Senator Todd Weiler proposes the following substitute bill:


1     
SCHOOL DISTRICT PROCUREMENT PROCESS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Craig Hall

5     
Senate Sponsor: Todd Weiler

6     

7     LONG TITLE
8     General Description:
9          This bill modifies advertising requirements for a school construction project.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies local school board advertising requirements related to a school construction
13     project; and
14          ▸     makes technical and conforming changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          53A-20-101, as last amended by Laws of Utah 2012, Chapters 86 and 347
22     

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 53A-20-101 is amended to read:
25          53A-20-101. Construction and alteration of schools and plants -- Advertising for
26     bids -- Payment and performance bonds -- Contracts -- Bidding limitations on local
27     school boards -- Interest of local school board members.
28          (1) As used in this section, the word "sealed" does not preclude acceptance of
29     electronically sealed and submitted bids or proposals in addition to bids or proposals manually
30     sealed and submitted.
31          (2) (a) Prior to the construction of any school or the alteration of any existing school
32     plant, if the total estimated accumulative building project cost exceeds $80,000, a local school
33     board shall advertise for bids on the project at least 10 days before the bid due date.
34          [(b) The board shall have the advertisement published in a newspaper having general
35     circulation throughout the state and in appropriate construction trade publications that offer free
36     listings.]
37          [(c) A similar advertisement is required in a newspaper published or having general
38     circulation in any city or county that would be affected by the proposed project.]
39          [(d)] (b) The advertisement shall state:
40          (i) [require sealed proposals for the building project] that proposals for the building
41     project are required to be sealed in accordance with plans and specifications [furnished]
42     provided by the local school board;
43          (ii) [state] where and when the proposals will be opened [and shall reserve the right of
44     the board];
45          (iii) that the local school board reserves the right to reject any and all proposals; and
46          [(iii)] (iv) [require a] that a person that submits a proposal is required to submit a
47     certified check or bid bond, of not less than 5% of the bid in the proposal, to accompany the
48     [bid] proposal.
49          (c) The local school board shall publish the advertisement, at a minimum:
50          (i) on the local school board's website; or
51          (ii) on a state website that is:
52          (A) owned or managed by, or provided under contract with, the Division of Purchasing
53     and General Services; and
54          (B) available for the posting of public procurement notices.
55          (3) (a) The board shall meet at the time and place specified in the advertisement and
56     publicly open and read all received proposals.
57          (b) If satisfactory bids are received, the board shall award the contract to the lowest
58     responsible bidder.
59          (c) If none of the proposals are satisfactory, all shall be rejected.
60          (d) The board shall again advertise in the manner provided in this section.
61          (e) If, after advertising a second time no satisfactory bid is received, the board may
62     proceed under its own direction with the required project.
63          (4) (a) The check or bond required under Subsection (2)[(d)](b) shall be drawn in favor
64     of the local school board.
65          (b) If the successful bidder fails or refuses to enter into the contract and furnish the
66     additional bonds required under this section, then the bidder's check or bond is forfeited to the
67     district.
68          (5) A local school board shall require payment and performance bonds of the successful
69     bidder as required in Section 63G-6a-1103.
70          (6) (a) A local school board may require in the proposed contract that up to 5% of the
71     contract price be withheld until the project is completed and accepted by the board.
72          (b) If money is withheld, the board shall place it in an interest bearing account, and the
73     interest accrues for the benefit of the contractor and subcontractors.
74          (c) This money shall be paid upon completion of the project and acceptance by the
75     board.
76          (7) (a) A local school board may not bid on projects within the district if the total
77     accumulative estimated cost exceeds $80,000.
78          (b) The board may use its resources if no satisfactory bids are received under this
79     section.
80          (8) If the local school board determines in accordance with Section 63G-6a-1302 to use
81     a construction manager/general contractor as its method of construction contracting
82     management on projects where the total estimated accumulative cost exceeds $80,000, it shall
83     select the construction manager/general contractor in accordance with the requirements of Title
84     63G, Chapter 6a, Utah Procurement Code.
85          (9) A local school board member may not have a direct or indirect financial interest in
86     the construction project contract.