) bid against each other; and
             5201          (ii) lower the bidder's price below the lowest bid before the reverse auction closes.
             5202          (2) At the end of the reverse auction, the authorized purchasing entity shall:
             5203          (a) award the contract as soon as practicable to the lowest responsive and responsible
             5204      bidder who meets the objective criteria described in the invitation for bids; or
             5205          (b) cancel the reverse auction without awarding a contract.


             5206          (3) After the reverse auction is finished, the procurement officer shall make publicly
             5207      available:
             5208          (a) (i) the amount of the final bid submitted by each bidder during the reverse auction;
             5209      and
             5210          (ii) the identity of the bidder that submitted each final bid; and
             5211          (b) if practicable:
             5212          (i) the amount of each bid submitted during the reverse auction; and
             5213          (ii) the identity of the bidder that submitted each bid.
             5214          Section 120. Section 63G-6a-701 is enacted to read:
             5215     
Part 7. Request for Proposals

             5216          63G-6a-701. Title.
             5217          This part is known as "Request for Proposals."
             5218          Section 121. Section 63G-6a-702 is enacted to read:
             5219          63G-6a-702. Contracts awarded by request for proposals.
             5220          (1) A request for proposals procurement process may be used instead of bidding if the
             5221      procurement officer determines, in writing, that the request for proposals procurement process
             5222      will provide the best value to the public procurement unit.
             5223          (2) The request for proposals procurement process is appropriate to use for:
             5224          (a) the procurement of professional services;
             5225          (b) a design-build procurement;
             5226          (c) when cost is not the most important factor to be considered in making the selection
             5227      that is most advantageous to the public procurement unit; or
             5228          (d) when factors, in addition to cost, are highly significant in making the selection that
             5229      is most advantageous to the public procurement unit.
             5230          Section 122. Section 63G-6a-703 is enacted to read:
             5231          63G-6a-703. Request for proposals -- Notice -- Contents.
             5232          (1) The request for proposals procurement process begins when the authorized
             5233      purchasing entity issues a request for proposals.
             5234          (2) A request for proposals shall:
             5235          (a) state the period of time during which a proposal will be accepted;
             5236          (b) describe the manner in which a proposal shall be submitted;


             5237          (c) state the place where a proposal shall be submitted;
             5238          (d) include, or incorporate by reference:
             5239          (i) a description of the procurement items sought;
             5240          (ii) a description of the subjective and objective criteria that will be used to evaluate
             5241      the proposal; and
             5242          (iii) the standard contractual terms and conditions required by the authorized
             5243      purchasing entity;
             5244          (e) state the relative weight that will be given to each score awarded for the criteria
             5245      described in Subsection (2)(d)(ii), including cost;
             5246          (f) state the formula that will be used to determine the score awarded for the cost of
             5247      each proposal;
             5248          (g) if the request for proposals will be conducted in multiple stages, as described in
             5249      Section 63G-6a-710 , include a description of the stages and the criteria and scoring that will be
             5250      used to screen offerors at each stage; and
             5251          (h) state that discussions may be conducted with offerors who submit proposals
             5252      determined to be reasonably susceptible of being selected for award, followed by an
             5253      opportunity to make best and final offers, but that proposals may be accepted without
             5254      discussions.
             5255          (3) An authorized purchasing entity shall publish a request for proposals in accordance
             5256      with the requirements of Section 63G-6a-406 .
             5257          Section 123. Section 63G-6a-704 is enacted to read:
             5258          63G-6a-704. Opening of proposals and acceptance.
             5259          (1) An authorized purchasing entity shall ensure that proposals are opened in a manner
             5260      that avoids disclosing the contents to competing offerors during the evaluation process.
             5261          (2) An authorized purchasing entity may not accept a proposal:
             5262          (a) after the time for submission of a proposal has expired; or
             5263          (b) that is not responsive to the request for proposals.
             5264          Section 124. Section 63G-6a-705 is enacted to read:
             5265          63G-6a-705. Discussions -- Best and final offers.
             5266          (1) After proposals are received and opened, the authorized purchasing entity may
             5267      conduct discussions with the offerors and allow the offerors to make best and final offers after


             5268      the discussions.
             5269          (2) The authorized purchasing entity shall:
             5270          (a) ensure that each offeror receives fair and equal treatment with respect to the other
             5271      offerors;
             5272          (b) establish a schedule and procedures for conducting discussions;
             5273          (c) ensure that information in each proposal and information gathered during
             5274      discussions is not shared with other offerors until the contract is awarded;
             5275          (d) ensure that auction tactics are not used in the discussion process, including
             5276      discussing and comparing the costs and features of other proposals; and
             5277          (e) set a common date and time for the submission of best and final offers.
             5278          (3) If an offeror chooses not to participate in a discussion or does not make a timely
             5279      best and final offer, the offer submitted by the offerors before the conduct of discussions shall
             5280      be treated as the offeror's best and final offer.
             5281          Section 125. Section 63G-6a-706 is enacted to read:
             5282          63G-6a-706. Correction or withdrawal of proposal -- Cancellation of award.
             5283          (1) Correction or withdrawal of an unintentionally erroneous proposal, or the
             5284      cancellation of an award or contract that is based on an unintentionally erroneous proposal,
             5285      may be made in accordance with the rules of the applicable rulemaking authority.
             5286          (2) A decision to permit the correction or withdrawal of a proposal or the cancellation
             5287      of an award or a contract under Subsection (1) shall be supported in a written document, signed
             5288      by the procurement officer.
             5289          Section 126. Section 63G-6a-707 is enacted to read:
             5290          63G-6a-707. Evaluation of proposals -- Evaluation committee.
             5291          (1) Each proposal shall be evaluated using the criteria described in the request for
             5292      proposals, which may include:
             5293          (a) experience;
             5294          (b) performance ratings;
             5295          (c) inspection;
             5296          (d) testing;
             5297          (e) quality;
             5298          (f) workmanship;


             5299          (g) time, manner, or schedule of delivery;
             5300          (h) references;
             5301          (i) financial stability;
             5302          (j) suitability for a particular purpose;
             5303          (k) management plans;
             5304          (l) cost; or
             5305          (m) other subjective or objective criteria specified in the request for proposals.
             5306          (2) Criteria not described in the request for proposals may not be used to evaluate a
             5307      proposal.
             5308          (3) The authorized purchasing entity shall:
             5309          (a) appoint an evaluation committee consisting of at least three individuals; and
             5310          (b) ensure that the evaluation committee and each member of the evaluation
             5311      committee:
             5312          (i) does not have a conflict of interest with any of the offerors;
             5313          (ii) can fairly evaluate each proposal;
             5314          (iii) does not contact or communicate with an offeror for any reason other than
             5315      conducting the procurement process; and
             5316          (iv) conducts the evaluation in a manner that ensures a fair and competitive process
             5317      and avoids the appearance of impropriety.
             5318          (4) The evaluation committee may conduct interviews with, or participate in
             5319      presentations by, the offerors.
             5320          (5) Except as provided in Subsection (6) or (7), each member of the evaluation
             5321      committee is prohibited from knowing, or having access to, any information relating to the
             5322      cost, or the scoring of the cost, of a proposal until after the evaluation committee submits its
             5323      final recommended scores on all other criteria to the authorized purchasing entity.
             5324          (6) (a) As used in this Subsection (6), "management fee" includes only the following
             5325      fees of the construction manager/general contractor:
             5326          (i) preconstruction phase services;
             5327          (ii) monthly supervision fees for the construction phase; and
             5328          (iii) overhead and profit for the construction phase.
             5329          (b) When selecting a construction manager/general contractor for a construction


             5330      project, the evaluation committee:
             5331          (i) may, at any time after the opening of the responses to the request for proposals, have
             5332      access to, and consider, the management fee proposed by the offerors; and
             5333          (ii) except as provided in Subsection (7), may not know or have access to any other
             5334      information relating to the cost of construction submitted by the offerors, until after the
             5335      evaluation committee submits its final recommended scores on all other criteria to the
             5336      authorized purchasing entity.
             5337          (7) An authorized purchasing entity is not required to comply with Subsection (5) if,
             5338      before opening the responses to the request for proposals, the head of the authorized purchasing
             5339      entity or a person designated by rule made by the applicable rulemaking authority:
             5340          (a) signs a written statement:
             5341          (i) indicating that, due to the nature of the proposal or other circumstances, it is in the
             5342      best interest of the state to waive compliance with Subsection (5); and
             5343          (ii) describing the nature of the proposal and the other circumstances relied upon to
             5344      waive compliance with Subsection (5); and
             5345          (b) makes the written statement available to the public, upon request.
             5346          Section 127. Section 63G-6a-708 is enacted to read:
             5347          63G-6a-708. Publication of award and scores -- Cost-benefit analysis.
             5348          (1) The authorized purchasing entity shall, on the day on which the selection is
             5349      announced, make available to each offeror and to the public a written statement that includes:
             5350          (a) the name of the offeror found by the authorized purchasing entity to provide the
             5351      greatest overall value to the public procurement unit, taking into account the cost and the other
             5352      evaluation criteria described in the request for proposals; and
             5353          (b) the scores awarded to each offeror by the evaluation committee for each evaluation
             5354      criteria category described in the request for proposals.
             5355          (2) If the contract is awarded to an offeror other than the lowest cost offeror, and the
             5356      difference between the cost of the accepted proposal and the lowest proposal exceeds the
             5357      greater of $10,000 or 5% of the lowest cost offer, an authorized purchasing entity shall include,
             5358      with the statement described in Subsection (1), an informal written cost-benefit analysis that:
             5359          (a) explains, in general terms, the advantage to the public procurement unit of
             5360      awarding the contract to the higher cost offeror;


             5361          (b) includes, except as provided in Subsection (2)(c), the estimated added financial
             5362      value to the public procurement unit of each criteria that justifies awarding the contract to the
             5363      higher cost offeror;
             5364          (c) includes, to the extent that assigning a financial value to a particular criteria is not
             5365      practicable, a statement describing:
             5366          (i) why it is not practicable to assign a financial value to the criteria; and
             5367          (ii) in nonfinancial terms, the advantage to the public procurement unit, based on the
             5368      particular criteria, of awarding the contract to the higher cost offeror;
             5369          (d) demonstrates that the value of the advantage to the public procurement unit of
             5370      awarding the contract to the higher cost offeror exceeds the value of the difference between the
             5371      cost of the higher cost offeror and the cost of the lower cost offerors; and
             5372          (e) includes any other information required by rule made by the applicable rulemaking
             5373      authority.
             5374          Section 128. Section 63G-6a-709 is enacted to read:
             5375          63G-6a-709. Award of contract -- Cancellation -- Disqualification.
             5376          (1) After the evaluation and scoring of proposals is completed, the authorized
             5377      purchasing entity shall:
             5378          (a) award the contract as soon as practicable to:
             5379          (i) the responsive and responsible offeror with the highest total score; or
             5380          (ii) if, in accordance with Subsection (2), the procurement officer or the head of the
             5381      authorized purchasing entity disqualifies the offeror described in Subsection (1)(a)(i), the
             5382      responsive and responsible offeror with the next highest total score; or
             5383          (b) cancel the request for proposals without awarding a contract.
             5384          (2) In accordance with Subsection (3), the procurement officer or the head of the
             5385      authorized purchasing entity may disqualify an offeror for:
             5386          (a) a violation of this chapter;
             5387          (b) a violation of a requirement of the request for proposals;
             5388          (c) unlawful or unethical conduct; or
             5389          (d) a change in circumstance that, had the change been known at the time the proposal
             5390      was submitted, would have caused the proposal to not have the highest score.
             5391          (3) A procurement officer or head of an authorized purchasing entity who disqualifies


             5392      an offeror under Subsection (2) shall:
             5393          (a) make a written finding, stating the reasons for disqualification; and
             5394          (b) provide a copy of the written finding to the disqualified offeror.
             5395          (4) If an authorized purchasing entity cancels a request for proposals without awarding
             5396      a contract, the authorized purchasing entity shall make available for public inspection a written
             5397      justification for the cancellation.
             5398          Section 129. Section 63G-6a-710 is enacted to read:
             5399          63G-6a-710. Multiple stage process.
             5400          (1) An authorized purchasing entity may conduct a request for proposals in stages,
             5401      where an earlier stage is used to qualify offerors for subsequent stages or to narrow the number
             5402      of offerors that will move on to subsequent stages.
             5403          (2) Except as otherwise expressly provided in this section, an authorized purchasing
             5404      entity shall conduct a multiple stage process in accordance with this part.
             5405          Section 130. Section 63G-6a-711 , which is renumbered from Section 63G-6-408.5 is
             5406      renumbered and amended to read:
             5407           [63G-6-408.5].     63G-6a-711. Procurement for submitted proposal.
             5408          (1) As used in this section:
             5409          (a) "Committee" is as defined in Section 63M-1-2602 .
             5410          (b) "Initial proposal" is a proposal submitted by a private entity under Section
             5411      63M-1-2605 .
             5412          (2) After receipt by the chief procurement officer of a copy of an initial proposal from
             5413      the committee in accordance with Subsection 63M-1-2606 (5), including any comment,
             5414      suggestion, or modification to the initial proposal, the chief procurement officer shall initiate a
             5415      procurement process in compliance with [Title 63G, Chapter 6, Utah Procurement Code] this
             5416      chapter.
             5417          (3) The chief procurement officer or designee shall:
             5418          (a) review each detailed proposal received in accordance with Title 63M, Chapter 1,
             5419      Part 26, Government Procurement Private Proposal Program; and
             5420          (b) submit all detailed proposals that meet the guidelines established under Subsection
             5421      63M-1-2608 (1) to the committee for review under Section 63M-1-2609 .
             5422          (4) For purposes of this chapter, the Governor's Office of Economic Development is


             5423      considered the state purchasing [agency] unit for a procurement process under Title 63M,
             5424      Chapter 1, Part 26, Government Procurement Private Proposal Program.
             5425          Section 131. Section 63G-6a-801 is enacted to read:
             5426     
Part 8. Exceptions to Procurement Requirements

             5427          63G-6a-801. Title.
             5428          This part is known as "Exceptions to Procurement Requirements."
             5429          Section 132. Section 63G-6a-802 , which is renumbered from Section 63G-6-410 is
             5430      renumbered and amended to read:
             5431           [63G-6-410].     63G-6a-802. Sole source -- Award of contract without
             5432      competition -- Notice.
             5433          (1) As used in this section:
             5434          (a) "Transitional costs" mean the costs of changing from an existing provider of, or
             5435      type of, a procurement item to another provider of, or type of, procurement item.
             5436          (b) "Transitional costs" include:
             5437          (i) training costs;
             5438          (ii) conversion costs;
             5439          (iii) compatibility costs;
             5440          (iv) system downtime;
             5441          (v) disruption of service;
             5442          (vi) staff time necessary to put the transition into effect;
             5443          (vii) installation costs; and
             5444          (viii) ancillary software, hardware, equipment, or construction costs.
             5445          (c) "Transitional costs" do not include:
             5446          (i) the costs of preparing for or engaging in a procurement process; or
             5447          (ii) contract negotiation or contract drafting costs.
             5448          (2) A contract may be awarded for a [supply, service, or construction] procurement
             5449      item without competition [when, under rules and regulations, the chief] if the procurement
             5450      officer, the head of [a purchasing agency, or a designee of either officer above the level of
             5451      procurement officer] an authorized purchasing entity, or a designee of either who is senior to
             5452      the procurement officer or the head of the authorized purchasing entity, determines in writing
             5453      that:


             5454          [(1)] (a) there is only one source for the [required supply, service, or construction]
             5455      procurement item; or
             5456          [(2)] (b) the award to a specific supplier, service provider, or contractor is a condition
             5457      of a donation that will fund the full cost of the supply, service, or construction item.
             5458          (3) Circumstances under which there is only one source for a procurement item may
             5459      include:
             5460          (a) where the most important consideration in obtaining a procurement item is the
             5461      compatibility of equipment, technology, software, accessories, replacement parts, or service;
             5462          (b) where a procurement item is needed for trial use or testing;
             5463          (c) where transitional costs are unreasonable or cost prohibitive; or
             5464          (d) procurement of public utility services.
             5465          (4) The applicable rulemaking authority shall make rules regarding the publication of
             5466      notice for a sole source procurement that, at a minimum, require publication of notice of a sole
             5467      source procurement, in accordance with Section 63G-6a-406 , if the cost of the procurement
             5468      exceeds $50,000.
             5469          (5) An authorized purchasing entity who awards a sole source contract on behalf of a
             5470      public procurement unit shall negotiate with the contractor to ensure that the terms of the
             5471      contract, including price and delivery, are in the best interest of the state.
             5472          (6) A public procurement unit may extend a contract for a reasonable period of time
             5473      without engaging in a procurement process, if:
             5474          (a) the award of a new contract for the procurement item is delayed due to a protest or
             5475      appeal;
             5476          (b) the procurement process is delayed due to unintentional error;
             5477          (c) changes in industry standards require significant changes to specifications for the
             5478      procurement item;
             5479          (d) the extension is necessary to prevent the loss of federal funds;
             5480          (e) the extension is necessary to address a circumstance where the appropriation of
             5481      state or federal funds has been delayed; or
             5482          (f) the extension covers the period of time during which contract negotiations with a
             5483      new provider are being conducted.
             5484          Section 133. Section 63G-6a-803 is enacted to read:


             5485          63G-6a-803. Emergency procurement.
             5486          (1) Notwithstanding any other provision of this chapter, a procurement officer or the
             5487      procurement officer's designee may authorize an emergency procurement without using a
             5488      standard procurement process when an emergency condition exists.
             5489          (2) A procurement officer who authorizes an emergency procurement under Subsection
             5490      (1) shall:
             5491          (a) make the authorization in writing, stating the emergency condition upon which the
             5492      emergency procurement is made; and
             5493          (b) ensure that the procurement is made with as much competition as reasonably
             5494      practicable while avoiding harm, or a risk of harm, to the public health, safety, welfare, or
             5495      property.
             5496          Section 134. Section 63G-6a-804 , which is renumbered from Section 63G-6-423 is
             5497      renumbered and amended to read:
             5498           [63G-6-423].     63G-6a-804. Purchase of prison industry goods.
             5499          (1) [All] (a) A public procurement [units] unit that is not a political subdivision shall
             5500      purchase goods and services produced by the Utah Correctional Industries Division as provided
             5501      [by] in this section[, which is an exemption from this chapter. All political subdivisions].
             5502          (b) A political subdivision of the state may, and is encouraged to, purchase [these]
             5503      goods and services [and are encouraged to do so when feasible] under this section.
             5504          (c) A public procurement unit is not required to use a procurement process to purchase
             5505      goods or services under this section.
             5506          (2) [By] On or before July 1 of each year, the director of the Utah Correctional
             5507      Industries shall:
             5508          (a) publish and distribute to all [state agencies and interested political subdivisions]
             5509      public procurement units and other interested public entities a catalog of goods and services
             5510      provided by the Correctional Industries Division[. The catalog shall include], including a
             5511      description and price of each item offered for sale[. The catalog shall be updated and revised];
             5512      and
             5513          (b) update and revise the catalog described in Subsection (2)(a) during the year as the
             5514      director considers necessary.
             5515          (3) (a) [State departments, agencies, and institutions] A procurement unit that is not a


             5516      political subdivision of the state may not purchase any goods or services provided by the
             5517      Correctional Industries Division from any other source unless it has been determined in writing
             5518      by the director of Correctional Industries and by the [state] procurement officer or in the case
             5519      of institutions of higher education, the institutional procurement officer, that purchase from the
             5520      Correctional Industries Division is not feasible due to one of the following circumstances:
             5521          (i) the good or service offered by the division does not meet the reasonable
             5522      requirements of the [purchasing agency] public procurement unit;
             5523          (ii) the good or service cannot be supplied within a reasonable time by the division; or
             5524          (iii) the cost of the good or service, including basic price, transportation costs, and
             5525      other expenses of acquisition, is not competitive with the cost of procuring the item from
             5526      another source.
             5527          (b) In cases of disagreement[,] under Subsection (3)(a):
             5528          (i) the decision may be appealed to a board consisting of:
             5529          (A) the director of the Department of Corrections[,];
             5530          (B) the director of Administrative Services[,]; and
             5531          (C) a neutral third party agreed upon by the other two members [or,] of the board;
             5532          (ii) in the case of [institutions] an institution of higher education of the state, the
             5533      president of the [involved] institution, or the president's designee, shall make the final
             5534      decision[.]; or
             5535          (iii) in the case of a non-executive state procurement unit, a person designated by the
             5536      applicable rulemaking authority shall make the final decision.
             5537          Section 135. Section 63G-6a-805 , which is renumbered from Section 63G-6-425 is
             5538      renumbered and amended to read:
             5539           [63G-6-425].     63G-6a-805. Purchase from community rehabilitation
             5540      programs.
             5541          (1) As used in this section:
             5542          (a) ["Board"] "Advisory board" means the Purchasing from Persons with Disabilities
             5543      Advisory Board created under this section.
             5544          (b) "Central not-for-profit association" means a group of experts designated by the
             5545      advisory board to do the following, under guidelines established by the advisory board:
             5546          (i) assist the advisory board with its functions; and


             5547          (ii) facilitate the implementation of advisory board policies.
             5548          (c) (i) "Community rehabilitation program" means a program that is operated primarily
             5549      for the purpose of the employment and training of persons with a disability by a government
             5550      agency or qualified nonprofit organization which is an income tax exempt organization under
             5551      26 U.S.C. Sec. 501(c)(3) of the Internal Revenue Code.
             5552          (ii) A community rehabilitation program:
             5553          (A) maintains an employment ratio of at least 75% of the program employees under the
             5554      procurement contract in question have severe disabilities;
             5555          (B) (I) complies with any applicable occupational health and safety standards
             5556      prescribed by the United States Department of Labor; or
             5557          (II) is a supported employment program approved by the Utah State Office of
             5558      Rehabilitation;
             5559          (C) has its principal place of business in Utah;
             5560          (D) produces any good provided under this section in Utah; and
             5561          (E) provides any service that is provided by individuals with a majority of whom
             5562      domiciled in Utah.
             5563          (d) "Person with a disability" means a person with any disability as defined by and
             5564      covered under the Americans with Disabilities Act of 1990, 42 U.S.C. 12102.
             5565          (2) [(a)] There is created within the division the Purchasing from Persons with
             5566      Disabilities Advisory Board [within the Division of Purchasing and General Services of the
             5567      Department of Administrative Services. The board shall be composed of the following three
             5568      members:].
             5569          (3) The advisory board shall consist of three members, as follows:
             5570          [(i)] (a) the director of the [Division of Purchasing and General Services created under
             5571      Section 63A-2-101 or a] division or the director's designee;
             5572          [(ii)] (b) the executive director of the Utah State Office of Rehabilitation, created under
             5573      Section 53A-24-103 , or [a] the executive director's designee; and
             5574          [(iii)] (c) a representative of the private business community who shall be appointed to
             5575      a three-year term by the governor with the advice and consent of the Senate.
             5576          [(b)] (4) The advisory board shall meet, as needed, to facilitate the procurement of
             5577      goods and services from community rehabilitation programs by a public procurement unit


             5578      under this chapter by:
             5579          [(i)] (a) identifying goods and services that are available from community rehabilitation
             5580      programs [according to the requirements under Subsection (4)] in accordance with the
             5581      requirements of Subsection (7);
             5582          [(ii)] (b) approving prices in accordance with Subsection [(4)] (7)(c) for goods and
             5583      services that are identified under Subsection [(2)(b)(i)] (4)(a);
             5584          [(iii)] (c) developing, maintaining, and approving a preferred procurement contract list
             5585      of goods and services identified and priced under Subsections [(2)(b)(i) and (ii)] (4)(a) and (b);
             5586          [(iv)] (d) reviewing bids received by a community rehabilitation program; and
             5587          [(v)] (e) awarding and renewing specified contracts for set contract times, without
             5588      competitive bidding, for the purchase of goods and services under Subsection [(4)] (7).
             5589          [(c)] (5) The provisions of Subsections [(2)(b)] (4) and [(4)] (7)(a) are an exception to
             5590      the procurement provisions under this chapter.
             5591          [(3)] (6) (a) The advisory board may designate a central not-for-profit association,
             5592      appoint its members, and establish guidelines for its duties.
             5593          (b) The designated central not-for-profit association serves at the pleasure of the
             5594      advisory board [and the]. The central not-for-profit association or its individual members may
             5595      be removed by the advisory board at any time by a majority vote of the advisory board.
             5596          (c) Subject to the board guidelines and discretion, a designated central not-for-profit
             5597      association may be assigned to perform the following duties:
             5598          (i) identify qualified community rehabilitation programs and the goods and services
             5599      that they provide or have the potential to provide;
             5600          (ii) help ensure that goods and services are provided at reasonable quality and delivery
             5601      levels;
             5602          (iii) recommend pricing for goods and services;
             5603          (iv) [reviewing] review bids and [recommending] recommend the award of contracts
             5604      under the board's direction;
             5605          (v) [collecting and reporting] collect and report program data to the advisory board and
             5606      to the division; and
             5607          (vi) other duties specified by the advisory board.
             5608          [(4)] (7) Except as provided under Subsection [(6)] (9), notwithstanding any provision


             5609      [in] of this chapter to the contrary, each public procurement unit shall purchase goods and
             5610      services produced by a community rehabilitation program using the preferred procurement
             5611      contract list approved under Subsection [(2)(b)(iii)] (4)(c) if:
             5612          (a) the good or service offered for sale by a community rehabilitation program
             5613      reasonably conforms to the needs and specifications of the public procurement unit;
             5614          (b) the community rehabilitation program can supply the good or service within a
             5615      reasonable time; and
             5616          (c) the price of the good or service is reasonably competitive with the cost of procuring
             5617      the good or service from another source.
             5618          [(5)] (8) Each community rehabilitation program:
             5619          (a) may submit a bid to the advisory board at any time and not necessarily in response
             5620      to [a request] an invitation for bids; and
             5621          (b) shall certify on any bid it submits to the advisory board or to a public procurement
             5622      unit under this section that it is claiming a preference under this section.
             5623          [(6)] (9) During a fiscal year, the requirement for a public procurement unit to purchase
             5624      goods and services produced by a community rehabilitation program under the preferred
             5625      procurement list under Subsection [(4)] (7) does not apply if the [Division of Purchasing and
             5626      General Services] division determines that the total amount of procurement contracts with
             5627      community rehabilitation programs has reached $5 million for that fiscal year.
             5628          [(7)] (10) In the case of conflict between a purchase under this section and a purchase
             5629      under Section [ 63G-6-423 ] 63G-6a-804 , this section prevails.
             5630          Section 136. Section 63G-6a-901 is enacted to read:
             5631     
Part 9. Cancellations, Rejections, and Debarment

             5632          63G-6a-901. Title.
             5633          This part is known as "Cancellations, Rejections, and Debarment."
             5634          Section 137. Section 63G-6a-902 , which is renumbered from Section 63G-6-412 is
             5635      renumbered and amended to read:
             5636           [63G-6-412].     63G-6a-902. Cancellation and rejection of bids and
             5637      proposals.
             5638          [An] (1) An authorized purchasing entity may cancel an invitation for bids, a request
             5639      for proposals, or other solicitation [may be cancelled, or any or all bids or proposals may be


             5640      rejected] or reject any or all bids or proposal responses, in whole or in part, as may be specified
             5641      in the solicitation, when it is in the best interests of the [state] public procurement unit in
             5642      accordance with [rules and regulations] the rules of the applicable rulemaking authority.
             5643          (2) The reasons for a cancellation or rejection described in Subsection (1) shall be
             5644      made part of the contract file.
             5645          Section 138. Section 63G-6a-903 , which is renumbered from Section 63G-6-413 is
             5646      renumbered and amended to read:
             5647           [63G-6-413].     63G-6a-903. Determination of nonresponsibility of bidder or
             5648      offeror.
             5649          (1) A [written] determination of nonresponsibility of a bidder or offeror made by an
             5650      authorized purchasing entity shall be made in writing, in accordance with [rules and
             5651      regulations] the rules of the applicable rulemaking authority.
             5652          (2) The unreasonable failure of a bidder or offeror to promptly supply information in
             5653      connection with an inquiry with respect to responsibility may be grounds for a determination of
             5654      nonresponsibility with respect to the bidder or offeror. [Information]
             5655          (3) Subject to Title 63G, Chapter 2, Government Records Access and Management
             5656      Act, information furnished by a bidder or offeror pursuant to this section [shall] may not be
             5657      disclosed outside of the [purchasing division or the purchasing agency] public procurement
             5658      unit or authorized purchasing entity without prior written consent by the bidder or offeror.
             5659          Section 139. Section 63G-6a-904 , which is renumbered from Section 63G-6-804 is
             5660      renumbered and amended to read:
             5661           [63G-6-804].     63G-6a-904. Debarment from consideration for award of
             5662      contracts -- Causes for debarment.
             5663          (1) After reasonable notice to the person involved and reasonable opportunity for that
             5664      person to be heard, [the chief procurement officer or the head of a purchasing agency,] a
             5665      procurement officer or the head of an authorized purchasing entity may, after consultation with
             5666      the [using agency and] public procurement unit and, if the public procurement unit is in the
             5667      state executive branch, the attorney general[, shall have authority to]:
             5668          (a) debar a person for cause from consideration for award of contracts[. The debarment
             5669      shall not be for a period exceeding three years. The same officer, after consultation with the
             5670      using agency and the attorney general, shall have authority to] for a period not to exceed three


             5671      years; or
             5672          (b) suspend a person from consideration for award of contracts if there is probable
             5673      cause to believe that the person has engaged in any activity [which] that might lead to
             5674      debarment. [The suspension shall]
             5675          (2) A suspension described in Subsection (1)(b) may not be for a period exceeding
             5676      three months, unless an indictment has been issued for an offense which would be a cause for
             5677      debarment under Subsection [(2)] (3), in which case the suspension shall, at the request of the
             5678      attorney general, remain in effect until after the trial of the suspended person.
             5679          [(2)] (3) The causes for debarment include the following:
             5680          (a) conviction of a criminal offense as an incident to obtaining or attempting to obtain a
             5681      public or private contract or subcontract or in the performance of [such] a public or private
             5682      contract or subcontract;
             5683          (b) conviction under state or federal statutes of embezzlement, theft, forgery, bribery,
             5684      falsification or destruction of records, receiving stolen property, or any other offense indicating
             5685      a lack of business integrity or business honesty which currently, seriously, and directly affects
             5686      responsibility as a state contractor;
             5687          (c) conviction under state or federal antitrust statutes;
             5688          (d) failure without good cause to perform in accordance with the terms of the contract;
             5689      [or]
             5690          (e) a violation of this chapter, including Part 22, Ethical Requirements; or
             5691          [(e)] (f) any other cause the [chief] procurement officer, or the head of [a purchasing
             5692      agency] an authorized purchasing entity determines to be so serious and compelling as to affect
             5693      responsibility as a state contractor, including debarment by another governmental entity [for
             5694      any cause listed in rules and regulations].
             5695          Section 140. Section 63G-6a-1001 is enacted to read:
             5696     
Part 10. Preferences

             5697          63G-6a-1001. Title.
             5698          This part is known as "Preferences."
             5699          Section 141. Section 63G-6a-1002 , which is renumbered from Section 63G-6-404 is
             5700      renumbered and amended to read:
             5701           [63G-6-404].     63G-6a-1002. Reciprocal preference for providers of state


             5702      products.
             5703          (1) (a) [All public procurement units shall, in all purchases of goods, supplies,
             5704      equipment, materials, and printing] An authorized purchasing entity shall, for all procurements,
             5705      give a reciprocal preference to those bidders offering [goods, supplies, equipment, materials, or
             5706      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5707      Utah [as against] over those bidders offering [goods, supplies, equipment, materials, or
             5708      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5709      any state that gives or requires a preference to [goods, supplies, equipment, materials, or
             5710      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5711      that state.
             5712          (b) The amount of reciprocal preference shall be equal to the amount of the preference
             5713      applied by the other state for that particular [good, supply, equipment, material, or printing]
             5714      procurement item.
             5715          (c) [(i) The] In order to receive a reciprocal preference under this section, the bidder
             5716      shall certify on the bid that the [goods, supplies, equipment, materials, or printing] procurement
             5717      items offered are produced, manufactured, mined, grown, or performed in Utah.
             5718          [(ii)] (d) The reciprocal preference is waived if [that] the certification described in
             5719      Subsection (1)(c) does not appear on the bid.
             5720          (2) (a) If the bidder submitting the lowest responsive and responsible bid offers [goods,
             5721      supplies, equipment, materials, or printing] procurement items that are produced,
             5722      manufactured, mined, grown, or performed in a state that gives or requires a preference, and if
             5723      another bidder has submitted a responsive and responsible bid offering [goods, supplies,
             5724      equipment, materials, or printing] procurement items that are produced, manufactured, mined,
             5725      grown, or performed in Utah, and with the benefit of the reciprocal preference, [his] the bid of
             5726      the other bidder is equal to or less than the original lowest bid, the [procurement officer]
             5727      authorized purchasing entity shall:
             5728          (i) give notice to the bidder offering [goods, supplies, equipment, materials, or
             5729      printing] procurement items that are produced, manufactured, mined, grown, or performed in
             5730      Utah that the bidder qualifies as a preferred bidder; and
             5731          (ii) make the purchase from the preferred bidder if[,] the bidder agrees, in writing, to
             5732      meet the low bid within 72 hours after notification that the bidder is a preferred bidder.


             5733          (b) The [procurement officer] authorized purchasing entity shall include the exact price
             5734      submitted by the lowest bidder in the notice the [procurement officer] authorized purchasing
             5735      entity submits to the preferred bidder.
             5736          (c) The [procurement officer] authorized purchasing entity may not enter into a
             5737      contract with any other bidder for the purchase until 72 hours have elapsed after notification to
             5738      the preferred bidder.
             5739          (3) (a) If there is more than one preferred bidder, the [procurement officer] authorized
             5740      purchasing entity shall award the contract to the willing preferred bidder who was the lowest
             5741      preferred bidder originally.
             5742          (b) If there were two or more equally low preferred bidders, the [procurement officer]
             5743      authorized purchasing entity shall comply with the rules [adopted by the Procurement Policy
             5744      Board] of the applicable rulemaking authority to determine which bidder should be awarded
             5745      the contract.
             5746          (4) The provisions of this section do not apply if application of this section might
             5747      jeopardize the receipt of federal funds.
             5748          Section 142. Section 63G-6a-1003 , which is renumbered from Section 63G-6-405 is
             5749      renumbered and amended to read:
             5750           [63G-6-405].     63G-6a-1003. Preference for resident contractors.
             5751          (1) As used in this section, "resident contractor" means a person, partnership,
             5752      corporation, or other business entity that:
             5753          (a) either has its principal place of business in Utah or that employs workers who are
             5754      residents of this state when available; and
             5755          (b) was transacting business on the date when bids for the public contract were first
             5756      solicited.
             5757          (2) (a) When awarding contracts for construction, [a public procurement unit] an
             5758      authorized purchasing entity shall grant a resident contractor a reciprocal preference [as
             5759      against] over a nonresident contractor from any state that gives or requires a preference to
             5760      contractors from that state.
             5761          (b) The amount of the reciprocal preference shall be equal to the amount of the
             5762      preference applied by the state of the nonresident contractor.
             5763          (3) (a) [The] In order to receive the reciprocal preference under this section, the bidder


             5764      shall certify on the bid that the bidder qualifies as a resident contractor.
             5765          (b) The reciprocal preference is waived if [that] the certification described in
             5766      Subsection (2)(a) does not appear on the bid.
             5767          (4) (a) If the contractor submitting the lowest responsive and responsible bid is not a
             5768      resident contractor [and has his] whose principal place of business [in any] is in a state that
             5769      gives or requires a preference to contractors from that state, and if a resident contractor has also
             5770      submitted a responsive and responsible bid, and, with the benefit of the reciprocal preference,
             5771      the resident contractor's bid is equal to or less than the original lowest bid, the [procurement
             5772      officer] authorized purchasing entity shall:
             5773          (i) give notice to the resident contractor that the resident contractor qualifies as a
             5774      preferred resident contractor; and
             5775          (ii) issue the contract to the resident contractor if the resident contractor agrees, in
             5776      writing, to meet the low bid within 72 hours after notification that the resident contractor is a
             5777      preferred resident contractor.
             5778          (b) The [procurement officer] authorized purchasing entity shall include the exact price
             5779      submitted by the lowest bidder in the notice [the procurement officer] that the authorized
             5780      purchasing entity submits to the preferred resident contractor.
             5781          (c) The [procurement officer] authorized purchasing entity may not enter into a
             5782      contract with any other bidder for the construction until 72 hours have elapsed after notification
             5783      to the preferred resident contractor.
             5784          (5) (a) If there is more than one preferred resident contractor, the [procurement officer]
             5785      authorized purchasing entity shall award the contract to the willing preferred resident
             5786      contractor who was the lowest preferred resident contractor originally.
             5787          (b) If there were two or more equally low preferred resident contractors, the
             5788      [procurement officer] authorized purchasing entity shall comply with the rules [adopted by the
             5789      Procurement Policy Board] of the applicable rulemaking authority to determine which bidder
             5790      should be awarded the contract.
             5791          (6) The provisions of this section do not apply if application of this section might
             5792      jeopardize the receipt of federal funds.
             5793          Section 143. Section 63G-6a-1004 is enacted to read:
             5794          63G-6a-1004. Exception for federally funded contracts.


             5795          This part does not apply to the extent it conflicts with federal requirements relating to a
             5796      procurement that involves the expenditure of federal assistance, federal contract funds, or
             5797      federal financial participation funds.
             5798          Section 144. Section 63G-6a-1101 is enacted to read:
             5799     
Part 11. Bonds

             5800          63G-6a-1101. Title.
             5801          This part is known as "Bonds."
             5802          Section 145. Section 63G-6a-1102 , which is renumbered from Section 63G-6-504 is
             5803      renumbered and amended to read:
             5804           [63G-6-504].     63G-6a-1102. Bid security requirements -- Directed
             5805      suretyship prohibited -- Penalty.
             5806          (1) Bid security in an amount equal to at least 5% of the amount of the bid shall be
             5807      required for all competitive [sealed] bidding for construction contracts. Bid security shall be a
             5808      bond provided by a surety company authorized to do business in this state, the equivalent in
             5809      cash, or any other form satisfactory to the state.
             5810          (2) When a bidder fails to comply with the requirement for bid security [set forth]
             5811      described in the invitation for bids, the bid shall be rejected unless, pursuant to rules[, it is
             5812      determined] of the applicable rulemaking authority, the authorized purchasing entity
             5813      determines that the failure to comply with the security requirements is nonsubstantial.
             5814          (3) After the bids are opened, they shall be irrevocable for the period specified in the
             5815      invitation for bids, except as provided in [Subsection 63G-6-401 (6)] Section 63G-6a-605 . If a
             5816      bidder is permitted to withdraw a bid before award, no action shall be taken against the bidder
             5817      or the bid security.
             5818          (4) (a) When issuing an invitation for a bid under this chapter, the [chief] procurement
             5819      officer or the head of [the purchasing agency] an authorized purchasing entity responsible for
             5820      carrying out a construction project may not require a person or entity who is bidding for a
             5821      contract to obtain a bond of the type [referred to] described in Subsection (1) from a specific
             5822      insurance or surety company, producer, agent, or broker.
             5823          (b) A person who violates Subsection (4)(a) is guilty of an infraction.
             5824          Section 146. Section 63G-6a-1103 , which is renumbered from Section 63G-6-505 is
             5825      renumbered and amended to read:


             5826           [63G-6-505].     63G-6a-1103. Bonds necessary when contract is awarded --
             5827      Waiver -- Action -- Attorney fees.
             5828          (1) When a construction contract is awarded under this chapter, the contractor to whom
             5829      the contract is awarded shall deliver the following bonds or security to the state, which shall
             5830      become binding on the parties upon the execution of the contract:
             5831          (a) a performance bond satisfactory to the state that is in an amount equal to 100% of
             5832      the price specified in the contract and is executed by a surety company authorized to do
             5833      business in this state or any other form satisfactory to the state; and
             5834          (b) a payment bond satisfactory to the state that is in an amount equal to 100% of the
             5835      price specified in the contract and is executed by a surety company authorized to do business in
             5836      this state or any other form satisfactory to the state, which is for the protection of each person
             5837      supplying labor, service, equipment, or material for the performance of the work provided for
             5838      in the contract.
             5839          (2) (a) When a construction contract is awarded under this chapter, the [chief]
             5840      procurement officer or the head of the [purchasing agency] authorized purchasing entity
             5841      responsible for carrying out [a] the construction project may not require a contractor to whom a
             5842      contract is awarded to obtain a bond of the types referred to in Subsection (1) from a specific
             5843      insurance or surety company, producer, agent, or broker.
             5844          (b) A person who violates Subsection (2)(a) is guilty of an infraction.
             5845          (3) Rules of the applicable rulemaking authority may provide for waiver of the
             5846      requirement of a bid, performance, or payment bond for circumstances in which the [state]
             5847      procurement officer considers any or all of the bonds to be unnecessary to protect the [state]
             5848      public procurement unit.
             5849          (4) A person shall have a right of action on a payment bond under this section for any
             5850      unpaid amount due [him] to the person if:
             5851          (a) the person has furnished labor, service, equipment, or material for the work
             5852      provided for in the contract for which the payment bond is furnished under this section; and
             5853          (b) the person has not been paid in full within 90 days after the last [date] day on which
             5854      the person performed the labor or service or supplied the equipment or material for which the
             5855      claim is made.
             5856          (5) An action upon a payment bond [shall] may only be brought in a court of


             5857      competent jurisdiction in [any] a county where the construction contract was to be performed
             5858      [and not elsewhere]. The action is barred if not commenced within one year after the last day
             5859      on which the claimant performed the labor or service or supplied the equipment or material on
             5860      which the claim is based. The obligee named in the bond need not be joined as a party to the
             5861      action.
             5862          (6) In any suit upon a payment bond, the court shall award reasonable attorney fees to
             5863      the prevailing party, which fees shall be taxed as costs in the action.
             5864          Section 147. Section 63G-6a-1104 , which is renumbered from Section 63G-6-506 is
             5865      renumbered and amended to read:
             5866           [63G-6-506].     63G-6a-1104. Preliminary notice requirement.
             5867          (1) Any person furnishing labor, service, equipment, or material for which a payment
             5868      bond claim may be made under this chapter shall provide preliminary notice to the designated
             5869      agent as prescribed by Section 38-1-32.5 , except that this section does not apply:
             5870          (a) to a person performing labor for wages; or
             5871          (b) if a notice of commencement is not filed as prescribed in Section 38-1-31.5 for the
             5872      project or improvement for which labor, service, equipment, or material is furnished.
             5873          (2) Any person who fails to provide the preliminary notice required by Subsection (1)
             5874      may not make a payment bond claim under this chapter.
             5875          (3) The preliminary notice required by Subsection (1) must be provided before
             5876      commencement of any action on the payment bond.
             5877          Section 148. Section 63G-6a-1105 , which is renumbered from Section 63G-6-507 is
             5878      renumbered and amended to read:
             5879           [63G-6-507].     63G-6a-1105. Form of bonds -- Effect of certified copy.
             5880          The form of the bonds required by this part shall be established by [rules and
             5881      regulations] rule made by the applicable rulemaking authority. Any person may obtain from
             5882      the state a certified copy of a bond upon payment of the cost of reproduction of the bond and
             5883      postage, if any. A certified copy of a bond shall be prima facie evidence of the contents,
             5884      execution, and delivery of the original.
             5885          Section 149. Section 63G-6a-1201 is enacted to read:
             5886     
Part 12. Contracts and Change Orders

             5887          63G-6a-1201. Title.


             5888          This part is known as "Contracts and Change Orders."
             5889          Section 150. Section 63G-6a-1202 , which is renumbered from Section 63G-6-601 is
             5890      renumbered and amended to read:
             5891           [63G-6-601].     63G-6a-1202. Required contract clauses -- Computation of
             5892      price adjustments -- Use of rules and regulations.
             5893          (1) [Rules and regulations] The rules of the applicable rulemaking authority shall
             5894      require for state construction contracts, and may permit or require for [state] contracts for
             5895      supplies and services, the inclusion of clauses providing for adjustments in prices, time of
             5896      performance, or other appropriate contract provisions, and covering the following subjects:
             5897          (a) the unilateral right of the [state] procurement officer to order in writing changes in
             5898      the work within the scope of the contract and changes in the time of performance of the
             5899      contract that do not alter the scope of the contract work;
             5900          (b) variations occurring between estimated quantities of work in a contract and actual
             5901      quantities;
             5902          (c) suspension of work ordered by the [state] procurement officer; and
             5903          (d) site conditions differing from those indicated in the construction contract, or
             5904      ordinarily encountered, except that differing site conditions clauses required by the rules [and
             5905      regulations] need not be included in a construction contract when:
             5906          (i) the contract is negotiated[, when];
             5907          (ii) the contractor provides the site or design[, or when]; or
             5908          (iii) the parties have otherwise agreed with respect to the risk of differing site
             5909      conditions.
             5910          (2) Adjustments in price pursuant to clauses [promulgated under] described in
             5911      Subsection (1) shall be computed in one or more of the following ways:
             5912          (a) by agreement on a fixed price adjustment before commencement of the pertinent
             5913      performance or as soon thereafter as practicable;
             5914          (b) by unit prices specified in the contract or subsequently agreed upon;
             5915          (c) by the costs attributable to the events or situations under the clauses with
             5916      adjustment of profit or fee, all as specified in the contract or subsequently agreed upon;
             5917          (d) in any other manner as the contracting parties may mutually agree; or
             5918          (e) in the absence of agreement by the parties, by a unilateral determination by the


             5919      [state] procurement officer of the costs attributable to the events or situations under the clauses
             5920      with adjustment of profit or fee, all as computed by the [state] procurement officer in
             5921      accordance with applicable [sections of the] rules and [regulations issued under Subsection
             5922      63G-6-415 (1) and] subject to the provisions of Part [8, Legal and Contractual Remedies] 17,
             5923      Procurement Appeals Board, and Part 18, Appeals to Court and Court Proceedings.
             5924          (3) A contractor shall be required to submit cost or pricing data if any adjustment in
             5925      contract price is subject to the provisions of Section [ 63G-6-415 ] 63G-6a-1206 .
             5926          (4) [Rules and regulations] The rules of the applicable rulemaking authority shall
             5927      require for [state] construction contracts, and may permit or require for [state] contracts for
             5928      supplies and services, the inclusion of clauses providing for appropriate remedies and covering
             5929      at least the following subjects:
             5930          (a) liquidated damages as appropriate;
             5931          (b) specified excuses for delay or nonperformance;
             5932          (c) termination of the contract for default; and
             5933          (d) termination of the contract in whole or in part for the convenience of the [state]
             5934      public procurement unit.
             5935          (5) The contract clauses [promulgated under] described in this section shall be [set
             5936      forth in rules and regulations] established by rule. However, the [chief] procurement officer or
             5937      the head of [a purchasing agency] an authorized purchasing entity may modify the clauses for
             5938      inclusion in any particular contract. [Any] The applicable rulemaking authority may, by rule,
             5939      require that:
             5940          (a) variations [shall] be supported by a written determination that describes the
             5941      circumstances justifying the variations[,]; and
             5942          (b) notice of any material variation shall be included in the invitation for bids or
             5943      request for proposals.
             5944          Section 151. Section 63G-6a-1203 , which is renumbered from Section 63G-6-603 is
             5945      renumbered and amended to read:
             5946           [63G-6-603].     63G-6a-1203. Contracts -- Certain indemnification
             5947      provisions forbidden.
             5948          (1) As used in this section, "design professional" means:
             5949          (a) an architect, licensed under Title 58, Chapter 3a, Architects Licensing Act;


             5950          (b) a landscape architect, licensed under Title 58, Chapter 53, Landscape Architects
             5951      Licensing Act; and
             5952          (c) a professional engineer or professional land surveyor, licensed under Title 58,
             5953      Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.
             5954          (2) (a) [Beginning May 12, 2009, a] A contract, including an amendment to an existing
             5955      contract, entered into under [authority of] this chapter may not require that a design
             5956      professional indemnify another from liability claims that arise out of the design professional's
             5957      services, unless the liability claim arises from the design professional's negligent act, wrongful
             5958      act, error or omission, or other liability imposed by law.
             5959          (b) Subsection (2)(a) may not be waived by contract.
             5960          (c) Notwithstanding Subsections (2)(a) and (b), a design professional may be required
             5961      to indemnify a person for whom the design professional has direct or indirect control or
             5962      responsibility.
             5963          Section 152. Section 63G-6a-1204 is enacted to read:
             5964          63G-6a-1204. Multiyear contracts.
             5965          (1) Except as provided in Subsection (7), a public procurement unit may enter into a
             5966      multiyear contract resulting from an invitation for bids or a request for proposals, if:
             5967          (a) the procurement officer determines, in the discretion of the procurement officer,
             5968      that entering into a multiyear contract is in the best interest of the public procurement unit; and
             5969          (b) the invitation for bids or request for proposals:
             5970          (i) states the term of the contract, including all possible renewals of the contract;
             5971          (ii) states the conditions for renewal of the contract; and
             5972          (iii) includes the provisions of Subsections (3) through (5) that are applicable to the
             5973      contract.
             5974          (2) In making the determination described in Subsection (1)(a), the procurement officer
             5975      shall consider whether entering into a multiyear contract will:
             5976          (a) result in significant savings to the public procurement unit, including:
             5977          (i) reduction of the administrative burden in procuring, negotiating, or administering
             5978      contracts;
             5979          (ii) continuity in operations of the public procurement unit; or
             5980          (iii) the ability to obtain a volume or term discount;


             5981          (b) encourage participation by a person who might not otherwise be willing or able to
             5982      compete for a shorter term contract; or
             5983          (c) provide an incentive for a bidder or offeror to improve productivity through capital
             5984      investment or better technology.
             5985          (3) (a) The determination described in Subsection (1)(a) is discretionary and is not
             5986      required to be in writing or otherwise recorded.
             5987          (b) Except as provided in Subsections (4) and (5), notwithstanding any provision of an
             5988      invitation for bids, a request for proposals, or a contract to the contrary, a multiyear contract,
             5989      including a contract that was awarded outside of an invitation for bids or request for proposals
             5990      process, may not continue or be renewed for any year after the first year of the multiyear
             5991      contract if adequate funds are not appropriated to continue or renew the contract.
             5992          (4) A multiyear contract that is funded solely by federal funds may be continued or
             5993      renewed for any year after the first year of the multiyear contract if:
             5994          (a) adequate funds to continue or renew the contract have not been, but are expected to
             5995      be appropriated by, and received from, the federal government;
             5996          (b) continuation or renewal of the contract before the money is appropriated or
             5997      received is permitted by the federal government; and
             5998          (c) the contract states that it may be cancelled, without penalty, if the anticipated
             5999      federal funds are not appropriated or received.
             6000          (5) A multiyear contract that is funded in part by federal funds may be continued or
             6001      renewed for any year after the first year of the multiyear contract if:
             6002          (a) the portion of the contract that is to be funded by funds of a public entity are
             6003      appropriated;
             6004          (b) adequate federal funds to continue or renew the contract have not been, but are
             6005      expected to be, appropriated by, and received from, the federal government;
             6006          (c) continuation or renewal of the contract before the federal money is appropriated or
             6007      received is permitted by the federal government; and
             6008          (d) the contract states that it may be cancelled, without penalty, if the anticipated
             6009      federal funds are not appropriated or received.
             6010          (6) A public procurement unit may not continue or renew a multiyear contract after the
             6011      end of the multiyear contract term or the renewal periods described in the contract, unless the


             6012      public procurement unit engages in a new procurement process or complies with an exception,
             6013      described in this chapter, to using a standard procurement process.
             6014          (7) A multiyear contract, including any renewal periods, may not exceed a period of
             6015      five years, unless:
             6016          (a) the procurement officer determines, in writing, that:
             6017          (i) a longer period is necessary in order to obtain the procurement item;
             6018          (ii) a longer period is customary for industry standards; or
             6019          (iii) a longer period is in the best interest of the public procurement unit; and
             6020          (b) the written determination described in subsection (7)(a) is included in the file
             6021      relating to the procurement.
             6022          (8) This section does not apply to a contract for the design or construction of a facility,
             6023      a road, or a public transit project.
             6024          Section 153. Section 63G-6a-1205 , which is renumbered from Section 63G-6-416 is
             6025      renumbered and amended to read:
             6026           [63G-6-416].     63G-6a-1205. Cost-plus-a-percentage-of-cost contract
             6027      prohibited.
             6028          (1) [Subject to the limitations of] Except as otherwise provided in this section, a public
             6029      procurement unit may use any type of contract [which] that will promote the best interests of
             6030      the state [may be used; provided that the use of].
             6031          (2) A public procurement unit may not use a cost-plus-a-percentage-of-cost contract [is
             6032      prohibited. A].
             6033          (3) A public procurement unit may not use a cost-reimbursement contract [may be used
             6034      only when a determination is made in writing that such] unless the procurement officer makes a
             6035      written determination that:
             6036          (a) the contract is likely to be less costly to the [state] public procurement unit than any
             6037      other type of contract; or [that]
             6038          (b) it is impracticable to obtain the [supplies, services, or construction required except
             6039      under such a] procurement item under another type of contract.
             6040          [(2) Except with respect to firm fixed-price contracts, no contract type shall be used
             6041      unless it has been determined in writing by the chief procurement officer, the head of a
             6042      purchasing agency, or a designee of either officer that:]


             6043          (4) A procurement officer, the head of an authorized procurement entity, or a designee
             6044      of either, may not use a type of contract, other than a firm fixed-price contract, unless the
             6045      procurement officer makes a written determination that:
             6046          (a) the proposed contractor's accounting system will permit timely development of all
             6047      necessary cost data in the form required by the specific contract type contemplated; and
             6048          (b) the proposed contractor's accounting system is adequate to allocate costs in
             6049      accordance with generally accepted accounting principles.
             6050          Section 154. Section 63G-6a-1206 , which is renumbered from Section 63G-6-415 is
             6051      renumbered and amended to read:
             6052           [63G-6-415].     63G-6a-1206. Rules and regulations to determine allowable
             6053      incurred costs -- Required information -- Auditing of books.
             6054          [(1) Rules and regulations may be promulgated to set forth cost principles to be used to
             6055      determine the allowability of incurred costs for the purpose of reimbursing costs under contract
             6056      provisions which provide for the reimbursement of costs; provided that if a written
             6057      determination is approved at a level above the procurement officer, the cost principles may be
             6058      modified by contract.]
             6059          [(2) A person shall, except as provided in Subsection (4), submit cost or pricing data
             6060      and shall certify that, to the best of the person's knowledge and belief, the cost or pricing data
             6061      submitted were accurate, complete, and current as of a mutually determined specified date prior
             6062      to the date of:]
             6063          (1) (a) The applicable rulemaking authority may, by rule, establish the cost principles
             6064      to be included in a cost-reimbursement contract to determine incurred costs for the purpose of
             6065      calculating a reimbursement.
             6066          (b) The cost principles established by rule under Subsection (1)(a) may be modified, by
             6067      contract, if the procurement officer or head of the authorized procurement entity approves the
             6068      modification.
             6069          (2) Except as provided in Subsection (5), a person who seeks to be, or is, a party in a
             6070      cost-based contract with a public procurement unit shall:
             6071          (a) submit cost or pricing data relating to determining the cost or pricing amount; and
             6072          (b) certify that, to the best of the contractor's knowledge and belief, the cost or pricing
             6073      data submitted is accurate and complete as of the date specified by the public procurement unit.


             6074          (3) The procurement officer shall ensure that the date specified under Subsection (2)(b)
             6075      is before:
             6076          (a) the pricing of any contract awarded by [competitive sealed proposals] a
             6077      procurement process or pursuant to [the] a sole source procurement [authority, where], if the
             6078      total contract price is expected to exceed an amount established by [rules and regulations] rule
             6079      made by the applicable rulemaking authority; or
             6080          (b) the pricing of any change order [which] that is expected to exceed an amount
             6081      established by [rules and regulations] rule made by the applicable rulemaking authority.
             6082          [(3) Any] (4) A contract or change order [under which a certificate is required shall
             6083      contain] that requires a certification described in Subsection (2) shall include a provision that
             6084      the price to the [state] public procurement unit, including profit or fee, shall be adjusted to
             6085      exclude any significant sums by which the [state] public procurement unit finds that the price
             6086      was increased because the [contractor-furnished] contractor provided cost or pricing data
             6087      [were] that was inaccurate, incomplete, or not current as of the date [agreed upon between the
             6088      parties] specified by the procurement officer.
             6089          [(4) The requirements of Subsections (2) and (3) need not be applied to contracts:]
             6090          (5) A public procurement unit is not required to comply with Subsection (2) if:
             6091          (a) [where] the contract price is based on adequate price competition;
             6092          (b) [where] the contract price is based on established catalogue prices or market prices;
             6093          (c) [where contract prices are] the contract price is set by law or [regulation] rule; or
             6094          (d) [where it is determined] the procurement states, in writing:
             6095          (i) that, in accordance with rules [and regulations that] made by the applicable
             6096      rulemaking authority, the requirements of [this section] Subsection (2) may be waived[,]; and
             6097          (ii) the reasons for [such] the waiver [are stated in writing].
             6098          [(5)] (6) The [state] procurement officer may, at reasonable times and places, only to
             6099      the extent that the books and records relate to the applicable cost or pricing data, audit the
             6100      books and records of [any]:
             6101          (a) a person who has submitted cost or pricing data pursuant to this section; or [any]
             6102          (b) a contractor or subcontractor under [any negotiated] a contract or subcontract other
             6103      than a firm fixed-price contract [to the extent that the books and records relate to the cost or
             6104      pricing data, contract, or subcontract. The].


             6105          (7) Unless a shorter time is provided for by contract:
             6106          (a) a person described in Subsection (6)(a) shall maintain the books and records [shall
             6107      be maintained by the contractor] described in Subsection (6) for three years [following the end
             6108      of] after the day on which the fiscal year in which final payment is made under the [prime
             6109      contract and by the subcontractor for three years following the end of the] contract ends;
             6110          (b) a contractor shall maintain the books and records described in Subsection (6) for
             6111      three years after the day on which the fiscal year in which final payment under the prime
             6112      contract ends; and
             6113          (c) a subcontractor shall maintain the books and records described in Subsection (6) for
             6114      three years after the day on which the fiscal year in which final payment is made under the
             6115      subcontract[, unless a shorter period is otherwise authorized in writing] ends.
             6116          Section 155. Section 63G-6a-1207 , which is renumbered from Section 63G-6-602 is
             6117      renumbered and amended to read:
             6118           [63G-6-602].     63G-6a-1207. Certification of change order.
             6119          (1) Under a construction contract, [any] a change order [which] that increases the
             6120      contract amount [shall be subject to] may not be made without prior written certification that
             6121      the change order is within the determined project or contract budget[. The certification shall be
             6122      made] by:
             6123          (a) the fiscal officer of the entity responsible for funding the project or [the] contract;
             6124      or [other]
             6125          (b) the official responsible for monitoring and reporting upon the status of the costs of
             6126      the total project or contract budget. [If the certification discloses a resulting]
             6127          (2) If a change order will result in an increase in the total project or contract budget,
             6128      [the procurement officer shall not execute or make] the change order may not be made, unless:
             6129          (a) sufficient funds are [available] added to the project contract or budget; or
             6130          (b) the scope of the project or contract is adjusted to permit the degree of completion
             6131      feasible within the total project or contract budget as it existed [prior to] before the change
             6132      order under consideration. [However, with respect to the validity, as to the contractor, of any
             6133      executed change order upon which the contractor has reasonably relied, it shall be presumed
             6134      that there has been compliance with the provisions of this section.]
             6135          (3) Notwithstanding any other provision of this section, it shall be presumed that this


             6136      section has been complied with if the contractor reasonably relies on an executed change order.
             6137          Section 156. Section 63G-6a-1301 is enacted to read:
             6138     
Part 13. General Construction Provisions

             6139          63G-6a-1301. Title.
             6140          This part is known as "General Construction Provisions."
             6141          Section 157. Section 63G-6a-1302 , which is renumbered from Section 63G-6-501 is
             6142      renumbered and amended to read:
             6143           [63G-6-501].     63G-6a-1302. Alternative methods of construction
             6144      contracting management.
             6145          (1) [(a) Rules shall] The applicable rulemaking authority shall, by rule provide as many
             6146      alternative methods of construction contracting management as determined to be feasible.
             6147          [(b) These rules shall:]
             6148          (2) The rules described in Subsection (1) shall:
             6149          [(i)] (a) grant to the [chief] procurement officer or the head of the state purchasing
             6150      [agency] unit responsible for carrying out the construction project the discretion to select the
             6151      appropriate method of construction contracting management for a particular project; and
             6152          [(ii)] (b) require the procurement officer to execute and include in the contract file a
             6153      written statement [setting forth] describing the facts [which] that led to the selection of a
             6154      particular method of construction contracting management for each project.
             6155          [(c)] (3) Before choosing a construction contracting management method, the [chief]
             6156      procurement officer or the head of the state purchasing [agency] unit responsible for carrying
             6157      out the construction project shall consider the following factors:
             6158          [(i)] (a) when the project must be ready to be occupied;
             6159          [(ii)] (b) the type of project;
             6160          [(iii)] (c) the extent to which the requirements of the [procuring agencies] public
             6161      procurement unit, and the [ways in which] way they are to be met are known;
             6162          [(iv)] (d) the location of the project;
             6163          [(v)] (e) the size, scope, complexity, and economics of the project;
             6164          [(vi)] (f) the source of funding and any resulting constraints necessitated by the funding
             6165      source;
             6166          [(vii)] (g) the availability, qualification, and experience of [state] public personnel to


             6167      be assigned to the project and [how much time the state] the amount of time that the public
             6168      personnel can devote to the project; and
             6169          [(viii)] (h) the availability, qualifications, and experience of outside consultants and
             6170      contractors to complete the project under the various methods being considered.
             6171          [(2) (a) Rules adopted by state public procurement units and local public procurement
             6172      units to implement this section may authorize the use of a Construction Manager/General
             6173      Contractor as one method of construction contracting management.]
             6174          [(b) Those rules shall require that:]
             6175          [(i) the Construction Manager/General Contractor shall be selected using one of the
             6176      source selection methods provided for in Part 4, Source Selections and Contract Formation,
             6177      and Section 63G-6-502 ; and]
             6178          [(ii) when entering into any subcontract that was not specifically included in the
             6179      Construction Manager/General Contractor's cost proposal submitted under the requirements of
             6180      Subsection (2)(b)(i), the Construction Manager/General Contractor shall procure that
             6181      subcontractor by using one of the source selection methods provided for in Part 4, Source
             6182      Selections and Contract Formation, in the same manner as if the subcontract work was
             6183      procured directly by the state.]
             6184          (4) An applicable rulemaking authority may make rules that authorize the use of a
             6185      construction manager/general contractor as one method of construction contracting
             6186      management.
             6187          (5) The rules described in Subsection (2) shall require that:
             6188          (a) the construction manager/general contractor be selected using:
             6189          (i) a procurement process; or
             6190          (ii) an exception to the requirement to use a procurement process; and
             6191          (b) when entering into a subcontract that was not specifically included in the
             6192      construction manager/general contractor's cost proposal, the construction manager/general
             6193      contractor shall procure the subcontractor by using a procurement process, or an exception to
             6194      the requirement to use a procurement process, in the same manner as if the subcontract work
             6195      was procured directly by the public procurement unit.
             6196          [(3)] (6) Procurement rules adopted by the State Building Board under [Subsection (1)]
             6197      Subsections (1) through (3) for state building construction projects may authorize the use of a


             6198      design-build provider as one method of construction contracting management.
             6199          (7) A design-build contract may include a provision for obtaining the site for the
             6200      construction project.
             6201          (8) A design-build contract or a construction manager/general contractor contract may
             6202      include provision by the contractor of operations, maintenance, or financing.
             6203          Section 158. Section 63G-6a-1303 , which is renumbered from Section 63G-6-604 is
             6204      renumbered and amended to read:
             6205           [63G-6-604].     63G-6a-1303. Drug and alcohol testing required for state
             6206      construction contracts.
             6207          (1) As used in this section:
             6208          (a) "Contractor" means a person who is or may be awarded a state construction
             6209      contract.
             6210          (b) "Covered individual" means an individual who:
             6211          (i) on behalf of a contractor or subcontractor provides services directly related to
             6212      design or construction under a state construction contract; and
             6213          (ii) is in a safety sensitive position, including a design position that has responsibilities
             6214      that directly affect the safety of an improvement to real property that is the subject of a state
             6215      construction contract.
             6216          (c) "Drug and alcohol testing policy" means a policy under which a contractor or
             6217      subcontractor tests a covered individual to establish, maintain, or enforce the prohibition of:
             6218          (i) the manufacture, distribution, dispensing, possession, or use of drugs or alcohol,
             6219      except the medically prescribed possession and use of a drug; or
             6220          (ii) the impairment of judgment or physical abilities due to the use of drugs or alcohol.
             6221          (d) "Random testing" means that a covered individual is subject to periodic testing for
             6222      drugs and alcohol:
             6223          (i) in accordance with a drug and alcohol testing policy; and
             6224          (ii) on the basis of a random selection process.
             6225          [(e) For purposes of Subsection (6), "state" includes any of the following of the state:]
             6226          (e) "State executive entity" means:
             6227          (i) a state executive branch:
             6228          [(i) a] (A) department;


             6229          [(ii) a] (B) division;
             6230          [(iii) an] (C) agency;
             6231          [(iv) a] (D) board;
             6232          [(v) a] (E) commission;
             6233          [(vi) a] (F) council;
             6234          [(vii) a] (G) committee; [and] or
             6235          [(viii) an] (H) institution[, including a state institution of higher education, as defined
             6236      under Section 53B-3-102 .]; or
             6237          (ii) a state institution of higher education, as defined in Section 53B-3-102 .
             6238          (f) "State construction contract" means a contract for design or construction entered
             6239      into by a state [public procurement unit] executive entity.
             6240          [(g) (i) "Subcontractor" means a person under contract with a contractor or another
             6241      subcontractor to provide services or labor for design or construction.]
             6242          [(ii) "Subcontractor" includes a trade contractor or specialty contractor.]
             6243          [(iii) "Subcontractor" does not include a supplier who provides only materials,
             6244      equipment, or supplies to a contractor or subcontractor.]
             6245          (2) Except as provided in Subsection (7), [on and after July 1, 2010,] a state [public
             6246      procurement unit] executive entity may not enter into a state construction contract unless the
             6247      [state] public construction contract requires [the following] that the contractor demonstrate to
             6248      the state executive entity that the contractor:
             6249          [(a) A contractor shall demonstrate to the state public procurement unit that the
             6250      contractor:]
             6251          [(i)] (a) has and will maintain a drug and alcohol testing policy during the period of the
             6252      state construction contract that applies to the covered individuals hired by the contractor;
             6253          [(ii)] (b) posts in one or more conspicuous places notice to covered individuals hired
             6254      by the contractor that the contractor has the drug and alcohol testing policy described in
             6255      Subsection (2)(a)[(i); and];
             6256          [(iii)] (c) subjects the covered individuals to random testing under the drug and alcohol
             6257      testing policy described in Subsection (2)(a)[(i)] if at any time during the period of the state
             6258      construction contract there are 10 or more individuals who are covered individuals hired by the
             6259      contractor[.]; and


             6260          [(b) A contractor shall demonstrate to the state public procurement unit that the
             6261      contractor]
             6262          (d) requires that as a condition of contracting with the contractor, a subcontractor:
             6263          (i) has and will maintain a drug and alcohol testing policy during the period of the state
             6264      construction contract that applies to the covered individuals hired by the subcontractor;
             6265          (ii) posts in one or more conspicuous places notice to covered individuals hired by the
             6266      subcontractor that the subcontractor has the drug and alcohol testing policy described in
             6267      Subsection (2)[(b)](d)(i); and
             6268          (iii) subjects the covered individuals hired by the subcontractor to random testing under
             6269      the drug and alcohol testing policy described in Subsection (2)[(b)](d)(i) if at any time during
             6270      the period of the state construction contract there are 10 or more individuals who are covered
             6271      individuals hired by the subcontractor.
             6272          (3) (a) Except as otherwise provided in this Subsection (3), if a contractor or
             6273      subcontractor fails to comply with Subsection (2), the contractor or subcontractor may be
             6274      suspended or debarred in accordance with this chapter.
             6275          (b) [On and after July 1, 2010, a] A state [public procurement unit] executive entity
             6276      shall include in a state construction contract:
             6277          (i) a reference to the rules described in Subsection (4)(b); or
             6278          (ii) if the [state public procurement unit] applicable rulemaking authority has not made
             6279      the rules described in Subsection (4)(b), a process that provides a contractor or subcontractor
             6280      reasonable notice and opportunity to cure a violation of this section before suspension or
             6281      debarment of the contractor or subcontractor in light of the circumstances of the state
             6282      construction contract or the violation.
             6283          (c) (i) A contractor is not subject to penalties for the failure of a subcontractor to
             6284      comply with Subsection (2).
             6285          (ii) A subcontractor is not subject to penalties for the failure of a contractor to comply
             6286      with Subsection (2).
             6287          [(4) If otherwise authorized to make rules, in accordance with Title 63G, Chapter 3,
             6288      Utah Administrative Rulemaking Act, a state public procurement unit:]
             6289          (4) An authorized rulemaking authority:
             6290          (a) may make rules that establish the requirements and procedures a contractor [shall]


             6291      is required to follow to comply with Subsection (2); and
             6292          (b) shall make rules that establish:
             6293          (i) the penalties that may be imposed in accordance with Subsection (3); and
             6294          (ii) a process that provides a contractor or subcontractor reasonable notice and
             6295      opportunity to cure a violation of this section before suspension or debarment of the contractor
             6296      or subcontractor in light of the circumstances of the state construction contract or the violation.
             6297          (5) The failure of a contractor or subcontractor to meet the requirements of Subsection
             6298      (2):
             6299          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             6300      or contractor under Part [8, Legal and Contractual Remedies] 17, Procurement Appeals Board,
             6301      or Part 18, Appeals to Court and Court Proceedings; and
             6302          (b) may not be used by a state public procurement unit, a prospective bidder, an
             6303      offeror, a contractor, or a subcontractor as a basis for an action that would suspend, disrupt, or
             6304      terminate the design or construction under a state construction contract.
             6305          (6) (a) After a state [public procurement unit] executive entity enters into a state
             6306      construction contract in compliance with this section, the state is not required to audit, monitor,
             6307      or take any other action to ensure compliance with this section.
             6308          (b) The state is not liable in any action related to this section, including not being liable
             6309      in relation to:
             6310          (i) a contractor or subcontractor having or not having a drug and alcohol testing policy;
             6311          (ii) failure to test for a drug or alcohol under a contractor's or subcontractor's drug and
             6312      alcohol testing policy;
             6313          (iii) the requirements of a contractor's or subcontractor's drug and alcohol testing
             6314      policy;
             6315          (iv) a contractor's or subcontractor's implementation of a drug and alcohol testing
             6316      policy, including procedures for:
             6317          (A) collection of a sample;
             6318          (B) testing of a sample;
             6319          (C) evaluation of a test; or
             6320          (D) disciplinary or rehabilitative action on the basis of a test result;
             6321          (v) an individual being under the influence of drugs or alcohol; or


             6322          (vi) an individual under the influence of drugs or alcohol harming another person or
             6323      causing property damage.
             6324          (7) This section does not apply if the state [public procurement unit] executive entity
             6325      determines that the application of this section would severely disrupt the operation of a [state
             6326      agency] public entity to the detriment of the [state agency] public entity or the general public,
             6327      including:
             6328          (a) jeopardizing the receipt of federal funds;
             6329          (b) causing the state construction contract [being] to be a sole source contract; or
             6330          (c) causing the state construction contract [being] to be an emergency procurement.
             6331          (8) If a contractor or subcontractor meets the requirements of this section, this section
             6332      may not be construed to restrict the contractor's or subcontractor's ability to impose or
             6333      implement an otherwise lawful provision as part of a drug and alcohol testing policy.
             6334          Section 159. Section 63G-6a-1401 is enacted to read:
             6335     
Part 14. Transportation Contracts

             6336          63G-6a-1401. Title.
             6337          This part is known as "Transportation Contracts."
             6338          Section 160. Section 63G-6a-1402 , which is renumbered from Section 63G-6-502 is
             6339      renumbered and amended to read:
             6340           [63G-6-502].     63G-6a-1402. Procurement of design-build transportation
             6341      project contracts.
             6342          (1) As used in this section:
             6343          (a) "Design-build transportation project contract" means the procurement of both the
             6344      design and construction of a transportation project in a single contract with a company or
             6345      combination of companies capable of providing the necessary engineering services and
             6346      construction.
             6347          (b) "Transportation agency" means:
             6348          (i) the Department of Transportation;
             6349          (ii) a county of the first or second class, as defined in Section 17-50-501 ;
             6350          (iii) a municipality of the first class, as defined in Section 10-2-301 ;
             6351          (iv) a public transit district that has more than 200,000 people residing within its
             6352      boundaries; and


             6353          (v) a public airport authority.
             6354          (2) Except as provided in Subsection (3), a transportation agency may award a
             6355      design-build transportation project contract for any transportation project that has an estimated
             6356      cost of at least $50,000,000 by following the requirements of this section.
             6357          (3) (a) The Department of Transportation:
             6358          (i) may award a design-build transportation project contract for any transportation
             6359      project by following the requirements of this section; and
             6360          (ii) shall make rules, [by following the procedures and requirements of] in accordance
             6361      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing requirements for
             6362      the procurement of its design-build transportation project contracts in addition to those required
             6363      by this section.
             6364          (b) A public transit district that has more than 200,000 people residing within its
             6365      boundaries:
             6366          (i) may award a design-build transportation project contract for any transportation
             6367      project by following the requirements of this section; and
             6368          (ii) shall pass ordinances or a resolution establishing requirements for the procurement
             6369      of its design-build transportation project contracts in addition to those required by this section.
             6370          (c) A design-build transportation project contract authorized under this Subsection (3)
             6371      is not subject to the estimated cost threshold [under] described in Subsection (2).
             6372          (d) A design-build transportation project contract may include provision by the
             6373      contractor of operations, maintenance, or financing.
             6374          (4) (a) Before entering into a design-build transportation project contract, a
             6375      transportation agency may issue a request for qualifications to prequalify potential contractors.
             6376          (b) Public notice of the request for qualifications shall be given in accordance with
             6377      [policy] board rules.
             6378          (c) A transportation agency shall require, as part of the qualifications specified in the
             6379      request for qualifications, that potential contractors at least demonstrate their:
             6380          (i) construction experience;
             6381          (ii) design experience;
             6382          (iii) financial, manpower, and equipment resources available for the project; and
             6383          (iv) experience in other design-build transportation projects with attributes similar to


             6384      the project being procured.
             6385          (d) The request for qualifications shall identify the number of eligible competing
             6386      proposers that the transportation agency will select to submit a proposal, which [must be at
             6387      least] may not be less than two.
             6388          (5) [(a)] The transportation agency shall:
             6389          [(i)] (a) evaluate the responses received from the request for qualifications;
             6390          [(ii)] (b) select from their number those qualified to submit proposals; and
             6391          [(iii)] (c) invite those respondents to submit proposals based upon the transportation
             6392      agency's request for proposals.
             6393          [(b) (i)] (6) Except as provided in Subsection [(5)(b)(ii)] (7), if the transportation
             6394      agency fails to receive at least two qualified eligible competing [proposers] proposals, the
             6395      transportation agency shall readvertise the project.
             6396          [(ii)] (7) A transportation agency may award a contract for a transportation project that
             6397      has an estimated cost of $5,000,000 or less to a qualified eligible proposer if:
             6398          [(A)] (a) only a single proposal is received; and
             6399          [(B)] (b) the transportation agency determines that:
             6400          [(I)] (i) the proposal is advantageous to the state; and
             6401          [(II)] (ii) the proposal price is reasonable.
             6402          [(6)] (8) The transportation agency shall issue a request for proposals to those qualified
             6403      respondents that:
             6404          (a) includes a scope of work statement constituting an information for proposal that
             6405      may include:
             6406          (i) preliminary design concepts;
             6407          (ii) design criteria, needs, and objectives;
             6408          (iii) warranty and quality control requirements;
             6409          (iv) applicable standards;
             6410          (v) environmental documents;
             6411          (vi) constraints;
             6412          (vii) time expectations or limitations;
             6413          (viii) incentives or disincentives; and
             6414          (ix) other special considerations;


             6415          (b) requires submitters to provide:
             6416          (i) a sealed cost proposal;
             6417          (ii) a critical path matrix schedule, including cash flow requirements;
             6418          (iii) proposal security; and
             6419          (iv) other items required by the department for the project; and
             6420          (c) may include award of a stipulated fee to be paid to [submitters] offerors who submit
             6421      unsuccessful proposals.
             6422          [(7)] (9) The transportation agency shall:
             6423          (a) evaluate the submissions received in response to the request for proposals from the
             6424      prequalified [proposers] offerors;
             6425          (b) comply with rules relating to discussion of proposals, best and final offers, and
             6426      evaluations of the proposals submitted; and
             6427          (c) after considering price and other identified factors, award the contract to the
             6428      responsive and responsible [proposer] offeror whose proposal is most advantageous to the
             6429      state.
             6430          Section 161. Section 63G-6a-1403 , which is renumbered from Section 63G-6-503 is
             6431      renumbered and amended to read:
             6432           [63G-6-503].     63G-6a-1403. Procurement of tollway development
             6433      agreements.
             6434          (1) As used in this section[: (a) "Department" means the Department of
             6435      Transportation. (b) "Tollway], "tollway development agreement" [has the same meaning] is as
             6436      defined in Section 72-6-202 .
             6437          (2) The [department] Department of Transportation and the Transportation
             6438      Commission:
             6439          (a) may solicit a tollway development agreement proposal by following the
             6440      requirements of this section;
             6441          (b) may award a solicited tollway development agreement contract for any tollway
             6442      project by following the requirements of this section; and
             6443          (c) shall make rules, [by following the procedures and requirements of] in accordance
             6444      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, establishing requirements for
             6445      the procurement of tollway development agreement proposals in addition to those required by


             6446      this section.
             6447          (3) (a) Before entering into a tollway development agreement, the [department]
             6448      Department of Transportation may issue a request for qualifications to prequalify potential
             6449      contractors.
             6450          (b) Public notice of the request for qualifications shall be given in accordance with
             6451      [policy] board rules.
             6452          (c) The [department] Department of Transportation shall require, as part of the
             6453      qualifications specified in the request for qualifications, that potential contractors at least
             6454      provide:
             6455          (i) a demonstration of their experience with other transportation concession projects
             6456      with attributes similar to the project being procured;
             6457          (ii) a financial statement of the firm or consortium of firms making the proposal;
             6458          (iii) a conceptual project development plan and financing plan;
             6459          (iv) the legal structure of the firm or consortium of firms making the proposal;
             6460          (v) the organizational structure for the project; and
             6461          (vi) a statement describing why the firm or consortium of firms is best qualified for the
             6462      project.
             6463          (d) The request for qualifications shall identify the number of eligible competing
             6464      [proposers] offerors that the [department] Department of Transportation will select to submit a
             6465      proposal.
             6466          (4) The [department] Department of Transportation shall:
             6467          (a) evaluate the responses received from the request for qualifications;
             6468          (b) select from their number those qualified to submit proposals; and
             6469          (c) invite those respondents to submit proposals based upon the [department's]
             6470      Department of Transportation's request for proposals.
             6471          (5) The [department] Department of Transportation shall issue a request for proposals
             6472      to those qualified respondents that may require, as appropriate for the procurement:
             6473          (a) a description of the proposed project or projects;
             6474          (b) a financial plan for the project, including:
             6475          (i) the anticipated financial commitment of all parties;
             6476          (ii) equity, debt, and other financing mechanisms;


             6477          (iii) an analysis of the projected return, rate of return, or both; and
             6478          (iv) the monetary benefit and other value to a government entity;
             6479          (c) assumptions about user fees or toll rates;
             6480          (d) a project development and management plan, including:
             6481          (i) the contracting structure;
             6482          (ii) the plan for quality management;
             6483          (iii) the proposed toll enforcement plan; and
             6484          (iv) the plan for safety management; and
             6485          (e) that the proposal to comply with the minimum guidelines for tollway development
             6486      agreement proposals under Section 72-6-204 .
             6487          (6) The [department] Department of Transportation and the Transportation
             6488      Commission:
             6489          (a) shall evaluate the submissions received in response to the request for proposals
             6490      from the prequalified [proposers] offerors;
             6491          (b) shall comply with rules relating to discussion of proposals, best and final offers,
             6492      and evaluations of the proposals submitted; and
             6493          (c) may, after considering price and other identified factors and complying with the
             6494      requirements of Section 72-6-206 , award the contract to the responsive and responsible
             6495      [proposer] offeror whose proposal is most advantageous to the state.
             6496          Section 162. Section 63G-6a-1501 is enacted to read:
             6497     
Part 15. Architect-Engineer Services

             6498          63G-6a-1501. Title.
             6499          This part is known as "Architect-Engineer Services."
             6500          Section 163. Section 63G-6a-1502 , which is renumbered from Section 63G-6-701 is
             6501      renumbered and amended to read:
             6502           [63G-6-701].     63G-6a-1502. Policy regarding architect-engineer services.
             6503          (1) It is the policy of this state to publicly announce all requirements for
             6504      architect-engineer services and to negotiate contracts for architect-engineer services on the
             6505      basis of demonstrated competence and qualification for the type of services required, and at fair
             6506      and reasonable prices.
             6507          (2) Architect-engineer services shall be procured as provided in this part except as


             6508      authorized by Sections [ 63G-6-409 through 63G-6-411 ] 63G-6a-408 , 63G-6a-802 , and
             6509      63G-6a-803 .
             6510          (3) This part does not affect the authority of, and does not apply to procedures
             6511      undertaken by, a public procurement unit to obtain the services of architects or engineers in the
             6512      capacity of employees of [such] the public procurement unit.
             6513          Section 164. Section 63G-6a-1503 , which is renumbered from Section 63G-6-702 is
             6514      renumbered and amended to read:
             6515           [63G-6-702].     63G-6a-1503. Selection committee for architect-engineer
             6516      services.
             6517          (1) In the procurement of architect-engineer services, the [chief] procurement officer or
             6518      the head of a state purchasing [agency] unit shall encourage firms engaged in the lawful
             6519      practice of their profession to submit annually a statement of qualifications and performance
             6520      data.
             6521          (2) The Building Board shall be the [selection] evaluation committee for
             6522      architect-engineer services contracts under its authority. [Selection committees]
             6523          (3) An evaluation committee for architect-engineer services contracts not under the
             6524      authority of the Building Board shall be established in accordance with rules [and regulations
             6525      promulgated by the policy board. Selection committees shall] made by the applicable
             6526      rulemaking authority.
             6527          (4) An evaluation committee shall:
             6528          (a) evaluate current statements of qualifications and performance data on file with the
             6529      state, together with those that may be submitted by other firms in response to the
             6530      announcement of the proposed contract[. Selection committees shall];
             6531          (b) consider no less than three firms [and then shall select therefrom,]; and
             6532          (c) based upon criteria established and published by the [selection committees,]
             6533      authorized purchasing entity, select no less than three of the firms considered to be the most
             6534      highly qualified to provide the services required.
             6535          Section 165. Section 63G-6a-1504 , which is renumbered from Section 63G-6-703 is
             6536      renumbered and amended to read:
             6537           [63G-6-703].     63G-6a-1504. Selection as part of design-build or lease.
             6538          Notwithstanding any other provision of this chapter, architect-engineer services may be


             6539      procured under Title 63A, Chapter 5, State Building Board - Division of Facilities Construction
             6540      and Management, as part of the services obtained in a design-build contract or as part of the
             6541      services obtained in a lease contract for real property, [provided that] if the qualifications of
             6542      those providing the architect-engineer services are part of the consideration in the selection
             6543      process.
             6544          Section 166. Section 63G-6a-1505 , which is renumbered from Section 63G-6-704 is
             6545      renumbered and amended to read:
             6546           [63G-6-704].     63G-6a-1505. Determination of compensation for
             6547      architect-engineer services.
             6548          (1) The procurement officer shall award a contract to a qualified firm at compensation
             6549      [which] that the procurement officer determines, in writing, to be fair and reasonable to the
             6550      state.
             6551          (2) In making [this decision,] the determination described in Subsection (1), the
             6552      procurement officer shall take into account the services':
             6553          (a) estimated value[, the];
             6554          (b) scope[, and];
             6555          (c) complexity[,]; and [the]
             6556          (d) professional nature [of the services to be rendered. Should].
             6557          (3) If the procurement officer [be] is unable to agree to a satisfactory contract with the
             6558      firm first selected, at a price the procurement officer determines to be fair and reasonable to the
             6559      state, [discussions with that firm shall be formally terminated. The] the procurement officer
             6560      shall [then]:
             6561          (a) formally terminate discussions with that firm; and
             6562          (b) undertake discussions with a second qualified firm. [Failing accord with the
             6563      second firm, the procurement officer shall formally terminate discussions. The procurement
             6564      officer shall then]
             6565          (4) If the procurement officer is unable to agree to a satisfactory contract with the
             6566      second firm selected, at a price the procurement officer determines to be fair and reasonable to
             6567      the state, the procurement officer shall:
             6568          (a) formally terminate discussions with that firm; and
             6569          (b) undertake discussions with a third qualified firm. [Should the procurement officer


             6570      be]
             6571          (5) If the procurement officer is unable to award a contract at a fair and reasonable
             6572      price [with] to any of the selected firms, the procurement officer shall:
             6573          (a) select additional firms[,]; and [the procurement officer shall]
             6574          (b) continue discussions in accordance with this part until an agreement is reached.
             6575          Section 167. Section 63G-6a-1506 , which is renumbered from Section 63G-6-705 is
             6576      renumbered and amended to read:
             6577           [63G-6-705].     63G-6a-1506. Restrictions on procurement of
             6578      architect-engineer services.
             6579          (1) Except as provided in Subsection (2), when [a public procurement unit] an
             6580      authorized purchasing entity, in accordance with Section [ 63G-6-701 ] 63G-6a-1502 , elects to
             6581      obtain architect or engineering services by using a competitive procurement process and has
             6582      provided public notice of its competitive procurement process:
             6583          (a) a higher education entity, or any part of one, may not submit a proposal in response
             6584      to the [public procurement unit's] authorized purchasing entity's competitive procurement
             6585      process; and
             6586          (b) the [public procurement unit] authorized purchasing entity may not award a
             6587      contract to perform the architect or engineering services solicited in the competitive
             6588      procurement process to a higher education entity or any part of one.
             6589          (2) [A public procurement unit need not comply with the requirements of] Subsection
             6590      (1) does not apply when the [public procurement unit] authorized purchasing entity is
             6591      procuring architect or engineer services for contracts related to research activities and
             6592      technology transfer.
             6593          Section 168. Section 63G-6a-1601 is enacted to read:
             6594     
Part 16. Controversies and Protests

             6595          63G-6a-1601. Title.
             6596          This part is known as "Controversies and Protests."
             6597          Section 169. Section 63G-6a-1602 , which is renumbered from Section 63G-6-805 is
             6598      renumbered and amended to read:
             6599           [63G-6-805].     63G-6a-1602. Authority to resolve controversy between
             6600      public procurement unit and contractor.


             6601          The [chief] procurement officer, the head of [a purchasing agency] an authorized
             6602      purchasing entity, or a designee of either [officer is authorized, prior to] may, before
             6603      commencement of an action in court concerning the controversy, [to] settle and resolve a
             6604      controversy [which] that arises between [the state] a public procurement unit or an authorized
             6605      purchasing entity and a contractor [under or by virtue of a contract between them. This
             6606      includes, without limitation, controversies] in relation to a contract or a procurement, including
             6607      a controversy based upon breach of contract, [mistakes] a mistake, misrepresentation, or other
             6608      cause for contract modification or rescission.
             6609          Section 170. Section 63G-6a-1603 , which is renumbered from Section 63G-6-801 is
             6610      renumbered and amended to read:
             6611           [63G-6-801].     63G-6a-1603. Protest to procurement officer -- Time --
             6612      Authority to resolve protest.
             6613          (1) Any actual or prospective bidder, offeror, or contractor who is aggrieved in
             6614      connection with the solicitation or award of a contract may protest to the [chief] procurement
             6615      officer or the head of [a purchasing agency] an authorized purchasing entity. A protest with
             6616      respect to an invitation for bids or a request for proposals shall be submitted in writing [prior
             6617      to] before the opening of bids or the closing date for proposals, unless the aggrieved person did
             6618      not know and should not have known of the facts giving rise to the protest [prior to] before the
             6619      bid opening or the closing date for proposals. [The protest shall be submitted] An aggrieved
             6620      person shall submit a protest in writing within [five working] seven days after the aggrieved
             6621      person knows or should have known of the facts giving rise [thereto] to the protest.
             6622          (2) Subject to the applicable requirements in Section 63G-10-403 , the [chief]
             6623      procurement officer, the head of [a purchasing agency] an authorized purchasing entity, or a
             6624      designee of either [officer shall have the authority, prior to], may, before the commencement of
             6625      an action in court concerning the controversy, [to] settle and resolve the protest.
             6626          Section 171. Section 63G-6a-1604 , which is renumbered from Section 63G-6-806 is
             6627      renumbered and amended to read:
             6628           [63G-6-806].     63G-6a-1604. Decisions to be in writing -- Effect of no
             6629      writing.
             6630          (1) The [chief procurement officer, the head of a purchasing agency, or the designee of
             6631      either officer] person who conducts a hearing under Section 63G-6a-1603 shall promptly issue


             6632      a written decision regarding any protest, debarment [or], suspension, or contract controversy if
             6633      it is not settled by a mutual agreement.
             6634          (2) The decision shall state the reasons for the action taken and inform the protestor,
             6635      contractor, or prospective contractor of the right to judicial or administrative review as
             6636      provided in this chapter.
             6637          [(2)] (3) A decision [shall be] described in this section is effective until stayed or
             6638      reversed on appeal, except to the extent provided in Section [ 63G-6-802 ] 63G-6a-1607 . [A
             6639      copy of the decision under Subsection (1) shall be mailed]
             6640          (4) A person who issues a decision under this section shall mail or otherwise
             6641      [furnished] immediately furnish a copy of the decision to the protestor, prospective contractor,
             6642      or contractor.
             6643          (5) The decision shall be final and conclusive unless the protestor, prospective
             6644      contractor, or contractor:
             6645          (a) appeals administratively to the [procurement] applicable appeals board, if any, in
             6646      accordance with Subsection [ 63G-6-810 ] 63G-6a-1703 (2); or [the protestor, prospective
             6647      contractor, or contractor]
             6648          (b) if there is not an applicable appeals board, commences an action in district court in
             6649      accordance with Section [ 63G-6-815 ] 63G-6a-1803 .
             6650          [(3)] (6) If the [chief] procurement officer, the head of [a purchasing agency] an
             6651      authorized purchasing entity, or the designee of either [officer] does not issue the written
             6652      decision [regarding a contract controversy] as required by this section within 60 [calendar] days
             6653      after the day on which a written request for a final decision is made, or within [such] a longer
             6654      period as may be agreed upon by the parties, then the protestor, contractor, or prospective
             6655      contractor may proceed as if an adverse decision had been received.
             6656          Section 172. Section 63G-6a-1605 , which is renumbered from Section 63G-6-907 is
             6657      renumbered and amended to read:
             6658           [63G-6-907].     63G-6a-1605. Resolution of local public procurement
             6659      controversies.
             6660          [Any] A local public procurement unit [is authorized to] may enter into an agreement
             6661      with the State Procurement Appeals Board to resolve controversies between the local public
             6662      procurement unit and its bidders, offerors, contractors, regardless of whether [or not such] the


             6663      controversy arose from a cooperative purchasing agreement.
             6664          Section 173. Section 63G-6a-1606 , which is renumbered from Section 63G-6-802 is
             6665      renumbered and amended to read:
             6666           [63G-6-802].     63G-6a-1606. Effect of timely protest.
             6667          In the event of a timely protest under Subsection [ 63G-6-801 (1), 63G-6-810 (1), or
             6668      63G-6-815 (1), the state shall] 63G-6a-1603 (1), 63G-6a-1703 (1), or 63G-6a-1803 (1), an
             6669      authorized purchasing entity may not proceed further with the solicitation or with the award of
             6670      the contract until all administrative and judicial remedies [have been] are exhausted or until the
             6671      [chief] procurement officer, after consultation with the head of the [using agency] public
             6672      procurement unit or the head of [a purchasing agency] an authorized purchasing entity, makes a
             6673      written determination that the award of the contract without delay is necessary to protect
             6674      substantial interests of the state.
             6675          Section 174. Section 63G-6a-1607 , which is renumbered from Section 63G-6-803 is
             6676      renumbered and amended to read:
             6677           [63G-6-803].     63G-6a-1607. Costs to or against protestor.
             6678          (1) When a protest is sustained administratively or upon administrative or judicial
             6679      review and the protesting bidder or offeror should have been awarded the contract under the
             6680      solicitation but is not, the protestor shall be entitled to the following relief as a claim against
             6681      the state:
             6682          (a) the reasonable costs incurred in connection with the solicitation, including bid
             6683      preparation and appeal costs; and
             6684          (b) any equitable relief determined to be appropriate by the reviewing administrative or
             6685      judicial body.
             6686          (2) When a protest is not sustained by the [Procurement Appeals Board] appeals board,
             6687      the protestor shall reimburse the [Division of Purchasing and General Services] public entity
             6688      for the per diem and expenses paid by the [division] public entity to witnesses or appeals board
             6689      members and any additional expenses incurred by the [state agency] staff of the public entity
             6690      who have provided materials and administrative services to the appeals board for that case.
             6691          Section 175. Section 63G-6a-1701 is enacted to read:
             6692     
Part 17. Procurement Appeals Board

             6693          63G-6a-1701. Title.


             6694          This part is known as "Procurement Appeals Board."
             6695          Section 176. Section 63G-6a-1702 , which is renumbered from Section 63G-6-807 is
             6696      renumbered and amended to read:
             6697           [63G-6-807].     63G-6a-1702. Creation of Procurement Appeals Board --
             6698      Creation of other appeals boards.
             6699          (1) (a) A Procurement Appeals Board is created in the executive branch. The
             6700      Procurement Appeals Board shall be composed of a chair and one other member, to be
             6701      appointed by the governor, and a third member to be designated by the two appointed members
             6702      on a case-by-case basis.
             6703          (b) None of the members of the Procurement Appeals Board shall otherwise be
             6704      full-time employees of the state.
             6705          (c) The appointed members of the Procurement Appeals Board shall have been
             6706      members in good standing of the state bar for at least five years and shall be experienced in
             6707      contract or commercial matters.
             6708          (d) The designated member shall possess the technical expertise and experience needed
             6709      for the proper disposition of the factual issues presented by the case.
             6710          (2) (a) Except as required by Subsection (2)(b), as terms of current [board] members
             6711      expire, the governor shall appoint each new member or reappointed member to a four-year
             6712      term.
             6713          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
             6714      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             6715      [board] members are staggered so that approximately half of the [board is] members of the
             6716      Procurement Appeals Board are appointed every two years.
             6717          (c) The designated member shall serve for the case on which designated until the final
             6718      disposition of the case.
             6719          (d) Appointed members may be reappointed for succeeding terms and may continue to
             6720      serve after the expiration of their terms until a successor takes office.
             6721          (e) Qualified persons may be redesignated as members.
             6722          (3) When a vacancy occurs in the membership for any reason, the replacement shall be
             6723      appointed for the unexpired term.
             6724          (4) A member may not receive compensation or benefits for the member's service, but


             6725      may receive per diem and travel expenses in accordance with:
             6726          (a) Section 63A-3-106 ;
             6727          (b) Section 63A-3-107 ; and
             6728          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             6729      63A-3-107 .
             6730          (5) A local public procurement unit, a non-executive state procurement unit, or a state
             6731      institution of higher education may form its own appeals board to hear procurement protests.
             6732          Section 177. Section 63G-6a-1703 , which is renumbered from Section 63G-6-810 is
             6733      renumbered and amended to read:
             6734           [63G-6-810].     63G-6a-1703. Jurisdiction of appeals board.
             6735          Unless an action has been initiated previously in district courts for essentially the same
             6736      cause of action, [the] an appeals board shall have jurisdiction to review and determine de novo:
             6737          (1) any protest of a solicitation or award of a contract addressed to the appeals board by
             6738      an aggrieved actual or prospective bidder or offeror, or a contractor; and
             6739          (2) any appeal by an aggrieved party from a decision rendered or considered to have
             6740      been rendered pursuant to Section [ 63G-6-806 ] 63G-6a-1604 .
             6741          Section 178. Section 63G-6a-1704 , which is renumbered from Section 63G-6-808 is
             6742      renumbered and amended to read:
             6743           [63G-6-808].     63G-6a-1704. Rules of procedure to be adopted.
             6744          The Procurement Appeals Board:
             6745          (1) shall adopt rules of procedure [which] that, to the fullest extent possible, [will]
             6746      provide for the expeditious resolution of controversies, including procedures to encourage
             6747      agreements between the parties to a controversy prior to a hearing[. The board]; and
             6748          (2) may adopt small claims procedures for the resolution of controversies involving
             6749      claims of less than $15,000.
             6750          Section 179. Section 63G-6a-1705 , which is renumbered from Section 63G-6-809 is
             6751      renumbered and amended to read:
             6752           [63G-6-809].     63G-6a-1705. Decisions of appeals board to be in writing.
             6753          [The Procurement Appeals Board shall]
             6754          An appeals board shall:
             6755          (1) issue a decision in writing or take other appropriate action of each appeal


             6756      submitted[. A]; and
             6757          (2) provide a copy of any decision [shall be provided] to all parties and the [chief]
             6758      procurement officer or the head of [a purchasing agency] an authorized purchasing entity.
             6759          Section 180. Section 63G-6a-1706 , which is renumbered from Section 63G-6-811 is
             6760      renumbered and amended to read:
             6761           [63G-6-811].     63G-6a-1706. Time limits to file protest or appeal -- Effect of
             6762      filing.
             6763          (1) For a protest under Subsection [ 63G-6-810 ] 63G-6a-1703 (1), the aggrieved person
             6764      shall file a protest with the appeals board within [five working] seven days after the aggrieved
             6765      person knows or should have known of the facts and circumstances upon which the protest is
             6766      based[; provided, however,] except that a protest with respect to an invitation for bids or
             6767      request for proposals shall be filed [prior to] before the opening of bids or the closing date for
             6768      proposals unless the aggrieved person did not know and should not have known of the facts
             6769      giving rise to the protest [prior to] before the bid opening or the closing date for proposals.
             6770          (2) For an appeal from a decision regarding a protested solicitation or award, the
             6771      aggrieved person shall file an appeal within seven [calendar days of receipt of a] days after the
             6772      day on which the decision is rendered or considered to have been rendered [pursuant to Section
             6773      63G-6-806 ] under Section 63G-6a-1604 .
             6774          (3) For an appeal from a decision regarding a debarment, suspension, or contract
             6775      controversy, the aggrieved person shall file an appeal within 60 [calendar days of receipt of]
             6776      days after the day on which the person receives a decision rendered or considered to have been
             6777      rendered [pursuant to Section 63G-6-806 ] under Section 63G-6a-1604 .
             6778          Section 181. Section 63G-6a-1707 , which is renumbered from Section 63G-6-812 is
             6779      renumbered and amended to read:
             6780           [63G-6-812].     63G-6a-1707. Discontinued appeal with prejudice, except as
             6781      authorized.
             6782          After notice of an appeal [has been] is filed with the [Procurement Appeals Board]
             6783      applicable appeals board, no party may discontinue the appeal without prejudice, except as
             6784      authorized by the [Procurement Appeals Board] applicable appeals board.
             6785          Section 182. Section 63G-6a-1708 , which is renumbered from Section 63G-6-813 is
             6786      renumbered and amended to read:


             6787           [63G-6-813].     63G-6a-1708. Factual determination of appeals board final
             6788      and conclusive.
             6789          (1) On any protest or appeal under Section [ 63G-6-810 ] 63G-6a-1703 , the
             6790      [Procurement Appeals Board] applicable appeals board shall promptly decide the contract
             6791      controversy or whether the [solicitation] procurement or award was in accordance with this
             6792      chapter. Any prior determinations by administrative officials regarding protests of
             6793      [solicitations] procurements or awards, suspension or debarments, contract controversies, or
             6794      breach of contract controversies [shall not be] are not final or conclusive.
             6795          (2) A determination of an issue of fact by the [Procurement Appeals Board] applicable
             6796      appeals board under Subsection (1) [shall be] is final and conclusive unless arbitrary and
             6797      capricious or clearly erroneous. No determination on an issue of law [shall be] by the
             6798      applicable appeals board is final or conclusive.
             6799          (3) The applicable appeals board may, without a hearing, determine, in writing, that a
             6800      protest is without merit.
             6801          Section 183. Section 63G-6a-1801 is enacted to read:
             6802     
Part 18. Appeals to Court and Court Proceedings

             6803          63G-6a-1801. Title.
             6804          This part is known as "Appeals to Court and Court Proceedings."
             6805          Section 184. Section 63G-6a-1802 , which is renumbered from Section 63G-6-814 is
             6806      renumbered and amended to read:
             6807           [63G-6-814].     63G-6a-1802. Right to appeal to Court of Appeals.
             6808          Any person receiving an adverse decision, or the state, may appeal a decision of [the
             6809      Procurement Appeals Board] an appeals board to the Court of Appeals. [However, no appeal
             6810      may be made by the state] The state may not appeal a decision of an appeals board unless:
             6811          (1) recommended by the chief procurement officer or the head of the state purchasing
             6812      [agency] unit involved, and approved by the attorney general[.]; or
             6813          (2) for a non-executive state procurement unit, approved by a person authorized by rule
             6814      made by the applicable rulemaking authority.
             6815          Section 185. Section 63G-6a-1803 , which is renumbered from Section 63G-6-815 is
             6816      renumbered and amended to read:
             6817           [63G-6-815].     63G-6a-1803. Jurisdiction of district court.


             6818          (1) The district court shall have jurisdiction over an action, whether the action is at law
             6819      or in equity, between the state and:
             6820          (a) a bidder, offeror, or contractor, prospective or actual, who is aggrieved in
             6821      connection with the [solicitation] procurement or award of a contract;
             6822          (b) a person who is subject to a suspension or debarment proceeding; and
             6823          (c) a contractor, for any cause of action [which] that arises under, or [by virtue of] or in
             6824      relation to a contract.
             6825          (2) The provisions of Title 63G, Chapter 7, Part 4, Notice of Claim Against a
             6826      Governmental Entity or a Government Employee, and Section 63G-7-601 do not apply to
             6827      actions brought under this chapter by an aggrieved party for equitable relief or reasonable costs
             6828      incurred in preparing or appealing an unsuccessful bid or offer.
             6829          Section 186. Section 63G-6a-1804 , which is renumbered from Section 63G-6-817 is
             6830      renumbered and amended to read:
             6831           [63G-6-817].     63G-6a-1804. Statutes of limitations.
             6832          (1) [Any] An action under Subsection [ 63G-6-815 ] 63G-6a-1803 (1)(a) shall be
             6833      initiated [as follows]:
             6834          (a) within 20 [calendar] days after the day on which the aggrieved person knows or
             6835      should have known of the facts giving rise to the action; [provided, however, that an action]
             6836          (b) with respect to an invitation for bids or request for proposals [shall be initiated
             6837      prior to], before the opening of bids or the closing date for proposals unless the aggrieved
             6838      person did not know and should not have known of the facts giving rise to the action [prior to
             6839      bid opening or the closing date for proposals]; or
             6840          [(b)] (c) within 14 [calendar] days after receipt of a final administrative decision
             6841      pursuant to either Section [ 63G-6-806 or Section 63G-6-813 ] 63G-6a-1604 or 63G-6a-1708 ,
             6842      whichever is applicable.
             6843          (2) [Any] An action under Subsection [ 63G-6-815 ] 63G-6a-1803 (1)(b) shall be
             6844      commenced within six months after receipt of a final administrative decision, pursuant to
             6845      Section [ 63G-6-806 or Section 63G-6-813 , whichever is applicable] 63G-6a-1604 or
             6846      63G-6a-1708 .
             6847          (3) The statutory limitations on an action between private persons on a contract or for
             6848      breach of contract shall apply to any action commenced pursuant to Subsection [ 63G-6-815 ]


             6849      63G-6a-1803 (1)(c), except notice of appeals from [the Procurement Appeals Board] an appeals
             6850      board pursuant to Section [ 63G-6-814 ] 63G-6a-1802 concerning actions on a contract or for
             6851      breach of contract, shall be filed within one year after the [date of the Procurement Appeals
             6852      Board decision] day on which the decision of the appeals board is made.
             6853          Section 187. Section 63G-6a-1805 , which is renumbered from Section 63G-6-816 is
             6854      renumbered and amended to read:
             6855           [63G-6-816].     63G-6a-1805. Effect of prior determination by agents of
             6856      state.
             6857          In any judicial action under Section [ 63G-6-815 ] 63G-6a-1803 , determinations by
             6858      employees, agents, or other persons appointed by the state shall be final and conclusive only as
             6859      provided in Sections [ 63G-6-419 and 63G-6-806 ] 63G-6a-1604 and 63G-6a-1902 , and
             6860      Subsection [ 63G-6-813 ] 63G-6a-1708 (2).
             6861          Section 188. Section 63G-6a-1901 is enacted to read:
             6862     
Part 19. General Provisions Related to Protest or Appeal

             6863          63G-6a-1901. Title.
             6864          This part is known as "General Provisions Related to Protest or Appeal."
             6865          Section 189. Section 63G-6a-1902 , which is renumbered from Section 63G-6-419 is
             6866      renumbered and amended to read:
             6867           [63G-6-419].     63G-6a-1902. Determinations final except when arbitrary
             6868      and capricious.
             6869          The determinations required [by Subsections 63G-6-401 (6), 63G-6-408 (1) and (6),
             6870      Sections 63G-6-410 , 63G-6-411 , 63G-6-413 , Subsection 63G-6-415 (4), Section 63G-6-416 ,
             6871      and Subsection 63G-6-417 (2)] under the following provisions are final and conclusive unless
             6872      they are arbitrary and capricious or clearly erroneous[.]:
             6873          (1) Section 63G-6a-605 ;
             6874          (2) Section 63G-6a-702 ;
             6875          (3) Subsection 63G-6a-708 (1)(a);
             6876          (4) Subsection 63G-6a-709 (1);
             6877          (5) Section 63G-6a-803 ;
             6878          (6) Section 63G-6a-804 ;
             6879          (7) Section 63G-6a-903 ;


             6880          (8) Subsection 63G-6a-1204 (1) or (2);
             6881          (9) Subsection 63G-6a-1204 (5);
             6882          (10) Section 63G-6a-1205 ; or
             6883          (11) Subsection 63G-6a-1206 (5).
             6884          Section 190. Section 63G-6a-1903 , which is renumbered from Section 63G-6-818 is
             6885      renumbered and amended to read:
             6886           [63G-6-818].     63G-6a-1903. Effect of violation prior to award of contract.
             6887          If [prior to], before award of a contract, it is determined administratively or upon
             6888      administrative or judicial review that a [solicitation] procurement or proposed award of a
             6889      contract is in violation of law, the [solicitation] procurement or proposed award shall be
             6890      cancelled or revised to comply with the law.
             6891          Section 191. Section 63G-6a-1904 , which is renumbered from Section 63G-6-819 is
             6892      renumbered and amended to read:
             6893           [63G-6-819].     63G-6a-1904. Effect of violation after award of contract.
             6894          If, after [an] award of a contract, it is determined administratively or upon
             6895      administrative or judicial review that a [solicitation] procurement or award of a contract is in
             6896      violation of law:
             6897          (1) if the person awarded the contract [has not acted] did not act fraudulently or in bad
             6898      faith:
             6899          (a) the contract may be ratified and affirmed if it is [determined that doing so is] in the
             6900      best interests of the state; or
             6901          (b) (i) the contract may be terminated; and
             6902          (ii) the person awarded the contract shall be compensated for the actual expenses
             6903      reasonably incurred under the contract [prior to] before the termination, plus a reasonable
             6904      profit;
             6905          (2) if the person awarded the contract has acted fraudulently or in bad faith:
             6906          (a) the contract may be declared null and void; or
             6907          (b) the contract may be ratified and affirmed if [such action] it is in the best interests of
             6908      the state, without prejudice to the state's rights to any appropriate damages.
             6909          Section 192. Section 63G-6a-1905 , which is renumbered from Section 63G-6-820 is
             6910      renumbered and amended to read:


             6911           [63G-6-820].     63G-6a-1905. Interest rate.
             6912          (1) Except as provided in Subsection (2), in controversies between the state and
             6913      contractors under this part, Part 16, Controversies and Protests, Part 17, Procurement Appeals
             6914      Board, or Part 18, Appeals to Court and Court Proceedings, interest on amounts ultimately
             6915      determined to be due to a contractor or [to] the state are payable at the rate applicable to
             6916      judgments from the date the claim arose through the date of decision or judgment, whichever is
             6917      later.
             6918          (2) This section does not apply to public assistance benefits programs.
             6919          Section 193. Section 63G-6a-2001 is enacted to read:
             6920     
Part 20. Records

             6921          63G-6a-2001. Title.
             6922          This part is known as "Records."
             6923          Section 194. Section 63G-6a-2002 , which is renumbered from Section 63G-6-106 is
             6924      renumbered and amended to read:
             6925           [63G-6-106].     63G-6a-2002. Records -- Retention.
             6926          (1) All procurement records shall be retained and disposed of in accordance with Title
             6927      63G, Chapter 2, Government Records Access and Management Act.
             6928          (2) Written determinations required by this chapter shall [also] be retained in the
             6929      appropriate official contract file of [the Division of Purchasing and General Services or the
             6930      purchasing agency.]:
             6931          (a) the division;
             6932          (b) the state purchasing unit; or
             6933          (c) for a non-executive state procurement unit, the person designated by rule made by
             6934      the applicable rulemaking authority.
             6935          (3) A public procurement unit shall keep, and make available to the public, upon
             6936      request, a written record of all procurements made under this section for which an expenditure
             6937      of $50 or more is made, for the longer of:
             6938          (a) four years;
             6939          (b) the time otherwise required by law; or
             6940          (c) the time period provided by rule made by the applicable rulemaking authority.
             6941          (4) The written record described in Subsection (3) shall include:


             6942          (a) the name of the provider from whom the procurement was made;
             6943          (b) a description of the procurement item;
             6944          (c) the date of the procurement; and
             6945          (d) the expenditure made for the procurement.
             6946          Section 195. Section 63G-6a-2003 , which is renumbered from Section 63G-6-421 is
             6947      renumbered and amended to read:
             6948           [63G-6-421].     63G-6a-2003. Records of contracts made -- Audits --
             6949      Contract requirements.
             6950          The [chief] procurement officer or the head of [a purchasing agency] an authorized
             6951      purchasing entity shall maintain a record listing all contracts made under Section [ 63G-6-410
             6952      or 63G-6-411 and shall maintain the record] 63G-6a-408 , 63G-6a-802 , or 63G-6a-803 , in
             6953      accordance with Title 63G, Chapter 2, Government Records Access and Management Act.
             6954      The record shall contain each contractor's name, the amount and type of each contract, and a
             6955      listing of the [supplies, services, or construction procured under each contract] procurement
             6956      items to which the contract relates .
             6957          Section 196. Section 63G-6a-2004 , which is renumbered from Section 63G-6-905 is
             6958      renumbered and amended to read:
             6959           [63G-6-905].     63G-6a-2004. Chief procurement officer's collection of
             6960      information on procurement items.
             6961          (1) To the extent possible, the chief procurement officer may collect information
             6962      concerning the type, cost, quality, and quantity of commonly used [supplies, services, or
             6963      construction being] procurement items procured or used by [state] public procurement units
             6964      [and local public procurement units].
             6965          (2) The chief procurement officer may make the information described in Subsection
             6966      (1) available to any public procurement unit upon request.
             6967          Section 197. Section 63G-6a-2101 is enacted to read:
             6968     
Part 21. Interaction Between Public Procurement Units

             6969          63G-6a-2101. Title.
             6970          This part is known as "Interaction Between Public Procurement Units."
             6971          Section 198. Section 63G-6a-2102 , which is renumbered from Section 63G-6-901 is
             6972      renumbered and amended to read:


             6973           [63G-6-901].     63G-6a-2102. Agreements between public procurement
             6974      units.
             6975          [Under the terms agreed upon among the parties, any]
             6976          (1) For purposes of this section only, "public procurement unit" includes an external
             6977      procurement unit.
             6978          (2) A public procurement unit may enter into [agreements] an agreement with one or
             6979      more other public procurement units to:
             6980          [(1)] (a) sponsor, conduct, or administer a cooperative agreement for the procurement
             6981      or disposal of [any supplies, services, or construction] a procurement item;
             6982          [(2)] (b) cooperatively use [supplies or services] a procurement item;
             6983          [(3)] (c) commonly use or share warehousing facilities, capital equipment, and other
             6984      facilities;
             6985          [(4)] (d) provide personnel[; provided that the requesting], if the receiving public
             6986      procurement unit [shall pay] pays the public procurement unit providing the personnel the
             6987      direct and indirect cost of providing the personnel, in accordance with the agreement; or
             6988          [(5)] (e) make available informational, technical, and other services, [provided that], if:
             6989          (i) the requirements of the public procurement unit tendering the services [shall] have
             6990      precedence over the [requesting] public procurement unit that receives the services; and [that]
             6991          (ii) the [requesting] receiving public procurement unit [shall pay for] pays the expenses
             6992      of the services [so] provided, in accordance with the agreement.
             6993          (3) If a public procurement unit does not have the expertise necessary to administer a
             6994      particular procurement, the public procurement unit may enter into an agreement for
             6995      administration of the procurement with:
             6996          (a) another public procurement unit; or
             6997          (b) a person that is under contract to administer procurements.
             6998          Section 199. Section 63G-6a-2103 , which is renumbered from Section 63G-6-902 is
             6999      renumbered and amended to read:
             7000           [63G-6-902].     63G-6a-2103. Services between public procurement units.
             7001          (1) Upon request, [any] a public procurement unit may make services available to
             7002      [other] another public procurement [units the following services, among others] unit, including:
             7003          (a) standard forms;


             7004          (b) printed manuals;
             7005          (c) qualified products lists;
             7006          (d) source information;
             7007          (e) common use commodities listings;
             7008          (f) supplier prequalification information;
             7009          (g) supplier performance ratings;
             7010          (h) debarred and suspended bidders lists;
             7011          (i) forms for invitation for bids, requests for proposals, instructions to bidders, general
             7012      contract provisions, and [other] contract forms; [and] or
             7013          (j) contracts or published summaries [thereof] of contracts, including price and time of
             7014      delivery information.
             7015          (2) [Any] A public procurement unit may provide [the following] technical services[,]
             7016      [among others, to other] to another public procurement [units;] unit, including:
             7017          (a) development of specifications;
             7018          (b) development of quality assurance test methods, including receiving, inspection, and
             7019      acceptance procedures;
             7020          (c) use of testing and inspection facilities; [and] or
             7021          (d) use of personnel training programs.
             7022          (3) Public procurement units may enter into contractual arrangements and publish a
             7023      schedule of fees for the services provided under Subsections (1) and (2).
             7024          Section 200. Section 63G-6a-2104 , which is renumbered from Section 63G-6-904 is
             7025      renumbered and amended to read:
             7026           [63G-6-904].     63G-6a-2104. Compliance by one public procurement unit
             7027      pursuant to agreement considered compliance by others to agreement.
             7028          [Where the] (1) When a public procurement unit [administering] that administers a
             7029      cooperative purchase complies with the requirements of this chapter, any public procurement
             7030      unit participating in [such a] the purchase [shall be] is considered to have complied with this
             7031      chapter. [Public procurement units]
             7032          (2) A public procurement unit may not enter into a cooperative purchasing agreement
             7033      for the purpose of circumventing this chapter.
             7034          Section 201. Section 63G-6a-2105 , which is renumbered from Section 63G-6-424 is


             7035      renumbered and amended to read:
             7036           [63G-6-424].     63G-6a-2105. Participation of counties, municipalities, and
             7037      public procurement units in agreements or contracts of public procurement units.
             7038          [Utah counties, municipalities, and local public procurement units]
             7039          (1) A Utah county or municipality may purchase [from] under or otherwise participate
             7040      in [state public procurement unit agreements and contracts.] an agreement or contract of a Utah
             7041      public procurement unit.
             7042          (2) A state purchasing unit or a Utah public procurement unit may:
             7043          (a) contract with the federal government without going through a procurement process
             7044      or an exception to a procurement process;
             7045          (b) purchase under, or otherwise participate in, an agreement or contract of another
             7046      Utah public procurement unit; or
             7047          (c) purchase under, or otherwise participate in, an agreement or contract of an external
             7048      public procurement unit, if:
             7049          (i) the procurement was conducted in accordance with the requirements of this chapter;
             7050      and
             7051          (ii) the Utah participating addendum to the contract contains the terms and conditions
             7052      required by the applicable rulemaking authority that enters into the Utah participating
             7053      addendum.
             7054          (3) A public transit district, organized under Title 17B, Chapter 2a, Part 8, Public
             7055      Transit District Act, may, without going through a procurement process or an exception to a
             7056      procurement process, contract with a county or municipality to receive money from the county
             7057      or municipality to fund a transportation project.
             7058          Section 202. Section 63G-6a-2201 is enacted to read:
             7059     
Part 22. Ethical Requirements

             7060          63G-6a-2201. Title.
             7061          This part is known as "Ethical Requirements."
             7062          Section 203. Section 63G-6a-2202 is enacted to read:
             7063          63G-6a-2202. Ethical requirements for public procurement.
             7064          (1) As used in this section, "ethics provisions of the model procurement code" means
             7065      the following provisions of Article 12 of the 2000 American Bar Association Model


             7066      Procurement Code for State and Local Governments:
             7067          (a) Section 12-202, General Standards of Ethical Conduct;
             7068          (b) Section 12-204, Employee Conflict of Interest;
             7069          (c) Section 12-205, Employee Disclosure Requirements;
             7070          (d) Section 12-206, Gratuities and Kickbacks;
             7071          (e) Section 12-207, Prohibition Against Contingent Fees;
             7072          (f) Section 12-208, Restrictions on Employment of Present and Former Employees;
             7073      and
             7074          (g) Section 12-209, Use of Confidential Information.
             7075          (2) The applicable rulemaking authority shall make rules that prescribe ethical
             7076      standards for its agents and employees in relation to a procurement.
             7077          (3) The ethical standards described in Subsection (2) shall be based upon the general
             7078      principles of the ethics provisions of the model procurement code.
             7079          (4) The applicable rulemaking authority:
             7080          (a) is not required to adopt or implement any of the specific provisions of the ethics
             7081      provisions of the model procurement code; and
             7082          (b) may not adopt any provision of the ethics provisions of the model procurement
             7083      code that conflict with this chapter.
             7084          (5) A public entity shall advise its employees and agents who are involved in a
             7085      procurement process for the public entity regarding the following provisions and the penalties
             7086      associated with those provisions:
             7087          (a) the provisions of this part and rules made under this part;
             7088          (b) Subsections 63G-6a-408 (4) and (5), relating to artificially dividing a procurement;
             7089          (c) Section 63G-6a-2303 , Offering a gratuity;
             7090          (d) Section 63G-6a-2304 , Accepting or requesting a gratuity;
             7091          (e) Title 67, Chapter 16, Utah Public Officers' and Employees' Ethics Act;
             7092          (f) Section 76-8-103 , Bribery or offering a bribe;
             7093          (g) Section 76-8-105 , Receiving or soliciting bribe or bribery by public servant ; and
             7094          (h) Section 76-8-402 . Misusing public money.
             7095          Section 204. Section 63G-6a-2301 is enacted to read:
             7096     
Part 23. Unlawful Conduct and Penalties


             7097          63G-6a-2301. Title.
             7098          This part is known as "Unlawful Conduct and Penalties."
             7099          Section 205. Section 63G-6a-2302 , which is renumbered from Section 63G-6-420 is
             7100      renumbered and amended to read:
             7101           [63G-6-420].     63G-6a-2302. Factual information to attorney general if
             7102      collusion suspected.
             7103          [When for any reason] If a public procurement unit suspects collusion or other
             7104      anticompetitive practices [are suspected] among bidders or offerors, the public procurement
             7105      unit shall transmit a notice of the relevant facts [shall be transmitted] to the attorney general.
             7106          Section 206. Section 63G-6a-2303 is enacted to read:
             7107          63G-6a-2303. Offering a gratuity.
             7108          (1) As used in this section, "interested person" means a person who is interested in any
             7109      way in the sale of a procurement item, real property, or insurance to a public entity.
             7110          (2) Except as provided in Subsection (5), it is unlawful for an interested person to give,
             7111      offer, or promise to give an emolument, gratuity, contribution, loan, or reward to:
             7112          (a) a procurement officer of the public entity that is seeking to obtain the procurement
             7113      item;
             7114          (b) any employee, official, or agent of the public entity that is seeking to obtain the
             7115      procurement item; or
             7116          (c) another person or entity on behalf of a person described in Subsection (2)(a) or (b).
             7117          (3) The conduct described in Subsection (2) is unlawful, regardless of whether the
             7118      emolument, gratuity, contribution, loan, or reward is given for:
             7119          (a) the person's own use; or
             7120          (b) the use or benefit of any other person.
             7121          (4) A person who violates this section is guilty of:
             7122          (a) a felony of the second degree if the total value of the emolument, gratuity,
             7123      contribution, loan, or reward is $1,000 or more;
             7124          (b) a felony of the third degree if the total value of the emolument, gratuity,
             7125      contribution, loan, or reward is $250 or more, but less then $1,000;
             7126          (c) a class A misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7127      or reward is $100 or more, but less than $250; or


             7128          (d) a class B misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7129      or reward is less than $100.
             7130          (5) A person is not guilty of a violation of this section if:
             7131          (a) (i) the gift is an item of less than $10 in value;
             7132          (ii) the total value of all gifts given by the person to a person described in Subsection
             7133      (2), or another person in that person's behalf, during that calendar year does not exceed $50;
             7134      and
             7135          (iii) the gift is not given with the intent to induce a person to make a procurement
             7136      decision in reciprocation for the gift; or
             7137          (b) the gift:
             7138          (i) is a philanthropic donation to a government entity; and
             7139          (ii) is not given with the intent to induce a person to make a procurement decision in
             7140      reciprocation for the gift.
             7141          Section 207. Section 63G-6a-2304 is enacted to read:
             7142          63G-6a-2304. Accepting or requesting a gratuity.
             7143          (1) As used in this section, "associate" means any of the following:
             7144          (a) the chief procurement officer;
             7145          (b) a procurement officer;
             7146          (c) a public employee;
             7147          (d) a public official; or
             7148          (e) an agent of a public entity.
             7149          (2) Except as provided in Subsection (4), it is unlawful for an associate of a public
             7150      entity that is engaged in obtaining a procurement item, real property, or insurance to ask,
             7151      receive, offer to receive, accept, or ask for a promise to receive, an emolument, gratuity,
             7152      contribution, loan, or reward for the associate's own use or benefit, or the use or benefit of any
             7153      other person interested in the procurement item, real property, or insurance.
             7154          (3) A person who violates this section is guilty of:
             7155          (a) a felony of the second degree if the total value of the emolument, gratuity,
             7156      contribution, loan, or reward is $1,000 or more;
             7157          (b) a felony of the third degree if the total value of the emolument, gratuity,
             7158      contribution, loan, or reward is $250 or more, but less then $1,000;


             7159          (c) a class A misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7160      or reward is $100 or more, but less than $250; or
             7161          (d) a class B misdemeanor if the value of the emolument, gratuity, contribution, loan,
             7162      or reward is less than $100.
             7163          (4) A person is not guilty of a violation of this section if:
             7164          (a) (i) the associate receives a gift of less than $10 in value;
             7165          (ii) the total value of all gifts received by the associate from the same person during
             7166      that calendar year does not exceed $50; and
             7167          (iii) the associate does not make a procurement decision, or intend to make a
             7168      procurement decision, in reciprocation for the gift; or
             7169          (b) the associate:
             7170          (i) receives a philanthropic donation on behalf of a government entity; and
             7171          (ii) does not make a procurement decision, or intend to make a procurement decision,
             7172      in reciprocation for the donation.
             7173          Section 208. Section 63G-6a-2305 is enacted to read:
             7174          63G-6a-2305. Penalties for artificially dividing a purchase.
             7175          A person who violates Subsection 63G-6a-408 (4) or (5) is guilty of:
             7176          (1) a felony of the second degree if the total value of the divided procurements is
             7177      $1,000,000 or more;
             7178          (2) a felony of the third degree if the total value of the divided procurements is
             7179      $250,000 or more, but less than $1,000,000;
             7180          (3) a class A misdemeanor if the total value of the divided procurements is $100,000 or
             7181      more, but less than $250,000; or
             7182          (4) a class B misdemeanor if the total value of the divided procurements is less than
             7183      $100,000.
             7184          Section 209. Section 63G-6a-2306 is enacted to read:
             7185          63G-6a-2306. Penalties.
             7186          (1) Except as provided in Subsection (2), in addition to any penalty contained in any
             7187      other provision of law, a public officer or public employee who intentionally violates a
             7188      provision of Section 63G-6a-2303 , Section 63G-6a-2304 , or Section 63G-6a-2305 shall be
             7189      dismissed from employment or removed from office.


             7190          (2) An elected official who intentionally violates a provision of Section 63G-6a-2303 ,
             7191      Section 63G-6a-2304 , or Section 63G-6a-2305 may only be removed from office in accordance
             7192      with the requirements of law relating to removal of the elected official from office.
             7193          (3) Except as provided in Subsection (4), a public officer or public employee who
             7194      intentionally violates a provision of this chapter, including Part 22, Ethical Requirements, is
             7195      subject to disciplinary action, up to and including dismissal from employment or dismissal
             7196      from office.
             7197          (4) An elected official who intentionally violates a provision of this chapter, including
             7198      Part 22, Ethical Requirements, may only be disciplined or removed from office in accordance
             7199      with the requirements of law relating to discipline of the elected official or removal of the
             7200      elected official from office.
             7201          Section 210. Section 63G-6a-2307 is enacted to read:
             7202          63G-6a-2307. Contract awarded in relation to criminal conduct void.
             7203          If a person who is awarded a contract intentionally violates a provision of Section
             7204      63G-6a-2303 or Section 63G-6a-2304 in relation to the contract, the contract is void and
             7205      unenforceable.
             7206          Section 211. Section 63G-7-804 is amended to read:
             7207           63G-7-804. Liability insurance -- Methods for purchase or renewal.
             7208          (1) Except as provided in Subsection (2), a contract or policy of insurance may be
             7209      purchased or renewed under this chapter only upon public bid to be let to the lowest and best
             7210      bidder.
             7211          (2) The purchase or renewal of insurance by the state shall be conducted in accordance
             7212      with the provisions of Title 63G, Chapter [6] 6a, Utah Procurement Code.
             7213          Section 212. Section 63G-10-403 is amended to read:
             7214           63G-10-403. Department of Transportation bid or request for proposals protest
             7215      settlement agreement approval and review.
             7216          (1) As used in this section:
             7217          (a) "Department" means the Department of Transportation created in Section 72-1-201 .
             7218          (b) "Settlement agreement" includes stipulations, consent decrees, settlement
             7219      agreements, or other legally binding documents or representations resolving a dispute between
             7220      the department and another party when the department is required to pay money or required to


             7221      take legally binding action.
             7222          (2) The department shall obtain the approval of the Transportation Commission or the
             7223      governor or review by the Legislative Management Committee of a settlement agreement that
             7224      involves a bid or request for proposal protest in accordance with this section.
             7225          (3) A settlement agreement that is being settled by the department as part of a bid or
             7226      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7227      cost government entities more than $100,000 to implement shall be presented to the
             7228      Transportation Commission for approval or rejection.
             7229          (4) A settlement agreement that is being settled by the department as part of a bid or
             7230      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7231      cost government entities more than $500,000 to implement shall be presented:
             7232          (a) to the Transportation Commission for approval or rejection; and
             7233          (b) to the governor for approval or rejection.
             7234          (5) (a) A settlement agreement that is being settled by the department as part of a bid or
             7235      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7236      cost government entities more than $1,000,000 to implement shall be presented:
             7237          (i) to the Transportation Commission for approval or rejection;
             7238          (ii) to the governor for approval or rejection; and
             7239          (iii) if the settlement agreement is approved by the Transportation Commission and the
             7240      governor, to the Legislative Management Committee.
             7241          (b) The Legislative Management Committee may recommend approval or rejection of
             7242      the settlement agreement.
             7243          (6) (a) The department may not enter into a settlement agreement that resolves a bid or
             7244      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7245      cost government entities more than $100,000 to implement until the Transportation
             7246      Commission has approved the agreement.
             7247          (b) The department may not enter into a settlement agreement that resolves a bid or
             7248      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7249      cost government entities more than $500,000 to implement until the Transportation
             7250      Commission and the governor have approved the agreement.
             7251          (c) The department may not enter into a settlement agreement that resolves a bid or


             7252      request for proposal protest, in accordance with Section [ 63G-6-801 ] 63G-6a-1603 , that might
             7253      cost government entities more than $1,000,000 to implement until:
             7254          (i) the Transportation Commission has approved the agreement;
             7255          (ii) the governor has approved the agreement; and
             7256          (iii) the Legislative Management Committee has reviewed the agreement.
             7257          Section 213. Section 63H-2-504 is amended to read:
             7258           63H-2-504. Relation to other state statutes.
             7259          (1) The authority is subject to review by the Retirement and Independent Entities
             7260      Committee in accordance with Title 63E, Chapter 1, Independent Entities Act.
             7261          (2) The authority is subject to:
             7262          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7263          (b) Title 51, Chapter 7, State Money Management Act;
             7264          (c) Title 52, Chapter 4, Open and Public Meetings Act;
             7265          (d) Title 63A, Utah Administrative Services Code;
             7266          (e) Title 63G, Chapter 2, Government Records Access and Management Act;
             7267          (f) Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             7268          (g) Title 63G, Chapter 4, Administrative Procedures Act;
             7269          (h) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7270          (i) Title 63J, Chapter 1, Budgetary Procedures Act;
             7271          (j) Title 63J, Chapter 2, Revenue Procedures and Control Act; and
             7272          (k) Title 67, Chapter 19, Utah State Personnel Management Act.
             7273          Section 214. Section 63H-3-109 is amended to read:
             7274           63H-3-109. Relation to certain acts.
             7275          (1) The authority is exempt from:
             7276          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7277          (b) Title 63A, Chapter 1, Department of Administrative Services;
             7278          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7279          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7280          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             7281          (2) The authority is subject to audit by:
             7282          (a) the state auditor pursuant to Title 67, Chapter 3, Auditor; and


             7283          (b) the legislative auditor general pursuant to Section 36-12-15 .
             7284          (3) The authority shall annually report to the Retirement and Independent Entities
             7285      Committee created under Section 63E-1-201 concerning the authority's implementation of this
             7286      part.
             7287          Section 215. Section 63H-4-108 is amended to read:
             7288           63H-4-108. Relation to certain acts.
             7289          (1) The authority is exempt from:
             7290          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7291          (b) Title 63A, Utah Administrative Services Code;
             7292          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7293          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7294          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             7295          (2) The authority is subject to audit by the state auditor pursuant to Title 67, Chapter 3,
             7296      Auditor, and by the legislative auditor general pursuant to Section 36-12-15 .
             7297          Section 216. Section 63H-5-108 is amended to read:
             7298           63H-5-108. Relation to certain acts.
             7299          (1) The authority is exempt from:
             7300          (a) Title 51, Chapter 5, Funds Consolidation Act;
             7301          (b) Title 63A, Chapter 1, Department of Administrative Services;
             7302          (c) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7303          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7304          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             7305          (2) The authority is subject to audit by the state auditor pursuant to Title 67, Chapter 3,
             7306      Auditor, and by the legislative auditor general pursuant to Section 36-12-15 .
             7307          Section 217. Section 63H-6-103 is amended to read:
             7308           63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
             7309          (1) There is created an independent public nonprofit corporation known as the "Utah
             7310      State Fair Corporation."
             7311          (2) The board shall file articles of incorporation for the corporation with the Division
             7312      of Corporations and Commercial Code.
             7313          (3) The corporation, subject to this chapter, has all powers and authority permitted


             7314      nonprofit corporations by law.
             7315          (4) The corporation shall, subject to approval of the board:
             7316          (a) have general management, supervision, and control over all activities relating to the
             7317      state fair and have charge of all state expositions except as otherwise provided by statute;
             7318          (b) for public entertainment, displays, and exhibits or similar events:
             7319          (i) provide, sponsor, or arrange the events;
             7320          (ii) publicize and promote the events; and
             7321          (iii) secure funds to cover the cost of the exhibits from:
             7322          (A) private contributions;
             7323          (B) public appropriations;
             7324          (C) admission charges; and
             7325          (D) other lawful means;
             7326          (c) establish the time, place, and purpose of state expositions; and
             7327          (d) acquire and designate exposition sites.
             7328          (5) (a) The corporation shall:
             7329          (i) use generally accepted accounting principals in accounting for its assets, liabilities,
             7330      and operations;
             7331          (ii) seek corporate sponsorships for the state fair park and for individual buildings or
             7332      facilities within the fair park;
             7333          (iii) work with county and municipal governments, the Salt Lake Convention and
             7334      Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
             7335      expositions and the use of the state fair park;
             7336          (iv) develop and maintain a marketing program to promote expositions and the use of
             7337      the state fair park;
             7338          (v) in cooperation with the Division of Facilities Construction and Management,
             7339      maintain the physical appearance and structural integrity of the state fair park and the buildings
             7340      located at the state fair park;
             7341          (vi) hold an annual exhibition that:
             7342          (A) is called the state fair or a similar name;
             7343          (B) includes expositions of livestock, poultry, agricultural, domestic science,
             7344      horticultural, floricultural, mineral, and industrial products, manufactured articles, and


             7345      domestic animals that, in the corporation's opinion will best stimulate agricultural, industrial,
             7346      artistic, and educational pursuits and the sharing of talents among the people of Utah;
             7347          (C) includes the award of premiums for the best specimens of the exhibited articles and
             7348      animals;
             7349          (D) permits competition by livestock exhibited by citizens of other states and territories
             7350      of the United States; and
             7351          (E) is arranged according to plans approved by the board;
             7352          (vii) fix the conditions of entry to the exposition described in Subsection (5)(a)(vi); and
             7353          (viii) publish a list of premiums that will be awarded at the exhibition described in
             7354      Subsection (5)(a)(vi) for the best specimens of exhibited articles and animals.
             7355          (b) In addition to the state fair to be held in accordance with Subsection (5)(a)(vi), the
             7356      corporation may hold other exhibitions of livestock, poultry, agricultural, domestic science,
             7357      horticultural, floricultural, mineral, and industrial products, manufactured articles, and
             7358      domestic animals that, in its opinion, will best stimulate agricultural, industrial, artistic, and
             7359      educational pursuits and the sharing of talents among the people of Utah.
             7360          (6) The corporation may:
             7361          (a) employ advisers, consultants, and agents, including financial experts and
             7362      independent legal counsel, and fix their compensation;
             7363          (b) procure insurance against any loss in connection with its property and other assets,
             7364      including mortgage loans;
             7365          (c) receive and accept aid or contributions of money, property, labor, or other things of
             7366      value from any source, including any grants or appropriations from any department, agency, or
             7367      instrumentality of the United States or Utah;
             7368          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
             7369      purposes of the corporation, subject to the conditions, if any, upon which the aid and
             7370      contributions were made;
             7371          (e) enter into management agreements with any person or entity for the performance of
             7372      its functions or powers;
             7373          (f) establish whatever accounts and procedures as necessary to budget, receive, and
             7374      disburse, account for, and audit all funds received, appropriated, or generated;
             7375          (g) enter into agreements for the leasing of any of the facilities at the state fair park, if


             7376      approved by the board; and
             7377          (h) sponsor events as approved by the board.
             7378          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
             7379      corporation is exempt from:
             7380          (i) Title 51, Chapter 5, Funds Consolidation Act;
             7381          (ii) Title 51, Chapter 7, State Money Management Act;
             7382          (iii) Title 63A, Utah Administrative Services Code;
             7383          (iv) Title 63G, Chapter [6] 6a, Utah Procurement Code;
             7384          (v) Title 63J, Chapter 1, Budgetary Procedures Act; and
             7385          (vi) Title 67, Chapter 19, Utah State Personnel Management Act.
             7386          (b) The board shall adopt policies parallel to and consistent with:
             7387          (i) Title 51, Chapter 5, Funds Consolidation Act;
             7388          (ii) Title 51, Chapter 7, State Money Management Act;
             7389          (iii) Title 63A, Utah Administrative Services Code;
             7390          (iv) Title 63G, Chapter [6] 6a, Utah Procurement Code; and
             7391          (v) Title 63J, Chapter 1, Budgetary Procedures Act.
             7392          (c) The corporation shall comply with the legislative approval requirements for new
             7393      facilities established in Subsection 63A-5-104 (3).
             7394          Section 218. Section 63I-1-263 is amended to read:
             7395           63I-1-263. Repeal dates, Titles 63A to 63M.
             7396          (1) Section 63A-4-204 , authorizing the Risk Management Fund to provide coverage to
             7397      any public school district which chooses to participate, is repealed July 1, 2016.
             7398          (2) Section 63A-5-603 , State Facility Energy Efficiency Fund, is repealed July 1, 2016.
             7399          (3) Section 63C-8-106 , rural residency training program, is repealed July 1, 2015.
             7400          (4) Title 63C, Chapter 13, Prison Relocation and Development Authority Act, is
             7401      repealed July 1, 2014.
             7402          (5) Subsection [ 63G-6-502 (5)(b)(ii)] 63G-6a-1402 (7) authorizing certain transportation
             7403      agencies to award a contract for a design-build transportation project in certain circumstances,
             7404      is repealed July 1, 2015.
             7405          (6) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
             7406      2020.


             7407          (7) The Resource Development Coordinating Committee, created in Section
             7408      63J-4-501 , is repealed July 1, 2015.
             7409          (8) Title 63M, Chapter 1, Part 4, Enterprise Zone Act, is repealed July 1, 2018.
             7410          (9) (a) Title 63M, Chapter 1, Part 11, Recycling Market Development Zone Act, is
             7411      repealed January 1, 2021.
             7412          (b) Subject to Subsection (9)(c), Sections 59-7-610 and 59-10-1007 regarding tax
             7413      credits for certain persons in recycling market development zones, are repealed for taxable
             7414      years beginning on or after January 1, 2012.
             7415          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007 :
             7416          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
             7417      59-10-1007 , if the machinery or equipment is purchased on or after January 1, 2012; or
             7418          (ii) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), if
             7419      the expenditure is made on or after January 1, 2012.
             7420          (d) Notwithstanding Subsections (9)(b) and (c), a person may carry forward a tax credit
             7421      in accordance with Section 59-7-610 or 59-10-1007 if:
             7422          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007 ; and
             7423          (ii) (A) for the purchase price of machinery or equipment described in Section
             7424      59-7-610 or 59-10-1007 , the machinery or equipment is purchased on or before December 31,
             7425      2011; or
             7426          (B) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), the
             7427      expenditure is made on or before December 31, 2011.
             7428          (10) The Crime Victim Reparations and Assistance Board, created in Section
             7429      63M-7-504 , is repealed July 1, 2017.
             7430          (11) Title 63M, Chapter 8, Utah Commission for Women and Families Act, is repealed
             7431      July 1, 2011.
             7432          (12) Title 63M, Chapter 9, Families, Agencies, and Communities Together for
             7433      Children and Youth At Risk Act, is repealed July 1, 2016.
             7434          (13) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2012.
             7435          Section 219. Section 63M-1-2602 is amended to read:
             7436           63M-1-2602. Definitions.
             7437          As used in this part:


             7438          (1) "Affected department" means, as applicable, the Board of Education or the
             7439      Department of Technology Services.
             7440          (2) "Board" means the Board of Business and Economic Development created under
             7441      Section 63M-1-301 .
             7442          (3) "Board of Education" means the Utah State Board of Education.
             7443          (4) "Chief procurement officer" means the chief procurement officer appointed under
             7444      Section [ 63G-6-203 ] 63G-6a-302 .
             7445          (5) "Committee" means the proposal review committee created under Section
             7446      63M-1-2604 .
             7447          (6) "Day" means a calendar day.
             7448          (7) "Director" is as defined in Section 63M-1-102 .
             7449          (8) "Executive Appropriations Committee" means the Legislature's Executive
             7450      Appropriations Committee.
             7451          (9) "Information technology" is as defined in Section 63F-1-102 .
             7452          (10) "Office" means the Governor's Office of Economic Development created under
             7453      Section 63M-1-201 .
             7454          (11) "Private entity" means a person submitting a proposal under this part for the
             7455      purpose of entering into a project.
             7456          (12) "Project" means the subject of a proposal or an agreement for the procurement or
             7457      disposal of:
             7458          (a) information technology or telecommunications products or services; or
             7459          (b) supplies or services for or on behalf of the Department of Technology Services or
             7460      the Board of Education.
             7461          (13) "Proposal" means an unsolicited offer by a private entity to undertake a project,
             7462      including an initial proposal under Section 63M-1-2605 and a detailed proposal under Section
             7463      63M-1-2608 .
             7464          (14) "Services" is as defined in Section [ 63G-6-103 ] 63G-6a-103 .
             7465          (15) "Supplies" is as defined in Section [ 63G-6-103 ] 63G-6a-103 .
             7466          (16) "Telecommunications" is as defined in Section 63F-1-102 .
             7467          Section 220. Section 63M-1-2603 is amended to read:
             7468           63M-1-2603. Government Procurement Private Proposal Program -- Proposals --


             7469      Rulemaking.
             7470          (1) There is created within the office the Government Procurement Private Proposal
             7471      Program.
             7472          (2) In accordance with this part, the board may:
             7473          (a) accept a proposal for a project;
             7474          (b) solicit comments, suggestions, and modifications to a project in accordance with
             7475      Section [ 63G-6-408.5 ] 63G-6a-711 ; and
             7476          (c) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             7477      Rulemaking Act, establishing requirements, including time limits for any action required by the
             7478      affected department, a directly affected state entity or school district, or the Governor's Office
             7479      of Planning and Budget, for the procurement of a project to the extent not governed by Title
             7480      63G, Chapter [6] 6a, Utah Procurement Code.
             7481          Section 221. Section 63M-1-2605 is amended to read:
             7482           63M-1-2605. Initial proposal -- Requirements.
             7483          (1) In accordance with this part, a private entity may at any time submit to the
             7484      committee an initial proposal for a project.
             7485          (2) An initial proposal shall include:
             7486          (a) a conceptual description of the project;
             7487          (b) a description of the economic benefit of the project to the state and the affected
             7488      department;
             7489          (c) information concerning the products, services, and supplies currently being
             7490      provided by the state, that are similar to the project;
             7491          (d) an estimate of the following costs associated with the project:
             7492          (i) design;
             7493          (ii) implementation;
             7494          (iii) operation and maintenance; and
             7495          (iv) any other related project cost; and
             7496          (e) the name and address of a person who may be contacted for further information
             7497      concerning the initial proposal.
             7498          (3) A private entity submitting an initial proposal under this section shall pay the fee
             7499      required by Section 63M-1-2612 when the initial proposal is submitted.


             7500          (4) An initial proposal submitted under this section is a protected record under Title
             7501      63G, Chapter 2, Government Records Access and Management Act, until the chief
             7502      procurement officer initiates a procurement process in accordance with Section [ 63G-6-408.5 ]
             7503      63G-6a-711 .
             7504          (5) The board shall make rules in accordance with Title 63G, Chapter 3, Utah
             7505      Administrative Rulemaking Act, detailing the portions of an initial proposal that remain
             7506      protected after the chief procurement officer initiates a procurement process.
             7507          Section 222. Section 63M-1-2606 is amended to read:
             7508           63M-1-2606. Review of initial proposal -- Affected department review.
             7509          (1) The committee shall review and evaluate an initial proposal submitted in
             7510      accordance with:
             7511          (a) this part; and
             7512          (b) any rule established by the board under Section 63M-1-2603 .
             7513          (2) If the committee, in its sole discretion, determines to proceed with the project, the
             7514      committee shall submit a copy of the initial proposal to:
             7515          (a) the affected department; and
             7516          (b) the Governor's Office of Planning and Budget.
             7517          (3) (a) An affected department, directly affected state entity, and school district
             7518      receiving a copy of the initial proposal under Subsection (2) or (4) shall review the initial
             7519      proposal and provide the committee with any comment, suggestion, or modification to the
             7520      project.
             7521          (b) After receiving an initial proposal, the Governor's Office of Planning and Budget
             7522      shall prepare an economic feasibility report containing:
             7523          (i) information concerning the economic feasibility and effectiveness of the project
             7524      based upon competent evidence;
             7525          (ii) a dollar amount representing the total estimated fiscal impact of the project to the
             7526      affected department and the state; and
             7527          (iii) any other matter the committee requests or is required by the board by rule.
             7528          (4) In reviewing an initial proposal, the affected department shall share the initial
             7529      proposal with any other state entity or school district that will be directly affected if the
             7530      proposal is ultimately adopted, if the confidentiality of the initial proposal is maintained.


             7531          (5) If the committee determines to proceed with the project, the committee shall submit
             7532      a copy of the initial proposal, including any comment, suggestion, or modification to the initial
             7533      proposal, to:
             7534          (a) the chief procurement officer in accordance with Section [ 63G-6-408.5 ]
             7535      63G-6a-711 ; and
             7536          (b) the Executive Appropriations Committee, for informational purposes.
             7537          (6) Before taking any action under Subsection (5), the committee shall consider:
             7538          (a) any comment, suggestion, or modification to the initial proposal submitted in
             7539      accordance with Subsection (3);
             7540          (b) the extent to which the project is practical, efficient, and economically beneficial to
             7541      the state and the affected department;
             7542          (c) the economic feasibility report prepared by the Governor's Office of Planning and
             7543      Budget; and
             7544          (d) any other reasonable factor identified by the committee or required by the board by
             7545      rule.
             7546          Section 223. Section 63M-1-2607 is amended to read:
             7547           63M-1-2607. Acceptance of initial proposal -- Obtaining detailed proposals.
             7548          (1) If an initial proposal is accepted under Section 63M-1-2606 , the chief procurement
             7549      officer shall:
             7550          (a) take action under Section [ 63G-6-408.5 ] 63G-6a-711 to initiate a procurement
             7551      process to obtain one or more detailed proposals using information from portions of the initial
             7552      proposal that are not protected records under Title 63G, Chapter 2, Government Records [and]
             7553      Access and Management Act;
             7554          (b) consult with the committee during the procurement process; and
             7555          (c) submit all detailed proposals that meet the guidelines established under Subsection
             7556      63M-1-2608 (1), including the detailed proposal submitted by the private entity that submitted
             7557      the initial proposal for the project, to:
             7558          (i) the committee; and
             7559          (ii) the Governor's Office of Planning and Budget.
             7560          (2) The office is considered the purchasing agency for a procurement process initiated
             7561      under this part.


             7562          Section 224. Section 63M-1-2608 is amended to read:
             7563           63M-1-2608. Detailed proposal -- Requirements -- Cooperation of affected
             7564      department.
             7565          (1) A detailed proposal submitted in response to a procurement process initiated under
             7566      Section 63M-1-2607 shall include:
             7567          (a) a conceptual description of the project, including the scope of the work;
             7568          (b) a description of the economic benefit of the project to the state and the affected
             7569      department;
             7570          (c) an estimate of the design, implementation, operation, maintenance, or other costs
             7571      associated with the project;
             7572          (d) information concerning the information technology or telecommunication product
             7573      and service or other supply or service currently provided by the state that is similar to the
             7574      project being proposed, if applicable;
             7575          (e) a statement setting forth the private entity's general plan for financing the project,
             7576      including any appropriation by the Legislature or other public money and, if applicable, the
             7577      sources of the private entity's funds and identification of any dedicated revenue source or
             7578      proposed debt or equity investment on behalf of the private entity;
             7579          (f) the name and address of the person who may be contacted for further information
             7580      concerning the detailed proposal;
             7581          (g) a statement describing the private entity's experience with other similar projects and
             7582      a description of why the private entity is best qualified for the project; and
             7583          (h) any other information:
             7584          (i) reasonably requested by the affected department or the committee, or required by
             7585      the board by rule; or
             7586          (ii) that the private entity considers necessary or appropriate to complete or describe
             7587      the detailed proposal.
             7588          (2) To assist each private entity in preparing a detailed proposal:
             7589          (a) the affected department shall provide each private entity with access to all
             7590      information, records, documents, and reports related to the proposal and the project that are
             7591      designated public records under Title 63G, Chapter 2, Government Records Access and
             7592      Management Act; and


             7593          (b) the affected department and the committee shall cooperate with each private entity
             7594      to assist the private entity in the development of a detailed proposal that is:
             7595          (i) practical;
             7596          (ii) efficient; and
             7597          (iii) economically beneficial to the state and the affected department.
             7598          (3) The committee or any private entity may choose to terminate the development of
             7599      the detailed proposal at any time before the submission of the detailed proposal to the chief
             7600      procurement officer under Section [ 63G-6-408.5 ] 63G-6a-711 .
             7601          Section 225. Section 63M-1-2610 is amended to read:
             7602           63M-1-2610. Project agreement.
             7603          (1) If the board accepts the detailed proposal, the director shall:
             7604          (a) prepare a project agreement in consultation with the affected department and any
             7605      other state entity directly impacted by the detailed proposal; and
             7606          (b) enter into the project agreement with the private entity.
             7607          (2) A project agreement shall be signed by the director, the affected department, a
             7608      directly affected state entity or school district, and the private entity.
             7609          (3) A project agreement shall include provisions concerning:
             7610          (a) the scope of the project;
             7611          (b) the pricing method of the project;
             7612          (c) the director's or the state's ability to terminate for convenience or for default, and
             7613      any termination compensation to be paid to the private entity, if applicable;
             7614          (d) the ability to monitor performance under the project agreement;
             7615          (e) the appropriate limits of liability;
             7616          (f) the appropriate transition of services, if applicable;
             7617          (g) the exceptions from applicable rules and procedures for the implementation and
             7618      administration of the project by the affected department, if any;
             7619          (h) the clauses and remedies applicable to state contracts under Title 63G, Chapter [6,
             7620      Part 6, Contract Clauses] 6a, Part 12, Contracts and Change Orders; and
             7621          (i) any other matter reasonably requested by the committee or required by the board by
             7622      rule.
             7623          (4) A copy of the signed project agreement shall be submitted to:


             7624          (a) the affected department; and
             7625          (b) the Executive Appropriations Committee.
             7626          (5) A project agreement is considered a contract under Title 63G, Chapter [6] 6a, Utah
             7627      Procurement Code.
             7628          (6) The affected department shall implement and administer the project agreement in
             7629      accordance with rules made under Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             7630      except as modified by the project agreement under Subsection (3)(g).
             7631          Section 226. Section 64-13a-13 is amended to read:
             7632           64-13a-13. Purchases of material -- Exemption.
             7633          (1) The Division of Correctional Industries is exempt from the provisions of Title 63G,
             7634      Chapter [6] 6a, Utah Procurement Code, in respect to goods or services purchased by or sold to
             7635      the department.
             7636          (2) The purchase of raw materials for use by the division in manufacturing or
             7637      processing products for resale is exempt from the powers and duties of the state purchasing
             7638      agent.
             7639          Section 227. Section 67-16-4 is amended to read:
             7640           67-16-4. Improperly disclosing or using private, controlled, or protected
             7641      information -- Using position to secure privileges or exemptions -- Accepting employment
             7642      which would impair independence of judgment or ethical performance -- Exceptions.
             7643          (1) Except as provided in Subsection (3), it is an offense for a public officer, public
             7644      employee, or legislator, under circumstances not amounting to a violation of Section
             7645      [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 , to:
             7646          (a) accept employment or engage in any business or professional activity that he might
             7647      reasonably expect would require or induce him to improperly disclose controlled information
             7648      that he has gained by reason of his official position;
             7649          (b) disclose or improperly use controlled, private, or protected information acquired by
             7650      reason of his official position or in the course of official duties in order to further substantially
             7651      the officer's or employee's personal economic interest or to secure special privileges or
             7652      exemptions for himself or others;
             7653          (c) use or attempt to use his official position to:
             7654          (i) further substantially the officer's or employee's personal economic interest; or


             7655          (ii) secure special privileges or exemptions for himself or others;
             7656          (d) accept other employment that he might expect would impair his independence of
             7657      judgment in the performance of his public duties; or
             7658          (e) accept other employment that he might expect would interfere with the ethical
             7659      performance of his public duties.
             7660          (2) (a) Subsection (1) does not apply to the provision of education-related services to
             7661      public school students by public education employees acting outside their regular employment.
             7662          (b) The conduct referred to in Subsection (2)(a) is subject to Section 53A-1-402.5 .
             7663          (3) A county legislative body member who does not participate in the process of
             7664      selecting a mental health or substance abuse service provider does not commit an offense under
             7665      Subsection (1)(a) or (b) by:
             7666          (a) serving also as a member of the governing board of the provider of mental health or
             7667      substance abuse services under contract with the county; or
             7668          (b) discharging, in good faith, the duties and responsibilities of each position.
             7669          Section 228. Section 67-16-5 is amended to read:
             7670           67-16-5. Accepting gift, compensation, or loan -- When prohibited.
             7671          (1) As used in this section, "economic benefit tantamount to a gift" includes:
             7672          (a) a loan at an interest rate that is substantially lower than the commercial rate then
             7673      currently prevalent for similar loans; and
             7674          (b) compensation received for private services rendered at a rate substantially
             7675      exceeding the fair market value of the services.
             7676          (2) It is an offense for a public officer or public employee, under circumstances not
             7677      amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 , to knowingly
             7678      receive, accept, take, seek, or solicit, directly or indirectly for himself or another a gift of
             7679      substantial value or a substantial economic benefit tantamount to a gift:
             7680          (a) that would tend improperly to influence a reasonable person in the person's position
             7681      to depart from the faithful and impartial discharge of the person's public duties;
             7682          (b) that the public officer or public employee knows or that a reasonable person in that
             7683      position should know under the circumstances is primarily for the purpose of rewarding the
             7684      public officer or public employee for official action taken; or
             7685          (c) if the public officer or public employee recently has been, is now, or in the near


             7686      future may be involved in any governmental action directly affecting the donor or lender,
             7687      unless a disclosure of the gift, compensation, or loan and other relevant information has been
             7688      made in the manner provided in Section 67-16-6 .
             7689          (3) Subsection (2) does not apply to:
             7690          (a) an occasional nonpecuniary gift, having a value of not in excess of $50;
             7691          (b) an award publicly presented in recognition of public services;
             7692          (c) any bona fide loan made in the ordinary course of business; or
             7693          (d) a political campaign contribution.
             7694          Section 229. Section 67-16-5.3 is amended to read:
             7695           67-16-5.3. Requiring donation, payment, or service to government agency in
             7696      exchange for approval -- When prohibited.
             7697          (1) It is an offense for a public officer, public employee, or legislator, under
             7698      circumstances not amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 ,
             7699      to demand from any person as a condition of granting any application or request for a permit,
             7700      approval, or other authorization, that the person donate personal property, money, or services to
             7701      any agency.
             7702          (2) (a) Subsection (1) does not apply to any donation of property, funds, or services to
             7703      an agency that is:
             7704          (i) expressly required by statute, ordinance, or agency rule;
             7705          (ii) mutually agreed to between the applicant and the entity issuing the permit,
             7706      approval, or other authorization;
             7707          (iii) made voluntarily by the applicant; or
             7708          (iv) a condition of a consent decree, settlement agreement, or other binding instrument
             7709      entered into to resolve, in whole or in part, an actual or threatened agency enforcement action.
             7710          (b) If a person donates property, funds, or services to an agency, the agency shall, as
             7711      part of the permit or other written authorization:
             7712          (i) identify that a donation has been made;
             7713          (ii) describe the donation;
             7714          (iii) certify, in writing, that the donation was voluntary; and
             7715          (iv) place that information in its files.
             7716          Section 230. Section 67-16-6 is amended to read:


             7717           67-16-6. Receiving compensation for assistance in transaction involving an
             7718      agency -- Filing sworn statement.
             7719          (1) It is an offense for a public officer or public employee, under circumstances not
             7720      amounting to a violation of Section [ 63G-6-1001 ] 63G-6a-2304 or 76-8-105 , to receive or
             7721      agree to receive compensation for assisting any person or business entity in any transaction
             7722      involving an agency unless the public officer or public employee files a sworn, written
             7723      statement containing the information required by Subsection (2) with:
             7724          (a) the head of the officer or employee's own agency;
             7725          (b) the agency head of the agency with which the transaction is being conducted; and
             7726          (c) the state attorney general.
             7727          (2) The statement shall contain:
             7728          (a) the name and address of the public officer or public employee involved;
             7729          (b) the name of the public officer's or public employee's agency;
             7730          (c) the name and address of the person or business entity being or to be assisted; and
             7731          (d) a brief description of:
             7732          (i) the transaction as to which service is rendered or is to be rendered; and
             7733          (ii) the nature of the service performed or to be performed.
             7734          (3) The statement required to be filed under Subsection (1) shall be filed within 10
             7735      days after the date of any agreement between the public officer or public employee and the
             7736      person or business entity being assisted or the receipt of compensation, whichever is earlier.
             7737          (4) The statement is public information and shall be available for examination by the
             7738      public.
             7739          Section 231. Section 72-6-107 is amended to read:
             7740           72-6-107. Construction or improvement of highway -- Contracts -- Retainage --
             7741      Certain indemnification provisions forbidden.
             7742          (1) As used in this section, "design professional" means:
             7743          (a) an architect, licensed under Title 58, Chapter 3a, Architects Licensing Act;
             7744          (b) a landscape architect, licensed under Title 58, Chapter 53, Landscape Architects
             7745      Licensing Act; and
             7746          (c) a professional engineer or professional land surveyor, licensed under Title 58,
             7747      Chapter 22, Professional Engineers and Professional Land Surveyors Licensing Act.


             7748          (2) (a) The department shall make plans, specifications, and estimates prior to the
             7749      construction or improvement of any state highway.
             7750          (b) Except as provided in Section [ 63G-6-502 ] 63G-6a-1402 and except for
             7751      construction or improvements performed with state prison labor, a construction or
             7752      improvement project with an estimated cost exceeding the bid limit as defined in Section
             7753      72-6-109 for labor and materials shall be performed under contract awarded to the lowest
             7754      responsible bidder.
             7755          (c) (i) The department:
             7756          (A) shall publish an advertisement for bids in accordance with Section 45-1-101 , for a
             7757      period of two weeks ending no more than 10 days before bids are opened; and
             7758          (B) may publish an advertisement for bids in a newspaper of general circulation in the
             7759      county in which the work is to be performed.
             7760          (ii) If the department publishes an advertisement for bids in a newspaper under
             7761      Subsection (2)(c)(i)(B), the department shall publish the advertisement at least once a week for
             7762      two consecutive weeks, with the last publication at least 10 days before bids are opened.
             7763          (d) The department shall receive sealed bids and open the bids at the time and place
             7764      designated in the advertisement. The department may then award the contract but may reject
             7765      any and all bids.
             7766          (e) If the department's estimates are substantially lower than any responsible bid
             7767      received, the department may perform any work by force account.
             7768          (3) If any payment on a contract with a private contractor for construction or
             7769      improvement of a state highway is retained or withheld, the payment shall be retained or
             7770      withheld and released as provided in Section 13-8-5 .
             7771          (4) If the department performs a construction or improvement project by force account,
             7772      the department shall:
             7773          (a) provide an accounting of the costs and expenditures of the improvement including
             7774      material and labor;
             7775          (b) disclose the costs and expenditures to any person upon request and allow the person
             7776      to make a copy and pay for the actual cost of the copy; and
             7777          (c) perform the work using the same specifications and standards that would apply to a
             7778      private contractor.


             7779          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             7780      department shall establish procedures for:
             7781          (a) hearing evidence that a region within the department violated this section; and
             7782          (b) administering sanctions against the region if the region is found in violation.
             7783          (6) (a) Beginning May 12, 2009, a contract, including an amendment to an existing
             7784      contract, entered into under authority of this chapter may not require that a design professional
             7785      indemnify another from liability claims that arise out of the design professional's services,
             7786      unless the liability claim arises from the design professional's negligent act, wrongful act, error
             7787      or omission, or other liability imposed by law.
             7788          (b) Subsection (6)(a) may not be waived by contract.
             7789          (c) Notwithstanding Subsections (6)(a) and (b), a design professional may be required
             7790      to indemnify a person for whom the design professional has direct or indirect control or
             7791      responsibility.
             7792          Section 232. Section 72-6-107.5 is amended to read:
             7793           72-6-107.5. Construction of improvements of highway -- Contracts -- Health
             7794      insurance coverage.
             7795          (1) For purposes of this section:
             7796          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             7797      34A-2-104 who:
             7798          (i) works at least 30 hours per calendar week; and
             7799          (ii) meets employer eligibility waiting requirements for health care insurance which
             7800      may not exceed the first day of the calendar month following 90 days from the date of hire.
             7801          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             7802          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             7803          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             7804          (2) (a) Except as provided in Subsection (3), this section applies to contracts entered
             7805      into by the department on or after July 1, 2009, for construction or design of highways and to a
             7806      prime contractor or to a subcontractor in accordance with Subsection (2)(b).
             7807          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             7808      amount of $1,500,000 or greater.
             7809          (ii) A subcontractor is subject to this section if a subcontract is in the amount of


             7810      $750,000 or greater.
             7811          (3) This section does not apply if:
             7812          (a) the application of this section jeopardizes the receipt of federal funds;
             7813          (b) the contract is a sole source contract; or
             7814          (c) the contract is an emergency procurement.
             7815          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             7816      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             7817      threshold required by Subsection (2).
             7818          (b) A person who intentionally uses change orders or contract modifications to
             7819      circumvent the requirements of Subsection (2) is guilty of an infraction.
             7820          (5) (a) A contractor subject to Subsection (2) shall demonstrate to the department that
             7821      the contractor has and will maintain an offer of qualified health insurance coverage for the
             7822      contractor's employees and the employees' dependents during the duration of the contract.
             7823          (b) If a subcontractor of the contractor is subject to Subsection (2), the contractor shall
             7824      demonstrate to the department that the subcontractor has and will maintain an offer of qualified
             7825      health insurance coverage for the subcontractor's employees and the employees' dependents
             7826      during the duration of the contract.
             7827          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             7828      the duration of the contract is subject to penalties in accordance with administrative rules
             7829      adopted by the department under Subsection (6).
             7830          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             7831      requirements of Subsection (5)(b).
             7832          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             7833      the duration of the contract is subject to penalties in accordance with administrative rules
             7834      adopted by the department under Subsection (6).
             7835          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             7836      requirements of Subsection (5)(a).
             7837          (6) The department shall adopt administrative rules:
             7838          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             7839          (b) in coordination with:
             7840          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;


             7841          (ii) the Department of Natural Resources in accordance with Section 79-2-404 ;
             7842          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             7843          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             7844          (v) a public transit district in accordance with Section 17B-2a-818.5 ; and
             7845          (vi) the Legislature's Administrative Rules Review Committee; and
             7846          (c) which establish:
             7847          (i) the requirements and procedures a contractor must follow to demonstrate to the
             7848      department compliance with this section which shall include:
             7849          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             7850      (b) more than twice in any 12-month period; and
             7851          (B) that the actuarially equivalent determination required for qualified health insurance
             7852      coverage in Subsection (1) is met by the contractor if the contractor provides the department or
             7853      division with a written statement of actuarial equivalency from either:
             7854          (I) the Utah Insurance Department;
             7855          (II) an actuary selected by the contractor or the contractor's insurer; or
             7856          (III) an underwriter who is responsible for developing the employer group's premium
             7857      rates;
             7858          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             7859      violates the provisions of this section, which may include:
             7860          (A) a three-month suspension of the contractor or subcontractor from entering into
             7861      future contracts with the state upon the first violation;
             7862          (B) a six-month suspension of the contractor or subcontractor from entering into future
             7863      contracts with the state upon the second violation;
             7864          (C) an action for debarment of the contractor or subcontractor in accordance with
             7865      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             7866          (D) monetary penalties which may not exceed 50% of the amount necessary to
             7867      purchase qualified health insurance coverage for an employee and a dependent of the employee
             7868      of the contractor or subcontractor who was not offered qualified health insurance coverage
             7869      during the duration of the contract; and
             7870          (iii) a website on which the department shall post the benchmark for the qualified
             7871      health insurance coverage identified in Subsection (1)(c).


             7872          (7) (a) (i) In addition to the penalties imposed under Subsection (6), a contractor or
             7873      subcontractor who intentionally violates the provisions of this section shall be liable to the
             7874      employee for health care costs that would have been covered by qualified health insurance
             7875      coverage.
             7876          (ii) An employer has an affirmative defense to a cause of action under Subsection
             7877      (7)(a)(i) if:
             7878          (A) the employer relied in good faith on a written statement of actuarial equivalency
             7879      provided by:
             7880          (I) an actuary; or
             7881          (II) an underwriter who is responsible for developing the employer group's premium
             7882      rates; or
             7883          (B) the department determines that compliance with this section is not required under
             7884      the provisions of Subsection (3) or (4).
             7885          (b) An employee has a private right of action only against the employee's employer to
             7886      enforce the provisions of this Subsection (7).
             7887          (8) Any penalties imposed and collected under this section shall be deposited into the
             7888      Medicaid Restricted Account created in Section 26-18-402 .
             7889          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             7890      coverage as required by this section:
             7891          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             7892      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             7893      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             7894          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             7895      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             7896      or construction.
             7897          Section 233. Section 72-6-108 is amended to read:
             7898           72-6-108. Class B and C roads -- Improvement projects -- Contracts -- Retainage.
             7899          (1) A county executive for class B roads and the municipal executive for class C roads
             7900      shall cause plans, specifications, and estimates to be made prior to the construction of any
             7901      improvement project, as defined in Section 72-6-109 , on a class B or C road if the estimated
             7902      cost for any one project exceeds the bid limit as defined in Section 72-6-109 for labor,


             7903      equipment, and materials.
             7904          (2) (a) All projects in excess of the bid limit shall be performed under contract to be let
             7905      to the lowest responsible bidder.
             7906          (b) If the estimated cost of the improvement project exceeds the bid limit for labor,
             7907      equipment, and materials, the project may not be divided to permit the construction in parts,
             7908      unless each part is done by contract.
             7909          (3) (a) The advertisement on bids shall be published:
             7910          (i) in a newspaper of general circulation in the county in which the work is to be
             7911      performed at least once a week for three consecutive weeks; and
             7912          (ii) in accordance with Section 45-1-101 for three weeks.
             7913          (b) If there is no newspaper of general circulation as described in Subsection (3)(a)(i),
             7914      the notice shall be posted for at least 20 days in at least five public places in the county.
             7915          (4) The county or municipal executive or their designee shall receive sealed bids and
             7916      open the bids at the time and place designated in the advertisement. The county or municipal
             7917      executive or their designee may then award the contract but may reject any and all bids.
             7918          (5) The person, firm, or corporation that is awarded a contract under this section is
             7919      subject to the provisions of Title 63G, Chapter [6] 6a, Utah Procurement Code.
             7920          (6) If any payment on a contract with a private contractor for construction or
             7921      improvement of a class B or C road is retained or withheld, the payment shall be retained or
             7922      withheld and released as provided in Section 13-8-5 .
             7923          Section 234. Section 72-6-205 is amended to read:
             7924           72-6-205. Solicited and unsolicited tollway development agreement proposals.
             7925          (1) In accordance with this section, the department may:
             7926          (a) accept unsolicited tollway development agreement proposals; or
             7927          (b) solicit tollway development agreement proposals for a proposed project.
             7928          (2) The department shall solicit tollway development agreement proposals in
             7929      accordance with Section [ 63G-6-503 ] 63G-6a-1403 .
             7930          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             7931      department and the commission shall establish rules and procedures for accepting unsolicited
             7932      proposals that require the:
             7933          (a) private entity that submits the unsolicited proposal to comply with the minimum


             7934      requirements for tollway development agreement proposals under Section 72-6-204 ;
             7935          (b) department to issue a request for competing proposals and qualifications that
             7936      includes:
             7937          (i) a description of the proposed tollway development facility and the terms and
             7938      conditions of a tollway development agreement;
             7939          (ii) submittal requirements;
             7940          (iii) the criteria to be used to evaluate the proposals;
             7941          (iv) the relative weight given to the criteria; and
             7942          (v) the deadline by which competing proposals must be received; and
             7943          (c) department to publish a notice advertising the request for competing proposals and
             7944      providing information regarding how to obtain a copy of the request.
             7945          (4) (a) The department may establish a fee in accordance with Section 63J-1-504 for
             7946      reviewing unsolicited proposals and competing proposals submitted under this section.
             7947          (b) The department may waive the fee under Subsection (4)(a) if it determines that it is
             7948      reasonable and in the best interest of the state.
             7949          Section 235. Section 72-7-504 is amended to read:
             7950           72-7-504. Advertising prohibited near interstate or primary system -- Exceptions
             7951      -- Logo advertising -- Department rules.
             7952          (1) Outdoor advertising that is capable of being read or comprehended from any place
             7953      on the main-traveled way of an interstate or primary system may not be erected or maintained,
             7954      except:
             7955          (a) directional and other official signs and notices authorized or required by law,
             7956      including signs and notices pertaining to natural wonders and scenic and historic attractions,
             7957      informational or directional signs regarding utility service, emergency telephone signs, buried
             7958      or underground utility markers, and above ground utility closure signs;
             7959          (b) signs advertising the sale or lease of property upon which they are located;
             7960          (c) signs advertising activities conducted on the property where they are located,
             7961      including signs on the premises of a public assembly facility as provided in Section 72-7-504.5 ;
             7962          (d) signs located in a commercial or industrial zone;
             7963          (e) signs located in unzoned industrial or commercial areas as determined from actual
             7964      land uses; and


             7965          (f) logo advertising under Subsection (2).
             7966          (2) (a) The department may itself or by contract erect, administer, and maintain
             7967      informational signs on the main-traveled way of an interstate or primary system for the display
             7968      of logo advertising and information of interest to the traveling public if:
             7969          (i) the department complies with Title 63G, Chapter [6] 6a, Utah Procurement Code, in
             7970      the lease or other contract agreement with a private party for the sign or sign space; and
             7971          (ii) the private party for the lease of the sign or sign space pays an amount set by the
             7972      department to be paid to the department or the party under contract with the department under
             7973      this Subsection (2).
             7974          (b) The amount shall be sufficient to cover the costs of erecting, administering, and
             7975      maintaining the signs or sign spaces.
             7976          (c) The department may consult the Governor's Office of Economic Development in
             7977      carrying out this Subsection (2).
             7978          (3) (a) Revenue generated under Subsection (2) shall be:
             7979          (i) applied first to cover department costs under Subsection (2); and
             7980          (ii) deposited in the Transportation Fund.
             7981          (b) Revenue in excess of costs under Subsection (2)(a) shall be deposited in the
             7982      General Fund as a dedicated credit for use by the Governor's Office of Economic Development
             7983      no later than the following fiscal year.
             7984          (4) Outdoor advertising under Subsections (1)(a), (d), (e), and (f) shall conform to the
             7985      rules made by the department under Sections 72-7-506 and 72-7-507 .
             7986          Section 236. Section 73-10-27 is amended to read:
             7987           73-10-27. Definitions -- Project priorities -- Considerations -- Determinations of
             7988      feasibility -- Bids and contracts -- Definitions -- Retainage.
             7989          (1) As used in this section:
             7990          (a) "Board" means the Board of Water Resources created in Section 73-10-1.5 .
             7991          (b) "Estimated cost" means the cost of the labor, material, and equipment necessary for
             7992      construction of the contemplated project.
             7993          (c) "Lowest responsible bidder" means a licensed contractor:
             7994          (i) who:
             7995          (A) submits the lowest bid; and


             7996          (B) furnishes a payment bond and a performance bond under Sections 14-1-18 and
             7997      [ 63G-6-505 ] 63G-6a-1103 ; and
             7998          (ii) whose bid:
             7999          (A) is in compliance with the invitation for a bid; and
             8000          (B) meets the plans and specifications.
             8001          (2) In considering the priority for a project to be built or financed with funds made
             8002      available under Section 73-10-24 , the board shall give preference to a project that:
             8003          (a) is sponsored by, or for the benefit of, the state or a political subdivision of the state;
             8004          (b) meets a critical local need;
             8005          (c) has greater economic feasibility;
             8006          (d) will yield revenue to the state within a reasonable time or will return a reasonable
             8007      rate of interest, based on financial feasibility; and
             8008          (e) meets other considerations deemed necessary by the board, including wildlife
             8009      management and recreational needs.
             8010          (3) (a) In determining the economic feasibility, the board shall establish a
             8011      benefit-to-cost ratio for each project, using a uniform standard of procedure for all projects.
             8012          (b) In considering whether a project should be built, the benefit-to-cost ratio for each
             8013      project shall be weighted based on the relative cost of the project.
             8014          (c) A project, when considered in total with all other projects constructed under this
             8015      chapter and still the subject of a repayment contract, may not cause the accumulative
             8016      benefit-to-cost ratio of the projects to be less than one to one.
             8017          (4) A project may not be built if the project is not:
             8018          (a) in the public interest, as determined by the board; or
             8019          (b) adequately designed based on sound engineering and geologic considerations.
             8020          (5) In preparing a project constructed by the board, the board shall:
             8021          (a) based on a competitive bid, award a contract for:
             8022          (i) a flood control project:
             8023          (A) involving a city or county; and
             8024          (B) costing in excess of $35,000;
             8025          (ii) the construction of a storage reservoir in excess of 100 acre-feet; or
             8026          (iii) the construction of a hydroelectric generating facility;


             8027          (b) publish an advertisement for a competitive bid:
             8028          (i) at least once a week for three consecutive weeks in a newspaper with general
             8029      circulation in the state, with the last date of publication appearing at least five days before the
             8030      schedule bid opening; and
             8031          (ii) indicating that the board:
             8032          (A) will award the contract to the lowest responsible bidder; and
             8033          (B) reserves the right to reject any and all bids;
             8034          (c) readvertise the project in the manner specified in Subsection (5)(b) if the board
             8035      rejects all of the initial bids on the project; and
             8036          (d) keep an accurate record of all facts and representations relied upon in preparing the
             8037      board's estimated cost for a project that is subject to the competitive bidding requirements of
             8038      this section.
             8039          (6) If no satisfactory bid is received by the board upon the readvertisement of the
             8040      project in accordance with Subsection (5), the board may proceed to construct the project in
             8041      accordance with the plan and specifications used to calculate the estimated cost of the project.
             8042          (7) If a payment on a contract with a private contractor for construction of a project
             8043      under this section is retained or withheld, it shall be retained or withheld and released as
             8044      provided in Section 13-8-5 .
             8045          Section 237. Section 73-23-3 is amended to read:
             8046           73-23-3. Duties and powers of Division of Water Resources.
             8047          For purposes of this chapter, the Division of Water Resources:
             8048          (1) shall provide for the construction, operation, and maintenance of the West Desert
             8049      Pumping Project;
             8050          (2) may enter into agreements as necessary to provide for all or any portion of the West
             8051      Desert Pumping Project, including any indemnification agreements required by the federal
             8052      government;
             8053          (3) may acquire land or any other property right by any lawful means, including
             8054      eminent domain;
             8055          (4) is exempt from Title 63G, Chapter [6, the] 6a, Utah Procurement Code; and
             8056          (5) may proceed without obtaining water right approval from the state engineer.
             8057          Section 238. Section 76-10-1602 is amended to read:


             8058           76-10-1602. Definitions.
             8059          As used in this part:
             8060          (1) "Enterprise" means any individual, sole proprietorship, partnership, corporation,
             8061      business trust, association, or other legal entity, and any union or group of individuals
             8062      associated in fact although not a legal entity, and includes illicit as well as licit entities.
             8063          (2) "Pattern of unlawful activity" means engaging in conduct which constitutes the
             8064      commission of at least three episodes of unlawful activity, which episodes are not isolated, but
             8065      have the same or similar purposes, results, participants, victims, or methods of commission, or
             8066      otherwise are interrelated by distinguishing characteristics. Taken together, the episodes shall
             8067      demonstrate continuing unlawful conduct and be related either to each other or to the
             8068      enterprise. At least one of the episodes comprising a pattern of unlawful activity shall have
             8069      occurred after July 31, 1981. The most recent act constituting part of a pattern of unlawful
             8070      activity as defined by this part shall have occurred within five years of the commission of the
             8071      next preceding act alleged as part of the pattern.
             8072          (3) "Person" includes any individual or entity capable of holding a legal or beneficial
             8073      interest in property, including state, county, and local governmental entities.
             8074          (4) "Unlawful activity" means to directly engage in conduct or to solicit, request,
             8075      command, encourage, or intentionally aid another person to engage in conduct which would
             8076      constitute any offense described by the following crimes or categories of crimes, or to attempt
             8077      or conspire to engage in an act which would constitute any of those offenses, regardless of
             8078      whether the act is in fact charged or indicted by any authority or is classified as a misdemeanor
             8079      or a felony:
             8080          (a) any act prohibited by the criminal provisions of Title 13, Chapter 10, Unauthorized
             8081      Recording Practices Act;
             8082          (b) any act prohibited by the criminal provisions of Title 19, Environmental Quality
             8083      Code, Sections 19-1-101 through 19-7-109 ;
             8084          (c) taking, destroying, or possessing wildlife or parts of wildlife for the primary
             8085      purpose of sale, trade, or other pecuniary gain, in violation of Title 23, Wildlife Resources
             8086      Code of Utah, or Section 23-20-4 ;
             8087          (d) false claims for medical benefits, kickbacks, and any other act prohibited by Title
             8088      26, Chapter 20, Utah False Claims Act, Sections 26-20-1 through 26-20-12 ;


             8089          (e) any act prohibited by the criminal provisions of Title 32B, Chapter 4, Criminal
             8090      Offenses and Procedure Act;
             8091          (f) any act prohibited by the criminal provisions of Title 57, Chapter 11, Utah Uniform
             8092      Land Sales Practices Act;
             8093          (g) any act prohibited by the criminal provisions of Title 58, Chapter 37, Utah
             8094      Controlled Substances Act, or Title 58, Chapter 37b, Imitation Controlled Substances Act,
             8095      Title 58, Chapter 37c, Utah Controlled Substance Precursor Act, or Title 58, Chapter 37d,
             8096      Clandestine Drug Lab Act;
             8097          (h) any act prohibited by the criminal provisions of Title 61, Chapter 1, Utah Uniform
             8098      Securities Act;
             8099          (i) any act prohibited by the criminal provisions of Title 63G, Chapter [6] 6a, Utah
             8100      Procurement Code;
             8101          (j) assault or aggravated assault, Sections 76-5-102 and 76-5-103 ;
             8102          (k) a threat of terrorism, Section 76-5-107.3 ;
             8103          (l) criminal homicide, Sections 76-5-201 , 76-5-202 , and 76-5-203 ;
             8104          (m) kidnapping or aggravated kidnapping, Sections 76-5-301 and 76-5-302 ;
             8105          (n) sexual exploitation of a minor, Section 76-5b-201 ;
             8106          (o) arson or aggravated arson, Sections 76-6-102 and 76-6-103 ;
             8107          (p) causing a catastrophe, Section 76-6-105 ;
             8108          (q) burglary or aggravated burglary, Sections 76-6-202 and 76-6-203 ;
             8109          (r) burglary of a vehicle, Section 76-6-204 ;
             8110          (s) manufacture or possession of an instrument for burglary or theft, Section 76-6-205 ;
             8111          (t) robbery or aggravated robbery, Sections 76-6-301 and 76-6-302 ;
             8112          (u) theft, Section 76-6-404 ;
             8113          (v) theft by deception, Section 76-6-405 ;
             8114          (w) theft by extortion, Section 76-6-406 ;
             8115          (x) receiving stolen property, Section 76-6-408 ;
             8116          (y) theft of services, Section 76-6-409 ;
             8117          (z) forgery, Section 76-6-501 ;
             8118          (aa) fraudulent use of a credit card, Sections 76-6-506.2 , 76-6-506.3 , 76-6-506.5 , and
             8119      76-6-506.6 ;


             8120          (bb) deceptive business practices, Section 76-6-507 ;
             8121          (cc) bribery or receiving bribe by person in the business of selection, appraisal, or
             8122      criticism of goods, Section 76-6-508 ;
             8123          (dd) bribery of a labor official, Section 76-6-509 ;
             8124          (ee) defrauding creditors, Section 76-6-511 ;
             8125          (ff) acceptance of deposit by insolvent financial institution, Section 76-6-512 ;
             8126          (gg) unlawful dealing with property by fiduciary, Section 76-6-513 ;
             8127          (hh) bribery or threat to influence contest, Section 76-6-514 ;
             8128          (ii) making a false credit report, Section 76-6-517 ;
             8129          (jj) criminal simulation, Section 76-6-518 ;
             8130          (kk) criminal usury, Section 76-6-520 ;
             8131          (ll) fraudulent insurance act, Section 76-6-521 ;
             8132          (mm) retail theft, Section 76-6-602 ;
             8133          (nn) computer crimes, Section 76-6-703 ;
             8134          (oo) identity fraud, Section 76-6-1102 ;
             8135          (pp) mortgage fraud, Section 76-6-1203 ;
             8136          (qq) sale of a child, Section 76-7-203 ;
             8137          (rr) bribery to influence official or political actions, Section 76-8-103 ;
             8138          (ss) threats to influence official or political action, Section 76-8-104 ;
             8139          (tt) receiving bribe or bribery by public servant, Section 76-8-105 ;
             8140          (uu) receiving bribe or bribery for endorsement of person as public servant, Section
             8141      76-8-106 ;
             8142          (vv) official misconduct, Sections 76-8-201 and 76-8-202 ;
             8143          (ww) obstruction of justice, Section 76-8-306 ;
             8144          (xx) acceptance of bribe or bribery to prevent criminal prosecution, Section 76-8-308 ;
             8145          (yy) false or inconsistent material statements, Section 76-8-502 ;
             8146          (zz) false or inconsistent statements, Section 76-8-503 ;
             8147          (aaa) written false statements, Section 76-8-504 ;
             8148          (bbb) tampering with a witness or soliciting or receiving a bribe, Section 76-8-508 ;
             8149          (ccc) retaliation against a witness, victim, or informant, Section 76-8-508.3 ;
             8150          (ddd) extortion or bribery to dismiss criminal proceeding, Section 76-8-509 ;


             8151          (eee) public assistance fraud in violation of Section 76-8-1203 , 76-8-1204 , or
             8152      76-8-1205 ;
             8153          (fff) unemployment insurance fraud, Section 76-8-1301 ;
             8154          (ggg) intentionally or knowingly causing one animal to fight with another, Subsection
             8155      76-9-301 (2)(d) or (e), or Section 76-9-301.1 ;
             8156          (hhh) possession, use, or removal of explosives, chemical, or incendiary devices or
             8157      parts, Section 76-10-306 ;
             8158          (iii) delivery to common carrier, mailing, or placement on premises of an incendiary
             8159      device, Section 76-10-307 ;
             8160          (jjj) possession of a deadly weapon with intent to assault, Section 76-10-507 ;
             8161          (kkk) unlawful marking of pistol or revolver, Section 76-10-521 ;
             8162          (lll) alteration of number or mark on pistol or revolver, Section 76-10-522 ;
             8163          (mmm) forging or counterfeiting trademarks, trade name, or trade device, Section
             8164      76-10-1002 ;
             8165          (nnn) selling goods under counterfeited trademark, trade name, or trade devices,
             8166      Section 76-10-1003 ;
             8167          (ooo) sales in containers bearing registered trademark of substituted articles, Section
             8168      76-10-1004 ;
             8169          (ppp) selling or dealing with article bearing registered trademark or service mark with
             8170      intent to defraud, Section 76-10-1006 ;
             8171          (qqq) gambling, Section 76-10-1102 ;
             8172          (rrr) gambling fraud, Section 76-10-1103 ;
             8173          (sss) gambling promotion, Section 76-10-1104 ;
             8174          (ttt) possessing a gambling device or record, Section 76-10-1105 ;
             8175          (uuu) confidence game, Section 76-10-1109 ;
             8176          (vvv) distributing pornographic material, Section 76-10-1204 ;
             8177          (www) inducing acceptance of pornographic material, Section 76-10-1205 ;
             8178          (xxx) dealing in harmful material to a minor, Section 76-10-1206 ;
             8179          (yyy) distribution of pornographic films, Section 76-10-1222 ;
             8180          (zzz) indecent public displays, Section 76-10-1228 ;
             8181          (aaaa) prostitution, Section 76-10-1302 ;


             8182          (bbbb) aiding prostitution, Section 76-10-1304 ;
             8183          (cccc) exploiting prostitution, Section 76-10-1305 ;
             8184          (dddd) aggravated exploitation of prostitution, Section 76-10-1306 ;
             8185          (eeee) communications fraud, Section 76-10-1801 ;
             8186          (ffff) any act prohibited by the criminal provisions of [Chapter 10,] Part 19, Money
             8187      Laundering and Currency Transaction Reporting Act;
             8188          (gggg) vehicle compartment for contraband, Section 76-10-2801 ;
             8189          (hhhh) any act prohibited by the criminal provisions of the laws governing taxation in
             8190      this state; and
             8191          (iiii) any act illegal under the laws of the United States and enumerated in 18 U.S.C.
             8192      Sec. 1961 (1)(B), (C), and (D).
             8193          Section 239. Section 78A-2-112 is amended to read:
             8194           78A-2-112. Grants to nonprofit legal assistance organization.
             8195          Subject to legislative appropriation, the state court administrator shall, in accordance
             8196      with Title 63G, Chapter [6] 6a, Utah Procurement Code, solicit requests for proposals and
             8197      award grants to nonprofit legal assistance providers to provide legal assistance throughout the
             8198      state to:
             8199          (1) low to moderate income victims of domestic violence; and
             8200          (2) low to moderate income individuals in family law matters.
             8201          Section 240. Section 79-2-404 is amended to read:
             8202           79-2-404. Contracting powers of department -- Health insurance coverage.
             8203          (1) For purposes of this section:
             8204          (a) "Employee" means an "employee," "worker," or "operative" as defined in Section
             8205      34A-2-104 who:
             8206          (i) works at least 30 hours per calendar week; and
             8207          (ii) meets employer eligibility waiting requirements for health care insurance which
             8208      may not exceed the first day of the calendar month following 90 days from the date of hire.
             8209          (b) "Health benefit plan" has the same meaning as provided in Section 31A-1-301 .
             8210          (c) "Qualified health insurance coverage" is as defined in Section 26-40-115 .
             8211          (d) "Subcontractor" has the same meaning provided for in Section 63A-5-208 .
             8212          (2) (a) Except as provided in Subsection (3), this section applies a design or


             8213      construction contract entered into by, or delegated to, the department or a division, board, or
             8214      council of the department on or after July 1, 2009, and to a prime contractor or to a
             8215      subcontractor in accordance with Subsection (2)(b).
             8216          (b) (i) A prime contractor is subject to this section if the prime contract is in the
             8217      amount of $1,500,000 or greater.
             8218          (ii) A subcontractor is subject to this section if a subcontract is in the amount of
             8219      $750,000 or greater.
             8220          (3) This section does not apply to contracts entered into by the department or a
             8221      division, board, or council of the department if:
             8222          (a) the application of this section jeopardizes the receipt of federal funds;
             8223          (b) the contract or agreement is between:
             8224          (i) the department or a division, board, or council of the department; and
             8225          (ii) (A) another agency of the state;
             8226          (B) the federal government;
             8227          (C) another state;
             8228          (D) an interstate agency;
             8229          (E) a political subdivision of this state; or
             8230          (F) a political subdivision of another state; or
             8231          (c) the contract or agreement is:
             8232          (i) for the purpose of disbursing grants or loans authorized by statute;
             8233          (ii) a sole source contract; or
             8234          (iii) an emergency procurement.
             8235          (4) (a) This section does not apply to a change order as defined in Section [ 63G-6-103 ]
             8236      63G-6a-103 , or a modification to a contract, when the contract does not meet the initial
             8237      threshold required by Subsection (2).
             8238          (b) A person who intentionally uses change orders or contract modifications to
             8239      circumvent the requirements of Subsection (2) is guilty of an infraction.
             8240          (5) (a) A contractor subject to Subsection (2)(b)(i) shall demonstrate to the department
             8241      that the contractor has and will maintain an offer of qualified health insurance coverage for the
             8242      contractor's employees and the employees' dependents during the duration of the contract.
             8243          (b) If a subcontractor of the contractor is subject to Subsection (2)(b)(ii), the contractor


             8244      shall demonstrate to the department that the subcontractor has and will maintain an offer of
             8245      qualified health insurance coverage for the subcontractor's employees and the employees'
             8246      dependents during the duration of the contract.
             8247          (c) (i) (A) A contractor who fails to meet the requirements of Subsection (5)(a) during
             8248      the duration of the contract is subject to penalties in accordance with administrative rules
             8249      adopted by the department under Subsection (6).
             8250          (B) A contractor is not subject to penalties for the failure of a subcontractor to meet the
             8251      requirements of Subsection (5)(b).
             8252          (ii) (A) A subcontractor who fails to meet the requirements of Subsection (5)(b) during
             8253      the duration of the contract is subject to penalties in accordance with administrative rules
             8254      adopted by the department under Subsection (6).
             8255          (B) A subcontractor is not subject to penalties for the failure of a contractor to meet the
             8256      requirements of Subsection (5)(a).
             8257          (6) The department shall adopt administrative rules:
             8258          (a) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             8259          (b) in coordination with:
             8260          (i) the Department of Environmental Quality in accordance with Section 19-1-206 ;
             8261          (ii) a public transit district in accordance with Section 17B-2a-818.5 ;
             8262          (iii) the State Building Board in accordance with Section 63A-5-205 ;
             8263          (iv) the State Capitol Preservation Board in accordance with Section 63C-9-403 ;
             8264          (v) the Department of Transportation in accordance with Section 72-6-107.5 ; and
             8265          (vi) the Legislature's Administrative Rules Review Committee; and
             8266          (c) which establish:
             8267          (i) the requirements and procedures a contractor must follow to demonstrate
             8268      compliance with this section to the department which shall include:
             8269          (A) that a contractor will not have to demonstrate compliance with Subsection (5)(a) or
             8270      (b) more than twice in any 12-month period; and
             8271          (B) that the actuarially equivalent determination required for qualified health insurance
             8272      coverage in Subsection (1) is met by the contractor if the contractor provides the department or
             8273      division with a written statement of actuarial equivalency from either:
             8274          (I) the Utah Insurance Department;


             8275          (II) an actuary selected by the contractor or the contractor's insurer; or
             8276          (III) an underwriter who is responsible for developing the employer group's premium
             8277      rates;
             8278          (ii) the penalties that may be imposed if a contractor or subcontractor intentionally
             8279      violates the provisions of this section, which may include:
             8280          (A) a three-month suspension of the contractor or subcontractor from entering into
             8281      future contracts with the state upon the first violation;
             8282          (B) a six-month suspension of the contractor or subcontractor from entering into future
             8283      contracts with the state upon the second violation;
             8284          (C) an action for debarment of the contractor or subcontractor in accordance with
             8285      Section [ 63G-6-804 ] 63G-6a-904 upon the third or subsequent violation; and
             8286          (D) monetary penalties which may not exceed 50% of the amount necessary to
             8287      purchase qualified health insurance coverage for an employee and a dependent of an employee
             8288      of the contractor or subcontractor who was not offered qualified health insurance coverage
             8289      during the duration of the contract; and
             8290          (iii) a website on which the department shall post the benchmark for the qualified
             8291      health insurance coverage identified in Subsection (1)(c).
             8292          (7) (a) (i) In addition to the penalties imposed under Subsection (6), a contractor or
             8293      subcontractor who intentionally violates the provisions of this section shall be liable to the
             8294      employee for health care costs that would have been covered by qualified health insurance
             8295      coverage.
             8296          (ii) An employer has an affirmative defense to a cause of action under Subsection
             8297      (7)(a)(i) if:
             8298          (A) the employer relied in good faith on a written statement of actuarial equivalency
             8299      provided by:
             8300          (I) an actuary; or
             8301          (II) an underwriter who is responsible for developing the employer group's premium
             8302      rates; or
             8303          (B) the department determines that compliance with this section is not required under
             8304      the provisions of Subsection (3) or (4).
             8305          (b) An employee has a private right of action only against the employee's employer to


             8306      enforce the provisions of this Subsection (7).
             8307          (8) Any penalties imposed and collected under this section shall be deposited into the
             8308      Medicaid Restricted Account created in Section 26-18-402 .
             8309          (9) The failure of a contractor or subcontractor to provide qualified health insurance
             8310      coverage as required by this section:
             8311          (a) may not be the basis for a protest or other action from a prospective bidder, offeror,
             8312      or contractor under Section [ 63G-6-801 ] 63G-6a-1603 or any other provision in Title 63G,
             8313      Chapter [6, Part 8, Legal and Contractual Remedies] 6a, Utah Procurement Code; and
             8314          (b) may not be used by the procurement entity or a prospective bidder, offeror, or
             8315      contractor as a basis for any action or suit that would suspend, disrupt, or terminate the design
             8316      or construction.
             8317          Section 241. Section 79-4-203 is amended to read:
             8318           79-4-203. Powers and duties of division.
             8319          (1) As used in this section, "real property" includes land under water, upland, and all
             8320      other property commonly or legally defined as real property.
             8321          (2) The Division of Wildlife Resources shall retain the power and jurisdiction
             8322      conferred upon it by law within state parks and on property controlled by the Division of Parks
             8323      and Recreation with reference to fish and game.
             8324          (3) The division shall permit multiple use of state parks and property controlled by it
             8325      for purposes such as grazing, fishing, hunting, mining, and the development and utilization of
             8326      water and other natural resources.
             8327          (4) (a) The division may acquire real and personal property in the name of the state by
             8328      all legal and proper means, including purchase, gift, devise, eminent domain, lease, exchange,
             8329      or otherwise, subject to the approval of the executive director and the governor.
             8330          (b) In acquiring any real or personal property, the credit of the state may not be pledged
             8331      without the consent of the Legislature.
             8332          (5) (a) Before acquiring any real property, the division shall notify the county
             8333      legislative body of the county where the property is situated of its intention to acquire the
             8334      property.
             8335          (b) If the county legislative body requests a hearing within 10 days of receipt of the
             8336      notice, the division shall hold a public hearing in the county concerning the matter.


             8337          (6) Acceptance of gifts or devises of land or other property is at the discretion of the
             8338      division, subject to the approval of the executive director and the governor.
             8339          (7) The division shall acquire property by eminent domain in the manner authorized by
             8340      Title 78B, Chapter 6, Part 5, Eminent Domain.
             8341          (8) (a) The division may make charges for special services and use of facilities, the
             8342      income from which is available for park and recreation purposes.
             8343          (b) The division may conduct and operate those services necessary for the comfort and
             8344      convenience of the public.
             8345          (9) (a) The division may lease or rent concessions of all lawful kinds and nature in state
             8346      parks and property to persons, partnerships, and corporations for a valuable consideration upon
             8347      the recommendation of the board.
             8348          (b) The division shall comply with Title 63G, Chapter [6] 6a, Utah Procurement Code,
             8349      in selecting concessionaires.
             8350          (10) The division shall proceed without delay to negotiate with the federal government
             8351      concerning the Weber Basin and other recreation and reclamation projects.
             8352          (11) The division shall receive and distribute voluntary contributions collected under
             8353      Section 41-1a-422 in accordance with Section 79-4-404 .
             8354          Section 242. Repealer.
             8355          This bill repeals:
             8356          Section 10-7-87, Procurement -- Use of recycled goods.
             8357          Section 11-37-101, Definition -- Procurement -- Use of recycled goods.
             8358          Section 17-15-24, Procurement -- Use of recycled goods.
             8359          Section 17B-1-109, Procurement -- Use of recycled goods.
             8360          Section 26A-1-108.7, Procurement -- Use of recycled goods.
             8361          Section 63G-6-206, Transfer of power to policy board.
             8362          Section 63G-6-301, Rules for specifications.
             8363          Section 63G-6-401, Contracts awarded by sealed bidding -- Procedure.
             8364          Section 63G-6-402, Contracts awarded by reverse auction.
             8365          Section 63G-6-403, Procurement -- Use of recycled goods.
             8366          Section 63G-6-406, Preference for recycled paper and paper products.
             8367          Section 63G-6-407, Use of alkaline paper.


             8368          Section 63G-6-408, Use of competitive sealed proposals in lieu of bids -- Procedure.
             8369          Section 63G-6-409, Small purchases.
             8370          Section 63G-6-411, Emergency procurements.
             8371          Section 63G-6-414, Prequalification of suppliers.
             8372          Section 63G-6-417, Period of time for contract of supplies.
             8373          Section 63G-6-418, Right of state to inspect place of business of contractor or
             8374      subcontractor.
             8375          Section 63G-6-422, Exemptions from source selection and contract requirements --
             8376      Violation penalty.
             8377          Section 63G-6-426, Tie bids -- Preference for providers of state products --
             8378      Resolution of tie bids -- Record of tie bids.
             8379          Section 63G-6-903, Payments between public procurement units.
             8380          Section 63G-6-906, Resolving controversy arising under a cooperative purchasing
             8381      agreement.
             8382          Section 63G-6-1001, Felony to accept emolument.
             8383          Section 63G-6-1002, Felony to offer emolument.
             8384          Section 243. Effective date.
             8385          This bill takes effect on January 1, 2013.


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