First Substitute S.B. 179

This document includes Senate Committee Amendments incorporated into the bill on Thu, Feb 27, 2014 at 2:11 PM by lpoole. -->

Senator Scott K. Jenkins proposes the following substitute bill:


             1     
PROCUREMENT REVISIONS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Scott K. Jenkins

             5     
House Sponsor: ____________

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah Procurement Code and related provisions.
             10      Highlighted Provisions:
             11          This bill:
             12          .    modifies, repeals, enacts, repeals and reenacts, and renumbers and amends
             13      provisions of the Utah Procurement Code and related provisions;
             14          .    modifies procurement provisions applicable to local entity building improvement
             15      and public works projects;
             16          .    modifies the Open and Public Meetings Act relating to the procurement process;
             17          .    modifies a provision relating to exemptions from the Utah Procurement Code;
             18          .    modifies a provision relating to limitations on certain procurement units;
             19          .    enacts language differentiating between an issuing procurement unit and a
             20      conducting procurement unit and clarifying the role of each;
             21          .    modifies deadlines for when applicable rulemaking authorities are required to
             22      initiate rulemaking proceedings;
             23          .    modifies duties of the chief procurement officer;
             24          .    modifies provisions relating to the prequalification of potential vendors;
             25          .    modifies provisions relating to the public notice of solicitations;



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         .    modifies requirements for the content of a request for proposals;
             27          .    authorizes an issuing procurement unit to reject a proposal under certain
             28      circumstances;
             29          .    modifies provisions relating to the evaluation of proposals;
             30          .    modifies provisions relating to the process of obtaining best and final offers;
             31          .    provides for a justification statement and modifies provisions relating to a
             32      cost-benefit analysis;
             33          .    modifies provisions relating to the awarding of a contract;
             34          .    modifies provisions relating to the award of a contract without competition;
             35          .    repeals language relating to required standard provisions in a contract and replaces
             36      it with language encouraging the establishment of standard contract clauses;
             37          .    modifies provisions relating to contracts and the auditing of books and records;
             38          .    modifies a provision relating to the selection committee for architect-engineer
             39      services;
             40          .    modifies provisions relating to protests and appeals of protests, including the
             41      amount of security deposits or bonds;
             42          .    modifies a provision relating to supplies and services that one procurement unit may
             43      provide to another;
             44          .    modifies a provision relating to cooperative purchasing;
             45          .    rewrites and modifies provisions relating to unlawful conduct and penalties for
             46      unlawful conduct in the context of procurement activities and makes those
             47      provisions applicable to all public entities; and
             48          .    makes technical, conforming, and clarifying changes.
             49      Money Appropriated in this Bill:
             50          None
             51      Other Special Clauses:
             52          This bill provides an immediate effective date.
             53      Utah Code Sections Affected:
             54      AMENDS:
             55          11-13-315, as enacted by Laws of Utah 2013, Chapter 230
             56          11-39-103, as last amended by Laws of Utah 2011, Chapter 387



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             57
         11-39-107, as last amended by Laws of Utah 2013, Chapter 448
             58          52-4-205, as last amended by Laws of Utah 2013, Chapters 238 and 426
             59          63B-2-102, as last amended by Laws of Utah 2012, Chapter 347
             60          63B-3-102, as last amended by Laws of Utah 2012, Chapter 347
             61          63B-4-102, as last amended by Laws of Utah 2012, Chapter 347
             62          63B-5-102, as last amended by Laws of Utah 2013, Chapter 465
             63          63B-6-102, as last amended by Laws of Utah 2012, Chapter 347
             64          63B-6-402, as last amended by Laws of Utah 2012, Chapter 347
             65          63B-7-102, as last amended by Laws of Utah 2012, Chapter 347
             66          63B-7-402, as last amended by Laws of Utah 2012, Chapter 347
             67          63B-8-102, as last amended by Laws of Utah 2012, Chapter 347
             68          63B-8-402, as last amended by Laws of Utah 2012, Chapter 347
             69          63B-9-103, as last amended by Laws of Utah 2012, Chapter 347
             70          63B-11-202, as last amended by Laws of Utah 2012, Chapter 347
             71          63F-1-205, as last amended by Laws of Utah 2012, Chapter 347
             72          63G-6a-102, as renumbered and amended by Laws of Utah 2012, Chapter 347
             73          63G-6a-103, as last amended by Laws of Utah 2013, Chapter 445
             74          63G-6a-104, as repealed and reenacted by Laws of Utah 2013, Chapter 445
             75          63G-6a-106, as last amended by Laws of Utah 2013, Chapter 445
             76          63G-6a-107, as last amended by Laws of Utah 2013, Chapter 445
             77          63G-6a-108, as last amended by Laws of Utah 2013, Chapter 445
             78          63G-6a-204, as last amended by Laws of Utah 2013, Chapter 445
             79          63G-6a-303, as last amended by Laws of Utah 2013, Chapter 445
             80          63G-6a-402, as last amended by Laws of Utah 2013, Chapter 445
             81          63G-6a-403, as last amended by Laws of Utah 2013, Chapter 445
             82          63G-6a-404, as last amended by Laws of Utah 2013, Chapter 445
             83          63G-6a-406, as last amended by Laws of Utah 2013, Chapter 445
             84          63G-6a-408, as last amended by Laws of Utah 2013, Chapter 445
             85          63G-6a-603, as last amended by Laws of Utah 2013, Chapter 445
             86          63G-6a-606, as last amended by Laws of Utah 2013, Chapter 445
             87          63G-6a-607, as last amended by Laws of Utah 2013, Chapter 445



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             88
         63G-6a-609, as last amended by Laws of Utah 2013, Chapter 445
             89          63G-6a-611, as last amended by Laws of Utah 2013, Chapter 445
             90          63G-6a-612, as last amended by Laws of Utah 2013, Chapter 445
             91          63G-6a-703, as last amended by Laws of Utah 2013, Chapter 445
             92          63G-6a-704, as last amended by Laws of Utah 2013, Chapter 445
             93          63G-6a-707, as last amended by Laws of Utah 2013, Chapter 445
             94          63G-6a-708, as last amended by Laws of Utah 2013, Chapter 445
             95          63G-6a-709, as last amended by Laws of Utah 2013, Chapter 445
             96          63G-6a-709.5, as enacted by Laws of Utah 2013, Chapter 445
             97          63G-6a-802, as last amended by Laws of Utah 2013, Chapter 445
             98          63G-6a-904, as last amended by Laws of Utah 2013, Chapter 445
             99          63G-6a-1103, as last amended by Laws of Utah 2013, Chapter 445
             100          63G-6a-1105, as renumbered and amended by Laws of Utah 2012, Chapter 347
             101          63G-6a-1204, as last amended by Laws of Utah 2013, Chapter 445
             102          63G-6a-1205, as last amended by Laws of Utah 2013, Chapter 445
             103          63G-6a-1206, as last amended by Laws of Utah 2013, Chapter 445
             104          63G-6a-1402, as last amended by Laws of Utah 2012, Chapter 330 and renumbered and
             105      amended by Laws of Utah 2012, Chapter 347
             106          63G-6a-1503, as last amended by Laws of Utah 2013, Chapter 445
             107          63G-6a-1505, as renumbered and amended by Laws of Utah 2012, Chapter 347
             108          63G-6a-1602, as last amended by Laws of Utah 2012, Chapter 91 and renumbered and
             109      amended by Laws of Utah 2012, Chapter 347 and last amended by Coordination
             110      Clause, Laws of Utah 2012, Chapter 347
             111          63G-6a-1603, as last amended by Laws of Utah 2013, Chapter 445
             112          63G-6a-1702, as last amended by Laws of Utah 2013, Chapter 445
             113          63G-6a-1703, as last amended by Laws of Utah 2013, Chapter 445
             114          63G-6a-1706, as enacted by Laws of Utah 2012, Chapter 347 and last amended by
             115      Coordination Clause, Laws of Utah 2012, Chapter 347
             116          63G-6a-1802, as last amended by Laws of Utah 2013, Chapter 445
             117          63G-6a-1902, as last amended by Laws of Utah 2013, Chapter 445
             118          63G-6a-1903, as last amended by Laws of Utah 2013, Chapter 445



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             119
         63G-6a-1904, as last amended by Laws of Utah 2013, Chapter 445
             120          63G-6a-1906, as last amended by Laws of Utah 2012, Chapter 91 and renumbered and
             121      amended by Laws of Utah 2012, Chapter 347 and last amended by Coordination
             122      Clause, Laws of Utah 2012, Chapter 347
             123          63G-6a-1907, as last amended by Laws of Utah 2012, Chapter 91 and renumbered and
             124      amended by Laws of Utah 2012, Chapter 347 and last amended by Coordination
             125      Clause, Laws of Utah 2012, Chapter 347
             126          63G-6a-1910, as last amended by Laws of Utah 2013, Chapter 445
             127          63G-6a-2103, as last amended by Laws of Utah 2013, Chapter 445
             128          63G-6a-2105, as last amended by Laws of Utah 2013, Chapter 445
             129          67-16-4, as last amended by Laws of Utah 2013, Chapter 445
             130          67-16-5, as last amended by Laws of Utah 2013, Chapter 445
             131          67-16-5.3, as last amended by Laws of Utah 2013, Chapter 445
             132          67-16-5.6, as last amended by Laws of Utah 2013, Chapter 445
             133          67-16-6, as last amended by Laws of Utah 2013, Chapter 445
             134      ENACTS:
             135          63G-6a-109, Utah Code Annotated 1953
             136          63G-6a-2401, Utah Code Annotated 1953
             137          63G-6a-2402, Utah Code Annotated 1953
             138          63G-6a-2403, Utah Code Annotated 1953
             139          63G-6a-2404, Utah Code Annotated 1953
             140          63G-6a-2405, Utah Code Annotated 1953
             141          63G-6a-2406, Utah Code Annotated 1953
             142          63G-6a-2407, Utah Code Annotated 1953
             143      REPEALS AND REENACTS:
             144          63G-6a-1202, as last amended by Laws of Utah 2013, Chapter 445
             145      RENUMBERS AND AMENDS:
             146          63G-6a-707.5, (Renumbered from 63G-6a-705, as last amended by Laws of Utah 2013,
             147      Chapter 445)
             148      REPEALS:
             149          63G-6a-1803, as last amended by Laws of Utah 2012, Chapter 91 and renumbered and



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             150
     amended by Laws of Utah 2012, Chapter 347 and last amended by Coordination Clause, Laws
             151      of Utah 2012, Chapter 347
             152          63G-6a-1905, as last amended by Laws of Utah 2013, Chapter 445
             153          63G-6a-2301, as enacted by Laws of Utah 2012, Chapter 347
             154          63G-6a-2302, as last amended by Laws of Utah 2013, Chapter 445
             155          63G-6a-2304.5, as enacted by Laws of Utah 2013, Chapter 445
             156          63G-6a-2305, as last amended by Laws of Utah 2013, Chapter 445
             157          63G-6a-2306, as last amended by Laws of Utah 2013, Chapter 445
             158          63G-6a-2307, as last amended by Laws of Utah 2013, Chapter 445
             159          63G-6a-2308, as enacted by Laws of Utah 2013, Chapter 445
             160     

             161      Be it enacted by the Legislature of the state of Utah:
             162          Section 1. Section 11-13-315 is amended to read:
             163           11-13-315. Taxed interlocal entity.
             164          (1) As used in this section:
             165          (a) "Asset" means funds, money, an account, real or personal property, or personnel.
             166          (b) "Public asset" means:
             167          (i) an asset used by a public entity;
             168          (ii) tax revenue;
             169          (iii) state funds; or
             170          (iv) public funds.
             171          (c) (i) "Taxed interlocal entity" means a project entity that:
             172          (A) is not exempt from a tax or fee in lieu of taxes imposed in accordance with Part 3,
             173      Project Entity Provisions;
             174          (B) does not receive a payment of funds from a federal agency or office, state agency or
             175      office, political subdivision, or other public agency or office other than a payment that does not
             176      materially exceed the greater of the fair market value and the cost of a service provided or
             177      property conveyed by the project entity; and
             178          (C) does not receive, expend, or have the authority to compel payment from tax
             179      revenue.
             180          (ii) Before and on May 1, 2014, "taxed interlocal entity" includes an interlocal entity



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             181
     that:
             182          (A) (I) was created before 1981 for the purpose of providing power supply at wholesale
             183      to its members; or
             184          (II) is described in Subsection 11-13-204 (7);
             185          (B) does not receive a payment of funds from a federal agency or office, state agency or
             186      office, political subdivision, or other public agency or office other than a payment that does not
             187      materially exceed the greater of the fair market value and the cost of a service provided or
             188      property conveyed by the interlocal entity; and
             189          (C) does not receive, expend, or have the authority to compel payment from tax
             190      revenue.
             191          (d) (i) "Use" means to use, own, manage, hold, keep safe, maintain, invest, deposit,
             192      administer, receive, expend, appropriate, disburse, or have custody.
             193          (ii) "Use" includes, when constituting a noun, the corresponding nominal form of each
             194      term in Subsection (1)(d)(i), individually.
             195          (2) Notwithstanding any other provision of law, the use of an asset by a taxed interlocal
             196      entity does not constitute the use of a public asset.
             197          (3) Notwithstanding any other provision of law, a taxed interlocal entity's use of an
             198      asset that was a public asset prior to the taxed interlocal entity's use of the asset does not
             199      constitute a taxed interlocal entity's use of a public asset.
             200          (4) Notwithstanding any other provision of law, an official of a project entity is not a
             201      public treasurer.
             202          (5) Notwithstanding any other provision of law, a taxed interlocal entity's governing
             203      body, as described in Section 11-13-206 , shall determine and direct the use of an asset by the
             204      taxed interlocal entity.
             205          (6) [(a)] A taxed interlocal entity is not subject to the provisions of Title 63G, Chapter
             206      6a, Utah Procurement Code.
             207          [(b) An agent of a taxed interlocal entity is not an external procurement unit as defined
             208      in Section 63G-6a-104 .]
             209          (7) (a) A taxed interlocal entity is not a participating local entity as defined in Section
             210      63A-3-401 .
             211          (b) For each fiscal year of a taxed interlocal entity, the taxed interlocal entity shall



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     provide:
             213          (i) the taxed interlocal entity's financial statements for and as of the end of the fiscal
             214      year and the prior fiscal year, including the taxed interlocal entity's balance sheet as of the end
             215      of the fiscal year and the prior fiscal year, and the related statements of revenues and expenses
             216      and of cash flows for the fiscal year; and
             217          (ii) the accompanying auditor's report and management's discussion and analysis with
             218      respect to the taxed interlocal entity's financial statements for and as of the end of the fiscal
             219      year.
             220          (c) The taxed interlocal entity shall provide the information described in Subsections
             221      (7)(b)(i) and (b)(ii):
             222          (i) in a manner described in Subsection 63A-3-405 (3); and
             223          (ii) within a reasonable time after the taxed interlocal entity's independent auditor
             224      delivers to the taxed interlocal entity's governing body the auditor's report with respect to the
             225      financial statements for and as of the end of the fiscal year.
             226          (d) Notwithstanding Subsections (7)(b) and (c) or a taxed interlocal entity's compliance
             227      with one or more of the requirements of Title 63A, Chapter 3, Division of Finance:
             228          (i) the taxed interlocal entity is not subject to Title 63A, Chapter 3, Division of
             229      Finance; and
             230          (ii) the information described in Subsection (7)(b)(i) or (ii) does not constitute public
             231      financial information as defined in Section 63A-3-401 .
             232          (8) (a) A taxed interlocal entity's governing body is not a governing board as defined in
             233      Section 51-2a-102 .
             234          (b) A taxed interlocal entity is not subject to the provisions of Title 51, Chapter 2a,
             235      Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local
             236      Entities Act.
             237          Section 2. Section 11-39-103 is amended to read:
             238           11-39-103. Requirements for undertaking a building improvement or public
             239      works project -- Request for bids -- Authority to reject bids.
             240          (1) If the estimated cost of the building improvement or public works project exceeds
             241      the bid limit, the local entity shall, if it determines to proceed with the building improvement or
             242      public works project:



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             243
         (a) request bids for completion of the building improvement or public works project
             244      by:
             245          (i) (A) publishing notice at least twice in a newspaper published or of general
             246      circulation in the local entity at least five days before opening the bids; or
             247          (B) if there is no newspaper published or of general circulation in the local entity as
             248      described in Subsection (1)(a)(i)(A), posting notice at least five days before opening the bids in
             249      at least five public places in the local entity and leaving the notice posted for at least three days;
             250      and
             251          (ii) publishing notice in accordance with Section 45-1-101 , at least five days before
             252      opening the bids; and
             253          (b) except as provided in Subsection (3), enter into a contract for the completion of the
             254      building improvement or public works project with:
             255          (i) the lowest responsive responsible bidder; or
             256          (ii) for a design-build project formulated by a local entity, [except as provided in
             257      Section 11-39-107 ,] a responsible bidder that:
             258          (A) offers design-build services; and
             259          (B) satisfies the local entity's criteria relating to financial strength, past performance,
             260      integrity, reliability, and other factors that the local entity uses to assess the ability of a bidder
             261      to perform fully and in good faith the contract requirements for a design-build project.
             262          (2) (a) Each notice under Subsection (1)(a) shall indicate that the local entity may reject
             263      any or all bids submitted.
             264          (b) (i) The cost of a building improvement or public works project may not be divided
             265      to avoid:
             266          (A) exceeding the bid limit; and
             267          (B) subjecting the local entity to the requirements of this section.
             268          (ii) Notwithstanding Subsection (2)(b)(i), a local entity may divide the cost of a
             269      building improvement or public works project that would, without dividing, exceed the bid
             270      limit if the local entity complies with the requirements of this section with respect to each part
             271      of the building improvement or public works project that results from dividing the cost.
             272          (3) (a) The local entity may reject any or all bids submitted.
             273          (b) If the local entity rejects all bids submitted but still intends to undertake the



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             274
     building improvement or public works project, the local entity shall again request bids by
             275      following the procedure provided in Subsection (1)(a).
             276          (c) If, after twice requesting bids by following the procedure provided in Subsection
             277      (1)(a), the local entity determines that no satisfactory bid has been submitted, the governing
             278      body may undertake the building improvement or public works project as it considers
             279      appropriate.
             280          Section 3. Section 11-39-107 is amended to read:
             281           11-39-107. Procurement code.
             282          (1) This chapter may not be construed to:
             283          (a) prohibit a county or municipal legislative body from adopting the procedures of the
             284      procurement code; or
             285          (b) limit the application of the procurement code to a local district or special service
             286      district.
             287          (2) A local entity may adopt procedures for the following construction contracting
             288      methods:
             289          (a) construction manager/general contractor, as defined in Section 63G-6a-103 ; [or]
             290          (b) a method that requires that the local entity draft a plan, specifications, and an
             291      estimate for the building improvement or public works project[.]; or
             292          (c) design-build, as defined in Section 63G-6a-103 , if the local entity consults with a
             293      professional engineer licensed under Title 58, Chapter 22, Professional Engineers and
             294      Professional Land Surveyors Licensing Act, or an architect licensed under Title 58, Chapter 3a,
             295      Architects Licensing Act, who has design-build experience and is employed by or under
             296      contract with the local entity.
             297          [(3) For a public works project only and that costs $1,000,000 or more, in consultation
             298      with a professional engineer licensed under Title 58, Chapter 22, Professional Engineers and
             299      Professional Land Surveyors Licensing Act, who has design-build experience and is employed
             300      by or is under contract with the owner, the following may enter into a contract for design-build,
             301      as defined in Section 63G-6a-103 , and adopt the procedures and follow the provisions of the
             302      procurement code for the procurement of and as the procedures and provisions relate to a
             303      design-build:]
             304          [(a) a city of the first class;]



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         [(b) a local district; or]
             306          [(c) a special service district.]
             307          [(4)] (3) (a) In seeking bids and awarding a contract for a building improvement or
             308      public works project, a county or a municipal legislative body may elect to follow the
             309      provisions of the procurement code, as the county or municipal legislative body considers
             310      appropriate under the circumstances, for specification preparation, source selection, or contract
             311      formation.
             312          (b) A county or municipal legislative body's election to adopt the procedures of the
             313      procurement code may not excuse the county or municipality, respectively, from complying
             314      with the requirements to award a contract for work in excess of the bid limit and to publish
             315      notice of the intent to award.
             316          (c) An election under Subsection [(4)] (3)(a) may be made on a case-by-case basis,
             317      unless the county or municipality has previously adopted the [provisions of Title 63G, Chapter
             318      6a, Utah Procurement Code] procurement code.
             319          (d) The county or municipal legislative body shall:
             320          (i) make each election under Subsection [(4)] (3)(a) in an open meeting; and
             321          (ii) specify in its action the portions of the procurement code to be followed.
             322          [(5)] (4) If the estimated cost of the building improvement or public works project
             323      proposed by a local district or special service district exceeds the bid limit, the governing body
             324      of the local district or special service district may, if it determines to proceed with the building
             325      improvement or public works project, use the competitive procurement procedures of the
             326      procurement code in place of the comparable provisions of this chapter.
             327          Section 4. Section 52-4-205 is amended to read:
             328           52-4-205. Purposes of closed meetings -- Certain issues prohibited in closed
             329      meetings.
             330          (1) A closed meeting described under Section 52-4-204 may only be held for:
             331          (a) except as provided in Subsection (3), discussion of the character, professional
             332      competence, or physical or mental health of an individual;
             333          (b) strategy sessions to discuss collective bargaining;
             334          (c) strategy sessions to discuss pending or reasonably imminent litigation;
             335          (d) strategy sessions to discuss the purchase, exchange, or lease of real property,



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     including any form of a water right or water shares, if public discussion of the transaction
             337      would:
             338          (i) disclose the appraisal or estimated value of the property under consideration; or
             339          (ii) prevent the public body from completing the transaction on the best possible terms;
             340          (e) strategy sessions to discuss the sale of real property, including any form of a water
             341      right or water shares, if:
             342          (i) public discussion of the transaction would:
             343          (A) disclose the appraisal or estimated value of the property under consideration; or
             344          (B) prevent the public body from completing the transaction on the best possible terms;
             345          (ii) the public body previously gave public notice that the property would be offered for
             346      sale; and
             347          (iii) the terms of the sale are publicly disclosed before the public body approves the
             348      sale;
             349          (f) discussion regarding deployment of security personnel, devices, or systems;
             350          (g) investigative proceedings regarding allegations of criminal misconduct;
             351          (h) as relates to the Independent Legislative Ethics Commission, conducting business
             352      relating to the receipt or review of ethics complaints;
             353          (i) as relates to an ethics committee of the Legislature, a purpose permitted under
             354      Subsection 52-4-204 (1)(a)(iii)(C);
             355          (j) as relates to the Independent Executive Branch Ethics Commission created in
             356      Section 63A-14-202 , conducting business relating to an ethics complaint;
             357          (k) as relates to a county legislative body, discussing commercial information as
             358      defined in Section 59-1-404 ;
             359          (l) as relates to the Utah Higher Education Assistance Authority and its appointed
             360      board of directors, discussing fiduciary or commercial information as defined in Section
             361      53B-12-102 ; [or]
             362          (m) deliberations, not including any information gathering activities, of:
             363          (i) an evaluation committee, appointed under Subsection 63G-6a-707 (3), that is subject
             364      to this chapter because it is a public body, during the process of evaluating responses to a
             365      solicitation;
             366          (ii) a protest officer, as defined in Section 63G-6a-103 , that is subject to this chapter



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             367
     because the protest officer is a public body, in making a decision on a protest under Title 63G,
             368      Chapter 6a, Part 16, Controversies and Protests; or
             369          (n) the purpose of considering information that is designated as a trade secret, as
             370      defined in Section 13-24-2 , or that, if disclosed publicly, could reasonably be expected to result
             371      in an unfair competitive injury to the person who submitted the information or impair the
             372      public body's ability to obtain similar necessary information in the future, if:
             373          (i) the meeting is held to discuss a procurement, as defined in Section 63G-6a-103 ;
             374          (ii) the public body is acting as the head of a procurement unit, as defined in Section
             375      63G-6a-103 ; and
             376           (iii) the public body needs to review or discuss the information in order to properly
             377      conduct a procurement under Title 63G, Chapter 6a, Utah Procurement Code;
             378          (o) the purpose of discussing information that is required to be kept from being
             379      publicly disclosed under Title 63G, Chapter 6a, Utah Procurement Code, if the public body is
             380      discussing the information in the course of fulfilling its role and responsibilities in the
             381      procurement process under Title 63G, Chapter 6a, Utah Procurement Code; or
             382          [(m)] (p) a purpose for which a meeting is required to be closed under Subsection (2).
             383          (2) The following meetings shall be closed:
             384          (a) a meeting of the Health and Human Services Interim Committee to review a fatality
             385      review report described in Subsection 62A-16-301 (1)(a), and the responses to the report
             386      described in Subsections 62A-16-301 (2) and (4);
             387          (b) a meeting of the Child Welfare Legislative Oversight Panel to:
             388          (i) review a fatality review report described in Subsection 62A-16-301 (1)(a), and the
             389      responses to the report described in Subsections 62A-16-301 (2) and (4); or
             390          (ii) review and discuss an individual case, as described in Subsection 62A-4a-207 (5);
             391      and
             392          (c) a meeting of a conservation district as defined in Section 17D-3-102 for the purpose
             393      of advising the Natural Resource Conservation Service of the United States Department of
             394      Agriculture on a farm improvement project if the discussed information is protected
             395      information under federal law.
             396          (3) In a closed meeting, a public body may not:
             397          (a) interview a person applying to fill an elected position;



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             398
         (b) discuss filling a midterm vacancy or temporary absence governed by Title 20A,
             399      Chapter 1, Part 5, Candidate Vacancy and Vacancy and Temporary Absence in Elected Office;
             400      or
             401          (c) discuss the character, professional competence, or physical or mental health of the
             402      person whose name was submitted for consideration to fill a midterm vacancy or temporary
             403      absence governed by Title 20A, Chapter 1, Part 5, Candidate Vacancy and Vacancy and
             404      Temporary Absence in Elected Office.
             405          Section 5. Section 63B-2-102 is amended to read:
             406           63B-2-102. Maximum amount -- Projects authorized.
             407          (1) The total amount of bonds issued under this part may not exceed $80,000,000.
             408          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             409      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             410      Subsection (2).
             411          (b) These costs may include the cost of acquiring land, interests in land, easements and
             412      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             413      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             414      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             415      covered by construction of the projects plus a period of six months after the end of the
             416      construction period and all related engineering, architectural, and legal fees.
             417          (c) For the division, proceeds shall be provided for the following:
             418        CAPITAL IMPROVEMENTS    
             419        1   Alterations, Repairs, and Improvements   $8,413,900  
             420        TOTAL IMPROVEMENTS   $8,413,900  
             421        CAPITAL FACILITIES CONSTRUCTION  
             422       

PROJECT
PRIORITY  


    PROJECT
    DESCRIPTION  




AMOUNT
FUNDED  
ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS  

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             423
      
1   Corrections - Northern Utah
Community Corrections Center Phase II  
$2,729,700   $158,000  
             424        2   University of Utah
Marriot Library Phase II  
$10,200,000   $881,600  
             425        3   Ogden Courts Building Phase II   $12,096,000   $340,000  
             426        4   Utah National Guard -
Southeast Utah Armory Phase II  
$397,800   $70,500  
             427        5   Southern Utah University
Library Phase II  
$7,004,400   $427,000  
             428        6   Utah Valley Special Events
Center Phase II  
$11,845,300   $536,900  
             429        7   Salt Lake Community College - Land   $1,300,000   $0  
             430        8   Tax Commission Building   $14,224,000   $812,000  
             431        9   Dixie College Business Building   $2,823,300   $187,800  
             432        10   Salt Lake Community College
South City 3rd Floor and Boiler  
$4,009,500   $257,600  
             433        11   Public Education -
Deaf and Blind Classrooms  
$3,456,100   $124,800  
             434          TOTAL CONSTRUCTION   $70,086,100    
             435          TOTAL IMPROVEMENTS AND     
CONSTRUCTION  
$78,500,000    
             436          (d) For purposes of this section, operations and maintenance costs:
             437          (i) are estimates only;
             438          (ii) may include any operations and maintenance costs already funded in existing
             439      agency budgets; and
             440          (iii) are not commitments by this Legislature or future Legislatures to fund those
             441      operations and maintenance costs.
             442          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             443      constitute a limitation on the amount that may be expended for any project.
             444          (b) The board may revise these estimates and redistribute the amount estimated for a



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             445
     project among the projects authorized.
             446          (c) The commission, by resolution and in consultation with the board, may delete one
             447      or more projects from this list if the inclusion of that project or those projects in the list could
             448      be construed to violate state law or federal law or regulation.
             449          (4) (a) The division may enter into agreements related to these projects before the
             450      receipt of proceeds of bonds issued under this chapter.
             451          (b) The division shall make those expenditures from unexpended and unencumbered
             452      building funds already appropriated to the Capital Projects Fund.
             453          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             454      of bonds issued under this chapter.
             455          (d) The commission may, by resolution, make any statement of intent relating to that
             456      reimbursement that is necessary or desirable to comply with federal tax law.
             457          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             458      it is the intent of the Legislature that the balance necessary to complete the projects be
             459      addressed by future Legislatures, either through appropriations or through the issuance or sale
             460      of bonds.
             461          (b) For those phased projects, the division may enter into contracts for amounts not to
             462      exceed the anticipated full project funding but may not allow work to be performed on those
             463      contracts in excess of the funding already authorized by the Legislature.
             464          (c) Those contracts shall contain a provision for termination of the contract for the
             465      convenience of the state [as required by Section 63G-6a-1202 ].
             466          (d) It is also the intent of the Legislature that this authorization to the division does not
             467      bind future Legislatures to fund projects initiated from this authorization.
             468          Section 6. Section 63B-3-102 is amended to read:
             469           63B-3-102. Maximum amount -- Projects authorized.
             470          (1) The total amount of bonds issued under this part may not exceed $64,600,000.
             471          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             472      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             473      Subsection (2).
             474          (b) These costs may include the cost of acquiring land, interests in land, easements and
             475      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities



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             476
     and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             477      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             478      covered by construction of the projects plus a period of six months after the end of the
             479      construction period and all related engineering, architectural, and legal fees.
             480          (c) For the division, proceeds shall be provided for the following:
             481        CAPITAL IMPROVEMENTS  
             482        1   Alterations, Repairs, and Improvements  
$5,000,000        
 
             483        TOTAL IMPROVEMENTS  
$5,000,000
 
             484        CAPITAL AND ECONOMIC DEVELOPMENT  
             485       

PRIORITY
PROJECT  


PROJECT
DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS  
             486        1   University of Utah
Marriott Library Phase III (Final)  
$13,811,500   $881,600  
             487        2   Bridgerland Applied Technology Center
Utah State University Space  
$2,400,000  
$0  
             488        3   Weber State University -
Heat Plant  
$2,332,100   $9,600  
             489        4   Department of Human Services -
Division of Youth Corrections renamed
in 2003 to the Division of Juvenile
Justice Services  
$4,180,000   $400,000  
             490        5   Snow College - Administrative
Services/Student Center  
$3,885,100   $224,500  
             491        6   Ogden Weber Applied Technology
Center - Metal Trades Building Design
and Equipment Purchase  
$750,000   $0  

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             492
      
7   Department of Corrections B-Block
Remodel  
$1,237,100   $72,000  
             493        8   Utah State University - Old Main Phase
III Design  
$550,000   $0  
             494        9   Department of Corrections - 144 bed
Uintah Expansion  
$6,700,000   $168,800  
             495        10   Southern Utah University
Administrative Services/Student Center  
$5,630,400   $314,200  
             496        11   Anasazi Museum   $760,200   $8,500  
             497        12   Hill Air Force Base - Easements
Purchase  
$9,500,000   $0  
             498        13   Signetics Building Remodel   $2,000,000   $0  
             499        14   Antelope Island Visitors Center   $750,000   $30,000  
             500        15   State Fair Park - Master Study   $150,000   $0  
             501        16   Utah National Guard - Draper Land   $380,800   $0  
             502        17   Davis Applied Technology Center -
Design  
$325,000   $0  
             503        18   Palisade State Park - Land and Park
Development  
$800,000   $0  
             504        19   Department of Human Services - Cedar
City Land  
$80,000   $0  
             505        20   Department of Human Services -
Clearfield Land  
$163,400   $0  
             506        21   Electronic technology, equipment, and
hardware  
$2,500,000   $0  
             507        TOTAL CAPITAL AND ECONOMIC DEVELOPMENT        $58,885,600  
             508        TOTAL IMPROVEMENTS AND CAPITAL
AND ECONOMIC DEVELOPMENT                $63,885,600  
             509          (d) For purposes of this section, operations and maintenance costs:



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             510
         (i) are estimates only;
             511          (ii) may include any operations and maintenance costs already funded in existing
             512      agency budgets; and
             513          (iii) are not commitments by this Legislature or future Legislatures to fund those
             514      operations and maintenance costs.
             515          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             516      constitute a limitation on the amount that may be expended for any project.
             517          (b) The board may revise these estimates and redistribute the amount estimated for a
             518      project among the projects authorized.
             519          (c) The commission, by resolution and in consultation with the board, may delete one
             520      or more projects from this list if the inclusion of that project or those projects in the list could
             521      be construed to violate state law or federal law or regulation.
             522          (4) (a) The division may enter into agreements related to these projects before the
             523      receipt of proceeds of bonds issued under this chapter.
             524          (b) The division shall make those expenditures from unexpended and unencumbered
             525      building funds already appropriated to the Capital Projects Fund.
             526          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             527      of bonds issued under this chapter.
             528          (d) The commission may, by resolution, make any statement of intent relating to that
             529      reimbursement that is necessary or desirable to comply with federal tax law.
             530          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             531      it is the intent of the Legislature that the balance necessary to complete the projects be
             532      addressed by future Legislatures, either through appropriations or through the issuance or sale
             533      of bonds.
             534          (b) For those phased projects, the division may enter into contracts for amounts not to
             535      exceed the anticipated full project funding but may not allow work to be performed on those
             536      contracts in excess of the funding already authorized by the Legislature.
             537          (c) Those contracts shall contain a provision for termination of the contract for the
             538      convenience of the state [as required by Section 63G-6a-1202 ].
             539          (d) It is also the intent of the Legislature that this authorization to the division does not
             540      bind future Legislatures to fund projects initiated from this authorization.



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             541
         Section 7. Section 63B-4-102 is amended to read:
             542           63B-4-102. Maximum amount -- Projects authorized.
             543          (1) The total amount of bonds issued under this part may not exceed $45,300,000.
             544          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             545      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             546      Subsection (2).
             547          (b) These costs may include the cost of acquiring land, interests in land, easements and
             548      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             549      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             550      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             551      covered by construction of the projects plus a period of six months after the end of the
             552      construction period, and all related engineering, architectural, and legal fees.
             553          (c) For the division, proceeds shall be provided for the following:
             554        CAPITAL IMPROVEMENTS  
             555          Alterations, Repairs, and Improvements   $7,200,000  
             556            TOTAL IMPROVEMENTS   $7,200,000  
             557        CAPITAL AND ECONOMIC DEVELOPMENT  
             558         

    PROJECT
    DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS  
             559          Corrections - Uinta IVA   $11,300,000   $212,800  
             560          Utah County Youth Correctional Facility   $6,650,000   $245,000  
             561          Ogden Weber Applied Technology Center -
Metal Trades  
$5,161,000   $176,000  
             562          Project Reserve Fund   $3,500,000   None  
             563          Weber State University - Browning Center
Remodel  
$3,300,000   None  
             564          Heber Wells Building Remodel   $2,000,000   None  

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             565
      
  Higher Education Davis County - Land Purchase   $1,600,000   None  
             566          National Guard -- Provo Armory   $1,500,000   $128,000  
             567          Department of Natural Resources - Pioneer
Trails Visitor Center  
$900,000   $65,000  
             568          Higher Education Design Projects   $800,000   Varies depending
upon projects
selected  
             569          Salt Lake Community College - South Valley
Planning  
$300,000   None  
             570          Division of Youth Corrections renamed in 2003
to the Division of Juvenile Justice Services -
Logan Land Purchase  
$120,000   None  
             571        TOTAL CAPITAL AND ECONOMIC DEVELOPMENT   $37,131,000  
             572        TOTAL IMPROVEMENTS AND CAPITAL AND ECONOMIC
DEVELOPMENT  
$44,331,000  
             573          (d) For purposes of this section, operations and maintenance costs:
             574          (i) are estimates only;
             575          (ii) may include any operations and maintenance costs already funded in existing
             576      agency budgets; and
             577          (iii) are not commitments by this Legislature or future Legislatures to fund those
             578      operations and maintenance costs.
             579          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             580      constitute a limitation on the amount that may be expended for any project.
             581          (b) The board may revise these estimates and redistribute the amount estimated for a
             582      project among the projects authorized.
             583          (c) The commission, by resolution and in consultation with the board, may delete one
             584      or more projects from this list if the inclusion of that project or those projects in the list could
             585      be construed to violate state law or federal law or regulation.
             586          (4) (a) The division may enter into agreements related to these projects before the
             587      receipt of proceeds of bonds issued under this chapter.



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             588
         (b) The division shall make those expenditures from unexpended and unencumbered
             589      building funds already appropriated to the Capital Projects Fund.
             590          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             591      of bonds issued under this chapter.
             592          (d) The commission may, by resolution, make any statement of intent relating to that
             593      reimbursement that is necessary or desirable to comply with federal tax law.
             594          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             595      it is the intent of the Legislature that the balance necessary to complete the projects be
             596      addressed by future Legislatures, either through appropriations or through the issuance or sale
             597      of bonds.
             598          (b) For those phased projects, the division may enter into contracts for amounts not to
             599      exceed the anticipated full project funding but may not allow work to be performed on those
             600      contracts in excess of the funding already authorized by the Legislature.
             601          (c) Those contracts shall contain a provision for termination of the contract for the
             602      convenience of the state [as required by Section 63G-6a-1202 ].
             603          (d) It is also the intent of the Legislature that this authorization to the division does not
             604      bind future Legislatures to fund projects initiated from this authorization.
             605          Section 8. Section 63B-5-102 is amended to read:
             606           63B-5-102. Maximum amount -- Projects authorized.
             607          (1) The total amount of bonds issued under this part may not exceed $32,000,000.
             608          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             609      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             610      Subsection (2).
             611          (b) These costs may include the cost of acquiring land, interests in land, easements and
             612      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             613      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             614      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             615      covered by construction of the projects plus a period of six months after the end of the
             616      construction period, and all related engineering, architectural, and legal fees.
             617          (c) For the division, proceeds shall be provided for the following:



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             618        CAPITAL IMPROVEMENTS  
             619          Alterations, Repairs, and Improvements   $7,600,000  
             620            TOTAL IMPROVEMENTS   $7,600,000  
             621          CAPITAL AND ECONOMIC DEVELOPMENT  
             622         

PROJECT DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE
COSTS  
             623          Corrections - Gunnison (192 Beds)   $13,970,000   $210,000  
             624          University of Utah -- Gardner Hall   $7,361,000   $203,900  
             625          Weber State University Davis Campus -- Land
Purchase  
$771,000   None  
             626          Department of Workforce Services Cedar City
-- Land Purchase  
$148,000   None  
             627          Utah State University Eastern Durrant School
-- Land Purchase  
$400,000   None  
             628          State Hospital - Forensic Design (200 beds)   $750,000   $575,000  
             629        TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT  
$23,400,000    
             630        TOTAL IMPROVEMENTS AND CAPITAL AND
ECONOMIC DEVELOPMENT  
$31,000,000    
             631          (d) For purposes of this section, operations and maintenance costs:
             632          (i) are estimates only;
             633          (ii) may include any operations and maintenance costs already funded in existing
             634      agency budgets; and
             635          (iii) are not commitments by this Legislature or future Legislatures to fund those
             636      operations and maintenance costs.
             637          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not



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             638
     constitute a limitation on the amount that may be expended for any project.
             639          (b) The board may revise these estimates and redistribute the amount estimated for a
             640      project among the projects authorized.
             641          (c) The commission, by resolution and in consultation with the board, may delete one
             642      or more projects from this list if the inclusion of that project or those projects in the list could
             643      be construed to violate state law or federal law or regulation.
             644          (4) (a) The division may enter into agreements related to these projects before the
             645      receipt of proceeds of bonds issued under this chapter.
             646          (b) The division shall make those expenditures from unexpended and unencumbered
             647      building funds already appropriated to the Capital Projects Fund.
             648          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             649      of bonds issued under this chapter.
             650          (d) The commission may, by resolution, make any statement of intent relating to that
             651      reimbursement that is necessary or desirable to comply with federal tax law.
             652          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             653      it is the intent of the Legislature that the balance necessary to complete the projects be
             654      addressed by future Legislatures, either through appropriations or through the issuance or sale
             655      of bonds.
             656          (b) For those phased projects, the division may enter into contracts for amounts not to
             657      exceed the anticipated full project funding but may not allow work to be performed on those
             658      contracts in excess of the funding already authorized by the Legislature.
             659          (c) Those contracts shall contain a provision for termination of the contract for the
             660      convenience of the state [as required by Section 63G-6a-1202 ].
             661          (d) It is also the intent of the Legislature that this authorization to the division does not
             662      bind future Legislatures to fund projects initiated from this authorization.
             663          Section 9. Section 63B-6-102 is amended to read:
             664           63B-6-102. Maximum amount -- Projects authorized.
             665          (1) The total amount of bonds issued under this part may not exceed $57,000,000.
             666          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             667      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             668      Subsection (2).



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             669
         (b) These costs may include the cost of acquiring land, interests in land, easements and
             670      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             671      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             672      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             673      covered by construction of the projects plus a period of six months after the end of the
             674      construction period, and all related engineering, architectural, and legal fees.
             675          (c) For the division, proceeds shall be provided for the following:
             676        CAPITAL AND ECONOMIC DEVELOPMENT  
             677       

PROJECT DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE  
             678        Youth Corrections - Carbon / Emery (18 beds)   $2,298,100   $70,000  
             679        State Hospital - 100 bed Forensic Facility   $13,800,700   $320,600  
             680        Utah State University - Widtsoe Hall   $23,986,700   $750,200  
             681        Davis Applied Technology Center - Medical/Health
Tech Addition  
$6,344,900   $144,000  
             682        Southern Utah University -- Physical Education
Building (Design)  
$1,100,000   $456,100  
             683        Salt Lake Community College -- High Technology
Building, 90th So. Campus (Design)  
$1,165,000   $718,500  
             684        Department of Natural Resources - Antelope Island
Road  
$3,600,000   None  
             685        Youth Corrections - Region 1 72 Secured Bed
Facility  
$1,500,000   None  
             686        Department of Natural Resources - Dead Horse
Point Visitors Center  
$1,350,000   $5,700  
             687        TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT  
$55,145,400    
             688          (d) For purposes of this section, operations and maintenance costs:



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             689
         (i) are estimates only;
             690          (ii) may include any operations and maintenance costs already funded in existing
             691      agency budgets; and
             692          (iii) are not commitments by this Legislature or future Legislatures to fund those
             693      operations and maintenance costs.
             694          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             695      constitute a limitation on the amount that may be expended for any project.
             696          (b) The board may revise these estimates and redistribute the amount estimated for a
             697      project among the projects authorized.
             698          (c) The commission, by resolution and in consultation with the board, may delete one
             699      or more projects from this list if the inclusion of that project or those projects in the list could
             700      be construed to violate state law or federal law or regulation.
             701          (4) (a) The division may enter into agreements related to these projects before the
             702      receipt of proceeds of bonds issued under this chapter.
             703          (b) The division shall make those expenditures from unexpended and unencumbered
             704      building funds already appropriated to the Capital Projects Fund.
             705          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             706      of bonds issued under this chapter.
             707          (d) The commission may, by resolution, make any statement of intent relating to that
             708      reimbursement that is necessary or desirable to comply with federal tax law.
             709          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             710      it is the intent of the Legislature that the balance necessary to complete the projects be
             711      addressed by future Legislatures, either through appropriations or through the issuance or sale
             712      of bonds.
             713          (b) For those phased projects, the division may enter into contracts for amounts not to
             714      exceed the anticipated full project funding but may not allow work to be performed on those
             715      contracts in excess of the funding already authorized by the Legislature.
             716          (c) Those contracts shall contain a provision for termination of the contract for the
             717      convenience of the state [as required by Section 63G-6a-1202 ].
             718          (d) It is also the intent of the Legislature that this authorization to the division does not
             719      bind future Legislatures to fund projects initiated from this authorization.



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             720
         Section 10. Section 63B-6-402 is amended to read:
             721           63B-6-402. Maximum amount -- Projects authorized.
             722          (1) The total amount of bonds issued under this part may not exceed $9,000,000.
             723          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             724      Commission to provide funds to pay all or part of the cost of the project described in this
             725      Subsection (2).
             726          (b) These costs may include:
             727          (i) the cost of acquisition, development, and conversion of computer hardware and
             728      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             729          (ii) interest estimated to accrue on these bonds during the period to be covered by that
             730      development and conversion, plus a period of six months following the completion of the
             731      development and conversion; and
             732          (iii) all related engineering, consulting, and legal fees.
             733          (c) For the State Tax Commission, proceeds shall be provided for the following:
             734          PROJECT
DESCRIPTION  
AMOUNT
FUNDED  
             735          UTAX SYSTEMS ACQUISITION AND
DEVELOPMENT  
$8,500,000  
             736          (3) The commission, by resolution may decline to issue bonds if the project could be
             737      construed to violate state law or federal law or regulation.
             738          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it
             739      is the intent of the Legislature that the balance necessary to complete the project be addressed
             740      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             741          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             742      anticipated full project funding but may not allow work to be performed on those contracts in
             743      excess of the funding already authorized by the Legislature.
             744          (c) Those contracts shall contain a provision for termination of the contract for the
             745      convenience of the state [as required by Section 63G-6a-1202 ].
             746          (d) It is also the intent of the Legislature that this authorization to the State Tax
             747      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             748          Section 11. Section 63B-7-102 is amended to read:



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             749
          63B-7-102. Maximum amount -- Projects authorized.
             750          (1) The total amount of bonds issued under this part may not exceed $33,600,000.
             751          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             752      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             753      Subsection (2).
             754          (b) These costs may include the cost of acquiring land, interests in land, easements and
             755      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             756      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             757      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             758      covered by construction of the projects plus a period of six months after the end of the
             759      construction period, and all related engineering, architectural, and legal fees.
             760          (c) For the division, proceeds shall be provided for the following:
             761       

PROJECT
DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE  
             762        Southern Utah University Land Purchase   $4,600,000   $0  
             763        Salt Lake Community College High Tech Center
- Jordan Campus  
$3,980,700   $507,900  
             764        Children's Special Health Care Needs Clinic   $755,400   $247,600  
             765        Youth Corrections - 2 @ 32 beds
(Vernal / Logan)  
$419,500   $276,000  
             766        Corrections - Gunnison 288 bed and Lagoon
Expansion  
$8,425,600   $0  
             767        University of Utah - Cowles Building   $445,500   $101,700  
             768        Utah Valley State College - Technical Building   $1,166,300   $391,000  
             769        Sevier Valley Applied Technology Center - Shop
Expansion  
$3,014,300   $443,300  
             770        Division of Parks and Recreation Statewide
Restrooms  
$1,000,000   $22,700  

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             771
      
Murray Highway Patrol Office   $2,300,000   $81,000  
             772        Department of Workforce Services - Davis
County Employment Center  
$2,780,000   $128,100  
             773        State Hospital - Rampton II   $1,600,000   $462,000  
             774        Courts - 4th District Land - Provo   $1,368,000   $0  
             775        Dixie College - Land   $1,000,000   $0  
             776        TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT  
$32,855,300    
             777          (d) For purposes of this section, operations and maintenance costs:
             778          (i) are estimates only;
             779          (ii) may include any operations and maintenance costs already funded in existing
             780      agency budgets; and
             781          (iii) are not commitments by this Legislature or future Legislatures to fund those
             782      operations and maintenance costs.
             783          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             784      constitute a limitation on the amount that may be expended for any project.
             785          (b) The board may revise these estimates and redistribute the amount estimated for a
             786      project among the projects authorized.
             787          (c) The commission, by resolution and in consultation with the board, may delete one
             788      or more projects from this list if the inclusion of that project or those projects in the list could
             789      be construed to violate state law or federal law or regulation.
             790          (4) (a) The division may enter into agreements related to these projects before the
             791      receipt of proceeds of bonds issued under this chapter.
             792          (b) The division shall make those expenditures from unexpended and unencumbered
             793      building funds already appropriated to the Capital Projects Fund.
             794          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             795      of bonds issued under this chapter.
             796          (d) The commission may, by resolution, make any statement of intent relating to that
             797      reimbursement that is necessary or desirable to comply with federal tax law.
             798          (5) (a) For those projects for which only partial funding is provided in Subsection (2),



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             799
     it is the intent of the Legislature that the balance necessary to complete the projects be
             800      addressed by future Legislatures, either through appropriations or through the issuance or sale
             801      of bonds.
             802          (b) For those phased projects, the division may enter into contracts for amounts not to
             803      exceed the anticipated full project funding but may not allow work to be performed on those
             804      contracts in excess of the funding already authorized by the Legislature.
             805          (c) Those contracts shall contain a provision for termination of the contract for the
             806      convenience of the state [as required by Section 63G-6a-1202 ].
             807          (d) It is also the intent of the Legislature that this authorization to the division does not
             808      bind future Legislatures to fund projects initiated from this authorization.
             809          Section 12. Section 63B-7-402 is amended to read:
             810           63B-7-402. Maximum amount -- Projects authorized.
             811          (1) The total amount of bonds issued under this part may not exceed $16,500,000.
             812          (2) (a) Proceeds from the issuance of bonds shall be provided to the State Tax
             813      Commission to provide funds to pay all or part of the cost of the project described in this
             814      Subsection (2).
             815          (b) These costs may include:
             816          (i) the cost of acquisition, development, and conversion of computer hardware and
             817      software for motor vehicle fee systems and tax collection and accounting systems of the state;
             818          (ii) interest estimated to accrue on these bonds during the period to be covered by that
             819      development and conversion, plus a period of six months following the completion of the
             820      development and conversion; and
             821          (iii) all related engineering, consulting, and legal fees.
             822          (c) For the State Tax Commission, proceeds shall be provided for the following:
             823          PROJECT
DESCRIPTION  
AMOUNT
FUNDED  
             824          UTAX SYSTEMS ACQUISITION AND
DEVELOPMENT  
$15,650,000  
             825          (3) The commission, by resolution may decline to issue bonds if the project could be
             826      construed to violate state law or federal law or regulation.
             827          (4) (a) For this project, for which only partial funding is provided in Subsection (2), it



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             828
     is the intent of the Legislature that the balance necessary to complete the project be addressed
             829      by future Legislatures, either through appropriations or through the issuance or sale of bonds.
             830          (b) The State Tax Commission may enter into contracts for amounts not to exceed the
             831      anticipated full project funding but may not allow work to be performed on those contracts in
             832      excess of the funding already authorized by the Legislature.
             833          (c) Those contracts shall contain a provision for termination of the contract for the
             834      convenience of the state [as required by Section 63G-6a-1202 ].
             835          (d) It is also the intent of the Legislature that this authorization to the State Tax
             836      Commission does not bind future Legislatures to fund projects initiated from this authorization.
             837          Section 13. Section 63B-8-102 is amended to read:
             838           63B-8-102. Maximum amount -- Projects authorized.
             839          (1) The total amount of bonds issued under this part may not exceed $48,500,000.
             840          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             841      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             842      Subsection (2).
             843          (b) These costs may include the cost of acquiring land, interests in land, easements and
             844      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             845      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             846      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             847      covered by construction of the projects plus a period of six months after the end of the
             848      construction period, and all related engineering, architectural, and legal fees.
             849          (c) For the division, proceeds shall be provided for the following:
             850       

PROJECT
DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE  
             851        Southern Utah University - Physical Education
Building  
$2,493,200   $447,744  
             852        Utah Valley State College - Information Sciences
Building  
$29,000,000   $721,875  

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             853
      
University of Utah - Cowles Building Renovation   $7,268,500   $140,217  
             854        Vernal District Court   $4,539,500   $149,989  
             855        Salt Lake Community College - Applied Education
Center  
$4,200,000   $281,784  
             856        TOTAL CAPITAL AND ECONOMIC
DEVELOPMENT  
$47,501,200    
             857          (d) For purposes of this section, operations and maintenance costs:
             858          (i) are estimates only;
             859          (ii) may include any operations and maintenance costs already funded in existing
             860      agency budgets; and
             861          (iii) are not commitments by this Legislature or future Legislatures to fund those
             862      operations and maintenance costs.
             863          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             864      constitute a limitation on the amount that may be expended for any project.
             865          (b) The board may revise these estimates and redistribute the amount estimated for a
             866      project among the projects authorized.
             867          (c) The commission, by resolution and in consultation with the board, may delete one
             868      or more projects from this list if the inclusion of that project or those projects in the list could
             869      be construed to violate state law or federal law or regulation.
             870          (4) (a) The division may enter into agreements related to these projects before the
             871      receipt of proceeds of bonds issued under this chapter.
             872          (b) The division shall make those expenditures from unexpended and unencumbered
             873      building funds already appropriated to the Capital Projects Fund.
             874          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             875      of bonds issued under this chapter.
             876          (d) The commission may, by resolution, make any statement of intent relating to that
             877      reimbursement that is necessary or desirable to comply with federal tax law.
             878          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             879      it is the intent of the Legislature that the balance necessary to complete the projects be
             880      addressed by future Legislatures, either through appropriations or through the issuance or sale



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             881
     of bonds.
             882          (b) For those phased projects, the division may enter into contracts for amounts not to
             883      exceed the anticipated full project funding but may not allow work to be performed on those
             884      contracts in excess of the funding already authorized by the Legislature.
             885          (c) Those contracts shall contain a provision for termination of the contract for the
             886      convenience of the state [as required by Section 63G-6a-1202 ].
             887          (d) It is also the intent of the Legislature that this authorization to the division does not
             888      bind future Legislatures to fund projects initiated from this authorization.
             889          Section 14. Section 63B-8-402 is amended to read:
             890           63B-8-402. Maximum amount -- Projects authorized.
             891          (1) The total amount of bonds issued under this part may not exceed $7,400,000.
             892          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             893      funds to pay all or part of the cost of acquiring and constructing the project listed in this
             894      Subsection (2).
             895          (b) These costs may include the cost of acquiring land, interests in land, easements and
             896      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             897      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             898      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             899      covered by construction of the projects plus a period of six months after the end of the
             900      construction period, and all related engineering, architectural, and legal fees.
             901          (c) For the division, proceeds shall be provided for the following:
             902         

PROJECT
DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATIONS
AND
MAINTENANCE  
             903          State Hospital - Rampton II   $7,000,000   $462,000  
             904          (d) For purposes of this section, operations and maintenance costs:
             905          (i) are estimates only;
             906          (ii) may include any operations and maintenance costs already funded in existing
             907      agency budgets; and
             908          (iii) are not commitments by this Legislature or future Legislatures to fund those



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             909
     operations and maintenance costs.
             910          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             911      constitute a limitation on the amount that may be expended for any project.
             912          (b) The board may revise these estimates and redistribute the amount estimated for a
             913      project among the projects authorized.
             914          (c) The commission, by resolution and in consultation with the board, may delete one
             915      or more projects from this list if the inclusion of that project or those projects in the list could
             916      be construed to violate state law or federal law or regulation.
             917          (4) (a) The division may enter into agreements related to these projects before the
             918      receipt of proceeds of bonds issued under this chapter.
             919          (b) The division shall make those expenditures from unexpended and unencumbered
             920      building funds already appropriated to the Capital Projects Fund.
             921          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             922      of bonds issued under this chapter.
             923          (d) The commission may, by resolution, make any statement of intent relating to that
             924      reimbursement that is necessary or desirable to comply with federal tax law.
             925          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             926      it is the intent of the Legislature that the balance necessary to complete the projects be
             927      addressed by future Legislatures, either through appropriations or through the issuance or sale
             928      of bonds.
             929          (b) For those phased projects, the division may enter into contracts for amounts not to
             930      exceed the anticipated full project funding but may not allow work to be performed on those
             931      contracts in excess of the funding already authorized by the Legislature.
             932          (c) Those contracts shall contain a provision for termination of the contract for the
             933      convenience of the state [as required by Section 63G-6a-1202 ].
             934          (d) It is also the intent of the Legislature that this authorization to the division does not
             935      bind future Legislatures to fund projects initiated from this authorization.
             936          Section 15. Section 63B-9-103 is amended to read:
             937           63B-9-103. Other capital facility authorizations and intent language.
             938          (1) It is the intent of the Legislature that:
             939          (a) Utah State University use institutional funds to plan, design, and construct a



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             940
     renovation and expansion of the Edith Bowen School under the direction of the director of the
             941      Division of Facilities Construction and Management unless supervisory authority has been
             942      delegated;
             943          (b) no state funds be used for any portion of this project; and
             944          (c) the university may request state funds for operations and maintenance to the extent
             945      that the university is able to demonstrate to the Board of Regents that the facility meets
             946      approved academic and training purposes under Board of Regents policy R710.
             947          (2) It is the intent of the Legislature that:
             948          (a) the University of Utah use institutional funds to plan, design, and construct a
             949      College of Science Math Center under the direction of the director of the Division of Facilities
             950      Construction and Management unless supervisory authority has been delegated;
             951          (b) no state funds be used for any portion of this project; and
             952          (c) the university may request state funds for operations and maintenance to the extent
             953      that the university is able to demonstrate to the Board of Regents that the facility meets
             954      approved academic and training purposes under Board of Regents policy R710.
             955          (3) It is the intent of the Legislature that:
             956          (a) the University of Utah use institutional funds to plan, design, and construct a
             957      Burbidge Athletics and Academics Building under the direction of the director of the Division
             958      of Facilities Construction and Management unless supervisory authority has been delegated;
             959          (b) no state funds be used for any portion of this project; and
             960          (c) the university may not request state funds for operations and maintenance.
             961          (4) It is the intent of the Legislature that:
             962          (a) the University of Utah use institutional funds to plan, design, and construct an
             963      expansion to the bookstore under the direction of the director of the Division of Facilities
             964      Construction and Management unless supervisory authority has been delegated;
             965          (b) no state funds be used for any portion of this project; and
             966          (c) the university may not request state funds for operations and maintenance.
             967          (5) It is the intent of the Legislature that:
             968          (a) the University of Utah use institutional funds to plan, design, and construct a Health
             969      Sciences/Basic Sciences Building under the direction of the director of the Division of
             970      Facilities Construction and Management unless supervisory authority has been delegated;



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             971
         (b) no state funds be used for any portion of this project; and
             972          (c) the university may request state funds for operations and maintenance to the extent
             973      that the university is able to demonstrate to the Board of Regents that the facility meets
             974      approved academic and training purposes under Board of Regents policy R710.
             975          (6) It is the intent of the Legislature that:
             976          (a) Weber State University use institutional funds to plan, design, and construct an
             977      expansion to the stadium under the direction of the director of the Division of Facilities
             978      Construction and Management unless supervisory authority has been delegated;
             979          (b) no state funds be used for any portion of this project; and
             980          (c) the university may not request state funds for operations and maintenance.
             981          (7) It is the intent of the Legislature that:
             982          (a) Utah Valley State College use institutional funds to plan, design, and construct a
             983      baseball stadium under the direction of the director of the Division of Facilities Construction
             984      and Management unless supervisory authority has been delegated;
             985          (b) no state funds be used for any portion of this project; and
             986          (c) the college may not request state funds for operations and maintenance.
             987          (8) It is the intent of the Legislature that:
             988          (a) Southern Utah University use institutional funds to plan, design, and construct a
             989      weight training room under the direction of the director of the Division of Facilities
             990      Construction and Management unless supervisory authority has been delegated;
             991          (b) no state funds be used for any portion of this project; and
             992          (c) the university may not request state funds for operations and maintenance.
             993          (9) It is the intent of the Legislature that:
             994          (a) Snow College may lease land at the Snow College Richfield campus to a private
             995      developer for the construction and operation of student housing;
             996          (b) the oversight and inspection of the construction comply with Section 63A-5-206 ;
             997          (c) no state funds be used for any portion of this project; and
             998          (d) the college may not request state funds for operations and maintenance.
             999          (10) It is the intent of the Legislature that:
             1000          (a) Salt Lake Community College may lease land at the Jordan campus to Jordan
             1001      School District for the construction and operation of an Applied Technology Education Center;



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             1002
         (b) the oversight and inspection of the construction comply with Section 63A-5-206 ;
             1003          (c) no state funds be used for any portion of this project; and
             1004          (d) the college may not request state funds for operations and maintenance.
             1005          (11) It is the intent of the Legislature that:
             1006          (a) the Department of Transportation exchange its maintenance station at Kimball
             1007      Junction for property located near Highway 40 in Summit County; and
             1008          (b) the Department of Transportation use federal funds, rent paid by the Salt Lake
             1009      Organizing Committee for the use of the maintenance station, and any net proceeds resulting
             1010      from the exchange of property to construct a replacement facility under the direction of the
             1011      director of the Division of Facilities Construction and Management unless supervisory
             1012      authority has been delegated.
             1013          (12) It is the intent of the Legislature that:
             1014          (a) the Department of Transportation sell surplus property in Utah County;
             1015          (b) the Department of Transportation use funds from that sale to remodel existing
             1016      space and add an addition to the Region 3 Complex; and
             1017          (c) the project cost not exceed the funds received through sale of property.
             1018          (13) It is the intent of the Legislature that the Department of Workforce Services use
             1019      proceeds from property sales to purchase additional property adjacent to its state-owned facility
             1020      in Logan.
             1021          (14) (a) It is the intent of the Legislature that, because only partial funding is provided
             1022      for the Heat Plant/Infrastructure Project at Utah State University, the balance necessary to
             1023      complete this project be addressed by future Legislatures, either through appropriations or
             1024      through the issuance of bonds.
             1025          (b) (i) In compliance with Section 63A-5-207 , the division may enter into contracts for
             1026      amounts not to exceed the anticipated full project funding but may not allow work to be
             1027      performed on those contracts in excess of the funding already authorized by the Legislature.
             1028          (ii) Those contracts shall contain a provision for termination of the contract for the
             1029      convenience of the state [as required by Section 63G-6a-1202 ].
             1030          (c) It is also the intent of the Legislature that this authorization to the division does not
             1031      bind future Legislatures to fund the Heat Plant/Infrastructure Project at Utah State University.
             1032          Section 16. Section 63B-11-202 is amended to read:



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             1033
          63B-11-202. Maximum amount -- Projects authorized.
             1034          (1) (a) The total amount of bonds issued under this part may not exceed $21,250,000.
             1035          (b) When Utah State University certifies to the commission that the university has
             1036      obtained reliable commitments, convertible to cash, of $5,000,000 or more in nonstate funds to
             1037      construct an addition to the new engineering building and demolish the existing engineering
             1038      classroom building, the commission may issue and sell general obligation bonds in a total
             1039      amount not to exceed $6,100,000.
             1040          (c) When the University of Utah certifies to the commission that the university has
             1041      obtained reliable commitments, convertible to cash, of $13,000,000 or more in nonstate funds
             1042      to construct a new engineering building, the commission may issue and sell general obligation
             1043      bonds in a total amount not to exceed $15,150,000.
             1044          (2) (a) Proceeds from the issuance of bonds shall be provided to the division to provide
             1045      funds to pay all or part of the cost of acquiring and constructing the projects listed in this
             1046      Subsection (2).
             1047          (b) These costs may include the cost of acquiring land, interests in land, easements and
             1048      rights-of-way, improving sites, and acquiring, constructing, equipping, and furnishing facilities
             1049      and all structures, roads, parking facilities, utilities, and improvements necessary, incidental, or
             1050      convenient to the facilities, interest estimated to accrue on these bonds during the period to be
             1051      covered by construction of the projects plus a period of six months after the end of the
             1052      construction period, and all related engineering, architectural, and legal fees.
             1053          (c) For the division, proceeds shall be provided for the following:
             1054       

PROJECT
DESCRIPTION  


AMOUNT
FUNDED  

ESTIMATED
OPERATING
AND
MAINTENANCE
COSTS  
             1055        1. Utah State University Engineering Building
Renovation  
$5,943,500   $425,000  
             1056        2. University of Utah New Engineering Building   $15,000,000   $489,000  
             1057        COSTS OF ISSUANCE   $306,500    

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             1058
      
TOTAL CAPITAL AND ECONOMIC DEVELOPMENT   $21,250,000  
             1059          (d) For purposes of this section, operations and maintenance costs:
             1060          (i) are estimates only;
             1061          (ii) may include any operations and maintenance costs already funded in existing
             1062      agency budgets; and
             1063          (iii) are not commitments by this Legislature or future Legislatures to fund those
             1064      operations and maintenance costs.
             1065          (3) (a) The amounts funded as listed in Subsection (2) are estimates only and do not
             1066      constitute a limitation on the amount that may be expended for any project.
             1067          (b) The board may revise these estimates and redistribute the amount estimated for a
             1068      project among the projects authorized.
             1069          (c) The commission, by resolution and in consultation with the board, may delete one
             1070      or more projects from this list if the inclusion of that project or those projects in the list could
             1071      be construed to violate state law or federal law or regulation.
             1072          (4) (a) The division may enter into agreements related to these projects before the
             1073      receipt of proceeds of bonds issued under this chapter.
             1074          (b) The division shall make those expenditures from unexpended and unencumbered
             1075      building funds already appropriated to the Capital Projects Fund.
             1076          (c) The division shall reimburse the Capital Projects Fund upon receipt of the proceeds
             1077      of bonds issued under this chapter.
             1078          (d) The commission may, by resolution, make any statement of intent relating to that
             1079      reimbursement that is necessary or desirable to comply with federal tax law.
             1080          (5) (a) For those projects for which only partial funding is provided in Subsection (2),
             1081      it is the intent of the Legislature that the balance necessary to complete the projects be
             1082      addressed by future Legislatures, either through appropriations or through the issuance or sale
             1083      of bonds.
             1084          (b) For those phased projects, the division may enter into contracts for amounts not to
             1085      exceed the anticipated full project funding but may not allow work to be performed on those
             1086      contracts in excess of the funding already authorized by the Legislature.
             1087          (c) Those contracts shall contain a provision for termination of the contract for the
             1088      convenience of the state [as required by Section 63G-6a-1202 ].



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             1089
         (d) It is also the intent of the Legislature that this authorization to the division does not
             1090      bind future Legislatures to fund projects initiated from this authorization.
             1091          Section 17. Section 63F-1-205 is amended to read:
             1092           63F-1-205. Approval of acquisitions of information technology.
             1093          (1) (a) Except as provided in Title 63M, Chapter 1, Part 26, Government Procurement
             1094      Private Proposal Program, in accordance with Subsection (2), the chief information officer
             1095      shall approve the acquisition by an executive branch agency of:
             1096          (i) information technology equipment;
             1097          (ii) telecommunications equipment;
             1098          (iii) software;
             1099          (iv) services related to the items listed in Subsections (1)(a)(i) through (iii); and
             1100          (v) data acquisition.
             1101          (b) The chief information officer may negotiate the purchase, lease, or rental of private
             1102      or public information technology or telecommunication services or facilities in accordance with
             1103      this section.
             1104          (c) Where practical, efficient, and economically beneficial, the chief information
             1105      officer shall use existing private and public information technology or telecommunication
             1106      resources.
             1107          (d) Notwithstanding another provision of this section, an acquisition authorized by this
             1108      section shall comply with rules made by the applicable rulemaking authority under Title 63G,
             1109      Chapter 6a, Utah Procurement Code.
             1110          (2) Before negotiating a purchase, lease, or rental under Subsection (1) for an amount
             1111      that exceeds the value established by the chief information officer by rule in accordance with
             1112      Section 63F-1-206 , the chief information officer shall:
             1113          (a) conduct an analysis of the needs of executive branch agencies and subscribers of
             1114      services and the ability of the proposed information technology or telecommunications services
             1115      or supplies to meet those needs; and
             1116          (b) for purchases, leases, or rentals not covered by an existing statewide contract,
             1117      provide in writing to the chief procurement officer in the Division of Purchasing and General
             1118      Services that:
             1119          (i) the analysis required in Subsection (2)(a) was completed; and



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             1120
         (ii) based on the analysis, the proposed purchase, lease, rental, or master contract of
             1121      services, products, or supplies is practical, efficient, and economically beneficial to the state
             1122      and the executive branch agency or subscriber of services.
             1123          (3) In approving an acquisition described in Subsections (1) and (2), the chief
             1124      information officer shall:
             1125          (a) establish by administrative rule, in accordance with Section 63F-1-206 , standards
             1126      under which an agency must obtain approval from the chief information officer before
             1127      acquiring the items listed in Subsections (1) and (2);
             1128          (b) for those acquisitions requiring approval, determine whether the acquisition is in
             1129      compliance with:
             1130          (i) the executive branch strategic plan;
             1131          (ii) the applicable agency information technology plan;
             1132          (iii) the budget for the executive branch agency or department as adopted by the
             1133      Legislature; and
             1134          (iv) Title 63G, Chapter 6a, Utah Procurement Code; and
             1135          (c) in accordance with Section 63F-1-207 , require coordination of acquisitions between
             1136      two or more executive branch agencies if it is in the best interests of the state.
             1137          (4) (a) Each executive branch agency shall provide the chief information officer with
             1138      complete access to all information technology records, documents, and reports:
             1139          (i) at the request of the chief information officer; and
             1140          (ii) related to the executive branch agency's acquisition of any item listed in Subsection
             1141      (1).
             1142          (b) Beginning July 1, 2006 and in accordance with administrative rules established by
             1143      the department under Section 63F-1-206 , no new technology projects may be initiated by an
             1144      executive branch agency or the department unless the technology project is described in a
             1145      formal project plan and the business case analysis has been approved by the chief information
             1146      officer and agency head. The project plan and business case analysis required by this
             1147      Subsection (4) shall be in the form required by the chief information officer, and shall include:
             1148          (i) a statement of work to be done and existing work to be modified or displaced;
             1149          (ii) total cost of system development and conversion effort, including system analysis
             1150      and programming costs, establishment of master files, testing, documentation, special



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             1151
     equipment cost and all other costs, including overhead;
             1152          (iii) savings or added operating costs that will result after conversion;
             1153          (iv) other advantages or reasons that justify the work;
             1154          (v) source of funding of the work, including ongoing costs;
             1155          (vi) consistency with budget submissions and planning components of budgets; and
             1156          (vii) whether the work is within the scope of projects or initiatives envisioned when the
             1157      current fiscal year budget was approved.
             1158          (5) (a) The chief information officer and the Division of Purchasing and General
             1159      Services shall work cooperatively to establish procedures under which the chief information
             1160      officer shall monitor and approve acquisitions as provided in this section.
             1161          (b) The procedures established under this section shall include at least the written
             1162      certification required by Subsection 63G-6a-303 [(5)](1)(e).
             1163          Section 18. Section 63G-6a-102 is amended to read:
             1164           63G-6a-102. Purpose of chapter.
             1165          The underlying purposes and policies of this chapter are:
             1166          (1) to simplify, clarify, and modernize the law governing procurement [by this] in the
             1167      state;
             1168          (2) to ensure the fair and equitable treatment of all persons who deal with the
             1169      procurement system [of this state];
             1170          (3) to provide increased economy in state procurement activities; and
             1171          (4) to foster effective broad-based competition within the free enterprise system.
             1172          Section 19. Section 63G-6a-103 is amended to read:
             1173           63G-6a-103. Definitions.
             1174          As used in this chapter:
             1175          (1) "Architect-engineer services" means:
             1176          (a) professional services within the scope of the practice of architecture as defined in
             1177      Section 58-3a-102 ; [or]
             1178          (b) professional engineering as defined in Section 58-22-102 [.]; or
             1179          (c) master planning and programming services.
             1180          (2) "Bidder" means a person who responds to an invitation for bids.
             1181          (3) "Change directive" means a written order signed by the procurement officer that



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             1182
     directs the contractor to suspend work or make changes, as authorized by contract, without the
             1183      consent of the contractor.
             1184          (4) "Change order" means a written alteration in specifications, delivery point, rate of
             1185      delivery, period of performance, price, quantity, or other provisions of a contract, upon mutual
             1186      agreement of the parties to the contract.
             1187          (5) "Chief procurement officer" means the chief procurement officer appointed under
             1188      Subsection 63G-6a-302 (1).
             1189          (6) "Conducting procurement unit" means a procurement unit that conducts all aspects
             1190      of a procurement:
             1191          (a) except:
             1192          (i) reviewing a solicitation to verify that it is in proper form; and
             1193          (ii) causing the publication of a notice of a solicitation; and
             1194          (b) including:
             1195          (i) preparing any solicitation document;
             1196          (ii) appointing an evaluation committee;
             1197          (iii) conducting the evaluation process, except as provided in Subsection
             1198      63G-6a-707 (5)(b) relating to scores calculated for costs of proposals;
             1199          (iv) selecting and recommending the person to be awarded a contract;
             1200          (v) negotiating the terms and conditions of a contract, subject to the issuing
             1201      procurement unit's approval; and
             1202          (vi) administering a contract.
             1203          [(6)] (7) (a) "Construction" means the process of building, renovating, altering,
             1204      improving, or repairing a public building or public work.
             1205          (b) "Construction" does not include the routine operation, routine repair, or routine
             1206      maintenance of an existing structure, building, or real property.
             1207          [(7)] (8) (a) "Construction manager/general contractor" means a contractor who enters
             1208      into a contract for the management of a construction project when the contract allows the
             1209      contractor to subcontract for additional labor and materials that are not included in the
             1210      contractor's cost proposal submitted at the time of the procurement of the contractor's services.
             1211          (b) "Construction manager/general contractor" does not include a contractor whose
             1212      only subcontract work not included in the contractor's cost proposal submitted as part of the



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             1213
     procurement of the contractor's services is to meet subcontracted portions of change orders
             1214      approved within the scope of the project.
             1215          [(8)] (9) "Contract" means an agreement for the procurement or disposal of a
             1216      procurement item.
             1217          [(9)] (10) "Contractor" means a person who is awarded a contract with a procurement
             1218      unit.
             1219          [(10)] (11) "Cooperative procurement" means procurement conducted by, or on behalf
             1220      of[,]:
             1221          (a) more than one procurement unit[,]; or [by]
             1222          (b) a procurement unit [and an external procurement unit.] and a cooperative
             1223      purchasing organization.
             1224          [(11)] (12) "Cost-plus-a-percentage-of-cost contract" means a contract where the
             1225      contractor is paid a percentage over and above the contractor's actual expenses or costs.
             1226          [(12)] (13) "Cost-reimbursement contract" means a contract under which a contractor
             1227      is reimbursed for costs which are allowed and allocated in accordance with the contract terms
             1228      and the provisions of this chapter, and a fee, if any.
             1229          [(13)] (14) "Days" means calendar days, unless expressly provided otherwise.
             1230          [(14)] (15) "Definite quantity contract" means a fixed price contract that provides for
             1231      the supply of a specified amount of goods over a specified period, with deliveries scheduled
             1232      according to a specified schedule.
             1233          [(15)] (16) "Design-build" means the procurement of architect-engineer services and
             1234      construction by the use of a single contract with the design-build provider.
             1235          [(16)] (17) "Director" means the director of the division.
             1236          [(17)] (18) "Established catalogue price" means the price included in a catalogue, price
             1237      list, schedule, or other form that:
             1238          (a) is regularly maintained by a manufacturer or contractor;
             1239          (b) is either published or otherwise available for inspection by customers; and
             1240          (c) states prices at which sales are currently or were last made to a significant number
             1241      of any category of buyers or buyers constituting the general buying public for the supplies or
             1242      services involved.
             1243          [(18)] (19) "Fixed price contract" means a contract that provides a price, for each



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             1244
     procurement item obtained under the contract, that is not subject to adjustment except to the
             1245      extent that:
             1246          (a) the contract provides, under circumstances specified in the contract, for an
             1247      adjustment in price that is not based on cost to the contractor; or
             1248          (b) an adjustment is required by law.
             1249          [(19)] (20) "Fixed price contract with price adjustment" means a fixed price contract
             1250      that provides for an upward or downward revision of price, precisely described in the contract,
             1251      that:
             1252          (a) is based on the consumer price index or another commercially acceptable index,
             1253      source, or formula; and
             1254          (b) is not based on a percentage of the cost to the contractor.
             1255          [(20)] (21) (a) "Grant" means furnishing, by a public entity or by any other public or
             1256      private source, financial or other assistance to a person to support a program authorized by law.
             1257          (b) "Grant" does not include:
             1258          (i) an award whose primary purpose is to procure an end product or procurement item;
             1259      or
             1260          (ii) a contract that is awarded as a result of a procurement or a procurement process.
             1261          [(21)] (22) "Head of a procurement unit" means:
             1262          (a) as it relates to a legislative procurement unit, any person designated by rule made
             1263      by the applicable rulemaking authority;
             1264          (b) as it relates to an executive branch procurement unit:
             1265          (i) the director of a division; or
             1266          (ii) any other person designated by the board, by rule;
             1267          (c) as it relates to a judicial procurement unit:
             1268          (i) the Judicial Council; or
             1269          (ii) any other person designated by the Judicial Council, by rule;
             1270          (d) as it relates to a local government procurement unit:
             1271          (i) the legislative body of the local government procurement unit; or
             1272          (ii) any other person designated by the local government procurement unit;
             1273          (e) as it relates to a local district, the board of trustees of the local district or a designee
             1274      of the board of trustees;



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             1275
         (f) as it relates to a special service district, the governing body of the special service
             1276      district or a designee of the governing body;
             1277          (g) as it relates to a local building authority, the board of directors of the local building
             1278      authority or a designee of the board of directors;
             1279          (h) as it relates to a conservation district, the board of supervisors of the conservation
             1280      district or a designee of the board of supervisors;
             1281          (i) as it relates to a public corporation, the board of directors of the public corporation
             1282      or a designee of the board of directors;
             1283          (j) as it relates to a school district or any school or entity within a school district, the
             1284      board of the school district, or the board's designee;
             1285          (k) as it relates to a charter school, the individual or body with executive authority over
             1286      the charter school, or the individual's or body's designee;
             1287          (l) as it relates to an institution of higher education of the state, the president of the
             1288      institution of higher education, or the president's designee; or
             1289          (m) as it relates to a public transit district, the board of trustees or a designee of the
             1290      board of trustees.
             1291          [(22)] (23) "Indefinite quantity contract" means a fixed price contract that:
             1292          (a) is for an indefinite amount of procurement items to be supplied as ordered by a
             1293      procurement unit; and
             1294          (b) (i) does not require a minimum purchase amount; or
             1295          (ii) provides a maximum purchase limit.
             1296          [(23)] (24) "Independent procurement authority" means authority granted to a
             1297      procurement unit[,] under Subsection [ 63G-6a-108 (2), to engage in a procurement without
             1298      oversight or control of the division] 63G-6a-106(4)(a).
             1299          [(24)] (25) "Invitation for bids" includes all documents, including documents that are
             1300      attached or incorporated by reference, used for soliciting bids to provide a procurement item to
             1301      a procurement unit.
             1302          [(25)] (26) "Issuing procurement unit" means a procurement unit that:
             1303          [(a) the division, if the division issues the invitation for bids or the request for
             1304      proposals; or]
             1305          [(b) the procurement unit, with independent procurement authority, that issues the



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             1306
     invitation for bids or the request for proposals.]
             1307          (a) reviews a solicitation to verify that it is in proper form;
             1308          (b) causes the notice of a solicitation to be published; and
             1309          (c) negotiates the terms and conditions of a contract.
             1310          [(26)] (27) "Labor hour contract" is a contract where:
             1311          (a) the supplies and materials are not provided by, or through, the contractor; and
             1312          (b) the contractor is paid a fixed rate that includes the cost of labor, overhead, and
             1313      profit for a specified number of labor hours or days.
             1314          [(27)] (28) "Multiple award contracts" means the award of a contract for an indefinite
             1315      quantity of a procurement item to more than one bidder or offeror.
             1316          [(28)] (29) "Multiyear contract" means a contract that extends beyond a one-year
             1317      period, including a contract that permits renewal of the contract, without competition, beyond
             1318      the first year of the contract.
             1319          [(29)] (30) "Municipality" means a city or a town.
             1320          [(30)] (31) "Offeror" means a person who responds to a request for proposals.
             1321          [(31)] (32) "Preferred bidder" means a bidder that is entitled to receive a reciprocal
             1322      preference under the requirements of this chapter.
             1323          [(32)] (33) (a) "Procure" or "procurement" means buying, purchasing, renting, leasing,
             1324      leasing with an option to purchase, or otherwise acquiring a procurement item.
             1325          (b) "Procure" or "procurement" includes all functions that pertain to the obtaining of a
             1326      procurement item, including:
             1327          (i) the description of requirements;
             1328          (ii) the selection process;
             1329          (iii) solicitation of sources;
             1330          (iv) the preparation for soliciting a procurement item; and
             1331          (v) the award of a contract[; and].
             1332          [(vi) all phases of contract administration.]
             1333          [(33)] (34) "Procurement item" means a supply, a service, construction, or technology.
             1334          [(34)] (35) "Procurement officer" means:
             1335          (a) as it relates to a procurement unit with independent procurement authority:
             1336          (i) the head of the procurement unit;



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             1337
         (ii) a designee of the head of the procurement unit; or
             1338          (iii) a person designated by rule made by the applicable rulemaking authority; or
             1339          (b) as it relates to the division or a procurement unit without independent procurement
             1340      authority, the chief procurement officer.
             1341          [(35)] (36) "Professional service" means a service that requires a high degree of
             1342      specialized knowledge and discretion in the performance of the service, including:
             1343          (a) legal services;
             1344          (b) consultation services;
             1345          (c) architectural services;
             1346          (d) engineering;
             1347          (e) design;
             1348          (f) underwriting;
             1349          (g) bond counsel;
             1350          (h) financial advice;
             1351          (i) construction management;
             1352          (j) medical services;
             1353          (k) psychiatric services; or
             1354          (l) counseling services.
             1355          [(36)] (37) "Protest officer" means:
             1356          (a) as it relates to the division or a procurement unit with independent procurement
             1357      authority:
             1358          (i) the head of the procurement unit;
             1359          (ii) a designee of the head of the procurement unit; or
             1360          (iii) a person designated by rule made by the applicable rulemaking authority; or
             1361          (b) as it relates to a procurement unit without independent procurement authority, the
             1362      chief procurement officer or the chief procurement officer's designee.
             1363          [(37)] (38) "Request for information" means a nonbinding process where a
             1364      procurement unit requests information relating to a procurement item.
             1365          [(38)] (39) "Request for proposals" includes all documents, including documents that
             1366      are attached or incorporated by reference, used for soliciting proposals to provide a
             1367      procurement item to a procurement unit.



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             1368
         (40) "Request for statement of qualifications" means all documents used to solicit
             1369      information about the qualifications of the person interested in responding to a potential
             1370      procurement, including documents attached or incorporated by reference.
             1371          [(39)] (41) "Requirements contract" means a contract:
             1372          (a) where a contractor agrees to provide a procurement unit's entire requirements for
             1373      certain procurement items at prices specified in the contract during the contract period; and
             1374          (b) that:
             1375          (i) does not require a minimum purchase amount; or
             1376          (ii) provides a maximum purchase limit.
             1377          [(40)] (42) "Responsible" means [that a bidder or offeror: (a) is] being capable, in all
             1378      respects, of: [to fully perform the contract requirements solicited in an invitation for bids or a
             1379      request for proposals; and]
             1380          [(b) has the integrity and reliability to ensure good faith performance.]
             1381          (a) meeting all the requirements of a solicitation; and
             1382          (b) fully performing all the requirements of the contract resulting from the solicitation,
             1383      including being financially solvent with sufficient financial resources to perform the contract.
             1384          [(41)] (43) "Responsive" means [that a bidder or offeror submits a response to an
             1385      invitation for bids or a request for proposals that conforms] conforming in all material respects
             1386      to the invitation for bids or request for proposals.
             1387          [(42)] (44) "Sealed" means manually or electronically sealed and submitted bids or
             1388      proposals.
             1389          [(43)] (45) (a) "Services" means the furnishing of labor, time, or effort by a contractor,
             1390      not involving the delivery of a specific end product other than a report that is incidental to the
             1391      required performance.
             1392          (b) "Services" does not include an employment agreement or a collective bargaining
             1393      agreement.
             1394          (46) "Sole source contract" means a contract resulting from a sole source procurement.
             1395          (47) "Sole source procurement" means a procurement without competition pursuant to
             1396      a determination under Subsection 63G-6a-802 (2)(a) that there is only one source for the
             1397      procurement item.
             1398          (48) "Solicitation" means an invitation for bids, request for proposals, notice of a sole



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             1399
     source procurement, request for statement of qualifications, request for information, or any
             1400      document used to obtain bids, proposals, pricing, qualifications, or information for the purpose
             1401      of entering into a procurement contract.
             1402          [(44)] (49) "Specification" means any description of the physical or functional
             1403      characteristics, or nature of a procurement item included in an invitation for bids or a request
             1404      for proposals, or otherwise specified or agreed to by a procurement unit, including a description
             1405      of:
             1406          (a) a requirement for inspecting or testing a procurement item; or
             1407          (b) preparing a procurement item for delivery.
             1408          [(45)] (50) "Standard procurement process" means one of the following methods of
             1409      obtaining a procurement item:
             1410          (a) bidding, as described in Part 6, Bidding;
             1411          (b) request for proposals, as described in Part 7, Request for Proposals; or
             1412          (c) small purchases, in accordance with the requirements established under Section
             1413      63G-6a-408 .
             1414          [(46)] (51) "State cooperative contract" means a contract awarded by the division for
             1415      and in behalf of all public entities.
             1416          (52) "Statement of qualifications" means a written statement submitted to a
             1417      procurement unit in response to a request for statement of qualifications.
             1418          [(47)] (53) (a) "Subcontractor" means a person under contract with a contractor or
             1419      another subcontractor to provide services or labor for design or construction.
             1420          (b) "Subcontractor" includes a trade contractor or specialty contractor.
             1421          (c) "Subcontractor" does not include a supplier who provides only materials,
             1422      equipment, or supplies to a contractor or subcontractor.
             1423          [(48)] (54) "Supplies" means all property, including equipment, materials, and printing.
             1424          [(49)] (55) "Tie bid" means that the lowest responsive and responsible bids are
             1425      identical in price.
             1426          [(50)] (56) "Time and materials contract" means a contract where the contractor is
             1427      paid:
             1428          (a) the actual cost of direct labor at specified hourly rates;
             1429          (b) the actual cost of materials and equipment usage; and



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             1430
         (c) an additional amount, expressly described in the contract, to cover overhead and
             1431      profit, that is not based on a percentage of the cost to the contractor.
             1432          Section 20. Section 63G-6a-104 is amended to read:
             1433           63G-6a-104. Definitions of government entities.
             1434          As used in this chapter:
             1435          (1) "Applicable rulemaking authority" means:
             1436          (a) as it relates to a legislative procurement unit, the Legislative Management
             1437      Committee, which shall adopt a policy establishing requirements applicable to a legislative
             1438      procurement unit;
             1439          (b) as it relates to a judicial procurement unit, the Judicial Council;
             1440          (c) as it relates to an executive branch procurement unit, except to the extent provided
             1441      in Subsections (1)(d) through (g), the board;
             1442          (d) as it relates to the State Building Board, created in Section 63A-5-101 , the State
             1443      Building Board, but only to the extent that the rules relate to procurement authority expressly
             1444      granted to the State Building Board by statute;
             1445          (e) as it relates to the Division of Facilities Construction and Management, created in
             1446      Section 63A-5-201 , the director of the Division of Facilities Construction and Management,
             1447      but only to the extent that the rules relate to procurement authority expressly granted to the
             1448      Division of Facilities Construction and Management by statute;
             1449          (f) as it relates to the Office of the Attorney General, the attorney general, but only to
             1450      the extent that the rules relate to procurement authority expressly granted to the attorney
             1451      general by statute;
             1452          (g) as it relates to the Department of Transportation, created in Section 72-1-201 , the
             1453      executive director of the Department of Transportation, but only to the extent that the rules
             1454      relate to procurement authority expressly granted to the Department of Transportation by
             1455      statute;
             1456          (h) as it relates to a local government procurement unit, the legislative body of the local
             1457      government procurement unit, not as a delegation of authority from the Legislature, but under
             1458      the local government procurement unit's own legislative authority;
             1459          (i) as it relates to a school district or a public school, the Utah State Procurement Policy
             1460      Board, except to the extent that a school district makes its own nonadministrative rules, with



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             1461
     respect to a particular subject, that do not conflict with the provisions of this chapter;
             1462          (j) as it relates to a state institution of higher education, the State Board of Regents;
             1463          (k) as it relates to a public transit district, the chief executive of the public transit
             1464      district;
             1465          (l) as it relates to a local district or a special service district:
             1466          (i) before [May 13, 2014] January 1, 2015, the board of trustees of the local district or
             1467      the governing body of the special service district; or
             1468          (ii) on or after [May 13, 2014] January 1, 2015, the board, except to the extent that the
             1469      board of trustees of the local district or the governing body of the special service district makes
             1470      its own rules:
             1471          (A) with respect to a subject addressed by board rules; or
             1472          (B) that are in addition to board rules; or
             1473          (m) as it relates to a procurement unit, other than a procurement unit described in
             1474      Subsections (1)(a) through (l), the board.
             1475          (2) "Board" means the Utah State Procurement Policy Board, created in Section
             1476      63G-6a-202 .
             1477          (3) "Building board" means the State Building Board created in Section 63A-5-101 .
             1478          (4) "Conservation district" is as defined in Section 17D-3-102 .
             1479          (5) "Cooperative purchasing organization" means an organization, association, or
             1480      alliance of purchasers established to combine purchasing power in order to obtain the best
             1481      value for the purchasers by engaging in procurements in accordance with Section 63G-6a-2105 .
             1482          [(5)] (6) "Division" means the Division of Purchasing and General Services.
             1483          [(6)] (7) "Educational procurement unit" means:
             1484          (a) a school district;
             1485          (b) a public school, including a local school board or a charter school;
             1486          (c) Utah Schools for the Deaf and Blind;
             1487          (d) the Utah Education Network; or
             1488          (e) an institution of higher education of the state.
             1489          [(7)] (8) "Executive branch procurement unit" means each department, division, office,
             1490      bureau, agency, or other organization within the state executive branch, including the division
             1491      and the attorney general's office.



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             1492
         [(8) "External procurement unit" means:]
             1493          [(a) a buying organization not located in this state which, if located in this state, would
             1494      qualify as a procurement unit; or]
             1495          [(b) an agency of the United States.]
             1496          (9) "Judicial procurement unit" means:
             1497          (a) the Utah Supreme Court;
             1498          (b) the Utah Court of Appeals;
             1499          (c) the Judicial Council;
             1500          (d) a state judicial district; or
             1501          (e) each office, committee, subcommittee, or other organization within the state
             1502      judicial branch.
             1503          (10) "Legislative procurement unit" means:
             1504          (a) the Legislature;
             1505          (b) the Senate;
             1506          (c) the House of Representatives;
             1507          (d) a staff office of an entity described in Subsection (10)(a), (b), or (c); or
             1508          (e) each office, committee, subcommittee, or other organization within the state
             1509      legislative branch.
             1510          (11) "Local building authority" is as defined in Section 17D-2-102 .
             1511          (12) "Local district" is as defined in Section 17B-1-102 .
             1512          (13) "Local government procurement unit" means:
             1513          (a) a county or municipality, and each office or agency of the county or municipality,
             1514      unless the county or municipality adopts its own procurement code by ordinance;
             1515          (b) a county or municipality, and each office or agency of the county or municipality,
             1516      that has adopted this entire chapter by ordinance; or
             1517          (c) a county or municipality, and each office or agency of the county or municipality,
             1518      that has adopted a portion of this chapter by ordinance, to the extent that the term is used in the
             1519      adopted portion of this chapter.
             1520          (14) (a) "Procurement unit" means:
             1521          (i) a legislative procurement unit;
             1522          (ii) an executive branch procurement unit;



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             1523
         (iii) a judicial procurement unit;
             1524          (iv) an educational procurement unit;
             1525          (v) a local government procurement unit;
             1526          (vi) a local district;
             1527          (vii) a special service district;
             1528          (viii) a local building authority;
             1529          (ix) a conservation district;
             1530          (x) a public corporation; or
             1531          (xi) a public transit district.
             1532          (b) "Procurement unit" does not include a political subdivision created under Title 11,
             1533      Chapter 13, Interlocal Cooperation Act.
             1534          (15) "Public corporation" is as defined in Section 63E-1-102 .
             1535          (16) "Public entity" means any state government entity or a political subdivision of the
             1536      state, including:
             1537          (a) a procurement unit;
             1538          (b) a municipality or county, regardless of whether the municipality or county has
             1539      adopted this chapter or any part of this chapter; and
             1540          (c) any other government entity located in Utah that expends public funds.
             1541          (17) "Public transit district" means a public transit district organized under Title 17B,
             1542      Chapter 2a, Part 8, Public Transit District Act.
             1543          (18) "Special service district" is as defined in Section 17D-1-102 .
             1544          Section 21. Section 63G-6a-106 is amended to read:
             1545           63G-6a-106. Specific statutory authority -- Limitations on authority of chief
             1546      procurement officer and division.
             1547          [(1) The procurement authority given to a procurement unit under the following
             1548      provisions shall be retained, and shall be applied only to the extent described in those
             1549      provisions:]
             1550          (1) A procurement unit with procurement authority under the following provisions has
             1551      independent procurement authority to the extent of the applicable provisions and for the
             1552      procurement items specified in the applicable provisions:
             1553          (a) Title 53B, State System of Higher Education;



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             1554
         (b) Title 63A, Chapter 5, State Building Board - Division of Facilities Construction
             1555      and Management;
             1556          (c) Title 67, Chapter 5, Attorney General;
             1557          (d) Title 72, Transportation Code; and
             1558          (e) Title 78A, Chapter 5, District [Courts] Court.
             1559          (2) Except as otherwise provided in Sections 63G-6a-105 and 63G-6a-107 , a
             1560      procurement unit shall conduct a procurement in accordance with this chapter.
             1561          (3) (a) The Department of Transportation may make rules governing the procurement
             1562      of highway construction or improvement.
             1563          (b) The applicable rulemaking authority for a public transit district may make rules
             1564      governing the procurement of a transit construction project or a transit improvement project.
             1565          (c) This Subsection (3) supersedes Subsections (1) and (2).
             1566          [(4) Except to the extent otherwise agreed to in a memorandum of understanding
             1567      between the division and the following entities, the authority of the chief procurement officer
             1568      and of the division does not extend to a procurement unit with independent procurement
             1569      authority.]
             1570          [(5) An entity described in Subsection (4) may, without supervision, interference, or
             1571      involvement by the chief procurement officer or the division, but consistent with the
             1572      requirements of this chapter:]
             1573          (4) (a) A procurement unit listed in Subsection (4)(b) may, without the supervision,
             1574      interference, oversight, control, or involvement of the division or the chief procurement officer,
             1575      but in accordance with the requirements of this chapter:
             1576          [(a)] (i) engage in a standard procurement process;
             1577          [(b)] (ii) procure an item under an exception, as provided in this chapter, to the
             1578      requirement to use a standard procurement process; or
             1579          [(c)] (iii) otherwise engage in an act authorized or required by this chapter.
             1580          (b) The procurement units to which Subsection (4)(a) applies are:
             1581          (i) a legislative procurement unit;
             1582          (ii) a judicial procurement unit;
             1583          (iii) an educational procurement unit;
             1584          (iv) a local government procurement unit;



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             1585
         (v) a conservation district;
             1586          (vi) a local building authority;
             1587          (vii) a local district;
             1588          (viii) a public corporation;
             1589          (ix) a special service district;
             1590          (x) a public transit district; and
             1591          (xi) a procurement unit referred to in Subsection (1), to the extent authorized in
             1592      Subsection (1).
             1593          (c) A procurement unit with independent procurement authority shall comply with the
             1594      requirements of this chapter.
             1595          (d) Notwithstanding Subsection (4)(a), a procurement unit with independent
             1596      procurement authority may agree in writing with the division to extend the authority of the
             1597      division or the chief procurement officer to the procurement unit, as provided in the agreement.
             1598          [(6)] (5) (a) The attorney general may, in accordance with the provisions of this
             1599      chapter, but without involvement by the division or the chief procurement officer:
             1600          [(a)] (i) retain outside counsel; or
             1601          [(b)] (ii) procure litigation support services, including retaining an expert witness.
             1602          [(7) An entity described in Subsection (4)]
             1603          (b) A procurement unit with independent procurement authority that is not represented
             1604      by the attorney general's office may, in accordance with the provisions of this chapter, but
             1605      without involvement by the division or the chief procurement officer:
             1606          [(a)] (i) retain outside counsel; or
             1607          [(b)] (ii) procure litigation support services, including retaining an expert witness.
             1608          [(8)] (b) The state auditor's office may, in accordance with the provisions of this
             1609      chapter, but without involvement by the division or the chief procurement officer, procure audit
             1610      services.
             1611          [(9)] (7) The state treasurer may, in accordance with the provisions of this chapter, but
             1612      without involvement by the division or the chief procurement officer, procure:
             1613          (a) deposit and investment services; and
             1614          (b) services related to issuing bonds.
             1615          Section 22. Section 63G-6a-107 is amended to read:



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             1616
          63G-6a-107. Exemptions from chapter -- Compliance with federal law.
             1617          (1) Except for Part [23] 24, Unlawful Conduct and Penalties, the provisions of this
             1618      chapter [are not applicable] do not apply to:
             1619          (a) funds administered under the Percent-for-Art Program of the Utah Percent-for-Art
             1620      Act;
             1621          (b) grants awarded by the state or contracts between the state and any of the following:
             1622          (i) an educational procurement unit;
             1623          (ii) a conservation district;
             1624          (iii) a local building authority;
             1625          (iv) a local district;
             1626          (v) a public corporation;
             1627          (vi) a special service district;
             1628          (vii) a public transit district; or
             1629          (viii) two or more of the entities described in Subsections (1)(b)(i) through (vii), acting
             1630      under legislation that authorizes intergovernmental cooperation;
             1631          (c) medical supplies or medical equipment, including service agreements for medical
             1632      equipment, obtained through a purchasing consortium by the Utah State Hospital, the Utah
             1633      State Developmental Center, the University of Utah Hospital, or any other hospital owned by
             1634      the state or a political subdivision of the state, if:
             1635          (i) the consortium uses a competitive procurement process; and
             1636          (ii) the chief administrative officer of the hospital makes a written finding that the
             1637      prices for purchasing medical supplies and medical equipment through the consortium are
             1638      competitive with market prices; or
             1639          (d) goods purchased for resale[; or] to the public.
             1640          [(e) any action taken by a majority of both houses of the Legislature.]
             1641          [(2) (a) Notwithstanding Subsection (1), the provisions of Part 23, Unlawful Conduct
             1642      and Penalties, are not applicable to an entity described in Subsection (1)(b)(ii), (iii), (iv), (vi),
             1643      (vii), or (viii).]
             1644          [(b)] (2) This chapter does not prevent a procurement unit from complying with the
             1645      terms and conditions of any grant, gift, or bequest that is otherwise consistent with law.
             1646          (3) This chapter does not apply to any action taken by a majority of both houses of the



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             1647
     Legislature.
             1648          [(3)] (4) Notwithstanding any conflicting provision of this chapter, when a
             1649      procurement involves the expenditure of federal assistance, federal contract funds, local
             1650      matching funds, or federal financial participation funds, the procurement unit shall comply
             1651      with mandatory applicable federal law and regulations not reflected in this chapter.
             1652          [(4)] (5) This chapter does not supersede the requirements for retention or withholding
             1653      of construction proceeds and release of construction proceeds as provided in Section 13-8-5 .
             1654          Section 23. Section 63G-6a-108 is amended to read:
             1655           63G-6a-108. Limitations on and responsibility of executive branch procurement
             1656      units.
             1657          (1) [Except as provided in Subsection (2), a] An executive branch procurement unit
             1658      may not engage in a procurement unless:
             1659          (a) the procurement is made under the direction and control of the division; or
             1660          [(b) the division, pursuant to rules made by the board, permits the procurement unit to
             1661      make the procurement on its own.]
             1662          [(2) Subsection (1) does not apply to the following procurement units, all of which
             1663      have independent procurement authority:]
             1664          [(a) a legislative procurement unit;]
             1665          [(b) a judicial procurement unit;]
             1666          [(c) an educational procurement unit;]
             1667          [(d) a local government procurement unit;]
             1668          [(e) a conservation district;]
             1669          [(f) a local building authority;]
             1670          [(g) a local district;]
             1671          [(h) a public corporation;]
             1672          [(i) a special service district;]
             1673          [(j) the Utah Housing Corporation; or]
             1674          [(k) a public transit district.]
             1675          [(3) A procurement unit with independent procurement authority is not exempt from
             1676      complying with the requirements of this chapter.]
             1677          (b) the procurement is made under Section 63G-6a-106 .



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             1678
         (2) An executive branch procurement unit that conducts any part of a procurement
             1679      under this chapter is responsible to conduct that part of the procurement in compliance with
             1680      this chapter.
             1681          Section 24. Section 63G-6a-109 is enacted to read:
             1682          63G-6a-109. Issuing procurement unit and conducting procurement unit.
             1683          (1) With respect to a procurement by an executive branch procurement unit:
             1684          (a) the division is the issuing procurement unit; and
             1685          (b) the executive branch procurement unit is the conducting procurement unit and is
             1686      responsible to ensure that the procurement is conducted in compliance with this chapter.
             1687          (2) With respect to a procurement by any other procurement unit, the procurement unit
             1688      is both the issuing procurement unit and the conducting procurement unit.
             1689          Section 25. Section 63G-6a-204 is amended to read:
             1690           63G-6a-204. Applicability of rules and regulations of Utah State Procurement
             1691      Policy Board and State Building Board -- Report to interim committee.
             1692          (1) Except as provided in Subsection (2), rules made by the board under this chapter
             1693      shall govern all procurement units for which the board is the applicable rulemaking authority.
             1694          (2) The building board rules governing procurement of construction, architect-engineer
             1695      services, and leases apply to the procurement of construction, architect-engineer services, and
             1696      leases of real property by the Division of Facilities Construction and Management.
             1697          (3) An applicable rulemaking authority may make its own rules, consistent with this
             1698      chapter, governing procurement by a person over which the applicable rulemaking authority
             1699      has rulemaking authority.
             1700          (4) The board shall make a report on or before July 1 of each year to a legislative
             1701      interim committee, designated by the Legislative Management Committee created under
             1702      Section 36-12-6 , on the establishment, implementation, and enforcement of the rules made
             1703      under Section 63G-6a-203 .
             1704          (5) Notwithstanding Subsection 63G-3-301 (13)(b), an applicable rulemaking authority
             1705      is[, on or before May 13, 2014,] required to initiate rulemaking proceedings, for rules required
             1706      to be made under this chapter[.], on or before:
             1707          (a) May 13, 2014, if the applicable rulemaking authority is the board; or
             1708          (b) January 1, 2015, for each other applicable rulemaking authority.



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             1709
         Section 26. Section 63G-6a-303 is amended to read:
             1710           63G-6a-303. Duties of chief procurement officer.
             1711          (1) Except as otherwise specifically provided in this chapter, the chief procurement
             1712      officer serves as the central procurement officer of the state and shall:
             1713          [(1)] (a) adopt office policies governing the internal functions of the division;
             1714          [(2)] (b) procure or supervise each procurement over which the chief procurement
             1715      officer has authority;
             1716          [(3)] (c) establish and maintain programs for the inspection, testing, and acceptance of
             1717      each procurement item over which the chief procurement officer has authority;
             1718          [(4)] (d) prepare statistical data concerning each procurement and procurement usage
             1719      of a state procurement unit;
             1720          [(5)] (e) ensure that:
             1721          [(a)] (i) before approving a procurement not covered by an existing statewide contract
             1722      for information technology or telecommunications supplies or services, the chief information
             1723      officer and the agency have stated in writing to the division that the needs analysis required in
             1724      Section 63F-1-205 was completed, unless the procurement is approved in accordance with
             1725      Title 63M, Chapter 1, Part 26, Government Procurement Private Proposal Program; and
             1726          [(b)] (ii) the oversight authority required by Subsection (5)(a) is not delegated outside
             1727      the division; [and]
             1728          [(6)] (f) provide training to procurement units and to persons who do business with
             1729      procurement units[.];
             1730          (g) if the chief procurement officer determines that a procurement over which the chief
             1731      procurement officer has authority is out of compliance with this chapter or board rules:
             1732          (i) correct or amend the procurement to bring it into compliance; or
             1733          (ii) cancel the procurement, if:
             1734          (A) it is not feasible to bring the procurement into compliance; or
             1735          (B) the chief procurement officer determines that it is in the best interest of the state to
             1736      cancel the procurement; and
             1737          (h) if the chief procurement officer determines that a contract over which the chief
             1738      procurement officer has authority is out of compliance with this chapter or board rules, correct
             1739      or amend the contract to bring it into compliance or cancel the contract:



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         (i) if the chief procurement officer determines that correcting, amending, or canceling
             1741      the contract is in the best interest of the state; and
             1742          (ii) after consultation with the attorney general's office.
             1743          (2) The chief procurement officer may:
             1744          (a) correct, amend, or cancel a procurement as provided in Subsection (1)(g) at any
             1745      stage of the procurement process; and
             1746          (b) correct, amend, or cancel a contract as provided in Subsection (1)(h) at any time
             1747      during the term of the contract.
             1748          Section 27. Section 63G-6a-402 is amended to read:
             1749           63G-6a-402. Procurement unit required to comply with Utah Procurement Code
             1750      and applicable rules -- Rulemaking authority -- Reporting.
             1751          (1) Except as otherwise provided in Section 63G-6a-107 , Section 63G-6a-403 , Part 8,
             1752      Exceptions to Procurement Requirements, or elsewhere in this chapter, a procurement unit may
             1753      not obtain a procurement item, unless:
             1754          (a) if the procurement unit is the division or a procurement unit with independent
             1755      procurement authority, the procurement unit:
             1756          (i) uses a standard procurement process or an exception to a standard procurement
             1757      process, described in Part 8, Exceptions to Procurement Requirements; and
             1758          (ii) complies with:
             1759          (A) the requirements of this chapter; and
             1760          (B) the rules made pursuant to this chapter by the applicable rulemaking authority;
             1761          (b) if the procurement unit is a county, a municipality, or the Utah Housing
             1762      Corporation, the procurement unit complies with:
             1763          (i) the requirements of this chapter that are adopted by the procurement unit; and
             1764          (ii) all other procurement requirements that the procurement unit is required to comply
             1765      with; or
             1766          (c) if the procurement unit is not a procurement unit described in [Subsections]
             1767      Subsection (1)(a) or (b), the procurement unit:
             1768          (i) obtains the procurement item under the direction and approval of the division,
             1769      unless otherwise provided by a rule made by the board;
             1770          (ii) uses a standard procurement process; and



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         (iii) complies with:
             1772          (A) the requirements of this chapter; and
             1773          (B) the rules made pursuant to this chapter by the applicable rulemaking authority.
             1774          (2) Subject to Subsection (3), the applicable rulemaking authority shall make rules
             1775      relating to the management and control of procurements and procurement procedures by a
             1776      procurement unit.
             1777          (3) (a) Rules made under Subsection (2) shall ensure compliance with the federal
             1778      contract prohibition provisions of the Sudan Accountability and Divestment Act of 2007 (Pub.
             1779      L. No. 110-174) that prohibit contracting with a person doing business in Sudan.
             1780          (b) The State Building Board rules governing procurement of construction,
             1781      architect-engineer services, and leases apply to the procurement of construction,
             1782      architect-engineer services, and leases of real property by the Division of Facilities
             1783      Construction and Management.
             1784          (4) An applicable rulemaking authority that is subject to Title 63G, Chapter 3, Utah
             1785      Administrative Rulemaking Act, shall make the rules described in this chapter in accordance
             1786      with the provisions of Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             1787          (5) The State Building Board shall make a report on or before July 1 of each year to a
             1788      legislative interim committee, designated by the Legislative Management Committee created
             1789      under Section 36-12-6 , on the establishment, implementation, and enforcement of the rules
             1790      made by the State Building Board under this chapter.
             1791          Section 28. Section 63G-6a-403 is amended to read:
             1792           63G-6a-403. Prequalification of potential vendors.
             1793          (1) [(a)] As used in this section[, "vendor" means]:
             1794          (a) "Closed-ended prequalification process" means a process to prequalify potential
             1795      vendors under this section that is characterized by:
             1796          (i) a short, specified period of time during which potential vendors may be
             1797      prequalified; and
             1798          (ii) a specified date at which prequalifications expire.
             1799          (b) "Open-ended prequalification process" means a process to prequalify vendors and
             1800      potential vendors under this section that is characterized by an indeterminate period of time
             1801      during any part of which vendors or potential vendors may be prequalified and the



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     prequalification of previously prequalified vendors or potential vendors may be periodically
             1803      renewed.
             1804          (c) "Vendor" means:
             1805          (i) a bidder;
             1806          (ii) an offeror; or
             1807          (iii) a contractor, including an architect or an engineer.
             1808          [(b)] (2) A procurement unit may, in accordance with this section:
             1809          [(i)] (a) using a closed-ended prequalification process or an open-ended
             1810      prequalification process:
             1811          (i) prequalify potential vendors to provide any procurement item or type of
             1812      procurement item specified by the procurement unit; [and] or
             1813          (ii) rank architects, engineers, or other professional service providers to begin the fee
             1814      negotiation process, as provided in this chapter; and
             1815          [(ii)] (b) limit participation in [an invitation for bids, a request for proposals, or an
             1816      approved vendor list] a standard procurement process to the prequalified potential vendors for
             1817      the specified procurement item or type of procurement item.
             1818          [(2)] (3) To prequalify potential vendors [to provide a specified type of procurement
             1819      item] or rank professional service providers, a procurement unit shall issue a request for
             1820      statement of qualifications.
             1821          [(3)] (4) A procurement unit that issues a request for statement of qualifications:
             1822          (a) shall:
             1823          [(a)] (i) publish the request for statement of qualifications in accordance with the
             1824      requirements of Section [ 63G-6a-402 ] 63G-6a-406 ; and
             1825          [(b)] (ii) state in the request for statement of qualifications:
             1826          [(i)] (A) the procurement item or type of procurement item to which the request for
             1827      statement of qualifications relates;
             1828          [(ii)] (B) the scope of work to be performed;
             1829          [(iii)] (C) the instructions and [the] deadline for[ providing information in response to
             1830      the request for] submitting a statement of qualifications;
             1831          [(iv)] (D) the [minimum] criteria [for prequalification] by which the procurement unit
             1832      will evaluate statements of qualifications;



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         (E) whether the prequalification process is a closed-ended prequalification process or
             1834      an open-ended prequalification process;
             1835          [(v)] (F) if the prequalification process is a closed-ended prequalification process, the
             1836      period of time during which the list of prequalified potential vendors will remain in effect,
             1837      which may not be longer than 18 months after the list of prequalified potential vendors is made
             1838      available to the public under Subsection [(8)] (11)(b); [and]
             1839          (G) if the prequalification process is an open-ended prequalification process, when a
             1840      potential vendor may submit a statement of qualifications for the potential vendor to be
             1841      considered for inclusion on the list of prequalified potential vendors; and
             1842          [(vi)] (H) that a procurement unit may limit participation in an invitation for bids or a
             1843      request for proposals[, during the time period described in Subsection (3)(b)(v),] to the
             1844      potential vendors that are prequalified to provide the specified procurement item or type of
             1845      procurement item[.]; and
             1846          (b) may request the person submitting a statement of qualifications to provide:
             1847          (i) basic information about the person;
             1848          (ii) the person's experience and work history;
             1849          (iii) information about the person's management and staff;
             1850          (iv) information about the person's licenses, certifications, and other qualifications;
             1851          (v) any applicable performance ratings;
             1852          (vi) financial statements reporting the person's financial condition; and
             1853          (vii) any other pertinent information.
             1854          (5) (a) In order to renew a prequalification, a vendor or potential vendor that has been
             1855      previously prequalified through an open-ended prequalification process shall submit a
             1856      statement of qualifications no more than 18 months after the previous prequalification of that
             1857      vendor or potential vendor.
             1858          (b) A previously prequalified vendor or potential vendor submitting a statement of
             1859      qualifications under Subsection (5)(a) shall comply with all requirements applicable at that
             1860      time to a potential vendor seeking prequalification for the first time.
             1861          (6) A procurement unit may at any time modify prequalification requirements of an
             1862      open-ended prequalification process.
             1863          [(4)] (7) The [minimum] criteria described in Subsection [(3)(b)(iv)] (4)(a)(ii)(D):



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         (a) shall include the prequalification requirements unique to the procurement;
             1865          (b) may include performance rating criteria; and
             1866          (c) may not be so restrictive that the criteria unreasonably limit competition.
             1867          [(5)] (8) A procurement unit may, before making a final list of prequalified vendors,
             1868      request additional information to clarify responses made to the request for statement of
             1869      qualifications.
             1870          [(6)] (9) A potential vendor shall be included on the list of prequalified potential
             1871      vendors if the potential vendor:
             1872          (a) submits a timely, responsive response to the request for statement of qualifications;
             1873      and
             1874          (b) meets the [minimum] criteria for qualification described in Subsection [(3)(b)(iv)]
             1875      (4)(a)(ii)(D).
             1876          [(7)] (10) If a request for statement of qualifications will result in only one potential
             1877      vendor being placed on the list of prequalified potential vendors:
             1878          (a) the procurement unit shall cancel the request for statement of qualifications; and
             1879          (b) the list may not be used by the procurement unit.
             1880          [(8)] (11) The procurement unit shall:
             1881          (a) before making the list of prequalified potential vendors available to the public,
             1882      provide each potential vendor who provided information in response to the request, but who
             1883      did not meet the minimum qualifications for placement on the list, a written justification
             1884      statement describing why the potential vendor did not meet the criteria for inclusion on the list;
             1885      and
             1886          (b) [within 30 days after the day of the deadline described in Subsection (3)(b)(iii),]
             1887      make the list of prequalified potential vendors available to the public[.] within 30 days after:
             1888          (i) completing the evaluation process, if the prequalification process is a closed-ended
             1889      prequalification process; or
             1890          (ii) updating the list of prequalified potential vendors, if the prequalification process is
             1891      an open-ended prequalification process.
             1892          Section 29. Section 63G-6a-404 is amended to read:
             1893           63G-6a-404. Approved vendor list.
             1894          (1) (a) As used in this section, "vendor" [is] has the same meaning as defined in



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             1895
     [Subsection] Section 63G-6a-403 [(1)(a)].
             1896          (b) The process described in this section may not be used for construction projects that
             1897      cost more than an amount specified by the applicable rulemaking authority.
             1898          (c) The division or a procurement unit with independent procurement authority may
             1899      compile a list of approved vendors from which procurement items may be obtained.
             1900          (2) An approved vendor list may only be compiled from timely, responsive responses
             1901      received under Section 63G-6a-403 or the process described in Part 15, Architect-Engineer
             1902      Services.
             1903          (3) In order to ensure equal treatment of vendors on an approved vendor list, for
             1904      services other than the services described in Subsection (4) or (5) the procurement unit shall
             1905      use one of the following methods in an unbiased manner:
             1906          (a) a rotation system, organized alphabetically, numerically, or randomly;
             1907          (b) assigning vendors to a specified geographical area; or
             1908          (c) classifying each vendor based on each vendor's particular expertise, qualifications,
             1909      or field.
             1910          (4) (a) For a construction project that costs less than the amount established by the
             1911      applicable rulemaking authority, under Subsection (1)(b), a procurement unit shall select a
             1912      potential construction contractor from an approved potential contractor list, using an invitation
             1913      for bids or a request for proposals.
             1914          (b) For architectural or engineering services for a construction project described in
             1915      Subsection (4)(a), a procurement unit shall select a potential contractor from an approved
             1916      potential contractor list:
             1917          (i) using a rotation system, organized alphabetically, numerically, or randomly;
             1918          (ii) assigning a potential contractor to a specified geographical area; or
             1919          (iii) classifying each potential contractor based on the potential contractor's field or
             1920      area of expertise.
             1921          (5) A procurement unit may not use an approved vendor list described in this section
             1922      for a construction project with a cost that is equal to or greater than the amount established by
             1923      the applicable rulemaking authority under Subsection (1)(b).
             1924          (6) (a) After selecting a potential contractor under Subsection (4)(b), a procurement
             1925      unit shall enter into fee negotiations with the potential contractor.



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             1926
         (b) If, after good faith negotiations, the procurement unit and the potential contractor
             1927      are unable to negotiate a fee that is acceptable to both parties, the procurement unit shall select
             1928      another contractor under Subsection (4)(b) and enter into fee negotiations with that potential
             1929      contractor.
             1930          Section 30. Section 63G-6a-406 is amended to read:
             1931           63G-6a-406. Public notice of certain solicitations.
             1932          (1) The division or a procurement unit with independent procurement authority that
             1933      issues [an invitation for bids, a request for proposals, or a notice of sole source procurement] a
             1934      solicitation required to be published in accordance with this section, shall provide public notice
             1935      that includes:
             1936          (a) [for an invitation for bids or a request for proposals,] the name of the [issuing]
             1937      conducting procurement unit;
             1938          (b) the name of the procurement unit acquiring the procurement item;
             1939          (c) [for an invitation for bids or a request for proposals,] information on how to contact
             1940      the issuing procurement unit [in relation to the invitation for bids or request for proposals];
             1941          [(d) for a notice of sole source procurement, contact information and other information
             1942      relating to contesting, or obtaining additional information in relation to, the sole source
             1943      procurement;]
             1944          [(e) for an invitation for bids or a request for proposals, the date of the opening and
             1945      closing of the invitation for bids or request for proposals;]
             1946          [(f) for a notice of sole source procurement, the earliest date that the procurement unit
             1947      may make the sole source procurement;]
             1948          (d) the date of the opening and closing of the solicitation;
             1949          [(g)] (e) information on how to obtain a copy of the [invitation for bids, request for
             1950      proposals, or further information related to the sole source procurement; and] procurement
             1951      documents;
             1952          [(h)] (f) a general description of the procurement items that will be obtained through
             1953      the standard procurement process or sole source procurement[.]; and
             1954          (g) for a notice of a sole source procurement:
             1955          (i) contact information and other information relating to contesting or obtaining
             1956      additional information relating to the sole source procurement; and



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             1957
         (ii) the earliest date that the procurement unit may make the sole source procurement.
             1958          (2) Except as provided in Subsection (4), [for an invitation for bids or a request for
             1959      proposals,] the issuing procurement unit shall publish the notice described in Subsection (1)[,
             1960      using at least one of the following methods]:
             1961          (a) at least seven days before the day of the deadline for submission of a bid or other
             1962      response[, publish the notice:]; and
             1963          (b) (i) in a newspaper of general circulation in the state; [or]
             1964          (ii) in a newspaper of local circulation in the area:
             1965          (A) directly impacted by the procurement; or
             1966          (B) over which the procurement unit has jurisdiction; [or]
             1967          [(b) at least seven consecutive days before the day of the deadline for submission of a
             1968      bid or other response, publish the notice:]
             1969          [(i)] (iii) on the main website for the issuing procurement unit or the procurement unit
             1970      acquiring the procurement item; or
             1971          [(ii)] (iv) on a state website that is owned, managed by, or provided under contract
             1972      with, the division for posting a public procurement notice.
             1973          (3) Except as provided in Subsection (4), for a sole source procurement for which
             1974      notice is required to be published in accordance with this section, the issuing procurement unit
             1975      [making the sole source procurement] shall publish the notice described in Subsection (1)[,
             1976      using at least one of the following methods]:
             1977          (a) at least seven days before the [day on which the procurement unit makes the]
             1978      acquisition of the sole source procurement[, publish the notice:] item; and
             1979          (b) (i) in a newspaper of general circulation in the state; [or]
             1980          (ii) in a newspaper of local circulation in the area:
             1981          (A) directly impacted by the procurement; or
             1982          (B) over which the procurement unit has jurisdiction; [or]
             1983          [(b) at least seven consecutive days before the day on which the procurement unit
             1984      makes the sole source procurement, publish the notice:]
             1985          [(i)] (iii) on the main website for the procurement unit acquiring the procurement item;
             1986      or
             1987          [(ii)] (iv) on a state website that is owned by, managed by, or provided under contract



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             1988
     with, the division for posting a procurement notice.
             1989          (4) An issuing procurement unit[, or the procurement unit making a sole source
             1990      procurement] may reduce the seven-day period described in Subsection (2) or (3), if the
             1991      procurement officer or the procurement officer's designee signs a written statement that:
             1992          (a) states that a shorter time is needed; and
             1993          (b) [as it relates to an invitation for bids or a request for proposals,] determines that
             1994      competition from multiple sources may be obtained within the shorter period of time.
             1995          (5) (a) An issuing procurement unit shall make a copy of [an invitation for bids or a
             1996      request for proposals] the solicitation documents available for public inspection at the main
             1997      office of the issuing procurement unit or on the website described in Subsection (2)(b) until the
             1998      award of the contract or the cancellation of the procurement.
             1999          (b) A procurement unit [making] issuing a sole source procurement shall make a copy
             2000      of information related to the sole source procurement available for public inspection at the
             2001      main office of the procurement unit or on the website described in Subsection (3)(b) until the
             2002      award of the contract or the cancellation of the procurement.
             2003          (c) A procurement unit shall maintain all records in accordance with Part 20, Records.
             2004          Section 31. Section 63G-6a-408 is amended to read:
             2005           63G-6a-408. Small purchases.
             2006          (1) As used in this section:
             2007          (a) "Annual cumulative threshold" means the maximum total annual amount,
             2008      established by the applicable rulemaking authority under Subsection (2)(a)(i), that a
             2009      procurement unit may expend to obtain procurement items from the same source under this
             2010      section.
             2011          (b) "Individual procurement threshold" means the maximum amount, established by
             2012      the applicable rulemaking authority under Subsection (2)(a)(ii), for which a procurement unit
             2013      may purchase a procurement item under this section.
             2014          (c) "Single procurement aggregate threshold" means the maximum total amount,
             2015      established by the applicable rulemaking authority under Subsection (2)(a)(iii), that a
             2016      procurement unit may expend to obtain multiple procurement items from one source at one
             2017      time under this section.
             2018          (2) The applicable rulemaking authority may make rules governing small purchases,



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             2019
     including:
             2020          (a) establishing expenditure thresholds, including:
             2021          (i) an annual cumulative threshold;
             2022          (ii) an individual procurement threshold; and
             2023          (iii) a single procurement aggregate threshold;
             2024          (b) establishing procurement requirements relating to the thresholds described in
             2025      Subsection (2)(a); and
             2026          (c) the use of electronic, telephone, or written quotes.
             2027          (3) Expenditures made under this section by a procurement unit may not exceed a
             2028      threshold established by the applicable rulemaking authority, unless the chief procurement
             2029      officer or the head of a procurement unit with independent procurement authority gives written
             2030      authorization to exceed the threshold that includes the reasons for exceeding the threshold.
             2031          (4) Except as provided in Subsection (5), an executive branch procurement unit may
             2032      not obtain a procurement item through a small purchase standard procurement process if the
             2033      procurement item may be obtained through a state cooperative contract or a contract awarded
             2034      by the chief procurement officer under Subsection 63G-6a-2105 (1).
             2035          (5) Subsection (4) does not apply if:
             2036          (a) the procurement item is obtained for an unanticipated, urgent or unanticipated,
             2037      emergency condition, including:
             2038          (i) an item needed to avoid stopping a public construction project;
             2039          (ii) an immediate repair to a facility or equipment; or
             2040          (iii) another emergency condition; or
             2041          (b) the chief procurement officer or the head of a procurement unit that is an executive
             2042      branch procurement unit with independent procurement authority:
             2043          (i) determines in writing that it is in the best interest of the procurement unit to obtain
             2044      an individual procurement item outside of the state contract, comparing:
             2045          (A) the contract terms and conditions applicable to the procurement item under the
             2046      state contract with the contract terms and conditions applicable to the procurement item if the
             2047      procurement item is obtained outside of the state contract;
             2048          (B) the maintenance and service applicable to the procurement item under the state
             2049      contract with the maintenance and service applicable to the procurement item if the



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             2050
     procurement item is obtained outside of the state contract;
             2051          (C) the warranties applicable to the procurement item under the state contract with the
             2052      warranties applicable to the procurement item if the procurement item is obtained outside of
             2053      the state contract;
             2054          (D) the quality of the procurement item under the state contract with the quality of the
             2055      procurement item if the procurement item is obtained outside of the state contract; and
             2056          (E) the cost of the procurement item under the state contract with the cost of the
             2057      procurement item if the procurement item is obtained outside of the state contract;
             2058          (ii) for a procurement item that, if defective in its manufacture, installation, or
             2059      performance, may result in serious physical injury, death, or substantial property damage,
             2060      determines in writing that the terms and conditions, relating to liability for injury, death, or
             2061      property damage, available from the source other than the contractor who holds the state
             2062      contract, are similar to, or better than, the terms and conditions available under the state
             2063      contract; and
             2064          (iii) grants an exception, in writing, to the requirement described in Subsection (4).
             2065          (6) Except as otherwise expressly provided in this section, a procurement unit:
             2066          (a) may not use the small purchase standard procurement process described in this
             2067      section for ongoing, continuous, and regularly scheduled procurements that exceed the annual
             2068      cumulative threshold; and
             2069          (b) shall make its ongoing, continuous, and regularly scheduled procurements that
             2070      exceed the annual cumulative threshold through a contract awarded through another standard
             2071      procurement process described in this chapter or an applicable exception to another standard
             2072      procurement process, described in Part 8, Exceptions to Procurement Requirements.
             2073          (7) This section does not prohibit regularly scheduled payments for a procurement item
             2074      obtained under another provision of this chapter.
             2075          (8) (a) It is unlawful for a person to intentionally or knowingly divide a procurement
             2076      into one or more smaller procurements with the intent to make a procurement:
             2077          [(a)] (i) qualify as a small purchase, if, before dividing the procurement, it would not
             2078      have qualified as a small purchase; or
             2079          [(b)] (ii) meet a threshold established by rule made by the applicable rulemaking
             2080      authority, if, before dividing the procurement, it would not have met the threshold.



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             2081
         (b) A person who engages in the conduct made unlawful under Subsection (8)(a) is
             2082      guilty of:
             2083          (i) a second degree felony, if the value of the procurement before being divided is
             2084      $1,000,000 or more;
             2085          (ii) a third degree felony, if the value of the procurement before being divided is
             2086      $250,000 or more but less than $1,000,000;
             2087          (iii) a class A misdemeanor, if the value of the procurement before being divided is
             2088      $100,000 or more but less than $250,000; or
             2089          (iv) a class B misdemeanor, if the value of the procurement before being divided is less
             2090      than $100,000.
             2091          (9) A division of a procurement that is prohibited under Subsection (8) includes doing
             2092      any of the following with the intent or knowledge described in Subsection (8):
             2093          (a) making two or more separate purchases;
             2094          (b) dividing an invoice or purchase order into two or more invoices or purchase orders;
             2095      or
             2096          (c) making smaller purchases over a period of time.
             2097          (10) A person who violates Subsection (8) is subject to the criminal penalties described
             2098      in Section [ 63G-6a-2305 ] 63G-6a-2405 .
             2099          (11) The Division of Finance within the Department of Administrative Services may
             2100      conduct an audit of an executive branch procurement unit to verify compliance with the
             2101      requirements of this section.
             2102          (12) An executive branch procurement unit may not make a small purchase after
             2103      January 1, 2014, unless the chief procurement officer certifies that the person responsible for
             2104      procurements in the procurement unit has satisfactorily completed training on this section and
             2105      the rules made under this section.
             2106          Section 32. Section 63G-6a-603 is amended to read:
             2107           63G-6a-603. Invitation for bids -- Contents -- Notice.
             2108          (1) The bidding standard procurement process begins when the [division or a
             2109      procurement unit with independent procurement authority] issuing procurement unit issues an
             2110      invitation for bids.
             2111          (2) An invitation for bids shall:



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         (a) state the period of time during which bids will be accepted;
             2113          (b) describe the manner in which a bid shall be submitted;
             2114          (c) state the place where a bid shall be submitted; and
             2115          (d) include, or incorporate by reference:
             2116          (i) a description of the procurement items sought;
             2117          (ii) the objective criteria that will be used to evaluate the bids; and
             2118          (iii) the required contractual terms and conditions.
             2119          (3) An issuing procurement unit shall publish an invitation for bids in accordance with
             2120      the requirements of Section 63G-6a-406 .
             2121          Section 33. Section 63G-6a-606 is amended to read:
             2122           63G-6a-606. Evaluation of bids -- Award -- Cancellation -- Disqualification.
             2123          (1) [The division or a] A procurement unit [with independent procurement authority]
             2124      that conducts a procurement using a bidding standard procurement process shall evaluate each
             2125      bid using the objective criteria described in the invitation for bids, which may include:
             2126          (a) experience;
             2127          (b) performance ratings;
             2128          (c) inspection;
             2129          (d) testing;
             2130          (e) quality;
             2131          (f) workmanship;
             2132          (g) time and manner of delivery;
             2133          (h) references;
             2134          (i) financial stability;
             2135          (j) cost;
             2136          (k) suitability for a particular purpose; or
             2137          (l) other objective criteria specified in the invitation for bids.
             2138          (2) Criteria not described in the invitation for bids may not be used to evaluate a bid.
             2139          (3) The conducting procurement unit shall:
             2140          (a) award the contract as soon as practicable to:
             2141          (i) the lowest responsive and responsible bidder who meets the objective criteria
             2142      described in the invitation for bids; or



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             2143
         (ii) if, in accordance with Subsection (4), the procurement officer or the head of the
             2144      conducting procurement unit disqualifies the bidder described in Subsection (3)(a)(i), the next
             2145      lowest responsive and responsible bidder who meets the objective criteria described in the
             2146      invitation for bids; or
             2147          (b) cancel the invitation for bids without awarding a contract.
             2148          (4) In accordance with Subsection (5), the procurement officer or the head of the
             2149      conducting procurement unit may disqualify a bidder for:
             2150          (a) a violation of this chapter;
             2151          (b) a violation of a requirement of the invitation for bids;
             2152          (c) unlawful or unethical conduct; or
             2153          (d) a change in circumstance that, had the change been known at the time the bid was
             2154      submitted, would have caused the bidder to not be the lowest responsive and responsible bidder
             2155      who meets the objective criteria described in the invitation for bids.
             2156          (5) A procurement officer or head of a conducting procurement unit who disqualifies a
             2157      bidder under Subsection (4) shall:
             2158          (a) make a written finding, stating the reasons for disqualification; and
             2159          (b) provide a copy of the written finding to the disqualified bidder.
             2160          (6) If a conducting procurement unit cancels an invitation for bids without awarding a
             2161      contract, the conducting procurement unit shall make available for public inspection a written
             2162      justification for the cancellation.
             2163          Section 34. Section 63G-6a-607 is amended to read:
             2164           63G-6a-607. Action when all bids are over budget.
             2165          (1) Except as provided in Subsection (2) or (3), if the fiscal officer for the conducting
             2166      procurement unit certifies that all accepted bids exceed available funds and that the lowest
             2167      responsive and responsible bidder does not exceed the available funds by more than 5%, the
             2168      procurement officer may negotiate an adjustment of the bid price and bid requirements with the
             2169      lowest responsive and responsible bidder in order to bring the bid within the amount of
             2170      available funds.
             2171          (2) A procurement officer may not adjust the bid requirements under Subsection (1) if
             2172      there is a substantial likelihood that, had the adjustment been included in the invitation for
             2173      bids, a person that did not submit a bid would have submitted a responsive, responsible, and



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             2174
     competitive bid.
             2175          (3) The Division of Facilities Construction and Management is exempt from the
             2176      requirements of this section if:
             2177          (a) the building board adopts rules governing procedures when all accepted bids exceed
             2178      available funds; and
             2179          (b) the Division of Facilities Construction and Management complies with the rules
             2180      described in Subsection (3)(a).
             2181          Section 35. Section 63G-6a-609 is amended to read:
             2182           63G-6a-609. Multiple stage bidding process.
             2183          (1) [The division or a] A procurement unit [with independent procurement authority]
             2184      that conducts a procurement using a bidding standard procurement process may [conduct a bid
             2185      in] use multiple stages[,] to:
             2186          (a) narrow the number of bidders who will progress to a subsequent stage;
             2187          (b) prequalify bidders for subsequent stages, in accordance with Section 63G-6a-403 ;
             2188          (c) enter into a contract for a single procurement; or
             2189          (d) award multiple contracts for a series of upcoming procurements.
             2190          (2) The invitation for bids for a multiple stage bidding process shall:
             2191          (a) describe the requirements for, and purpose of, each stage of the process;
             2192          (b) indicate whether the procurement unit intends to award:
             2193          (i) a single contract; or
             2194          (ii) multiple contracts for a series of upcoming procurements; and
             2195          (c) state that:
             2196          (i) the first stage is for prequalification only;
             2197          (ii) a bidder may not submit any pricing information in the first stage of the process;
             2198      and
             2199          (iii) bids in the second stage will only be accepted from a person who prequalifies in
             2200      the first stage.
             2201          (3) During the first stage, the conducting procurement unit:
             2202          (a) shall prequalify bidders to participate in subsequent stages, in accordance with
             2203      Section 63G-6a-403 ;
             2204          (b) shall prohibit the submission of pricing information until the final stage; and



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         (c) may, before beginning the second stage, request additional information to clarify
             2206      the qualifications of the bidders who submit timely responses.
             2207          (4) Contracts may only be awarded for a procurement item described in stage one of
             2208      the invitation for bids.
             2209          (5) The [division or a] conducting procurement unit [with independent procurement
             2210      authority may conduct a bid in] may use as many stages as it determines to be appropriate.
             2211          (6) Except as otherwise expressly provided in this section, [the division or] a
             2212      procurement unit [with independent procurement authority shall conduct] conducting a
             2213      multiple stage bidding process [in accordance] under this section shall ensure compliance with
             2214      this part.
             2215          (7) The applicable rulemaking authority may make rules governing the use of a
             2216      multiple stage process described in this section.
             2217          Section 36. Section 63G-6a-611 is amended to read:
             2218           63G-6a-611. Invitation for bids for reverse auction -- Notice contents --
             2219      Agreement to terms and conditions.
             2220          (1) The reverse auction bidding process begins when the [division or a] issuing
             2221      procurement unit [with independent procurement authority] issues an invitation for bids to
             2222      prequalify bidders to participate in the reverse auction.
             2223          (2) The invitation for bids shall:
             2224          (a) state the period of time during which bids will be accepted;
             2225          (b) state that the bid will be conducted by reverse auction;
             2226          (c) describe the procurement items sought;
             2227          (d) describe the minimum requirements to become prequalified;
             2228          (e) state the required contractual terms and conditions; and
             2229          (f) describe the procedure that the [division or the] conducting procurement unit [with
             2230      independent procurement authority] will follow in [conducting] the reverse auction.
             2231          (3) In order to participate in a reverse auction, a bidder shall agree to:
             2232          (a) the specifications, and contractual terms and conditions, of the procurement; and
             2233          (b) be trained in, and abide by, the procedure that the division or the procurement unit
             2234      with independent procurement authority will follow in conducting the reverse auction.
             2235          (4) The division or a procurement unit with independent procurement authority shall



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             2236
     publish an invitation for bids for a reverse auction in accordance with the requirements of
             2237      Section 63G-6a-406 .
             2238          Section 37. Section 63G-6a-612 is amended to read:
             2239           63G-6a-612. Conduct of reverse auction.
             2240          (1) [When] A procurement unit conducting a reverse auction[, the division or a
             2241      procurement unit with independent procurement authority]:
             2242          (a) may conduct the reverse auction at a physical location or by electronic means;
             2243          (b) shall permit all prequalified bidders to participate in the reverse auction;
             2244          (c) may not permit a bidder to participate in the reverse auction if the bidder did not
             2245      prequalify to participate in the reverse auction;
             2246          (d) may not accept a bid after the time for submission of a bid has expired;
             2247          (e) shall update the bids on a real time basis; and
             2248          (f) shall conduct the reverse auction in a manner that permits each bidder to:
             2249          (i) bid against each other; and
             2250          (ii) lower the bidder's price below the lowest bid before the reverse auction closes.
             2251          (2) At the end of the reverse auction, the conducting procurement unit shall:
             2252          (a) award the contract as soon as practicable to the lowest responsive and responsible
             2253      bidder who meets the objective criteria described in the invitation for bids; or
             2254          (b) cancel the reverse auction without awarding a contract.
             2255          (3) After the reverse auction is finished, the conducting procurement [officer] unit shall
             2256      make publicly available:
             2257          (a) (i) the amount of the final bid submitted by each bidder during the reverse auction;
             2258      and
             2259          (ii) the identity of the bidder that submitted each final bid; and
             2260          (b) if practicable:
             2261          (i) the amount of each bid submitted during the reverse auction; and
             2262          (ii) the identity of the bidder that submitted each bid.
             2263          Section 38. Section 63G-6a-703 is amended to read:
             2264           63G-6a-703. Request for proposals -- Notice -- Contents.
             2265          (1) The request for proposals standard procurement process begins when the division
             2266      or a procurement unit with independent procurement authority issues a request for proposals.



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             2267
         (2) A request for proposals shall:
             2268          (a) state the period of time during which a proposal will be accepted;
             2269          (b) describe the manner in which a proposal shall be submitted;
             2270          (c) state the place where a proposal shall be submitted;
             2271          (d) include, or incorporate by reference:
             2272          (i) a description of the procurement items sought;
             2273          (ii) a description of the subjective and objective criteria that will be used to evaluate
             2274      the proposal; and
             2275          (iii) the standard contractual terms and conditions required by the authorized
             2276      purchasing entity;
             2277          (e) state the relative weight that will be given to each score [awarded] for the criteria
             2278      described in Subsection (2)(d)(ii), including cost;
             2279          (f) state the formula that will be used to determine the score awarded for the cost of
             2280      each proposal;
             2281          (g) if the request for proposals will be conducted in multiple stages, as described in
             2282      Section 63G-6a-710 , include a description of the stages and the criteria and scoring that will be
             2283      used to screen offerors at each stage; and
             2284          (h) state that discussions may be conducted with offerors who submit proposals
             2285      determined to be reasonably susceptible of being selected for award, followed by an
             2286      opportunity to make best and final offers, but that proposals may be accepted without
             2287      discussions.
             2288          (3) The division or a procurement unit with independent procurement authority shall
             2289      publish a request for proposals in accordance with the requirements of Section 63G-6a-406 .
             2290          Section 39. Section 63G-6a-704 is amended to read:
             2291           63G-6a-704. Opening of proposals and acceptance.
             2292          (1) An issuing procurement unit shall ensure that proposals are opened in a manner that
             2293      avoids disclosing the contents to competing offerors during the evaluation process.
             2294          (2) An issuing procurement unit may not accept a proposal[: (a)] after the time for
             2295      submission of a proposal has expired[; or].
             2296          [(b) that is not responsive to the request for proposals.]
             2297          (3) At any time during the request for proposals standard procurement process, a



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             2298
     conducting procurement unit may reject a proposal if the conducting procurement unit
             2299      determines that:
             2300          (a) the person submitting the proposal is not responsible; or
             2301          (b) the proposal is not responsive or does not meet mandatory minimum requirements
             2302      stated in the request for proposals.
             2303          Section 40. Section 63G-6a-707 is amended to read:
             2304           63G-6a-707. Evaluation of proposals -- Evaluation committee.
             2305          (1) [Each proposal shall be evaluated] To determine which proposal provides the best
             2306      value to the procurement unit, the evaluation committee shall evaluate each responsive and
             2307      responsible proposal that has not been disqualified from consideration under the provisions of
             2308      this chapter, using the criteria described in the request for proposals, which may include:
             2309          (a) experience;
             2310          (b) performance ratings;
             2311          (c) inspection;
             2312          (d) testing;
             2313          (e) quality;
             2314          (f) workmanship;
             2315          (g) time, manner, or schedule of delivery;
             2316          (h) references;
             2317          (i) financial [stability] solvency;
             2318          (j) suitability for a particular purpose;
             2319          (k) management plans;
             2320          (l) cost; or
             2321          (m) other subjective or objective criteria specified in the request for proposals.
             2322          (2) Criteria not described in the request for proposals may not be used to evaluate a
             2323      proposal.
             2324          (3) The [issuing] conducting procurement unit shall:
             2325          (a) appoint an evaluation committee consisting of at least three individuals; and
             2326          (b) ensure that the evaluation committee and each member of the evaluation
             2327      committee:
             2328          (i) does not have a conflict of interest with any of the offerors;



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             2329
         (ii) can fairly evaluate each proposal;
             2330          (iii) does not contact or communicate with an offeror [for any reason other than
             2331      conducting the standard procurement process] concerning the procurement outside the official
             2332      evaluation committee process; and
             2333          (iv) conducts the evaluation in a manner that ensures a fair and competitive process
             2334      and avoids the appearance of impropriety.
             2335          (4) The evaluation committee may, with the approval of the head of the conducting
             2336      procurement unit, enter into discussions or conduct interviews with, or [participate in] attend
             2337      presentations by, the offerors.
             2338          (5) (a) Except as provided in [Subsection (6) or] Subsections (5)(b) and (7), each
             2339      member of the evaluation committee is prohibited from knowing, or having access to, any
             2340      information relating to the cost, or the scoring of the cost, of a proposal until after the
             2341      evaluation committee submits its final recommended scores on all other criteria to the issuing
             2342      procurement unit.
             2343          (b) The issuing procurement unit shall:
             2344          (i) if applicable, assign an individual who is not a member of the evaluation committee
             2345      to calculate scores for cost based on the applicable scoring formula, weighting, and other
             2346      scoring procedures contained in the request for proposals;
             2347          (ii) review the evaluation committee's scores and correct any errors, scoring
             2348      inconsistencies, and reported noncompliance with this chapter;
             2349          (iii) add the scores calculated for cost, if applicable, to the evaluation committee's final
             2350      recommended scores on criteria other than cost to derive the total combined score for each
             2351      responsive and responsible proposal; and
             2352          (iv) provide to the evaluation committee the total combined score calculated for each
             2353      responsive and responsible proposal, including any applicable cost formula, weighting, and
             2354      scoring procedures used to calculate the total combined scores.
             2355          (c) The evaluation committee may not:
             2356          (i) change its final recommended scores described in Subsection (5)(a) after the
             2357      evaluation committee has submitted those scores to the issuing procurement unit; or
             2358          (ii) change cost scores calculated by the issuing procurement unit.
             2359          (6) (a) As used in this Subsection (6), "management fee" includes only the following



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     fees of the construction manager/general contractor:
             2361          (i) preconstruction phase services;
             2362          (ii) monthly supervision fees for the construction phase; and
             2363          (iii) overhead and profit for the construction phase.
             2364          (b) When selecting a construction manager/general contractor for a construction
             2365      project, the evaluation committee:
             2366          (i) may score a construction manager/general contractor based upon criteria contained
             2367      in the solicitation, including qualifications, performance ratings, references, management plan,
             2368      certifications, and other project specific criteria described in the solicitation;
             2369          (ii) may, as described in the solicitation, weight and score the management fee as a
             2370      fixed rate or as a fixed percentage of the estimated contract value;
             2371          [(i)] (iii) may, at any time after the opening of the responses to the request for
             2372      proposals, have access to, and consider, the management fee proposed by the offerors; and
             2373          [(ii)] (iv) except as provided in Subsection (7), may not know or have access to any
             2374      other information relating to the cost of construction submitted by the offerors, until after the
             2375      evaluation committee submits its final recommended scores on all other criteria to the issuing
             2376      procurement unit.
             2377          (7) Evaluation committee deliberations, not including any information gathering
             2378      activities, may be held in a closed meeting, as provided in Title 52, Chapter 4, Open and Public
             2379      Meetings Act.
             2380          [(7)] (8) An issuing procurement unit is not required to comply with Subsection (5) if[,
             2381      before opening the responses to the request for proposals,] the head of the issuing procurement
             2382      unit or a person designated by rule made by the applicable rulemaking authority:
             2383          (a) signs a written statement:
             2384          (i) indicating that, due to the nature of the proposal or other circumstances, it is in the
             2385      best interest of the procurement unit to waive compliance with Subsection (5); and
             2386          (ii) describing the nature of the proposal and the other circumstances relied upon to
             2387      waive compliance with Subsection (5); and
             2388          (b) makes the written statement available to the public, upon request.
             2389          [(8) The evaluation committee shall award scores to each responsive and responsible
             2390      proposal that has not been disqualified from consideration under the provisions of this chapter.]



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             2391
         Section 41. Section 63G-6a-707.5 , which is renumbered from Section 63G-6a-705 is
             2392      renumbered and amended to read:
             2393           [63G-6a-705].     63G-6a-707.5. Best and final offers.
             2394          [(1) After proposals are received and opened, the issuing procurement unit may
             2395      conduct discussions with the offerors and allow the offerors to make best and final offers after
             2396      the discussions.]
             2397          (1) At any time during the evaluation process, the evaluation committee, with the
             2398      approval of the director or head of the issuing procurement unit, may:
             2399          (a) request best and final offers from responsible and responsive offerors; and
             2400          (b) evaluate those offers.
             2401          (2) [The issuing procurement unit] In requesting and evaluating best and final offers
             2402      under Subsection (1), the evaluation committee shall:
             2403          (a) ensure that each offeror receives fair and equal treatment with respect to the other
             2404      offerors;
             2405          (b) establish a schedule and procedures for conducting discussions;
             2406          (c) ensure that information in each proposal and information gathered during
             2407      discussions is not shared with other offerors until the contract is awarded;
             2408          (d) ensure that auction tactics are not used in the discussion process, including
             2409      discussing and comparing the costs and features of other proposals; and
             2410          (e) set a common date and time for the submission of best and final offers.
             2411          (3) If an offeror chooses not to participate in a discussion or does not make a timely
             2412      best and final offer, the offer submitted by the [offerors] offeror before the conduct of
             2413      discussions shall be treated as the offeror's best and final offer.
             2414          Section 42. Section 63G-6a-708 is amended to read:
             2415           63G-6a-708. Justification statement -- Cost-benefit analysis.
             2416          (1) (a) In determining which proposal provides the best value to the procurement unit,
             2417      the evaluation committee and the conducting procurement unit shall prepare a written
             2418      justification statement that:
             2419          (i) explains the score assigned to each evaluation category;
             2420          (ii) explains how the proposal with the highest total combined score provides the best
             2421      value to the procurement unit in comparison to the other proposals;



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             2422
         (iii) if applicable, includes the cost-benefit analysis described in Subsection (2) and
             2423      how the cost-benefit analysis relates to the best value to the procurement unit; and
             2424          (iv) if applicable, includes the written determination described in Subsection (5).
             2425          (b) An explanation under Subsection (1)(a)(i) need not address each criterion within
             2426      each category.
             2427          [(1)] (2) If, in determining the best value to the procurement unit, the evaluation
             2428      committee awards the highest score [awarded by the evaluation committee], including the score
             2429      for cost, [is awarded] to a proposal other than the lowest cost proposal, and the difference
             2430      between the cost of the highest scored proposal and the lowest cost proposal exceeds the
             2431      greater of $10,000 or 5% of the lowest cost proposal, the [issuing procurement unit shall make]
             2432      evaluation committee and the conducting procurement unit shall prepare an informal written
             2433      cost-benefit analysis that:
             2434          (a) explains, in general terms, the advantage to the procurement unit of awarding the
             2435      contract to the higher cost offeror; and
             2436          (b) [includes,] except as provided in Subsection [(1)(c),] (5):
             2437          (i) includes the estimated added financial value to the procurement unit of each
             2438      [criteria] criterion that justifies awarding the contract to the higher cost offeror; and
             2439          [(c) includes, to the extent that assigning a financial value to a particular criteria is not
             2440      practicable, a statement describing:]
             2441          [(i) why it is not practicable to assign a financial value to the criteria; and]
             2442          [(ii) in nonfinancial terms, the advantage to the procurement unit, based on the
             2443      particular criteria, of awarding the contract to the higher cost offeror;]
             2444          [(d)] (ii) demonstrates that the value of the advantage to the procurement unit of
             2445      awarding the contract to the higher cost offeror exceeds the value of the difference between the
             2446      cost of the higher cost proposal and the cost of the lower cost proposals[; and].
             2447          [(e) includes any other information required by rule made by the applicable rulemaking
             2448      authority.]
             2449          [(2)] (3) If the informal cost-benefit analysis described in Subsection [(1)] (2) does not
             2450      justify [award of] awarding the contract to the offeror that received the highest score, the
             2451      issuing procurement unit:
             2452          (a) may not award the contract to the offeror that received the highest score; and



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             2453
         (b) may award the contract to the offeror that received the next highest score, unless:
             2454          (i) an informal cost-benefit analysis is required, because the difference between the
             2455      cost proposed by the offeror that received the next highest score and the lowest cost proposal
             2456      exceeds the greater of $10,000 or 5% of the lowest cost proposal; and
             2457          (ii) the informal cost-benefit analysis does not justify award of the contract to the
             2458      offeror that received the next highest score.
             2459          [(3)] (4) If the informal cost-benefit analysis described in Subsection [(1)] (2) does not
             2460      justify award of the contract to the offeror, described in Subsection [(2)] (3), that received the
             2461      next highest score, the issuing procurement unit:
             2462          (a) may not award the contract to the offeror that received the next highest score; and
             2463          (b) shall continue with the process described in Subsection [(2)] (3) for each offeror
             2464      that received the next highest score, until the issuing procurement unit:
             2465          (i) awards the contract in accordance with the provisions of this section; or
             2466          (ii) cancels the request for proposals.
             2467          (5) (a) The evaluation committee, with the issuing procurement unit's approval, may
             2468      waive, in whole or in part, a requirement under Subsection (2)(b) if the evaluation committee
             2469      determines in writing that assigning a financial value to a particular procurement item or
             2470      evaluation criterion is not practicable.
             2471          (b) A written determination under Subsection (5)(a):
             2472          (i) shall explain:
             2473          (A) why it is not practicable to assign a financial value to the procurement item or
             2474      evaluation criterion; and
             2475          (B) in nonfinancial terms, why awarding the contract to the higher cost offeror
             2476      provides the best value to the procurement unit; and
             2477          (ii) may be included as part of the justification statement.
             2478          [(4)] (6) (a) An issuing procurement unit is not required to make the cost-benefit
             2479      analysis described in this section for a contract with a construction manager/general contractor
             2480      if the contract is awarded based solely on the qualifications of the construction
             2481      manager/general contractor and the management fee described in Subsection [ 63G-6a-706 ]
             2482      63G-6a-707 (6).
             2483          (b) The applicable rulemaking authority shall make rules that establish procedures and



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             2484
     criteria for awarding a contract described in Subsection [(4)] (6)(a) to ensure that:
             2485          (i) a competitive process is maintained; and
             2486          (ii) the contract awarded is in the best interest of the procurement unit.
             2487          Section 43. Section 63G-6a-709 is amended to read:
             2488           63G-6a-709. Award of contract -- Cancellation -- Disqualification.
             2489          (1) After the completion of the evaluation and scoring of proposals [is completed, the
             2490      issuing procurement unit shall:] and the justification statement, including any required
             2491      cost-benefit analysis, the evaluation committee shall submit the proposals, evaluation scores,
             2492      and justification statement to the head of the procurement unit or designee for review and final
             2493      determination of contract award.
             2494          (2) After reviewing the proposals, evaluation scores, and justification statement,
             2495      including any required cost-benefit analysis, the head of the issuing procurement unit or
             2496      designee shall:
             2497          (a) [except as provided in Section 63G-6a-708 ,] award the contract as soon as
             2498      practicable to:
             2499          (i) the responsive and responsible offeror with the highest total score; or
             2500          (ii) if, in accordance with Subsection [(2)] (3), the procurement officer or the head of
             2501      the issuing procurement unit disqualifies the offeror described in Subsection [(1)] (2)(a)(i), the
             2502      responsive and responsible offeror with the next highest total score; or
             2503          (b) cancel the request for proposals without awarding a contract.
             2504          [(2)] (3) In accordance with Subsection [(3)] (4), the procurement officer or the head of
             2505      the issuing procurement unit may disqualify an offeror for:
             2506          (a) a violation of this chapter;
             2507          (b) not being responsive or responsible;
             2508          [(b)] (c) a violation of a requirement of the request for proposals;
             2509          [(c)] (d) unlawful or unethical conduct; or
             2510          [(d)] (e) a change in circumstance that, had the change been known at the time the
             2511      proposal was submitted, would have caused the proposal to not have the highest score.
             2512          [(3)] (4) A procurement officer or head of an issuing procurement unit who disqualifies
             2513      an offeror under Subsection [(2)] (3) shall:
             2514          (a) make a written finding, stating the reasons for disqualification; and



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             2515
         (b) provide a copy of the written finding to the disqualified offeror.
             2516          [(4)] (5) If an issuing procurement unit cancels a request for proposals without
             2517      awarding a contract, the issuing procurement unit shall make available for public inspection a
             2518      written justification for the cancellation.
             2519          Section 44. Section 63G-6a-709.5 is amended to read:
             2520           63G-6a-709.5. Publication of award and scores.
             2521          (1) The issuing procurement unit shall, on the next business day [on which] after the
             2522      award of a contract is announced, make available to each offeror and to the public a written
             2523      statement that includes:
             2524          [(1)] (a) the name of the offeror to which the contract is awarded and the total score
             2525      awarded by the evaluation committee to that offeror;
             2526          (b) the justification statement under Section 63G-6a-708 , including any required
             2527      cost-benefit analysis; and
             2528          [(2)] (c) the total score awarded by the evaluation committee to each offeror to which
             2529      the contract is not awarded, without identifying which offeror received which score[; and].
             2530          [(3) any cost-benefit analysis made, under Section 63G-6a-708 , in relation to the
             2531      request for proposals.]
             2532          (2) Subsection (1)(a) does not prevent the issuing procurement unit from using codes
             2533      or another method in a statement under Subsection (1) to distinguish offerors to which the
             2534      contract is not awarded and to indicate their scores, as long as an offeror cannot be matched
             2535      with the score awarded to that offeror.
             2536          Section 45. Section 63G-6a-802 is amended to read:
             2537           63G-6a-802. Award of contract without competition -- Notice -- Extension of
             2538      contract without engaging in standard procurement process.
             2539          (1) As used in this section:
             2540          (a) "Transitional costs" mean the costs of changing from an existing provider of, or
             2541      type of, a procurement item to another provider of, or type of, procurement item.
             2542          (b) "Transitional costs" include:
             2543          (i) training costs;
             2544          (ii) conversion costs;
             2545          (iii) compatibility costs;



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             2546
         (iv) system downtime;
             2547          (v) disruption of service;
             2548          (vi) staff time necessary to put the transition into effect;
             2549          (vii) installation costs; and
             2550          (viii) ancillary software, hardware, equipment, or construction costs.
             2551          (c) "Transitional costs" do not include:
             2552          (i) the costs of preparing for or engaging in a procurement process; or
             2553          (ii) contract negotiation or contract drafting costs.
             2554          (d) "Trial use contract" means a contract between a procurement unit and a vendor for
             2555      a procurement item that the procurement unit acquires for trial use or testing to determine
             2556      whether the procurement item will benefit the procurement unit.
             2557          (2) The division or a procurement unit with independent procurement authority may
             2558      award a contract for a procurement item without competition if the procurement officer, the
             2559      head of the procurement unit, or a designee of either who is senior to the procurement officer
             2560      or the head of the procurement unit, determines in writing that:
             2561          (a) there is only one source for the procurement item; [or]
             2562          (b) the award to a specific supplier, service provider, or contractor is a condition of a
             2563      donation that will fund the full cost of the supply, service, or construction item[.]; or
             2564          (c) the procurement item is needed for trial use or testing to determine whether the
             2565      procurement item will benefit the procurement unit.
             2566          (3) Circumstances under which there is only one source for a procurement item may
             2567      include:
             2568          (a) where the most important consideration in obtaining a procurement item is the
             2569      compatibility of equipment, technology, software, accessories, replacement parts, or service;
             2570          [(b) where a procurement item is needed for trial use or testing;]
             2571          [(c)] (b) where transitional costs are unreasonable or cost prohibitive; or
             2572          [(d)] (c) procurement of public utility services.
             2573          (4) (a) [The] Subject to Subsection (4)(b), the applicable rulemaking authority shall
             2574      make rules regarding the publication of notice for a sole source procurement that, at a
             2575      minimum, require publication of notice of a sole source procurement, in accordance with
             2576      Section 63G-6a-406 , if the cost of the procurement exceeds $50,000.



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             2577
         (b) Publication of notice under Section 63G-6a-406 is not required for:
             2578          (i) the procurement of public utility services pursuant to a sole source contract; or
             2579          (ii) other sole source procurements provided by rule.
             2580          (5) The division or a procurement unit with independent procurement authority who
             2581      awards a sole source contract on behalf of another procurement unit shall negotiate with the
             2582      contractor to ensure that the terms of the contract, including price and delivery, are in the best
             2583      interest of the procurement unit.
             2584          (6) (a) The period of trial use or testing of a procurement item under a trial use contract
             2585      may not exceed 18 months, unless the procurement officer provides a written exception
             2586      documenting the reason for a longer period.
             2587          (b) A trial use contract shall:
             2588          (i) state that the purpose of the contract is strictly for the purpose of the trial use or
             2589      testing of a procurement item;
             2590          (ii) state that the contract terminates upon completion of the trial use or testing period;
             2591          (iii) state that after the trial use or testing period the procurement unit is not obligated
             2592      to purchase or enter into a contract for the procurement item, regardless of the trial use or
             2593      testing result;
             2594          (iv) state that any purchase of the procurement item beyond the terms of the trial use
             2595      contract will be made in accordance with this chapter; and
             2596          (v) include, as applicable:
             2597          (A) test schedules;
             2598          (B) deadlines and a termination date;
             2599          (C) measures that will be used to evaluate the performance of the procurement item;
             2600          (D) any fees and associated expenses or an explanation of the circumstances
             2601      warranting a waiver of those fees and expenses;
             2602          (E) the obligations of the procurement unit and vendor;
             2603          (F) provisions regarding the ownership of the procurement item during and after the
             2604      trial use or testing period;
             2605          (G) an explanation of the grounds upon which the contract may be terminated;
             2606          (H) a limitation of liability;
             2607          (I) a consequential damage waiver provision;



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             2608
         (J) a statement regarding the confidentiality or nondisclosure of information;
             2609          (K) a provision relating to any required bond or security deposit; and
             2610          (L) other requirements unique to the procurement item for trial use or testing.
             2611          (c) Publication of notice under Section 63G-6a-406 is not required for a procurement
             2612      pursuant to a trial use contract.
             2613          [(6)] (7) The division or a procurement unit with independent procurement authority
             2614      may extend a contract for a reasonable period of time without engaging in a standard
             2615      procurement process, if:
             2616          (a) the award of a new contract for the procurement item is delayed due to a protest or
             2617      appeal;
             2618          (b) the standard procurement process is delayed due to unintentional error;
             2619          (c) changes in industry standards require significant changes to specifications for the
             2620      procurement item;
             2621          (d) the extension is necessary to prevent the loss of federal funds;
             2622          (e) the extension is necessary to address a circumstance where the appropriation of
             2623      state or federal funds has been delayed; [or]
             2624          (f) the extension covers the period of time during which contract negotiations with a
             2625      new provider are being conducted[.]; or
             2626          (g) the extension is necessary to avoid a lapse in critical governmental services that
             2627      may negatively impact public health, safety, or welfare.
             2628          Section 46. Section 63G-6a-904 is amended to read:
             2629           63G-6a-904. Debarment from consideration for award of contracts -- Causes for
             2630      debarment.
             2631          (1) (a) [After reasonable notice to the person involved and reasonable opportunity for
             2632      that person to be heard] Subject to Subsection (1)(b), the chief procurement officer[, a
             2633      procurement officer,] or the head of a procurement unit with independent procurement
             2634      authority may[, after consultation with the procurement unit involved in the matter for which
             2635      debarment is sought and, if the procurement unit is in the state executive branch, the attorney
             2636      general]:
             2637          [(a)] (i) debar a person for cause from consideration for award of contracts for a period
             2638      not to exceed three years; or



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             2639
         [(b)] (ii) suspend a person from consideration for award of contracts if there is
             2640      probable cause to believe that the person has engaged in any activity that might lead to
             2641      debarment.
             2642          (b) Before debarring or suspending a person under Subsection (1)(a), the chief
             2643      procurement officer or head of a procurement unit with independent procurement authority
             2644      shall:
             2645          (i) consult with:
             2646          (A) the procurement unit involved in the matter for which debarment or suspension is
             2647      sought; and
             2648          (B) the attorney general, if the procurement unit is in the state executive branch, or the
             2649      procurement unit's attorney, if the procurement unit is not in the state executive branch;
             2650          (ii) give the person at least 10 days' prior written notice of:
             2651          (A) the reasons for which debarment or suspension is being considered; and
             2652          (B) the hearing under Subsection (1)(b)(iii); and
             2653          (iii) hold a hearing in accordance with Subsection (1)(c).
             2654          (c) (i) At a hearing under Subsection (1)(b)(iii), the chief procurement officer or head
             2655      of a procurement unit with independent procurement authority may:
             2656          (A) subpoena witnesses and compel their attendance at the hearing;
             2657          (B) subpoena documents for production at the hearing;
             2658          (C) obtain additional factual information; and
             2659          (D) obtain testimony from experts, the person who is the subject of the proposed
             2660      debarment or suspension, representatives of the procurement unit, or others to assist the chief
             2661      procurement officer or head of a procurement unit with independent procurement authority to
             2662      make a decision on the proposed debarment or suspension.
             2663          (ii) The Rules of Evidence do not apply to a hearing under Subsection (1)(b)(iii).
             2664          (iii) The chief procurement officer or head of a procurement unit with independent
             2665      procurement authority shall:
             2666          (A) record a hearing under Subsection (1)(b)(iii);
             2667          (B) preserve all records and other evidence relied upon in reaching a decision until the
             2668      decision becomes final;
             2669          (C) for an appeal of a debarment or suspension by a procurement unit other than a



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             2670
     legislative procurement unit, a judicial procurement unit, a local government procurement unit,
             2671      or a public transit district, submit to the procurement policy board chair a copy of the written
             2672      decision and all records and other evidence relied upon in reaching the decision, within seven
             2673      days after receiving a notice that an appeal of a debarment or suspension has been filed under
             2674      Section 63G-6a-1702 or after receiving a request from the procurement policy board chair; and
             2675          (D) for an appeal of a debarment or suspension by a legislative procurement unit, a
             2676      judicial procurement unit, a local government procurement unit, or a public transit district,
             2677      submit to the Utah Court of Appeals a copy of the written decision and all records and other
             2678      evidence relied upon in reaching the decision, within seven days after receiving a notice that an
             2679      appeal of a debarment or suspension has been filed under Section 63G-6a-1802 .
             2680          (iv) The holding of a hearing under Subsection (1)(b)(iii) or the issuing of a decision
             2681      under Subsection (1)(b)(v) does not affect a person's right to later question or challenge the
             2682      jurisdiction of the chief procurement officer or head of a procurement unit with independent
             2683      procurement authority to hold a hearing or issue a decision.
             2684          (v) The chief procurement officer or head of a procurement unit with independent
             2685      procurement authority shall:
             2686          (A) promptly issue a written decision regarding a proposed debarment or suspension,
             2687      unless the matter is settled by mutual agreement; and
             2688          (B) mail, email, or otherwise immediately furnish a copy of the decision to the person
             2689      who is the subject of the decision.
             2690          (vi) A written decision under Subsection (1)(b)(v) shall:
             2691          (A) state the reasons for the debarment or suspension, if debarment or suspension is
             2692      ordered;
             2693          (B) inform the person who is debarred or suspended of the right to judicial or
             2694      administrative review as provided in this chapter; and
             2695          (C) indicate the amount of the security deposit or bond required under Section
             2696      63G-6a-1703 and how that amount was calculated.
             2697          (vi) (A) A decision of debarment or suspension issued by a procurement unit other than
             2698      a legislative procurement unit, a judicial procurement unit, a local government procurement
             2699      unit, or a public transit district is final and conclusive unless the person who is debarred or
             2700      suspended files an appeal of the decision under Section 63G-6a-1702 .



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             2701
         (B) A decision of debarment or suspension issued by a legislative procurement unit, a
             2702      judicial procurement unit, a local government procurement unit, or a public transit district is
             2703      final and conclusive unless the person who is debarred or suspended files an appeal of the
             2704      decision under Section 63G-6a-1802 .
             2705          (2) A suspension [described in Subsection (1)(b)] under this section may not be for a
             2706      period exceeding three months, unless an indictment has been issued for an offense which
             2707      would be a cause for debarment under Subsection (3), in which case the suspension shall, at the
             2708      request of the attorney general, if the procurement unit is in the state executive branch, or the
             2709      procurement unit's attorney, if the procurement unit is not in the state executive branch, remain
             2710      in effect until after the trial of the suspended person.
             2711          (3) The causes for debarment include the following:
             2712          (a) conviction of a criminal offense as an incident to obtaining or attempting to obtain a
             2713      public or private contract or subcontract or in the performance of a public or private contract or
             2714      subcontract;
             2715          (b) conviction under state or federal statutes of embezzlement, theft, forgery, bribery,
             2716      falsification or destruction of records, receiving stolen property, or any other offense indicating
             2717      a lack of business integrity or business honesty which currently, seriously, and directly affects
             2718      responsibility as a [state] contractor for the procurement unit;
             2719          (c) conviction under state or federal antitrust statutes;
             2720          (d) failure without good cause to perform in accordance with the terms of the contract;
             2721          (e) a violation of this chapter; or
             2722          (f) any other cause that the chief procurement officer[, the procurement officer,] or the
             2723      head of a procurement unit with independent procurement authority determines to be so serious
             2724      and compelling as to affect responsibility as a [state] contractor for the procurement unit,
             2725      including debarment by another governmental entity.
             2726          (4) A person who is debarred or suspended under this section may appeal the
             2727      debarment or suspension:
             2728          (a) as provided in Section 63G-6a-1702 , if the debarment or suspension is by a
             2729      procurement unit other than a legislative procurement unit, a judicial procurement unit, a local
             2730      government procurement unit, or a public transit district; or
             2731          (b) as provided in Section 63G-6a-1802 , if the debarment or suspension is by a



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             2732
     legislative procurement unit, a judicial procurement unit, a local government procurement unit,
             2733      or a public transit district.
             2734          (5) A procurement unit may consider a cause for debarment under Subsection (3) as the
             2735      basis for determining that a person responding to a solicitation is not responsible:
             2736          (a) independent of any effort or proceeding under this section to debar or suspend the
             2737      person; and
             2738          (b) even if the procurement unit does not choose to seek debarment or suspension.
             2739          Section 47. Section 63G-6a-1103 is amended to read:
             2740           63G-6a-1103. Bonds necessary when contract is awarded -- Waiver -- Action --
             2741      Attorney fees.
             2742          (1) When a construction contract is awarded under this chapter, the contractor to whom
             2743      the contract is awarded shall deliver the following bonds or security to the [state] procurement
             2744      unit, which shall become binding on the parties upon the execution of the contract:
             2745          (a) a performance bond satisfactory to the [state] procurement unit that is in an amount
             2746      equal to 100% of the price specified in the contract and is executed by a surety company
             2747      authorized to do business in this [state] procurement unit or any other form satisfactory to the
             2748      [state] procurement unit; and
             2749          (b) a payment bond satisfactory to the [state] procurement unit that is in an amount
             2750      equal to 100% of the price specified in the contract and is executed by a surety company
             2751      authorized to do business in this state or any other form satisfactory to the [state] procurement
             2752      unit, which is for the protection of each person supplying labor, service, equipment, or material
             2753      for the performance of the work provided for in the contract.
             2754          (2) (a) When a construction contract is awarded under this chapter, the procurement
             2755      officer or the head of the issuing procurement unit responsible for carrying out the construction
             2756      project may not require a contractor to whom a contract is awarded to obtain a bond of the
             2757      types referred to in Subsection (1) from a specific insurance or surety company, producer,
             2758      agent, or broker.
             2759          (b) A person who violates Subsection (2)(a) is guilty of an infraction.
             2760          (3) Rules of the applicable rulemaking authority may provide for waiver of the
             2761      requirement of a bid, performance, or payment bond for circumstances in which the
             2762      procurement officer considers any or all of the bonds to be unnecessary to protect the



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             2763
     procurement unit.
             2764          (4) A person shall have a right of action on a payment bond under this section for any
             2765      unpaid amount due to the person if:
             2766          (a) the person has furnished labor, service, equipment, or material for the work
             2767      provided for in the contract for which the payment bond is furnished under this section; and
             2768          (b) the person has not been paid in full within 90 days after the last day on which the
             2769      person performed the labor or service or supplied the equipment or material for which the
             2770      claim is made.
             2771          (5) An action upon a payment bond may only be brought in a court of competent
             2772      jurisdiction in a county where the construction contract was to be performed. The action is
             2773      barred if not commenced within one year after the last day on which the claimant performed
             2774      the labor or service or supplied the equipment or material on which the claim is based. The
             2775      obligee named in the bond need not be joined as a party to the action.
             2776          (6) In any suit upon a payment bond, the court shall award reasonable attorney fees to
             2777      the prevailing party, which fees shall be taxed as costs in the action.
             2778          Section 48. Section 63G-6a-1105 is amended to read:
             2779           63G-6a-1105. Form of bonds -- Effect of certified copy.
             2780          (1) The form of the bonds required by this part shall be established by rule made by the
             2781      applicable rulemaking authority.
             2782          (2) Any person may obtain from the [state] procurement unit a certified copy of a bond
             2783      upon payment of the cost of reproduction of the bond and postage, if any.
             2784          (3) A certified copy of a bond [shall be] is prima facie evidence of the contents,
             2785      execution, and delivery of the original.
             2786          Section 49. Section 63G-6a-1202 is repealed and reenacted to read:
             2787          63G-6a-1202. Standard contract clauses encouraged.
             2788          A procurement unit is encouraged to establish standard contract clauses to assist the
             2789      procurement unit and to help contractors and potential contractors to understand applicable
             2790      requirements.
             2791          Section 50. Section 63G-6a-1204 is amended to read:
             2792           63G-6a-1204. Multiyear contracts.
             2793          (1) Except as provided in Subsection (7), a procurement unit may enter into a multiyear



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             2794
     contract resulting from an invitation for bids or a request for proposals, if:
             2795          (a) the procurement officer determines, in the discretion of the procurement officer,
             2796      that entering into a multiyear contract is in the best interest of the procurement unit; and
             2797          (b) the invitation for bids or request for proposals:
             2798          (i) states the term of the contract, including all possible renewals of the contract;
             2799          (ii) states the conditions for renewal of the contract; and
             2800          (iii) includes the provisions of Subsections (3) through (5) that are applicable to the
             2801      contract.
             2802          (2) In making the determination described in Subsection (1)(a), the procurement officer
             2803      shall consider whether entering into a multiyear contract will:
             2804          (a) result in significant savings to the procurement unit, including:
             2805          (i) reduction of the administrative burden in procuring, negotiating, or administering
             2806      contracts;
             2807          (ii) continuity in operations of the procurement unit; or
             2808          (iii) the ability to obtain a volume or term discount;
             2809          (b) encourage participation by a person who might not otherwise be willing or able to
             2810      compete for a shorter term contract; or
             2811          (c) provide an incentive for a bidder or offeror to improve productivity through capital
             2812      investment or better technology.
             2813          (3) (a) The determination described in Subsection (1)(a) is discretionary and is not
             2814      required to be in writing or otherwise recorded.
             2815          (b) Except as provided in Subsections (4) and (5), notwithstanding any provision of an
             2816      invitation for bids, a request for proposals, or a contract to the contrary, a multiyear contract,
             2817      including a contract that was awarded outside of an invitation for bids or request for proposals
             2818      process, may not continue or be renewed for any year after the first year of the multiyear
             2819      contract if adequate funds are not appropriated or otherwise available to continue or renew the
             2820      contract.
             2821          (4) A multiyear contract that is funded solely by federal funds may be continued or
             2822      renewed for any year after the first year of the multiyear contract if:
             2823          (a) adequate funds to continue or renew the contract have not been, but are expected to
             2824      be appropriated by, and received from, the federal government;



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             2825
         (b) continuation or renewal of the contract before the money is appropriated or
             2826      received is permitted by the federal government; and
             2827          (c) the contract states that it may be cancelled or suspended, without penalty, if the
             2828      anticipated federal funds are not appropriated or received.
             2829          (5) A multiyear contract that is funded in part by federal funds may be continued or
             2830      renewed for any year after the first year of the multiyear contract if:
             2831          (a) the portion of the contract that is to be funded by funds of a public entity are
             2832      appropriated;
             2833          (b) adequate federal funds to continue or renew the contract have not been, but are
             2834      expected to be, appropriated by, and received from, the federal government;
             2835          (c) continuation or renewal of the contract before the federal money is appropriated or
             2836      received is permitted by the federal government; and
             2837          (d) the contract states that it may be cancelled or suspended, without penalty, if the
             2838      anticipated federal funds are not appropriated or received.
             2839          (6) A procurement unit may not continue or renew a multiyear contract after the end of
             2840      the multiyear contract term or the renewal periods described in the contract, unless the
             2841      procurement unit engages in a new standard procurement process or complies with an
             2842      exception, described in this chapter, to using a standard procurement process.
             2843          (7) A multiyear contract, including any renewal periods, may not exceed a period of
             2844      five years, unless:
             2845          (a) the procurement officer determines, in writing, that:
             2846          (i) a longer period is necessary in order to obtain the procurement item;
             2847          (ii) a longer period is customary for industry standards; or
             2848          (iii) a longer period is in the best interest of the procurement unit; and
             2849          (b) the written determination described in Subsection (7)(a) is included in the file
             2850      relating to the procurement.
             2851          (8) This section does not apply to a contract for the design or construction of a facility,
             2852      a road, a public transit project, or a contract for the financing of equipment.
             2853          Section 51. Section 63G-6a-1205 is amended to read:
             2854           63G-6a-1205. Regulation of contract types -- Permitted and prohibited contract
             2855      types.



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             2856
         (1) Except as otherwise provided in this section, and subject to rules made under this
             2857      section by the applicable rulemaking authority, a procurement unit may use any type of contract
             2858      that will promote the best interests of the procurement unit.
             2859          (2) An applicable rulemaking authority:
             2860          (a) may make rules governing, placing restrictions on, or prohibiting the use of any
             2861      type of contract; and
             2862          (b) may not make rules that permit the use of a contract:
             2863          (i) that is prohibited under this section; or
             2864          (ii) in a manner that is prohibited under this section.
             2865          (3) A procurement officer, the head of an issuing procurement unit, or a designee of
             2866      either, may not use a type of contract, other than a firm fixed price contract, unless the
             2867      procurement officer makes a written determination that:
             2868          (a) the proposed contractor's accounting system will permit timely development of all
             2869      necessary cost data in the form required by the specific contract type contemplated;
             2870          (b) the proposed contractor's accounting system is adequate to allocate costs in
             2871      accordance with generally accepted accounting principles; and
             2872          (c) the use of a specified type of contract, other than a firm fixed price contract, is in
             2873      the best interest of the procurement unit, taking into consideration the following criteria:
             2874          (i) the type and complexity of the procurement item;
             2875          (ii) the difficulty of estimating performance costs at the time the contract is entered
             2876      into, due to factors that may include:
             2877          (A) the difficulty of determining definitive specifications;
             2878          (B) the difficulty of determining the risks, to the contractor, that are inherent in the
             2879      nature of the work to be performed; or
             2880          (C) the difficulty to clearly determine other factors necessary to enter into an accurate
             2881      firm fixed price contract;
             2882          (iii) the administrative costs to the procurement unit and the contractor;
             2883          (iv) the degree to which the procurement unit is required to provide technical
             2884      coordination during performance of the contract;
             2885          (v) the impact that the choice of contract type may have upon the level of competition
             2886      for award of the contract;



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             2887
         (vi) the stability of material prices, commodity prices, and wage rates in the applicable
             2888      market;
             2889          (vii) the impact of the contract type on the level of urgency related to obtaining the
             2890      procurement item;
             2891          (viii) the impact of any applicable governmental regulation relating to the contract; and
             2892          (ix) other criteria that the procurement officer determines may relate to determining the
             2893      contract type that is in the best interest of the procurement unit.
             2894          (4) Contract types that, subject to the provisions of this section and rules made under
             2895      this section, may be used by a procurement unit include the following:
             2896          (a) a fixed price contract;
             2897          (b) a fixed price contract with price adjustment;
             2898          (c) a time and materials contract;
             2899          (d) a labor hour contract;
             2900          (e) a definite quantity contract;
             2901          (f) an indefinite quantity contract;
             2902          (g) a requirements contract; [or]
             2903          (h) a contract based on a rate table in accordance with industry standards; or
             2904          [(h)] (i) a contract that includes one of the following construction delivery methods:
             2905          (i) design-build;
             2906          (ii) design-bid-build; or
             2907          (iii) construction manager/general contractor.
             2908          (5) Except as it applies to a change order, a procurement unit may not enter into a
             2909      cost-plus-percentage-of-cost contract, unless:
             2910          (a) use of a cost-plus-percentage-of-cost contract is approved by the procurement
             2911      officer;
             2912          (b) it is standard practice in the industry to obtain the procurement item through a
             2913      cost-plus-percentage-of-cost contract; and
             2914          (c) the percentage and the method of calculating costs in the contract are in accordance
             2915      with industry standards.
             2916          (6) A procurement unit may not enter into a cost-reimbursement contract, unless the
             2917      procurement officer makes a written determination that:



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             2918
         (a) (i) a cost-reimbursement contract is likely to cost less than any other type of
             2919      permitted contract; or
             2920          (ii) it is impracticable to obtain the procurement item under any other type of permitted
             2921      contract; and
             2922          (b) the proposed contractor's accounting system:
             2923          (i) will timely develop the cost data in the form necessary for the procurement unit to
             2924      timely and accurately make payments under the contract; and
             2925          (ii) will allocate costs in accordance with generally accepted accounting principles.
             2926          Section 52. Section 63G-6a-1206 is amended to read:
             2927           63G-6a-1206. Rules and regulations to determine allowable incurred costs --
             2928      Required information -- Auditing of books.
             2929          (1) (a) The applicable rulemaking authority may, by rule, establish the cost principles
             2930      to be included in a cost-reimbursement contract to determine incurred costs for the purpose of
             2931      calculating a reimbursement.
             2932          (b) The cost principles established by rule under Subsection (1)(a) may be modified, by
             2933      contract, if the procurement officer or head of the issuing procurement unit approves the
             2934      modification.
             2935          (2) Except as provided in Subsection (5), a person who seeks to be, or is, a party in a
             2936      cost-based contract with a procurement unit shall:
             2937          (a) submit cost or pricing data relating to determining the cost or pricing amount; and
             2938          (b) certify that, to the best of the contractor's knowledge and belief, the cost or pricing
             2939      data submitted is accurate and complete as of the date specified by the procurement unit.
             2940          (3) The procurement officer shall ensure that the date specified under Subsection (2)(b)
             2941      is before:
             2942          (a) the pricing of any contract awarded by a standard procurement process or pursuant
             2943      to a sole source procurement, if the total contract price is expected to exceed an amount
             2944      established by rule made by the applicable rulemaking authority; or
             2945          (b) the pricing of any change order that is expected to exceed an amount established by
             2946      rule made by the applicable rulemaking authority.
             2947          (4) A contract or change order that requires a certification described in Subsection (2)
             2948      shall include a provision that the price to the procurement unit, including profit or fee, shall be



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             2949
     adjusted to exclude any significant sums by which the procurement unit finds that the price was
             2950      increased because the contractor provided cost or pricing data that was inaccurate, incomplete,
             2951      or not current as of the date specified by the procurement officer.
             2952          (5) A procurement unit is not required to comply with Subsection (2) if:
             2953          (a) the contract price is based on adequate price competition;
             2954          (b) the contract price is based on established catalogue prices or market prices;
             2955          (c) the contract price is set by law or rule; or
             2956          (d) the procurement states, in writing:
             2957          (i) that, in accordance with rules made by the applicable rulemaking authority, the
             2958      requirements of Subsection (2) may be waived; and
             2959          (ii) the reasons for the waiver.
             2960          (6) The procurement officer or audit entity under contract with the procurement unit
             2961      may, at reasonable times and places, only to the extent that the books and records relate to the
             2962      applicable cost or pricing data, audit the books and records of:
             2963          (a) a person who has submitted cost or pricing data pursuant to this section; or
             2964          (b) a contractor or subcontractor under a contract or subcontract other than a firm fixed
             2965      price contract.
             2966          (7) Unless a shorter time is provided for by contract:
             2967          (a) a person described in Subsection (6)(a) shall maintain the books and records
             2968      described in Subsection (6) for three years after the day on which the fiscal year in which final
             2969      payment is made under the contract ends;
             2970          (b) a contractor shall maintain the books and records described in Subsection (6) for
             2971      three years after the day on which the fiscal year in which final payment under the prime
             2972      contract ends; and
             2973          (c) a subcontractor shall maintain the books and records described in Subsection (6) for
             2974      three years after the day on which the fiscal year in which final payment is made under the
             2975      subcontract ends.
             2976          Section 53. Section 63G-6a-1402 is amended to read:
             2977           63G-6a-1402. Procurement of design-build transportation project contracts.
             2978          (1) As used in this section:
             2979          (a) "Design-build transportation project contract" means the procurement of both the



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             2980
     design and construction of a transportation project in a single contract with a company or
             2981      combination of companies capable of providing the necessary engineering services and
             2982      construction.
             2983          (b) "Transportation agency" means:
             2984          (i) the Department of Transportation;
             2985          (ii) a county of the first or second class, as defined in Section 17-50-501 ;
             2986          (iii) a municipality of the first class, as defined in Section 10-2-301 ;
             2987          (iv) a public transit district that has more than 200,000 people residing within its
             2988      boundaries; and
             2989          (v) a public airport authority.
             2990          (2) Except as provided in Subsection (3), a transportation agency may award a
             2991      design-build transportation project contract for any transportation project that has an estimated
             2992      cost of at least $50,000,000 by following the requirements of this section.
             2993          (3) (a) The Department of Transportation:
             2994          (i) may award a design-build transportation project contract for any transportation
             2995      project by following the requirements of this section; and
             2996          (ii) shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
             2997      Rulemaking Act, establishing requirements for the procurement of its design-build
             2998      transportation project contracts in addition to those required by this section.
             2999          (b) A public transit district that has more than 200,000 people residing within its
             3000      boundaries:
             3001          (i) may award a design-build transportation project contract for any transportation
             3002      project by following the requirements of this section; and
             3003          (ii) shall pass ordinances or a resolution establishing requirements for the procurement
             3004      of its design-build transportation project contracts in addition to those required by this section.
             3005          (c) A design-build transportation project contract authorized under this Subsection (3)
             3006      is not subject to the estimated cost threshold described in Subsection (2).
             3007          (d) A design-build transportation project contract may include provision by the
             3008      contractor of operations, maintenance, or financing.
             3009          (4) (a) Before entering into a design-build transportation project contract, a
             3010      transportation agency may issue a request for qualifications to prequalify potential contractors.



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             3011
         (b) Public notice of the request for qualifications shall be given in accordance with
             3012      board rules.
             3013          (c) A transportation agency shall require, as part of the qualifications specified in the
             3014      request for qualifications, that potential contractors at least demonstrate their:
             3015          (i) construction experience;
             3016          (ii) design experience;
             3017          (iii) financial, manpower, and equipment resources available for the project; and
             3018          (iv) experience in other design-build transportation projects with attributes similar to
             3019      the project being procured.
             3020          (d) The request for qualifications shall identify the number of eligible competing
             3021      proposers that the transportation agency will select to submit a proposal, which may not be less
             3022      than two.
             3023          (5) The transportation agency shall:
             3024          (a) evaluate the responses received from the request for qualifications;
             3025          (b) select from their number those qualified to submit proposals; and
             3026          (c) invite those respondents to submit proposals based upon the transportation agency's
             3027      request for proposals.
             3028          (6) Except as provided in Subsection (7), if the transportation agency fails to receive at
             3029      least two qualified eligible competing proposals, the transportation agency shall readvertise the
             3030      project.
             3031          (7) A transportation agency may award a contract for a transportation project that has
             3032      an estimated cost of $5,000,000 or less to a qualified eligible proposer if:
             3033          (a) only a single proposal is received; and
             3034          (b) the transportation agency determines that:
             3035          (i) the proposal is advantageous to the state; and
             3036          (ii) the proposal price is reasonable.
             3037          (8) The transportation agency shall issue a request for proposals to those qualified
             3038      respondents that:
             3039          (a) includes a scope of work statement constituting an information for proposal that
             3040      may include:
             3041          (i) preliminary design concepts;



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             3042
         (ii) design criteria, needs, and objectives;
             3043          (iii) warranty and quality control requirements;
             3044          (iv) applicable standards;
             3045          (v) environmental documents;
             3046          (vi) constraints;
             3047          (vii) time expectations or limitations;
             3048          (viii) incentives or disincentives; and
             3049          (ix) other special considerations;
             3050          (b) requires submitters to provide:
             3051          (i) a sealed cost proposal;
             3052          (ii) a critical path matrix schedule, including cash flow requirements;
             3053          (iii) proposal security; and
             3054          (iv) other items required by the department for the project; and
             3055          (c) may include award of a stipulated fee to be paid to offerors who submit
             3056      unsuccessful proposals.
             3057          (9) The transportation agency shall:
             3058          (a) evaluate the submissions received in response to the request for proposals from the
             3059      prequalified offerors;
             3060          (b) comply with rules relating to discussion of proposals, best and final offers, and
             3061      evaluations of the proposals submitted; and
             3062          (c) after considering price and other identified factors, award the contract to the
             3063      responsive and responsible offeror whose proposal is most advantageous to the transportation
             3064      agency or the state.
             3065          Section 54. Section 63G-6a-1503 is amended to read:
             3066           63G-6a-1503. Selection committee for architect-engineer services.
             3067          (1) In the procurement of architect-engineer services, the procurement officer or the
             3068      head of an issuing procurement unit shall encourage firms engaged in the lawful practice of
             3069      their profession to submit [annually] a statement of qualifications [and performance data].
             3070          (2) The Building Board shall be the evaluation committee for architect-engineer
             3071      services contracts under its authority.
             3072          (3) An evaluation committee for architect-engineer services contracts not under the



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             3073
     authority of the Building Board shall be established in accordance with rules made by the
             3074      applicable rulemaking authority.
             3075          (4) An evaluation committee shall:
             3076          (a) evaluate current statements of qualifications [and performance data on file with the
             3077      state, together with those that may be submitted by other firms] in response to the
             3078      announcement of [the] a proposed contract;
             3079          (b) consider no less than three firms; and
             3080          (c) based upon criteria established and published by the issuing procurement unit,
             3081      select no less than three of the firms considered to be the most highly qualified to provide the
             3082      services required.
             3083          Section 55. Section 63G-6a-1505 is amended to read:
             3084           63G-6a-1505. Determination of compensation for architect-engineer services.
             3085          (1) The procurement officer shall award a contract to a qualified firm at compensation
             3086      that the procurement officer determines, in writing, to be fair and reasonable to the [state]
             3087      procurement unit.
             3088          (2) In making the determination described in Subsection (1), the procurement officer
             3089      shall take into account the services':
             3090          (a) estimated value;
             3091          (b) scope;
             3092          (c) complexity; and
             3093          (d) professional nature.
             3094          (3) If the procurement officer is unable to agree to a satisfactory contract with the firm
             3095      first selected, at a price the procurement officer determines to be fair and reasonable to the
             3096      [state] procurement unit, the procurement officer shall:
             3097          (a) formally terminate discussions with that firm; and
             3098          (b) undertake discussions with a second qualified firm.
             3099          (4) If the procurement officer is unable to agree to a satisfactory contract with the
             3100      second firm selected, at a price the procurement officer determines to be fair and reasonable to
             3101      the [state] procurement unit, the procurement officer shall:
             3102          (a) formally terminate discussions with that firm; and
             3103          (b) undertake discussions with a third qualified firm.



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             3104
         (5) If the procurement officer is unable to award a contract at a fair and reasonable
             3105      price to any of the selected firms, the procurement officer shall:
             3106          (a) select additional firms; and
             3107          (b) continue discussions in accordance with this part until an agreement is reached.
             3108          Section 56. Section 63G-6a-1602 is amended to read:
             3109           63G-6a-1602. Protest -- Time -- Authority to resolve protest.
             3110          [(1) Except as provided in Subsection (2), a person who is an actual or prospective
             3111      bidder, offeror, or contractor who is aggrieved in connection with a procurement or award of a
             3112      contract may protest to the protest officer as follows:]
             3113          [(a) with respect]
             3114          (1) (a) A protest may be filed with the protest officer by:
             3115          (a) an actual or prospective bidder or offeror who is aggrieved in connection with a
             3116      procurement; or
             3117          (b) a prospective contractor who is aggrieved in connection with an award of a
             3118      contract.
             3119          (b) (i) A protest under Subsection (1)(a) relating to an invitation for bids or a request
             3120      for proposals shall be filed:
             3121          [(i)] (A) before the opening of bids or the closing date for proposals; or
             3122          [(ii)] (B) if the person filing the protest did not know and should not have known of the
             3123      facts giving rise to the protest before the bid opening or the closing date for proposals, within
             3124      seven days after the day on which the person knows or should have known of the facts giving
             3125      rise to the protest[; or].
             3126          (ii) A protest under Subsection (1)(a) relating to a form of procurement not described
             3127      in Subsection (1)(b)(i) but involving a deadline established for the submission of a price or
             3128      response shall be filed:
             3129          (A) before the deadline for the submission of a price or response; or
             3130          (B) if the person filing the protest did not know and reasonably should not have known
             3131      of the facts giving rise to the protest before the deadline for the submission of a price or
             3132      response, within seven days after the day on which the person knows or reasonably should have
             3133      known of the facts giving rise to the protest.
             3134          [(b)] (iii) [if Subsection (1)(a) does not apply,] A protest under Subsection (1)(a)



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             3135
     relating to a form of procurement not described in Subsection (1)(b)(i) or (ii) shall be filed
             3136      within seven days after the day on which the person filing the protest knows or should have
             3137      known of the facts giving rise to the protest.
             3138          [(2) A person who is debarred or suspended under this chapter may protest the
             3139      debarment or suspension to the protest officer that ordered the debarment, as applicable, within
             3140      seven days after the day on which the debarment or suspension is ordered.]
             3141          [(3)] (2) A person who files a protest under this section shall include in the filing
             3142      document:
             3143          (a) the person's address of record and email address of record; and
             3144          (b) a concise statement of the grounds upon which the protest is made.
             3145          [(4)] (3) A person described in Subsection (1)[, (2), or (3)] who fails to [timely] file a
             3146      protest [under this section] within the time prescribed in Subsection (1)(b) may not [bring a]:
             3147          (a) protest[,] to the protest officer a solicitation or award of a contract; or
             3148          (b) file an action[,] or appeal challenging a solicitation or award of a contract[, or a
             3149      debarment or suspension,] before [the protest officer,] an appeals panel, a court, or any other
             3150      forum.
             3151          [(5)] (4) Subject to the applicable requirements of Section 63G-10-403 , a protest
             3152      officer[,] or the [protest officer's designee,] head of a procurement unit may enter into a
             3153      settlement agreement to resolve a protest.
             3154          Section 57. Section 63G-6a-1603 is amended to read:
             3155           63G-6a-1603. Protest officer responsibilities and authority if protest filed --
             3156      Decisions of protest officer to be in writing -- Effect of no writing.
             3157          (1) After a [timely] protest is filed [in accordance with Section 63G-6a-1602 ], the
             3158      protest officer[:] shall determine whether the protest is timely filed and complies fully with the
             3159      requirements of Section 63G-6a-1602 .
             3160          [(a) shall consider the protest; and]
             3161          [(b) may hold a hearing on the protest.]
             3162          (2) If the protest officer determines that the protest is not timely filed or that the protest
             3163      does not fully comply with Section 63G-6a-1602 , the protest officer shall dismiss the protest.
             3164          (3) If the protest officer determines that the protest is timely filed and complies fully
             3165      with Section 63G-6a-1602 , the protest officer shall:



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             3166
         (a) dismiss the protest if the protest officer determines that the protest alleges facts that,
             3167      if true, do not provide an adequate basis for the protest;
             3168          (b) uphold the protest without holding a hearing if the protest officer determines that
             3169      the undisputed facts of the protest indicate that the protest should be upheld; or
             3170          (c) hold a hearing on the protest if there is a genuine issue of material fact that needs to
             3171      be resolved in order to determine whether the protest should be upheld.
             3172          [(2)] (4) (a) [The] If a hearing is held on a protest, the protest officer may:
             3173          (i) subpoena witnesses and compel their attendance at [a] the protest hearing; [or]
             3174          (ii) subpoena documents for production at [a] the protest hearing[.];
             3175          (iii) obtain additional factual information; and
             3176          (iv) obtain testimony from experts, the person filing the protest, representatives of the
             3177      procurement unit, or others to assist the protest officer to make a decision on the protest.
             3178          (b) The Rules of Evidence do not apply to a protest hearing.
             3179          (c) The applicable rulemaking authority shall make rules relating to intervention in a
             3180      protest, including designating:
             3181          (i) who may intervene; and
             3182          (ii) the time and manner of intervention.
             3183          (d) [If a hearing on a protest is held under this section, the] A protest officer shall:
             3184          (i) record [the] each hearing held on a protest under this section;
             3185          [(ii) preserve all evidence presented at the hearing; and]
             3186          [(iii) preserve all records and other evidence relied upon in reaching the written
             3187      decision described in this section.]
             3188          [(e)] (ii) [Regardless] regardless of whether a hearing on a protest is held under this
             3189      section, [the protest officer shall] preserve all records and other evidence relied upon in
             3190      reaching the protest officer's written decision[. (f) The records described in Subsections (2)(d)
             3191      and (e) may not be destroyed] until the decision, and any appeal of the decision, becomes
             3192      final[.]; and
             3193          (iii) submit to the procurement policy board chair a copy of the protest officer's written
             3194      decision and all records and other evidence relied upon in reaching the decision, within seven
             3195      days after receiving:
             3196          (A) notice that an appeal of the protest officer's decision has been filed under Section



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             3197
     63G-6a-1702 ; or
             3198          (B) a request from the chair of the procurement policy board.
             3199          [(g)] (e) A protest [officer who holds] officer's holding a hearing, [considers]
             3200      considering a protest, or [issues] issuing a written decision under this section does not [waive
             3201      the] affect a person's right to[, at a] later [date,] question or challenge the protest officer's
             3202      jurisdiction to hold the hearing, consider the protest, or [render] issue the decision.
             3203          (5) (a) The deliberations of a protest officer that is subject to Title 52, Chapter 4, Open
             3204      and Public Meetings Act, because the protest officer is a public body, as defined in Section
             3205      52-4-103 , may be held in a closed meeting, as provided in Title 52, Chapter 4, Open and Public
             3206      Meetings Act.
             3207          (b) Subsection (5)(a) does not apply to any information gathering activities of a protest
             3208      officer described in Subsection (5)(a).
             3209          [(3)] (6) (a) A protest officer, or the protest officer's designee, shall promptly issue a
             3210      written decision regarding any protest, [debarment, suspension, or contract controversy if it]
             3211      unless the protest is [not] settled by mutual agreement.
             3212          (b) The decision shall:
             3213          (i) state the reasons for the action taken [and];
             3214          (ii) inform the protestor[, contractor, or prospective contractor] of the right to judicial
             3215      or administrative review as provided in this chapter[.]; and
             3216          (iii) indicate the amount of the security deposit or bond required under Section
             3217      63G-6a-1703 and how that amount was calculated.
             3218          (c) A person who issues a decision under Subsection (6)(a) shall mail, email, or
             3219      otherwise immediately furnish a copy of the decision to the protestor.
             3220          [(4) (a)] (7) A decision described in this section is effective until stayed or reversed on
             3221      appeal, except to the extent provided in Section 63G-6a-1903 . [A person who issues a decision
             3222      described in Subsection (1) shall mail, email, or otherwise immediately furnish a copy of the
             3223      decision to the protestor, prospective contractor, or contractor.]
             3224          [(b)] (8) (a) A decision described in Subsection [(4)] (6)(a) that is issued in relation to a
             3225      procurement unit other than a legislative procurement unit [or], a judicial procurement unit
             3226      [shall be], a local government procurement unit, or a public transit district is final and
             3227      conclusive unless the protestor[, prospective contractor, or contractor: (i) for a controversy



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             3228
     described in Section 63G-6a-1905 , commences an action in district court in accordance with
             3229      Subsection 63G-6a-1802 (5); (ii) for a controversy related to a solicitation or the award of a
             3230      contract,] files an appeal under Section 63G-6a-1702 [; or].
             3231          [(iii) for a debarment or suspension, files an appeal under Section 63G-6a-1702 .]
             3232          [(c)] (b) A decision described in Subsection [(4)] (6)(a) that is issued in relation to a
             3233      legislative procurement unit [or], a judicial procurement unit [shall be], a local government
             3234      procurement unit, or a public transit district is final and conclusive unless the protestor[,
             3235      prospective contractor, or contractor:] files an appeal under Section 63G-6a-1802 .
             3236          [(i) for a controversy described in Section 63G-6a-1905 , commences an action in
             3237      district court in accordance with Subsection 63G-6a-1802 (5);]
             3238          [(ii) for a controversy related to a solicitation or the award of a contract, files an appeal
             3239      under Subsection 63G-6a-1802 (1)(b); or]
             3240          [(iii) for a debarment or suspension, files an appeal under Subsection
             3241      63G-6a-1802 (1)(b).]
             3242          [(5)] (9) If the protest officer does not issue the written decision regarding a protest or a
             3243      contract controversy within 30 calendar days after the day on which a written request for a final
             3244      decision is filed with the protest officer, or within a longer period as may be agreed upon by the
             3245      parties, the protester, prospective contractor, or contractor may proceed as if an adverse
             3246      decision had been received.
             3247          [(6) Except for a controversy described in Section 63G-6a-1905 , a]
             3248          (10) A determination under this section by the protest officer regarding an issue of fact
             3249      may not be overturned on appeal unless the decision is arbitrary and capricious or clearly
             3250      erroneous.
             3251          Section 58. Section 63G-6a-1702 is amended to read:
             3252           63G-6a-1702. Appeal to Utah State Procurement Policy Board -- Appointment of
             3253      procurement appeals panel -- Proceedings.
             3254          (1) This part applies to all procurement units other than:
             3255          (a) a legislative procurement unit;
             3256          (b) a judicial procurement unit;
             3257          (c) a [county or municipality] local government procurement unit; or
             3258          (d) a public transit district.



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             3259
         (2) (a) [A] Subject to Section 63G-6a-1703 , a party to a protest involving a
             3260      procurement unit other than a procurement [described] unit listed in Subsection (1)(a), (b), (c),
             3261      or (d) may appeal the protest decision to the board by[: (a)] filing a written notice of appeal
             3262      with the chair of the board within seven days after:
             3263          (i) the day on which the written decision described in Section 63G-6a-1603 is:
             3264          (A) personally served on the party or the party's representative; or
             3265          (B) emailed or mailed to the address or email address of record provided by the party
             3266      under Subsection 63G-6a-1602 (3); or
             3267          (ii) the day on which the 30-day period described in Subsection 63G-6a-1603 [(5)](7)
             3268      ends, if a written decision is not issued before the end of the 30-day period[;].
             3269          [(b) including in the filing document the person's]
             3270          (b) A person appealing a debarment or suspension of a procurement unit other than a
             3271      procurement unit listed in Subsection (1)(a), (b), (c), or (d) shall file a written notice of appeal
             3272      with the chair of the board no later than seven days after the debarment or suspension.
             3273          (c) A notice of appeal under Subsection (2)(a) or (b) shall:
             3274          (i) include the address of record and email address of record of the party filing the
             3275      notice of appeal; and
             3276          (ii) be accompanied by a copy of any written protest decision or debarment or
             3277      suspension order.
             3278          [(c) at the time that the notice of appeal described in Subsection (2)(a) is filed,
             3279      complying with the requirements of Section 63G-6a-1703 regarding the posting of a security
             3280      deposit or a bond.]
             3281          (3) A person may not base an appeal of a protest under this section on a ground not
             3282      specified in the person's protest under Section 63G-6a-1602 .
             3283          [(3)] (4) A person may not appeal from a protest described in Section 63G-6a-1602 ,
             3284      unless:
             3285          (a) a decision on the protest has been issued; or
             3286          (b) a decision is not issued and the 30-day period described in Subsection
             3287      63G-6a-1603 [(5)](7), or a longer period agreed to by the parties, has passed.
             3288          [(4)] (5) The chair of the board or a designee of the chair who is not employed by the
             3289      procurement unit responsible for the solicitation, contract award, or other action complained of:



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             3290
         (a) shall, within seven days after the day on which the chair receives a timely written
             3291      notice of appeal under Subsection (2), and if all the requirements of Subsection (2) and Section
             3292      63G-6a-1703 have been met, appoint:
             3293          (i) a procurement appeals panel to hear and decide the appeal, consisting of at least
             3294      three individuals, each of whom shall be:
             3295          (A) a member of the board; or
             3296          (B) a designee of a member appointed under Subsection (4)(a)(i)(A), if the designee is
             3297      approved by the chair; and
             3298          (ii) one of the members of the procurement appeals panel to be the chair of the panel;
             3299          (b) may:
             3300          (i) appoint the same procurement appeals panel to hear more than one appeal; or
             3301          (ii) appoint a separate procurement appeals panel for each appeal; [and]
             3302          (c) may not appoint a person to a procurement appeals panel if the person is employed
             3303      by the procurement unit responsible for the solicitation, contract award, or other action
             3304      complained of[.]; and
             3305          (d) shall, at the time the procurement appeals panel is appointed, provide appeals panel
             3306      members with a copy of the protest officer's written decision and all other records and other
             3307      evidence that the protest officer relied on in reaching the decision.
             3308          [(5)] (6) A procurement appeals panel described in Subsection [(4)] (5) shall:
             3309          (a) consist of an odd number of members;
             3310          (b) [except as provided in Subsection (6),] conduct an informal proceeding on the
             3311      appeal within 60 days after the day on which the procurement appeals panel is appointed[,]:
             3312          (i) unless all parties stipulate to a later date; and
             3313          (ii) subject to Subsection (8);
             3314          (c) at least seven days before the proceeding, mail, email, or hand-deliver a written
             3315      notice of the proceeding to the parties to the appeal; and
             3316          (d) within seven days after the day on which the proceeding ends:
             3317          (i) issue a written decision on the appeal; and
             3318          (ii) mail, email, or hand-deliver the written decision on the appeal to the parties to the
             3319      appeal and to the protest officer.
             3320          (7) (a) The deliberations of a procurement appeals panel that is subject to Title 52,



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             3321
     Chapter 4, Open and Public Meetings Act, because the procurement appeals panel is a public
             3322      body, as defined in Section 52-4-103 , may be held in a closed meeting, as provided in Title 52,
             3323      Chapter 4, Open and Public Meetings Act.
             3324          (b) Subsection (7)(a) does not apply to any information gathering activities of a
             3325      procurement appeals panel described in Subsection (7)(a).
             3326          [(6)] (8) A procurement appeals panel may continue a procurement appeals proceeding
             3327      beyond the 60-day period described in Subsection [(5)] (6)(b) if the procurement appeals panel
             3328      determines that the continuance is in the interests of justice.
             3329          [(7)] (9) A procurement appeals panel:
             3330          (a) shall, subject to Subsection (9)(c), consider the appeal based solely on:
             3331          (i) the protest decision;
             3332          (ii) the record considered by the person who issued the protest decision; and
             3333          (iii) if a protest hearing was held, the record of the protest hearing;
             3334          (b) may not take additional evidence; [and]
             3335          (c) notwithstanding Subsection (9)(b), may, during an informal hearing, ask questions
             3336      and receive responses regarding the appeal, the protest decision, or the record in order to assist
             3337      the panel to understand the appeal, the protest decision, and the record; and
             3338          [(c)] (d) shall uphold the decision of the protest officer, unless the decision is arbitrary
             3339      and capricious or clearly erroneous.
             3340          [(8)] (10) If a procurement appeals panel determines that the decision of the protest
             3341      officer is arbitrary and capricious or clearly erroneous, the procurement appeals panel:
             3342          (a) shall remand the matter to the protest officer, to cure the problem or render a new
             3343      decision;
             3344          (b) may recommend action that the protest officer should take; and
             3345          (c) may not order that:
             3346          (i) a contract be awarded to a certain person;
             3347          (ii) a contract or solicitation be cancelled; or
             3348          (iii) any other action be taken other than the action described in Subsection [(8)]
             3349      (10)(a).
             3350          [(9)] (11) The board shall make rules relating to the conduct of an appeals proceeding,
             3351      including rules that provide for:



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             3352
         (a) expedited proceedings; and
             3353          (b) electronic participation in the proceedings by panel members and participants.
             3354          [(10)] (12) The Rules of Evidence do not apply to an appeals proceeding.
             3355          Section 59. Section 63G-6a-1703 is amended to read:
             3356           63G-6a-1703. Requirement to post a security deposit or bond -- Exceptions --
             3357      Forfeiture of security deposit or bond.
             3358          (1) Except as provided by rule made under Subsection (2)(a), a person who files [an] a
             3359      notice of appeal under Section 63G-6a-1702 shall, [at the time that the appeal is filed] before
             3360      the expiration of the time provided under Subsection 63G-6a-1702 (2) for filing a notice of
             3361      appeal, pay a security deposit or post a bond with the office of the protest officer in [an] the
             3362      amount [that is the greater] of:
             3363          [(a) for the appeal of a debarment or suspension, $1,000;]
             3364          [(b) for any type of procurement, $1,000;]
             3365          [(c)] (a) (i) for an appeal relating to an invitation for bids, 5% of the estimated total
             3366      contract value, based on:
             3367          [(i)] (A) the lowest responsible and responsive bid amount for the entire term of the
             3368      contract, excluding any renewal period, if the bid opening has occurred; [or]
             3369          [(ii) the estimated contract cost, established in accordance with Subsection (2)(b), if the
             3370      bid opening has not yet occurred;]
             3371          (B) the total budget for the procurement item for the entire term of the contract,
             3372      excluding any renewal period, if bids are based on unit or rate pricing; or
             3373          (C) if the contract is being rebid, the historical usage and amount spent on the contract
             3374      over the life of the contract; or
             3375          [(d)] (ii) for an appeal relating to a request for proposals, 5% of the estimated total
             3376      contract value, based on:
             3377          [(i)] (A) the lowest cost proposed in a response to a request for proposals, considering
             3378      the entire term of the contract, excluding any renewal period, if the opening of proposals has
             3379      occurred; [or]
             3380          [(ii) the estimated contract cost, established in accordance with Subsection (2)(b), if the
             3381      opening of proposals has not occurred; or]
             3382          [(e) for a type of procurement other than an invitation for bids or a request for



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             3383
     proposals, the amount established in accordance with Subsection (2).]
             3384          [(2) The board shall make rules, in accordance with Title 63G, Chapter 3, Utah
             3385      Administrative Rulemaking Act, that establish:]
             3386          [(a) circumstances and procedures under which the requirement for paying a security
             3387      deposit or posting a bond may be waived or reduced on grounds, including:]
             3388          [(i) that the person filing the appeal is impecunious;]
             3389          [(ii) circumstances where certain small purchases are involved; or]
             3390          [(iii) other grounds determined by the Division of Purchasing and General Services to
             3391      be appropriate; and]
             3392          [(b) the method used to determine:]
             3393          [(i) the estimated contract cost described in Subsections (1)(c)(ii) and (1)(d)(ii); and]
             3394          [(ii) the amount described in Subsection (1)(e).]
             3395          [(3) The chair of the board shall dismiss a protest filed under Section 63G-6a-1702 if
             3396      the actual or prospective bidder, offeror, or contractor fails to timely pay the security deposit or
             3397      post the bond required under Subsection (1).]
             3398          (B) the total budget for the procurement item over the entire term of the contract,
             3399      excluding any renewal period, if opened cost proposals are based on unit or rate pricing; or
             3400          (C) if the contract is being reissued, the historical usage and amount spent on the
             3401      contract over the life of the contract that is being reissued; or
             3402          (b) $20,000, for an appeal:
             3403          (i) relating to any type of procurement process other than an invitation for bids or
             3404      request for proposals;
             3405          (ii) relating to an invitation for bids or request for proposals, if the estimated total
             3406      contract value cannot be determined; or
             3407          (iii) of a debarment or suspension.
             3408          [(4)] (2) The [chair of the board] protest officer shall:
             3409          (a) retain the security deposit or bond until the protest and any appeal of the protest
             3410      decision is final;
             3411          (b) as it relates to a security deposit:
             3412          (i) deposit the security deposit into an interest-bearing account; and
             3413          (ii) after any appeal of the protest decision becomes final, return the security deposit



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             3414
     and the interest it accrues to the person who paid the security deposit, unless the security
             3415      deposit is forfeited to the General Fund under Subsection [(5)] (3); and
             3416          (c) as it relates to a bond:
             3417          (i) retain the bond until the protest and any appeal of the protest decision becomes
             3418      final; and
             3419          (ii) after the protest and any appeal of the protest decision becomes final, return the
             3420      bond to the person who posted the bond, unless the bond is forfeited to the General Fund under
             3421      Subsection [(5)] (3).
             3422          [(5)] (3) A security deposit that is paid, or a bond that is posted, under this section shall
             3423      forfeit to the General Fund if:
             3424          (a) the person who paid the security deposit or posted the bond fails to ultimately
             3425      prevail on appeal; and
             3426          (b) the procurement appeals panel finds that the protest or appeal is frivolous or that its
             3427      primary purpose is to harass or cause a delay.
             3428          Section 60. Section 63G-6a-1706 is amended to read:
             3429           63G-6a-1706. Dismissal of an appeal not filed in compliance with requirements.
             3430          (1) The chair of the board shall dismiss an appeal filed under Section 63G-6a-1702 if
             3431      the person filing the appeal fails to comply with any of the requirements of Subsection
             3432      63G-6a-1702 (2) or Section 63G-6a-1703 .
             3433          (2) A procurement appeals panel may dismiss an appeal that is assigned to the
             3434      procurement appeals panel if the appeal is not filed in accordance with the requirements of this
             3435      chapter.
             3436          Section 61. Section 63G-6a-1802 is amended to read:
             3437           63G-6a-1802. Appeal to Utah Court of Appeals -- Jurisdiction of district court.
             3438          [(1) (a) Subject to Subsection (2), a person who receives an adverse decision, or a
             3439      procurement unit, may appeal a decision of a procurement appeals panel to the Utah Court of
             3440      Appeals within seven days after the day on which the decision is issued.]
             3441          [(b) A person who receives an adverse decision in a protest relating to a legislative
             3442      procurement unit, a judicial procurement unit, a local government procurement unit, or a public
             3443      transit district may appeal the decision to the Utah Court of Appeals within seven days after the
             3444      day on which the decision is issued.]



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             3445
         (1) (a) As provided in this part:
             3446          (i) a person may appeal a dismissal of an appeal by the board chair under Subsection
             3447      63G-6a-1706 (1);
             3448          (ii) a person who receives an adverse decision by a procurement appeals panel may
             3449      appeal that decision;
             3450          (iii) subject to Subsection (2), a procurement unit, other than a legislative procurement
             3451      unit, a judicial procurement unit, a local government procurement unit, or a public transit
             3452      district, may appeal an adverse decision by a procurement appeals panel;
             3453          (iv) a person who receives an adverse decision in a protest relating to a legislative
             3454      procurement unit, a judicial procurement unit, a local government procurement unit, or a public
             3455      transit district may appeal that decision; and
             3456          (v) a person who is debarred or suspended under Section 63G-6a-904 by a legislative
             3457      procurement unit, a judicial procurement unit, a local government procurement unit, or a public
             3458      transit district may appeal the debarment or suspension.
             3459          (b) A person seeking to appeal a dismissal, decision, or debarment or suspension under
             3460      Subsection (1)(a) shall file a notice of appeal with the Utah Court of Appeals within seven days
             3461      after the dismissal, decision, or debarment or suspension.
             3462          (2) A procurement unit may not appeal the decision of a procurement appeals panel,
             3463      unless the appeal is:
             3464          (a) recommended by the protest officer involved; and
             3465          (b) except for a procurement unit that is not represented by the attorney general's
             3466      office, approved by the attorney general.
             3467          (3) A person appealing a dismissal, decision, protest, debarment, or suspension under
             3468      this section may not base the appeal on a ground not specified in the proceeding from which
             3469      the appeal is taken.
             3470          [(3)] (4) The Utah Court of Appeals:
             3471          (a) shall consider the appeal as an appellate court;
             3472          (b) may not hear the matter as a trial de novo; and
             3473          (c) may not overturn a finding [or], dismissal, decision [of the protest officer or a
             3474      procurement appeals panel], or debarment or suspension, unless the finding [or], dismissal,
             3475      decision, or debarment or suspension is arbitrary and capricious or clearly erroneous.



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             3476
         [(4)] (5) The Utah Court of Appeals is encouraged to:
             3477          (a) give an appeal made under [Subsection (1)] this section priority; and
             3478          (b) consider the appeal and render a decision in an expeditious manner.
             3479          [(5) The district court shall have original jurisdiction in a cause of action between a
             3480      contractor and a procurement unit for any cause of action that arises under, or in relation to, an
             3481      existing contract between the contractor and a procurement unit.]
             3482          Section 62. Section 63G-6a-1902 is amended to read:
             3483           63G-6a-1902. Requirement to exhaust administrative remedies -- Protests and
             3484      appeals.
             3485          (1) A person may not challenge a procurement, a procurement process, the award of a
             3486      contract relating to a procurement, a debarment, or a suspension, in a court, before an
             3487      administrative officer or body, or in any other forum other than the forum permitted in this
             3488      chapter.
             3489          (2) A person who desires to challenge a procurement, a procurement process, the award
             3490      of a contract relating to a procurement, a debarment, or a suspension, shall bring the challenge,
             3491      in accordance with the requirements of this chapter[, by timely filing:].
             3492          [(a) a protest in accordance with Section 63G-6a-1602 ;]
             3493          [(b) any appeal of the protest decision involving a procurement unit, other than a
             3494      legislative procurement unit, a judicial procurement unit, a local government procurement unit,
             3495      or a public transit district, in accordance with Section 63G-6a-1702 ; and]
             3496          [(c) any appeal from a procurement appeals panel, or from a protest decision of a
             3497      legislative procurement unit, a judicial procurement unit, a local government procurement unit,
             3498      or a public transit district, in accordance with Section 63G-6a-1802 .]
             3499          [(3) A person who files a protest or appeal under this chapter is limited to protesting or
             3500      appealing on the grounds specified in the filing document described in Subsection
             3501      63G-6a-1602 .]
             3502          [(4)] (3) In hearing a protest or an appeal under this chapter relating to an expenditure
             3503      of federal assistance, federal contract funds, or a federal grant, the person who hears the appeal
             3504      shall ensure compliance with federal law and regulations relating to the expenditure.
             3505          Section 63. Section 63G-6a-1903 is amended to read:
             3506           63G-6a-1903. Effect of timely protest or appeal.



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             3507
         [In the event of a timely protest under Subsection 63G-6a-1602 (1), or a timely appeal of
             3508      the protest under Section 63G-6a-1702 or 63G-6a-1802 , a]
             3509          A procurement unit, other than a legislative procurement unit, a judicial procurement
             3510      unit, a local government procurement unit, or a public transit district, may not proceed further
             3511      with [the] a solicitation or with the award of [the] a contract [until]:
             3512          (1) during the pendency of a timely:
             3513          (a) protest under Subsection 63G-6a-1602 (1);
             3514          (b) appeal of a protest under Section 63G-6a-1702 ; or
             3515          (c) appeal of a procurement appeals panel decision under Section 63G-6a-1802 ; and
             3516          (2) until:
             3517          [(1)] (a) all administrative and judicial remedies are exhausted;
             3518          [(2)] (b) for a protest under Section 63G-6a-1602 or an appeal under Section
             3519      63G-6a-1702 :
             3520          [(a)] (i) the chief procurement officer, after consultation with the attorney general's
             3521      office and the head of the using agency, makes a written determination that award of the
             3522      contract without delay is [necessary to protect substantial interests] in the best interest of the
             3523      procurement unit or the state;
             3524          [(b)] (ii) the head of [the purchasing agency] a procurement unit with independent
             3525      procurement authority, after consultation with the procurement unit's attorney [general's office],
             3526      makes a written determination that award of the contract without delay is [necessary to protect
             3527      substantial interests] in the best interest of the procurement unit or the state; or
             3528          [(c)] (iii) for a procurement unit that is not represented by the attorney general's office,
             3529      the procurement unit, after consulting with the attorney for the procurement unit, makes a
             3530      written determination that award of the contract without delay is [necessary to protect
             3531      substantial interests] in the best interest of the procurement unit or the state; or
             3532          [(3)] (c) for an appeal under Section 63G-6a-1802 , or an appeal to a higher court than
             3533      district court:
             3534          [(a)] (i) the chief procurement officer, after consultation with the attorney general's
             3535      office and the head of the using agency, makes a written determination that award of the
             3536      contract without delay is in the best interest of the procurement unit or the state;
             3537          [(b)] (ii) the head of [the purchasing agency] a procurement unit with independent



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             3538
     procurement authority, after consultation with the procurement unit's attorney [general's office],
             3539      makes a written determination that award of the contract without delay is in the best interest of
             3540      the procurement unit or the state; or
             3541          [(c)] (iii) for a procurement unit that is not represented by the attorney general's office,
             3542      the procurement unit, after consulting with the attorney for the procurement unit, makes a
             3543      written determination that award of the contract without delay is necessary to protect the best
             3544      interest of the procurement unit or the state.
             3545          Section 64. Section 63G-6a-1904 is amended to read:
             3546           63G-6a-1904. Costs to or against protestor.
             3547          (1) When a protest is sustained administratively or upon administrative or judicial
             3548      review and the protesting bidder or offeror should have been awarded the contract under the
             3549      solicitation but is not, the protestor shall be entitled to the following relief as a claim against
             3550      the [state] procurement unit:
             3551          (a) the reasonable costs incurred in connection with the solicitation, including bid
             3552      preparation and appeal costs; and
             3553          (b) any equitable relief determined to be appropriate by the reviewing administrative or
             3554      judicial body.
             3555          (2) When a protest is not sustained by a procurement appeals panel, the protestor shall
             3556      reimburse the issuing procurement unit for expenses incurred in defending the appeal,
             3557      including personnel costs, attorney fees, other legal costs, expenses incurred by the attorney
             3558      general's office, the per diem and expenses paid by the issuing procurement unit to witnesses or
             3559      appeals panel members, and any additional expenses incurred by the staff of the issuing
             3560      procurement unit who have provided materials and administrative services to the procurement
             3561      appeals panel for that case.
             3562          (3) The provisions of Title 63G, Chapter 7, Part 4, Notice of Claim Against a
             3563      Governmental Entity or a Government Employee, and Section 63G-7-601 do not apply to
             3564      actions brought under this chapter by an aggrieved party for equitable relief or reasonable costs
             3565      incurred in preparing or appealing an unsuccessful bid or offer.
             3566          Section 65. Section 63G-6a-1906 is amended to read:
             3567           63G-6a-1906. Effect of prior determination by agents of procurement unit.
             3568          In any judicial action under Section 63G-6a-1802 , determinations by employees, agents,



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             3569
     or other persons appointed by the [state] procurement unit shall be final and conclusive only as
             3570      provided in Sections 63G-6a-1911 , 63G-6a-1603 , and 63G-6a-1705 .
             3571          Section 66. Section 63G-6a-1907 is amended to read:
             3572           63G-6a-1907. Effect of violation found after award of contract.
             3573          (1) If after award of a contract it is determined administratively or upon administrative
             3574      or judicial review that a procurement or award of a contract is in violation of law:
             3575          (a) (i) if the person awarded the contract did not act fraudulently or in bad faith:
             3576          (A) the contract may be ratified and affirmed if it is in the best interests of the [state]
             3577      procurement unit; or
             3578          (B) the contract may be terminated; and
             3579          (ii) the person awarded the contract shall be compensated for the actual expenses
             3580      reasonably incurred under the contract before the termination, plus a reasonable profit; or
             3581          (b) if the person awarded the contract acted fraudulently or in bad faith:
             3582          (i) the contract may be declared null and void; or
             3583          (ii) the contract may be ratified and affirmed if it is in the best interests of the [state]
             3584      procurement unit, without prejudice to the [state's] procurement unit's rights to any appropriate
             3585      damages.
             3586          (2) Under no circumstances is a person entitled to consequential damages in relation to
             3587      a solicitation or award of a contract under this chapter, including consequential damages for
             3588      lost profits, loss of business opportunities, or damage to reputation.
             3589          Section 67. Section 63G-6a-1910 is amended to read:
             3590           63G-6a-1910. Interest rates.
             3591          (1) In controversies between [the state] a procurement unit and [contractors] a
             3592      contractor under this chapter, interest on amounts ultimately determined to be due to a
             3593      contractor or the [state] procurement unit are payable at the rate applicable to judgments from
             3594      the date the claim arose through the date of decision or judgment, whichever is later.
             3595          (2) Unless otherwise specified in a lawful contract between a procurement unit and the
             3596      person making a bond claim against the procurement unit, the interest rate applicable to the
             3597      bond claim is the rate described in Subsection 15-1-1 (2).
             3598          (3) This section does not apply to public assistance benefits programs.
             3599          Section 68. Section 63G-6a-2103 is amended to read:



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             3600
          63G-6a-2103. Purchases between procurement units.
             3601          (1) [Upon request, a] (a) A procurement unit may [make services available to],
             3602      without using a standard procurement process, purchase from another procurement unit[,
             3603      including:] a procurement item that the other procurement unit itself produces or provides.
             3604          [(a) standard forms;]
             3605          [(b) printed manuals;]
             3606          [(c) qualified products lists;]
             3607          [(d) source information;]
             3608          [(e) common use commodities listings;]
             3609          [(f) supplier prequalification information;]
             3610          [(g) supplier performance ratings;]
             3611          [(h) debarred and suspended bidders lists;]
             3612          [(i) forms for invitation for bids, requests for proposals, instructions to bidders, general
             3613      contract provisions, and contract forms; or]
             3614          [(j) contracts or published summaries of contracts, including price and time of delivery
             3615      information.]
             3616          [(2) A procurement unit may provide technical services to another procurement unit,
             3617      including:]
             3618          [(a) development of specifications;]
             3619          [(b) development of quality assurance test methods, including receiving, inspection,
             3620      and acceptance procedures;]
             3621          [(c) use of testing and inspection facilities; or]
             3622          [(d) use of personnel training programs.]
             3623          [(3) Procurement units may enter into contractual arrangements and]
             3624          (b) Subject to Section 63G-6a-2105 , Subsection (1)(a) does not authorize a
             3625      procurement unit to purchase from another procurement unit a procurement item that the other
             3626      procurement unit acquires by a procurement.
             3627          (2) A procurement unit may publish a schedule of costs or fees for [the services
             3628      provided under Subsections (1) and (2)] procurement items available for purchase by another
             3629      procurement unit.
             3630          Section 69. Section 63G-6a-2105 is amended to read:



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             3631
          63G-6a-2105. Participation of a public entity or a procurement unit in
             3632      agreements or contracts of procurement units -- Cooperative purchasing -- State
             3633      cooperative contracts.
             3634          (1) The chief procurement officer may, in accordance with the requirements of this
             3635      chapter, enter into a cooperative procurement, and a contract that is awarded as a result of a
             3636      cooperative procurement, with:
             3637          (a) another state;
             3638          [(b) an external procurement unit; or]
             3639          (b) a cooperative purchasing organization; or
             3640          (c) a public entity [in Utah] inside or outside [of Utah] the state.
             3641          (2) A public entity, nonprofit organization, or, as permitted under federal law, an
             3642      agency of the federal government, may obtain a procurement item from a state cooperative
             3643      contract or a contract awarded by the chief procurement officer under Subsection (1), without
             3644      signing a participating addendum if the [quote, invitation for bids, or request for proposals
             3645      used] solicitation issued by the chief procurement officer to obtain the contract includes a
             3646      statement indicating that the resulting contract will be issued [on behalf of a] for the benefit of
             3647      public [entity in Utah] entities and, as applicable, nonprofit organizations and agencies of the
             3648      federal government.
             3649          (3) Except as provided in Section 63G-6a-408 , or as otherwise provided in this chapter,
             3650      an executive branch procurement unit may not obtain a procurement item from a source other
             3651      than a state cooperative contract or a contract awarded by the chief procurement officer under
             3652      Subsection (1), if the procurement item is available under a state cooperative contract or a
             3653      contract awarded by the chief procurement officer under Subsection (1).
             3654          (4) A Utah procurement unit may:
             3655          (a) contract with the federal government without going through a standard procurement
             3656      process or an exception to a standard procurement process, described in Part 8, Exceptions to
             3657      Procurement Requirements, if the procurement item obtained under the contract is provided:
             3658          (i) directly by the federal government and not by a person contracting with the federal
             3659      government; or
             3660          (ii) by a person under contract with the federal government that obtained the contract in
             3661      a manner that substantially complies with the provisions of this chapter;



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             3662
         (b) participate in, sponsor, conduct, or administer a cooperative procurement with
             3663      another Utah procurement unit or another public entity in Utah, if:
             3664          (i) each party unit involved in the cooperative procurement enters into an agreement
             3665      describing the rights and duties of each party;
             3666          (ii) the procurement is conducted, and the contract awarded, in accordance with the
             3667      requirements of this chapter;
             3668          (iii) the [request for quotes, the invitation for bids, or the request for proposals]
             3669      solicitation:
             3670          (A) clearly indicates that the procurement is a cooperative procurement; and
             3671          (B) identifies each party that may purchase under the resulting contract; and
             3672          (iv) each party involved in the cooperative procurement signs a participating addendum
             3673      describing its rights and obligations in relation to the resulting contract; or
             3674          (c) purchase under, or otherwise participate in, an agreement or contract of [an external
             3675      procurement unit] a cooperative purchasing organization, if:
             3676          (i) each party involved in the cooperative procurement enters into an agreement
             3677      describing the rights and duties of each party;
             3678          (ii) the procurement was conducted in accordance with the requirements of this
             3679      chapter;
             3680          (iii) the [request for quotes, the invitation for bids, or the request for proposals]
             3681      solicitation:
             3682          (A) clearly indicates that the procurement is a cooperative procurement; and
             3683          (B) identifies each party that may purchase under the resulting contract; and
             3684          (iv) each party involved in the cooperative procurement signs a participating addendum
             3685      describing its rights and obligations in relation to the resulting contract.
             3686          (5) A procurement unit may not obtain a procurement item under a contract that results
             3687      from a cooperative procurement described in Subsection (4), if the procurement unit:
             3688          (a) is not identified under Subsection (4)(b)(iii)(B) or (4)(c)(iii)(B); or
             3689          (b) does not sign a participating addendum to the contract as required by this section.
             3690          (6) A procurement unit, other than a legislative procurement unit or a judicial
             3691      procurement unit, may not obtain a procurement item under a contract held by the United
             3692      States General Services Administration, unless, based upon documentation provided by the



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             3693
     procurement unit, the Director of the State Division of Purchasing and General Services
             3694      determines in writing that the United States General Services Administration procured the
             3695      contract in a manner that substantially complies with the provisions of this chapter.
             3696          (7) In addition to any other authority under this section, the chief procurement officer
             3697      may, in accordance with the requirements of this chapter, award a contract for a procurement
             3698      item to be provided within a specific geographical region within the state:
             3699          (a) despite a state cooperative contract for the same procurement item; and
             3700          (b) if awarding the contract on a regional basis is practicable.
             3701          Section 70. Section 63G-6a-2401 is enacted to read:
             3702     
Part 24. Unlawful Conduct and Penalties

             3703          63G-6a-2401. Title.
             3704          This part is known as "Unlawful Conduct and Penalties."
             3705          Section 71. Section 63G-6a-2402 is enacted to read:
             3706          63G-6a-2402. Definitions.
             3707          As used in this part:
             3708          (1) "Contract administration professional":
             3709          (a) means an individual under contract with a procurement unit, or an individual
             3710      employed by a person under contract with a procurement unit, to:
             3711          (i) assist in developing a solicitation or grant;
             3712          (ii) assist in the procurement process; or
             3713          (iii) supervise or oversee, or assist in supervising or overseeing, the administration or
             3714      management of a contract or grant; and
             3715          (b) does not include an employee of the procurement unit.
             3716          (2) "Contribution":
             3717          (a) means a voluntary gift or donation of money, service, or anything else of value, to a
             3718      public entity for the public entity's use and not for the primary use of an individual employed
             3719      by the public entity; and
             3720          (b) includes:
             3721          (i) a philanthropic donation;
             3722          (ii) admission to a seminar, vendor fair, charitable event, fundraising event, or similar
             3723      event that relates to the function of the public entity;



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             3724
         (iii) the purchase of a booth or other display space at an event sponsored by the public
             3725      entity or a group of which the public entity is a member; and
             3726          (iv) the sponsorship of an event that is organized by the public entity.
             3727          (3) "Family member" means a father, mother, husband, wife, son, daughter, sister,
             3728      brother, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law,
             3729      sister-in-law, son-in-law, or daughter-in-law.
             3730          (4) "Governing body" means an administrative, advisory, executive, or legislative body
             3731      of a public entity.
             3732          (5) "Gratuity":
             3733          (a) means anything of value given:
             3734          (i) without anything provided in exchange; or
             3735          (ii) in excess of the market value of that which is provided in exchange;
             3736          (b) includes:
             3737          (i) a gift or favor;
             3738          (ii) money;
             3739          (iii) a loan at an interest rate below the market rate or with terms that are more
             3740      advantageous to the borrower than terms offered generally on the market;
             3741          (iv) anything of value provided with an award, other than a certificate, plaque, or
             3742      trophy;
             3743          (v) employment;
             3744          (vi) admission to an event;
             3745          (vii) a meal, lodging, or travel;
             3746          (viii) entertainment for which a charge is normally made; and
             3747          (ix) a raffle, drawing for a prize, or lottery; and
             3748          (c) does not include:
             3749          (i) an item, including a meal in association with a training seminar, that is:
             3750          (A) included in a contract or grant; or
             3751          (B) provided in the proper performance of a requirement of a contract or grant;
             3752          (ii) an item requested to evaluate properly the award of a contract or grant;
             3753          (iii) a rebate, coupon, discount, airline travel award, dividend, or other offering
             3754      included in the price of a procurement item;



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             3755
         (iv) a meal provided by an organization or association, including a professional or
             3756      educational association, an association of vendors, or an association comprised of public
             3757      agencies or public entities, that does not, as an organization or association, respond to
             3758      solicitations;
             3759          (v) a product sample submitted to a public entity to assist the public entity to evaluate a
             3760      solicitation;
             3761          (vi) a political campaign contribution;
             3762          (vii) an item generally available to the public; or
             3763          (viii) anything of value that one public agency provides to another public agency.
             3764          (6) "Hospitality gift":
             3765          (a) means a token gift of minimal value, including a pen, pencil, stationery, toy, pin,
             3766      trinket, snack, beverage, or appetizer, given for promotional or hospitality purposes; and
             3767          (b) does not include money, a meal, admission to an event for which a charge is
             3768      normally made, entertainment for which a charge is normally made, travel, or lodging.
             3769          (7) "Kickback":
             3770          (a) means a negotiated bribe provided in connection with a procurement or the
             3771      administration of a contract or grant; and
             3772          (b) does not include anything listed in Subsection (5)(c).
             3773          (8) "Procurement" has the same meaning as defined in Section 63G-6a-103 , but also
             3774      includes the awarding of a grant.
             3775          (9) "Procurement professional":
             3776          (a) means an individual who:
             3777          (i) by title or primary responsibility, has procurement decision making authority; and
             3778          (ii) is assigned to be engaged in, or is engaged in:
             3779          (A) the procurement process; or
             3780          (B) the process of administering a contract or grant, including enforcing contract or
             3781      grant compliance, approving contract or grant payments, or approving contract or grant change
             3782      orders or amendments; and
             3783          (b) excludes:
             3784          (i) any individual who, by title or primary responsibility, does not have procurement
             3785      decision making authority;



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             3786
         (ii) an individual holding an elective office;
             3787          (iii) a member of a governing body;
             3788          (iv) a chief executive of a public entity or a chief assistant or deputy of the chief
             3789      executive, if the chief executive, chief assistant, or deputy, respectively, has a variety of duties
             3790      and responsibilities beyond the management of the procurement process or the contract or grant
             3791      administration process;
             3792          (v) the superintendent, business administrator, principal, or vice principal of a school
             3793      district or charter school, or the chief assistant or deputy of the superintendent, business
             3794      administrator, principal, or vice principal;
             3795          (vi) a university or college president, vice president, business administrator, or dean;
             3796          (vii) a chief executive of a local district, as defined in Section 17B-1-102 , special
             3797      service district, as defined in Section 17D-1-102 , or a political subdivision created under Title
             3798      11, Chapter 13, Interlocal Cooperation Act;
             3799          (viii) an employee of a public entity with:
             3800          (A) an annual budget of $1,000,000 or less; or
             3801          (B) no more than four full-time employees; and
             3802          (ix) an executive director or director of an executive branch procurement unit who:
             3803          (A) by title or primary responsibility, does not have procurement decision making
             3804      authority; and
             3805          (B) is not assigned to engage in, and is not engaged in, the procurement process.
             3806          (10) "Public agency" has the same meaning as defined in Section 11-13-103 , but also
             3807      includes all officials, employees, and official representatives of a public agency, as defined in
             3808      Section 11-13-103 .
             3809          Section 72. Section 63G-6a-2403 is enacted to read:
             3810          63G-6a-2403. Applicability.
             3811          (1) This part applies to each public entity.
             3812          (2) A procurement professional is subject to this part at all times during:
             3813          (a) the procurement process; and
             3814          (b) the administration of a contract or grant.
             3815          (3) A contract administration professional is subject to this part at all times during the
             3816      period the contract administration professional is:



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Senate Committee Amendments 2-27-2014 lp/rhr
             3817
         (a) under contract with a procurement unit; and
             3818          (b) involved in:
             3819          (i) the procurement process; or
             3820          (ii) the administration of a contract or grant.
             3821          (4) This part does not apply to:
             3822          (a) an individual described in Subsection 63G-6a-2402 (9)(b); or
             3823          (b) any individual other than a procurement professional or contract administration
             3824      professional.
             3825          (5) The other subsections of this section do not affect the applicability or effect of any
             3826      other ethics, bribery, or other law.
             3827          Section 73. Section 63G-6a-2404 is enacted to read:
             3828          63G-6a-2404. Unlawful conduct -- Exceptions -- Classification of offenses.
             3829          (1) (a) It is unlawful for a person who has or is seeking a contract with or a grant from
             3830      a public entity knowingly to give, or offer, promise, or pledge to give, a gratuity or kickback to:
             3831          (i) the public entity;
             3832          (ii) a procurement professional or contract administration professional; or
             3833          (iii) an individual who the person knows is a family member of an individual described
             3834      in Subsection (1)(a)(ii).
             3835          (b) S. [ Notwithstanding Subsection (1)(a), it ] It .S is not unlawful for a public agency to
             3835a      S. [ make ] give, offer, promise, or pledge to give .S a
             3836      contribution to another public agency.
             3837          (c) A person is not guilty of unlawful conduct under Subsection (1)(a) for:
             3838          (i) giving or offering, promising, or pledging to give a contribution to a public entity,
             3839      unless done with the intent to induce the public entity, in exchange, to:
             3840          (A) award a contract or grant;
             3841          (B) make a procurement decision; or
             3842          (C) take an action relating to the administration of a contract or grant; or
             3843          (ii) giving or offering, promising, or pledging to give something of value to an
             3844      organization to which a procurement professional or contract administration professional
             3845      belongs, unless done with the intent to induce a public entity, in exchange, to:
             3846          (A) award a contract or grant;
             3847          (B) make a procurement decision; or



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             3848
         (C) take an action relating to the administration of a contract or grant.
             3849          (2) (a) It is unlawful for a procurement professional or contract administration
             3850      professional, or a family member of either, knowingly to receive or accept, offer or agree to
             3851      receive or accept, or ask for a promise or pledge of, a gratuity or kickback from a person who
             3852      has or is seeking a contract with or a grant from a public entity.
             3853          (b) An individual is not guilty of unlawful conduct under Subsection (2)(a) for
             3854      receiving or accepting, offering or agreeing to receive or accept, or asking for a promise or
             3855      pledge of a contribution on behalf of a public entity, unless done with the intent that the public
             3856      entity, in exchange:
             3857          (i) award a contract or grant;
             3858          (ii) make a procurement decision; or
             3859          (iii) take an action relating to the administration of a contract or grant.
             3860          (3) Notwithstanding Subsections (1) and (2), it is not unlawful for a person to give or
             3861      receive, offer to give or receive, or promise or pledge to give or ask for a promise or pledge of,
             3862      a hospitality gift, if:
             3863          (a) the total value of the hospitality gift is less than $10; and
             3864          (b) the aggregate value of all hospitality gifts from the person to the recipient in a
             3865      calendar year is less than $50.
             3866          (4) A person who engages in the conduct made unlawful under Subsection (1) or (2) is
             3867      guilty of:
             3868          (a) a second degree felony, if the total value of the gratuity or kickback is $1,000 or
             3869      more;
             3870          (b) a third degree felony, if the total value of the gratuity or kickback is $250 or more
             3871      but less than $1,000;
             3872          (c) a class A misdemeanor, if the total value of the gratuity or kickback is $100 or more
             3873      but less than $250; and
             3874          (d) a class B misdemeanor, if the total value of the gratuity or kickback is less than
             3875      $100.
             3876          (5) The criminal sanctions described in Subsection (4) do not preclude the imposition
             3877      of other penalties for conduct made unlawful under this part, in accordance with other
             3878      applicable law, including:



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             3879
         (a) dismissal from employment or other disciplinary action;
             3880          (b) for an elected officer listed in Section 77-6-1 , removal from office as provided in
             3881      Title 77, Chapter 6, Removal by Judicial Proceedings;
             3882          (c) requiring the public officer or employee to return the value of the unlawful gratuity
             3883      or kickback; and
             3884          (d) any other civil penalty provided by law.
             3885          Section 74. Section 63G-6a-2405 is enacted to read:
             3886          63G-6a-2405. Discretion to declare contract or grant void -- Limitations.
             3887          (1) Subject to Subsection (2), the governing body or chief executive officer of a public
             3888      entity that awards a contract or grant to a person who engages in conduct made unlawful under
             3889      this part may, in the sole discretion of the governing body or chief executive officer, declare the
             3890      contract or grant to be void and unenforceable, unless:
             3891          (a) the contract or grant relates to the issuance of a bond or other obligation and the
             3892      bond has been issued or obligation incurred; or
             3893          (b) a third party has substantially changed its position in reliance upon the contract or
             3894      grant.
             3895          (2) Declaring a contract or grant void under Subsection (1) does not affect the
             3896      obligation of a procurement unit to pay for a contractor's proper performance completed under
             3897      the contract or grant or the value the contractor provides to the public entity under the contract
             3898      or grant before the contract or grant is declared void.
             3899          (3) Subsection (1) applies only to a procurement with respect to which:
             3900          (a) public notice is provided on or after July 1, 2014, if public notice of the
             3901      procurement is required; or
             3902          (b) the initial contact between the public entity and the potential contractor, for
             3903      purposes of the procurement, occurs on or after July 1, 2014, if public notice of the
             3904      procurement is not required.
             3905          Section 75. Section 63G-6a-2406 is enacted to read:
             3906          63G-6a-2406. Authority of conducting procurement unit with respect to
             3907      evaluation committee.
             3908          Nothing in this part restricts a conducting procurement unit from:
             3909          (1) requiring an evaluation committee member to disclose a conflict of interest; or



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             3910
         (2) removing an evaluation committee member for having a conflict of interest.
             3911          Section 76. Section 63G-6a-2407 is enacted to read:
             3912          63G-6a-2407. Duty to report unlawful conduct.
             3913          (1) A procurement professional shall notify the attorney general or other appropriate
             3914      prosecuting attorney if the procurement professional has actual knowledge that a person has
             3915      engaged in:
             3916          (a) conduct made unlawful under this part; or
             3917          (b) conduct, including bid rigging, improperly steering a contract to a favored vendor,
             3918      exercising undue influence on an individual involved in the procurement process, or
             3919      participating in collusion or other anticompetitive practices, made unlawful under other
             3920      applicable law.
             3921          (2) A procurement professional who fails to comply with the requirement of
             3922      Subsection (1) is subject to any applicable disciplinary action or civil penalty identified in
             3923      Subsection 63G-6a-2404 (5).
             3924          Section 77. Section 67-16-4 is amended to read:
             3925           67-16-4. Improperly disclosing or using private, controlled, or protected
             3926      information -- Using position to secure privileges or exemptions -- Accepting employment
             3927      which would impair independence of judgment or ethical performance -- Exception.
             3928          (1) Except as provided in Subsection (3), it is an offense for a public officer, public
             3929      employee, or legislator to:
             3930          (a) accept employment or engage in any business or professional activity that he might
             3931      reasonably expect would require or induce him to improperly disclose controlled information
             3932      that he has gained by reason of his official position;
             3933          (b) disclose or improperly use controlled, private, or protected information acquired by
             3934      reason of his official position or in the course of official duties in order to further substantially
             3935      the officer's or employee's personal economic interest or to secure special privileges or
             3936      exemptions for himself or others;
             3937          (c) use or attempt to use his official position to:
             3938          (i) further substantially the officer's or employee's personal economic interest; or
             3939          (ii) secure special privileges or exemptions for himself or others;
             3940          (d) accept other employment that he might expect would impair his independence of



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             3941
     judgment in the performance of his public duties; or
             3942          (e) accept other employment that he might expect would interfere with the ethical
             3943      performance of his public duties.
             3944          (2) (a) Subsection (1) does not apply to the provision of education-related services to
             3945      public school students by public education employees acting outside their regular employment.
             3946          (b) The conduct referred to in Subsection (2)(a) is subject to Section 53A-1-402.5 .
             3947          (3) This section does not apply to a public officer, public employee, or legislator who
             3948      engages in conduct that constitutes a violation of this section to the extent that the public
             3949      officer, public employee, or legislator is chargeable, for the same conduct, under Section
             3950      [ 63G-6a-2304.5 ] 63G-6a-2404 or Section 76-8-105 .
             3951          Section 78. Section 67-16-5 is amended to read:
             3952           67-16-5. Accepting gift, compensation, or loan -- When prohibited.
             3953          (1) As used in this section, "economic benefit tantamount to a gift" includes:
             3954          (a) a loan at an interest rate that is substantially lower than the commercial rate then
             3955      currently prevalent for similar loans; and
             3956          (b) compensation received for private services rendered at a rate substantially
             3957      exceeding the fair market value of the services.
             3958          (2) Except as provided in Subsection (4), it is an offense for a public officer or public
             3959      employee to knowingly receive, accept, take, seek, or solicit, directly or indirectly for himself
             3960      or another a gift of substantial value or a substantial economic benefit tantamount to a gift:
             3961          (a) that would tend improperly to influence a reasonable person in the person's position
             3962      to depart from the faithful and impartial discharge of the person's public duties;
             3963          (b) that the public officer or public employee knows or that a reasonable person in that
             3964      position should know under the circumstances is primarily for the purpose of rewarding the
             3965      public officer or public employee for official action taken; or
             3966          (c) if the public officer or public employee recently has been, is now, or in the near
             3967      future may be involved in any governmental action directly affecting the donor or lender,
             3968      unless a disclosure of the gift, compensation, or loan and other relevant information has been
             3969      made in the manner provided in Section 67-16-6 .
             3970          (3) Subsection (2) does not apply to:
             3971          (a) an occasional nonpecuniary gift, having a value of not in excess of $50;



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             3972
         (b) an award publicly presented in recognition of public services;
             3973          (c) any bona fide loan made in the ordinary course of business; or
             3974          (d) a political campaign contribution.
             3975          (4) This section does not apply to a public officer or public employee who engages in
             3976      conduct that constitutes a violation of this section to the extent that the public officer or public
             3977      employee is chargeable, for the same conduct, under Section [ 63G-6a-2304.5 ] 63G-6a-2404 or
             3978      Section 76-8-105 .
             3979          Section 79. Section 67-16-5.3 is amended to read:
             3980           67-16-5.3. Requiring donation, payment, or service to government agency in
             3981      exchange for approval -- When prohibited.
             3982          (1) Except as provided in Subsection (3), it is an offense for a public officer, public
             3983      employee, or legislator to demand from any person as a condition of granting any application or
             3984      request for a permit, approval, or other authorization, that the person donate personal property,
             3985      money, or services to any agency.
             3986          (2) (a) Subsection (1) does not apply to any donation of property, funds, or services to
             3987      an agency that is:
             3988          (i) expressly required by statute, ordinance, or agency rule;
             3989          (ii) mutually agreed to between the applicant and the entity issuing the permit,
             3990      approval, or other authorization;
             3991          (iii) made voluntarily by the applicant; or
             3992          (iv) a condition of a consent decree, settlement agreement, or other binding instrument
             3993      entered into to resolve, in whole or in part, an actual or threatened agency enforcement action.
             3994          (b) If a person donates property, funds, or services to an agency, the agency shall, as
             3995      part of the permit or other written authorization:
             3996          (i) identify that a donation has been made;
             3997          (ii) describe the donation;
             3998          (iii) certify, in writing, that the donation was voluntary; and
             3999          (iv) place that information in its files.
             4000          (3) This section does not apply to a public officer, public employee, or legislator who
             4001      engages in conduct that constitutes a violation of this section to the extent that the public
             4002      officer, public employee, or legislator is chargeable, for the same conduct, under Section



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             4003
     [ 63G-6a-2304.5 ] 63G-6a-2404 or Section 76-8-105 .
             4004          Section 80. Section 67-16-5.6 is amended to read:
             4005           67-16-5.6. Offering donation, payment, or service to government agency in
             4006      exchange for approval -- When prohibited.
             4007          (1) Except as provided in Subsection (3), it is an offense for any person to donate or
             4008      offer to donate personal property, money, or services to any agency on the condition that the
             4009      agency or any other agency approve any application or request for a permit, approval, or other
             4010      authorization.
             4011          (2) (a) Subsection (1) does not apply to any donation of property, funds, or services to
             4012      an agency that is:
             4013          (i) otherwise expressly required by statute, ordinance, or agency rule;
             4014          (ii) mutually agreed to between the applicant and the entity issuing the permit,
             4015      approval, or other authorization;
             4016          (iii) a condition of a consent decree, settlement agreement, or other binding instrument
             4017      entered into to resolve, in whole or in part, an actual or threatened agency enforcement action;
             4018      or
             4019          (iv) made without condition.
             4020          (b) The person making the donation of property, funds, or services shall include with
             4021      the donation a signed written statement certifying that the donation is made without condition.
             4022          (c) The agency receiving the donation shall place the signed written statement in its
             4023      files.
             4024          (3) This section does not apply to a person who engages in conduct that constitutes a
             4025      violation of this section to the extent that the person is chargeable, for the same conduct, under
             4026      Section [ 63G-6a-2304.5 ] 63G-6a-2404 or Section 76-8-105 .
             4027          Section 81. Section 67-16-6 is amended to read:
             4028           67-16-6. Receiving compensation for assistance in transaction involving an
             4029      agency -- Filing sworn statement.
             4030          (1) Except as provided in Subsection (5), it is an offense for a public officer or public
             4031      employee to receive or agree to receive compensation for assisting any person or business
             4032      entity in any transaction involving an agency unless the public officer or public employee files
             4033      a sworn, written statement containing the information required by Subsection (2) with:



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             4034
         (a) the head of the officer or employee's own agency;
             4035          (b) the agency head of the agency with which the transaction is being conducted; and
             4036          (c) the state attorney general.
             4037          (2) The statement shall contain:
             4038          (a) the name and address of the public officer or public employee involved;
             4039          (b) the name of the public officer's or public employee's agency;
             4040          (c) the name and address of the person or business entity being or to be assisted; and
             4041          (d) a brief description of:
             4042          (i) the transaction as to which service is rendered or is to be rendered; and
             4043          (ii) the nature of the service performed or to be performed.
             4044          (3) The statement required to be filed under Subsection (1) shall be filed within 10
             4045      days after the date of any agreement between the public officer or public employee and the
             4046      person or business entity being assisted or the receipt of compensation, whichever is earlier.
             4047          (4) The statement is public information and shall be available for examination by the
             4048      public.
             4049          (5) This section does not apply to a public officer or public employee who engages in
             4050      conduct that constitutes a violation of this section to the extent that the public officer or public
             4051      employee is chargeable, for the same conduct, under Section [ 63G-6a-2304.5 ] 63G-6a-2404 or
             4052      Section 76-8-105 .
             4053          Section 82. Repealer.
             4054          This bill repeals:
             4055          Section 63G-6a-1803, Statutes of limitations.
             4056          Section 63G-6a-1905, Authority to resolve controversy between state and
             4057      contractor.
             4058          Section 63G-6a-2301, Title.
             4059          Section 63G-6a-2302, Duty to report factual information to attorney general.
             4060          Section 63G-6a-2304.5, Gratuities -- Kickbacks -- Unlawful use of position or
             4061      influence.
             4062          Section 63G-6a-2305, Penalties for artificially dividing a purchase.
             4063          Section 63G-6a-2306, Penalties.
             4064          Section 63G-6a-2307, Contract awarded in relation to criminal conduct void.



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             4065
         Section 63G-6a-2308, Exemption.
             4066          Section 83. Effective date.
             4067          If approved by two-thirds of all the members elected to each house, this bill takes effect
             4068      upon approval by the governor, or the day following the constitutional time limit of Utah
             4069      Constitution, Article VII, Section 8, without the governor's signature, or in the case of a veto,
             4070      the date of veto override.


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