Senator Derrin R. Owens proposes the following substitute bill:


1     
PROJECT ENTITY OVERSIGHT MODIFICATIONS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Derrin R. Owens

5     
House Sponsor: Val L. Peterson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to the procurement and meeting practices of project
10     entities.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     requires project entities to comply with the Open and Public Meetings Act;
15          ▸     describes situations in which a project entity may close a meeting under the Open
16     and Public Meetings Act; and
17          ▸     requires project entities to:
18               •      adopt provisions related to procurement; and
19               •     comply with provisions of the Utah Procurement Code.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:

26          11-13-316, as enacted by Laws of Utah 2021, Second Special Session, Chapter 7
27          11-13-603, as last amended by Laws of Utah 2021, Second Special Session, Chapter 7
28          52-4-103, as last amended by Laws of Utah 2019, Chapters 25 and 246
29          52-4-204, as last amended by Laws of Utah 2021, Chapter 217
30          52-4-205, as last amended by Laws of Utah 2021, Chapters 179 and 231
31          63G-6a-103, as last amended by Laws of Utah 2021, Chapters 179, 344, and 345
32     ENACTS:
33          63G-6a-107.5, Utah Code Annotated 1953
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 11-13-316 is amended to read:
37          11-13-316. Project entity oversight.
38          (1) Notwithstanding any other provision of law, a project entity is a political
39     subdivision that:
40          (a) pursuant to Utah Constitution, Article VI, Section 33, is subject to the authority of
41     the legislative auditor to conduct audits of any funds, functions, and accounts in any political
42     subdivision of this state; and
43          (b) is subject to the requirement to provide the Office of the Legislative Auditor
44     General with all records, documents, and reports necessary for the legislative auditor general or
45     the office to fulfill the duties described in Subsection (1)(a).
46          (2) Subsection (1) takes precedence over Section 36-12-15.
47          (3) A project entity shall comply with Title 63G, Chapter 6a, Utah Procurement Code,
48     unless the governing board of the project entity adopts policies for procurement that enable the
49     project entity to efficiently fulfill the project entity's responsibilities under the project entity's
50     organization agreement.
51          (4) If a project entity does not adopt policies for procurement under Subsection (3),
52     then for purposes of Title 63G, Chapter 6a, Utah Procurement Code:
53          (a) the project entity is a local government procurement unit, as defined in Section
54     63G-6a-103; and
55          (b) the governing board is a procurement official, as defined in Section 63G-6a-103.
56          (5) A project entity shall comply with Title 52, Chapter 4, Open and Public Meetings

57     Act.
58          Section 2. Section 11-13-603 is amended to read:
59          11-13-603. Taxed interlocal entity.
60          (1) Except for purposes of an audit, examination, or review by the Office of the
61     Legislative Auditor General as described in Subsection (8) and notwithstanding any other
62     provision of law:
63          (a) the use of an asset by a taxed interlocal entity does not constitute the use of a public
64     asset;
65          (b) a taxed interlocal entity's use of an asset that was a public asset before the taxed
66     interlocal entity's use of the asset does not constitute a taxed interlocal entity's use of a public
67     asset;
68          (c) an official of a project entity is not a public treasurer; and
69          (d) a taxed interlocal entity's governing board shall determine and direct the use of an
70     asset by the taxed interlocal entity.
71          (2) (a) A taxed interlocal entity that is not a project entity is not subject to the
72     provisions of Title 63G, Chapter 6a, Utah Procurement Code.
73          (b) A project entity is subject to the provisions of Title 63G, Chapter 6a, Utah
74     Procurement Code to the extent described in Section 11-13-316.
75          (3) (a) A taxed interlocal entity is not a participating local entity as defined in Section
76     67-3-12.
77          (b) For each fiscal year of a taxed interlocal entity, the taxed interlocal entity shall
78     provide:
79          (i) the taxed interlocal entity's financial statements for and as of the end of the fiscal
80     year and the prior fiscal year, including:
81          (A) the taxed interlocal entity's statement of net position as of the end of the fiscal year
82     and the prior fiscal year, and the related statements of revenues and expenses and of cash flows
83     for the fiscal year; or
84          (B) financial statements that are equivalent to the financial statements described in
85     Subsection (3)(b)(i)(A) and, at the time the financial statements were created, were in
86     compliance with generally accepted accounting principles that are applicable to taxed interlocal
87     entities; and

88          (ii) the accompanying auditor's report and management's discussion and analysis with
89     respect to the taxed interlocal entity's financial statements for and as of the end of the fiscal
90     year.
91          (c) The taxed interlocal entity shall provide the information described in Subsection
92     (3)(b) within a reasonable time after the taxed interlocal entity's independent auditor delivers to
93     the taxed interlocal entity's governing board the auditor's report with respect to the financial
94     statements for and as of the end of the fiscal year.
95          (d) Notwithstanding Subsections (3)(b) and (c) or a taxed interlocal entity's compliance
96     with one or more of the requirements of Title 63A, Chapter 3, Division of Finance:
97          (i) the taxed interlocal entity is not subject to Title 63A, Chapter 3, Division of
98     Finance; and
99          (ii) the information described in Subsection (3)(b)(i) or (ii) does not constitute public
100     financial information as defined in Section 67-3-12.
101          (4) (a) A taxed interlocal entity's governing board is not a governing board as defined
102     in Section 51-2a-102.
103          (b) A taxed interlocal entity is not subject to the provisions of Title 51, Chapter 2a,
104     Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local
105     Entities Act.
106          (5) Notwithstanding any other provision of law, a taxed interlocal entity is not subject
107     to the following provisions:
108          (a) Part 4, Governance;
109          (b) Part 5, Fiscal Procedures for Interlocal Entities;
110          (c) Subsection 11-13-204(1)(a)(i) or (ii)(J);
111          (d) Subsection 11-13-206(1)(f);
112          (e) Subsection 11-13-218(5)(a);
113          (f) Section 11-13-225;
114          (g) Section 11-13-226; or
115          (h) Section 53-2a-605.
116          (6) (a) In addition to having the powers described in Subsection 11-13-204(1)(a)(ii), a
117     taxed interlocal entity may, for the regulation of the entity's affairs and conduct of its business,
118     adopt, amend, or repeal bylaws, policies, or procedures.

119          (b) Nothing in Part 4, Governance, or Part 5, Fiscal Procedures for Interlocal Entities,
120     may be construed to limit the power or authority of a taxed interlocal entity.
121          (7) (a) A governmental law enacted after May 12, 2015, and on or before November
122     10, 2021, is not applicable to, is not binding upon, and does not have effect on a taxed
123     interlocal entity that is a project entity unless the governmental law expressly states the section
124     of governmental law to be applicable to and binding upon the taxed interlocal entity with the
125     following words: "[Applicable section or subsection number] constitutes an exception to
126     Subsection 11-13-603(7)(a) and is applicable to and binding upon a taxed interlocal entity."
127          (b) A governmental law enacted after May 12, 2015, is not applicable to, is not binding
128     upon, and does not have effect on a taxed interlocal entity that is an energy services interlocal
129     entity unless the governmental law expressly states the section of governmental law to be
130     applicable to and binding upon the energy services interlocal entity with the following words:
131     "[Applicable section or subsection number] constitutes an exception to Subsection
132     11-13-603(7)(a) and is applicable to and binding upon an energy services interlocal entity."
133          (c) Sections 11-13-601 through 11-13-608 constitute an exception to Subsections (7)(a)
134     and (7)(b) and are applicable to and binding upon a taxed interlocal entity.
135          (8) (a) Notwithstanding any other provision of law, a taxed interlocal entity that is a
136     project entity is a political subdivision that:
137          (i) pursuant to Utah Constitution, Article VI, Section 33, is subject to the authority of
138     the legislative auditor to conduct audits of any funds, functions, and accounts in any political
139     subdivision of this state; and
140          (ii) is subject to the requirement to provide the Office of the Legislative Auditor
141     General with all records, documents, and reports necessary of the legislative auditor general or
142     the office to fulfill the duties described in Subsection (8)(a)(i).
143          (b) Subsection (8)(a) takes precedence over Section 36-12-15.
144          Section 3. Section 52-4-103 is amended to read:
145          52-4-103. Definitions.
146          As used in this chapter:
147          (1) "Anchor location" means the physical location from which:
148          (a) an electronic meeting originates; or
149          (b) the participants are connected.

150          (2) "Capitol hill complex" means the grounds and buildings within the area bounded by
151     300 North Street, Columbus Street, 500 North Street, and East Capitol Boulevard in Salt Lake
152     City.
153          (3) (a) "Convening" means the calling together of a public body by a person authorized
154     to do so for the express purpose of discussing or acting upon a subject over which that public
155     body has jurisdiction or advisory power.
156          (b) "Convening" does not include the initiation of a routine conversation between
157     members of a board of trustees of a large public transit district if the members involved in the
158     conversation do not, during the conversation, take a tentative or final vote on the matter that is
159     the subject of the conversation.
160          (4) "Electronic meeting" means a public meeting convened or conducted by means of a
161     conference using electronic communications.
162          (5) "Electronic message" means a communication transmitted electronically, including:
163          (a) electronic mail;
164          (b) instant messaging;
165          (c) electronic chat;
166          (d) text messaging, as that term is defined in Section 76-4-401; or
167          (e) any other method that conveys a message or facilitates communication
168     electronically.
169          (6) (a) "Meeting" means the convening of a public body or a specified body, with a
170     quorum present, including a workshop or an executive session, whether in person or by means
171     of electronic communications, for the purpose of discussing, receiving comments from the
172     public about, or acting upon a matter over which the public body or specific body has
173     jurisdiction or advisory power.
174          (b) "Meeting" does not mean:
175          (i) a chance gathering or social gathering;
176          (ii) a convening of the State Tax Commission to consider a confidential tax matter in
177     accordance with Section 59-1-405; or
178          (iii) a convening of a three-member board of trustees of a large public transit district as
179     defined in Section 17B-2a-802 if:
180          (A) the board members do not, during the conversation, take a tentative or final vote on

181     the matter that is the subject of the conversation; or
182          (B) the conversation pertains only to day-to-day management and operation of the
183     public transit district.
184          (c) "Meeting" does not mean the convening of a public body that has both legislative
185     and executive responsibilities if:
186          (i) no public funds are appropriated for expenditure during the time the public body is
187     convened; and
188          (ii) the public body is convened solely for the discussion or implementation of
189     administrative or operational matters:
190          (A) for which no formal action by the public body is required; or
191          (B) that would not come before the public body for discussion or action.
192          (7) "Monitor" means to hear or observe, live, by audio or video equipment, all of the
193     public statements of each member of the public body who is participating in a meeting.
194          (8) "Participate" means the ability to communicate with all of the members of a public
195     body, either verbally or electronically, so that each member of the public body can hear or
196     observe the communication.
197          (9) (a) "Public body" means:
198          (i) any administrative, advisory, executive, or legislative body of the state or its
199     political subdivisions that:
200          (A) is created by the Utah Constitution, statute, rule, ordinance, or resolution;
201          (B) consists of two or more persons;
202          (C) expends, disburses, or is supported in whole or in part by tax revenue; and
203          (D) is vested with the authority to make decisions regarding the public's business; or
204          (ii) any administrative, advisory, executive, or policymaking body of an association, as
205     that term is defined in Section 53G-7-1101, that:
206          (A) consists of two or more persons;
207          (B) expends, disburses, or is supported in whole or in part by dues paid by a public
208     school or whose employees participate in a benefit or program described in Title 49, Utah State
209     Retirement and Insurance Benefit Act; and
210          (C) is vested with authority to make decisions regarding the participation of a public
211     school or student in an interscholastic activity, as that term is defined in Section 53G-7-1101.

212          (b) "Public body" includes:
213          (i) an interlocal entity or joint or cooperative undertaking, as those terms are defined in
214     Section 11-13-103;
215          (ii) a governmental nonprofit corporation as that term is defined in Section 11-13a-102;
216     [and]
217          (iii) the Utah Independent Redistricting Commission[.]; and
218          (iv) a project entity, as that term is defined in Section 11-13-103.
219          (c) "Public body" does not include:
220          (i) a political party, a political group, or a political caucus;
221          (ii) a conference committee, a rules committee, or a sifting committee of the
222     Legislature;
223          (iii) a school community council or charter trust land council, as that term is defined in
224     Section 53G-7-1203;
225          (iv) a taxed interlocal entity, as that term is defined in Section 11-13-602, if the taxed
226     interlocal entity is not a project entity; or
227          (v) the following Legislative Management subcommittees, which are established in
228     Section 36-12-8, when meeting for the purpose of selecting or evaluating a candidate to
229     recommend for employment, except that the meeting in which a subcommittee votes to
230     recommend that a candidate be employed shall be subject to the provisions of this act:
231          (A) the Research and General Counsel Subcommittee;
232          (B) the Budget Subcommittee; and
233          (C) the Audit Subcommittee.
234          (10) "Public statement" means a statement made in the ordinary course of business of
235     the public body with the intent that all other members of the public body receive it.
236          (11) (a) "Quorum" means a simple majority of the membership of a public body, unless
237     otherwise defined by applicable law.
238          (b) "Quorum" does not include a meeting of two elected officials by themselves when
239     no action, either formal or informal, is taken.
240          (12) "Recording" means an audio, or an audio and video, record of the proceedings of a
241     meeting that can be used to review the proceedings of the meeting.
242          (13) "Specified body":

243          (a) means an administrative, advisory, executive, or legislative body that:
244          (i) is not a public body;
245          (ii) consists of three or more members; and
246          (iii) includes at least one member who is:
247          (A) a legislator; and
248          (B) officially appointed to the body by the president of the Senate, speaker of the
249     House of Representatives, or governor; and
250          (b) does not include a body listed in Subsection (9)(c)(ii) or (9)(c)(v).
251          (14) "Transmit" means to send, convey, or communicate an electronic message by
252     electronic means.
253          Section 4. Section 52-4-204 is amended to read:
254          52-4-204. Closed meeting held upon vote of members -- Business -- Reasons for
255     meeting recorded.
256          (1) A closed meeting may be held if:
257          (a) (i) a quorum is present;
258          (ii) the meeting is an open meeting for which notice has been given under Section
259     52-4-202; and
260          (iii) (A) two-thirds of the members of the public body present at the open meeting vote
261     to approve closing the meeting;
262          (B) for a meeting that is required to be closed under Section 52-4-205, if a majority of
263     the members of the public body present at an open meeting vote to approve closing the
264     meeting;
265          (C) for an ethics committee of the Legislature that is conducting an open meeting for
266     the purpose of reviewing an ethics complaint, a majority of the members present vote to
267     approve closing the meeting for the purpose of seeking or obtaining legal advice on legal,
268     evidentiary, or procedural matters, or for conducting deliberations to reach a decision on the
269     complaint; [or]
270          (D) for the Political Subdivisions Ethics Review Commission established in Section
271     63A-15-201 that is conducting an open meeting for the purpose of reviewing an ethics
272     complaint in accordance with Section 63A-15-701, a majority of the members present vote to
273     approve closing the meeting for the purpose of seeking or obtaining legal advice on legal,

274     evidentiary, or procedural matters, or for conducting deliberations to reach a decision on the
275     complaint; [or]
276          (E) for a project entity that is conducting an open meeting for the purposes of
277     determining the value of an asset, developing a strategy related to the sale or use of that asset;
278          (F) for a project entity that is conducting an open meeting for purposes of discussing a
279     business decision, the disclosure of which could cause commercial injury to, or confer a
280     competitive advantage upon a potential or actual competitor of, the project entity; or
281          (G) for a project entity that is conducting an open meeting for purposes of discussing a
282     record, the disclosure of which could cause commercial injury to, or confer a competitive
283     advantage upon a potential competitor of, the project entity; or
284          (b) (i) for the Independent Legislative Ethics Commission, the closed meeting is
285     convened for the purpose of conducting business relating to the receipt or review of an ethics
286     complaint, provided that public notice of the closed meeting is given under Section 52-4-202,
287     with the agenda for the meeting stating that the meeting will be closed for the purpose of
288     "conducting business relating to the receipt or review of ethics complaints";
289          (ii) for the Political Subdivisions Ethics Review Commission established in Section
290     63A-15-201, the closed meeting is convened for the purpose of conducting business relating to
291     the preliminary review of an ethics complaint in accordance with Section 63A-15-602,
292     provided that public notice of the closed meeting is given under Section 52-4-202, with the
293     agenda for the meeting stating that the meeting will be closed for the purpose of "conducting
294     business relating to the review of ethics complaints"; or
295          (iii) for the Independent Executive Branch Ethics Commission created in Section
296     63A-14-202, the closed meeting is convened for the purpose of conducting business relating to
297     an ethics complaint, provided that public notice of the closed meeting is given under Section
298     52-4-202, with the agenda for the meeting stating that the meeting will be closed for the
299     purpose of "conducting business relating to an ethics complaint."
300          (2) A closed meeting is not allowed unless each matter discussed in the closed meeting
301     is permitted under Section 52-4-205.
302          (3) (a) An ordinance, resolution, rule, regulation, contract, or appointment may not be
303     approved at a closed meeting.
304          (b) (i) A public body may not take a vote in a closed meeting, except for a vote on a

305     motion to end the closed portion of the meeting and return to an open meeting.
306          (ii) A motion to end the closed portion of a meeting may be approved by a majority of
307     the public body members present at the meeting.
308          (4) The following information shall be publicly announced and entered on the minutes
309     of the open meeting at which the closed meeting was approved:
310          (a) the reason or reasons for holding the closed meeting;
311          (b) the location where the closed meeting will be held; and
312          (c) the vote by name, of each member of the public body, either for or against the
313     motion to hold the closed meeting.
314          (5) Except as provided in Subsection 52-4-205(2), nothing in this chapter shall be
315     construed to require any meeting to be closed to the public.
316          Section 5. Section 52-4-205 is amended to read:
317          52-4-205. Purposes of closed meetings -- Certain issues prohibited in closed
318     meetings.
319          (1) A closed meeting described under Section 52-4-204 may only be held for:
320          (a) except as provided in Subsection (3), discussion of the character, professional
321     competence, or physical or mental health of an individual;
322          (b) strategy sessions to discuss collective bargaining;
323          (c) strategy sessions to discuss pending or reasonably imminent litigation;
324          (d) strategy sessions to discuss the purchase, exchange, or lease of real property,
325     including any form of a water right or water shares, if public discussion of the transaction
326     would:
327          (i) disclose the appraisal or estimated value of the property under consideration; or
328          (ii) prevent the public body from completing the transaction on the best possible terms;
329          (e) strategy sessions to discuss the sale of real property, including any form of a water
330     right or water shares, if:
331          (i) public discussion of the transaction would:
332          (A) disclose the appraisal or estimated value of the property under consideration; or
333          (B) prevent the public body from completing the transaction on the best possible terms;
334          (ii) the public body previously gave public notice that the property would be offered for
335     sale; and

336          (iii) the terms of the sale are publicly disclosed before the public body approves the
337     sale;
338          (f) discussion regarding deployment of security personnel, devices, or systems;
339          (g) investigative proceedings regarding allegations of criminal misconduct;
340          (h) as relates to the Independent Legislative Ethics Commission, conducting business
341     relating to the receipt or review of ethics complaints;
342          (i) as relates to an ethics committee of the Legislature, a purpose permitted under
343     Subsection 52-4-204(1)(a)(iii)(C);
344          (j) as relates to the Independent Executive Branch Ethics Commission created in
345     Section 63A-14-202, conducting business relating to an ethics complaint;
346          (k) as relates to a county legislative body, discussing commercial information as
347     defined in Section 59-1-404;
348          (l) as relates to the Utah Higher Education Assistance Authority and its appointed
349     board of directors, discussing fiduciary or commercial information as defined in Section
350     53B-12-102;
351          (m) deliberations, not including any information gathering activities, of a public body
352     acting in the capacity of:
353          (i) an evaluation committee under Title 63G, Chapter 6a, Utah Procurement Code,
354     during the process of evaluating responses to a solicitation, as defined in Section 63G-6a-103;
355          (ii) a protest officer, defined in Section 63G-6a-103, during the process of making a
356     decision on a protest under Title 63G, Chapter 6a, Part 16, Protests; or
357          (iii) a procurement appeals panel under Title 63G, Chapter 6a, Utah Procurement
358     Code, during the process of deciding an appeal under Title 63G, Chapter 6a, Part 17,
359     Procurement Appeals Board;
360          (n) the purpose of considering information that is designated as a trade secret, as
361     defined in Section 13-24-2, if the public body's consideration of the information is necessary in
362     order to properly conduct a procurement under Title 63G, Chapter 6a, Utah Procurement Code;
363          (o) the purpose of discussing information provided to the public body during the
364     procurement process under Title 63G, Chapter 6a, Utah Procurement Code, if, at the time of
365     the meeting:
366          (i) the information may not, under Title 63G, Chapter 6a, Utah Procurement Code, be

367     disclosed to a member of the public or to a participant in the procurement process; and
368          (ii) the public body needs to review or discuss the information in order to properly
369     fulfill its role and responsibilities in the procurement process;
370          (p) as relates to the governing board of a governmental nonprofit corporation, as that
371     term is defined in Section 11-13a-102, the purpose of discussing information that is designated
372     as a trade secret, as that term is defined in Section 13-24-2, if:
373          (i) public knowledge of the discussion would reasonably be expected to result in injury
374     to the owner of the trade secret; and
375          (ii) discussion of the information is necessary for the governing board to properly
376     discharge the board's duties and conduct the board's business; or
377          (q) a purpose for which a meeting is required to be closed under Subsection (2).
378          (2) The following meetings shall be closed:
379          (a) a meeting of the Health and Human Services Interim Committee to review a report
380     described in Subsection 62A-16-301(1)(a), and the responses to the report described in
381     Subsections 62A-16-301(2) and (4);
382          (b) a meeting of the Child Welfare Legislative Oversight Panel to:
383          (i) review a report described in Subsection 62A-16-301(1)(a), and the responses to the
384     report described in Subsections 62A-16-301(2) and (4); or
385          (ii) review and discuss an individual case, as described in Subsection 62A-4a-207(5);
386          (c) a meeting of the Opioid and Overdose Fatality Review Committee, created in
387     Section 26-7-13, to review and discuss an individual case, as described in Subsection
388     26-7-13(10);
389          (d) a meeting of a conservation district as defined in Section 17D-3-102 for the
390     purpose of advising the Natural Resource Conservation Service of the United States
391     Department of Agriculture on a farm improvement project if the discussed information is
392     protected information under federal law;
393          (e) a meeting of the Compassionate Use Board established in Section 26-61a-105 for
394     the purpose of reviewing petitions for a medical cannabis card in accordance with Section
395     26-61a-105; [and]
396          (f) a meeting of the Colorado River Authority of Utah if:
397          (i) the purpose of the meeting is to discuss an interstate claim to the use of the water in

398     the Colorado River system; and
399          (ii) failing to close the meeting would:
400          (A) reveal the contents of a record classified as protected under Subsection
401     63G-2-305(82);
402          (B) reveal a legal strategy relating to the state's claim to the use of the water in the
403     Colorado River system;
404          (C) harm the ability of the Colorado River Authority of Utah or river commissioner to
405     negotiate the best terms and conditions regarding the use of water in the Colorado River
406     system; or
407          (D) give an advantage to another state or to the federal government in negotiations
408     regarding the use of water in the Colorado River system[.]; and
409          (g) a meeting of a project entity if:
410          (i) the purpose of the meeting is to conduct a strategy session to discuss market
411     conditions relevant to a business decision regarding the value of a project entity asset if the
412     terms of the business decision are publicly disclosed before the decision is finalized and a
413     public discussion would:
414          (A) disclose the appraisal or estimated value of the project entity asset under
415     consideration; or
416          (B) prevent the project entity from completing on the best possible terms a
417     contemplated transaction concerning the project entity asset;
418          (ii) the purpose of the meeting is to discuss a record, the disclosure of which could
419     cause commercial injury to, or confer a competitive advantage upon a potential or actual
420     competitor of, the project entity;
421          (iii) the purpose of the meeting is to discuss a business decision, the disclosure of
422     which could cause commercial injury to, or confer a competitive advantage upon a potential or
423     actual competitor of, the project entity; or
424          (iv) failing to close the meeting would prevent the project entity from getting the best
425     price on the market.
426          (3) In a closed meeting, a public body may not:
427          (a) interview a person applying to fill an elected position;
428          (b) discuss filling a midterm vacancy or temporary absence governed by Title 20A,

429     Chapter 1, Part 5, Candidate Vacancy and Vacancy and Temporary Absence in Elected Office;
430     or
431          (c) discuss the character, professional competence, or physical or mental health of the
432     person whose name was submitted for consideration to fill a midterm vacancy or temporary
433     absence governed by Title 20A, Chapter 1, Part 5, Candidate Vacancy and Vacancy and
434     Temporary Absence in Elected Office.
435          Section 6. Section 63G-6a-103 is amended to read:
436          63G-6a-103. Definitions.
437          As used in this chapter:
438          (1) "Approved vendor" means a person who has been approved for inclusion on an
439     approved vendor list through the approved vendor list process.
440          (2) "Approved vendor list" means a list of approved vendors established under Section
441     63G-6a-507.
442          (3) "Approved vendor list process" means the procurement process described in
443     Section 63G-6a-507.
444          (4) "Bidder" means a person who submits a bid or price quote in response to an
445     invitation for bids.
446          (5) "Bidding process" means the procurement process described in Part 6, Bidding.
447          (6) "Board" means the Utah State Procurement Policy Board, created in Section
448     63G-6a-202.
449          (7) "Building board" means the State Building Board, created in Section 63A-5b-201.
450          (8) "Change directive" means a written order signed by the procurement officer that
451     directs the contractor to suspend work or make changes, as authorized by contract, without the
452     consent of the contractor.
453          (9) "Change order" means a written alteration in specifications, delivery point, rate of
454     delivery, period of performance, price, quantity, or other provisions of a contract, upon mutual
455     agreement of the parties to the contract.
456          (10) "Chief procurement officer" means the individual appointed under Section
457     63A-2-102.
458          (11) "Conducting procurement unit" means a procurement unit that conducts all
459     aspects of a procurement:

460          (a) except:
461          (i) reviewing a solicitation to verify that it is in proper form; and
462          (ii) causing the publication of a notice of a solicitation; and
463          (b) including:
464          (i) preparing any solicitation document;
465          (ii) appointing an evaluation committee;
466          (iii) conducting the evaluation process, except the process relating to scores calculated
467     for costs of proposals;
468          (iv) selecting and recommending the person to be awarded a contract;
469          (v) negotiating the terms and conditions of a contract, subject to the issuing
470     procurement unit's approval; and
471          (vi) contract administration.
472          (12) "Conservation district" means the same as that term is defined in Section
473     17D-3-102.
474          (13) "Construction project":
475          (a) means a project for the construction, renovation, alteration, improvement, or repair
476     of a public facility on real property, including all services, labor, supplies, and materials for the
477     project; and
478          (b) does not include services and supplies for the routine, day-to-day operation, repair,
479     or maintenance of an existing public facility.
480          (14) "Construction manager/general contractor":
481          (a) means a contractor who enters into a contract:
482          (i) for the management of a construction project; and
483          (ii) that allows the contractor to subcontract for additional labor and materials that are
484     not included in the contractor's cost proposal submitted at the time of the procurement of the
485     contractor's services; and
486          (b) does not include a contractor whose only subcontract work not included in the
487     contractor's cost proposal submitted as part of the procurement of the contractor's services is to
488     meet subcontracted portions of change orders approved within the scope of the project.
489          (15) "Construction subcontractor":
490          (a) means a person under contract with a contractor or another subcontractor to provide

491     services or labor for the design or construction of a construction project;
492          (b) includes a general contractor or specialty contractor licensed or exempt from
493     licensing under Title 58, Chapter 55, Utah Construction Trades Licensing Act; and
494          (c) does not include a supplier who provides only materials, equipment, or supplies to a
495     contractor or subcontractor for a construction project.
496          (16) "Contract" means an agreement for a procurement.
497          (17) "Contract administration" means all functions, duties, and responsibilities
498     associated with managing, overseeing, and carrying out a contract between a procurement unit
499     and a contractor, including:
500          (a) implementing the contract;
501          (b) ensuring compliance with the contract terms and conditions by the conducting
502     procurement unit and the contractor;
503          (c) executing change orders;
504          (d) processing contract amendments;
505          (e) resolving, to the extent practicable, contract disputes;
506          (f) curing contract errors and deficiencies;
507          (g) terminating a contract;
508          (h) measuring or evaluating completed work and contractor performance;
509          (i) computing payments under the contract; and
510          (j) closing out a contract.
511          (18) "Contractor" means a person who is awarded a contract with a procurement unit.
512          (19) "Cooperative procurement" means procurement conducted by, or on behalf of:
513          (a) more than one procurement unit; or
514          (b) a procurement unit and a cooperative purchasing organization.
515          (20) "Cooperative purchasing organization" means an organization, association, or
516     alliance of purchasers established to combine purchasing power in order to obtain the best
517     value for the purchasers by engaging in procurements in accordance with Section 63G-6a-2105.
518          (21) "Cost-plus-a-percentage-of-cost contract" means a contract under which the
519     contractor is paid a percentage of the total actual expenses or costs in addition to the
520     contractor's actual expenses or costs.
521          (22) "Cost-reimbursement contract" means a contract under which a contractor is

522     reimbursed for costs which are allowed and allocated in accordance with the contract terms and
523     the provisions of this chapter, and a fee, if any.
524          (23) "Days" means calendar days, unless expressly provided otherwise.
525          (24) "Definite quantity contract" means a fixed price contract that provides for a
526     specified amount of supplies over a specified period, with deliveries scheduled according to a
527     specified schedule.
528          (25) "Design professional" means:
529          (a) an individual licensed as an architect under Title 58, Chapter 3a, Architects
530     Licensing Act;
531          (b) an individual licensed as a professional engineer or professional land surveyor
532     under Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors Licensing
533     Act; or
534          (c) an individual certified as a commercial interior designer under Title 58, Chapter 86,
535     State Certification of Commercial Interior Designers Act.
536          (26) "Design professional procurement process" means the procurement process
537     described in Part 15, Design Professional Services.
538          (27) "Design professional services" means:
539          (a) professional services within the scope of the practice of architecture as defined in
540     Section 58-3a-102;
541          (b) professional engineering as defined in Section 58-22-102;
542          (c) master planning and programming services; or
543          (d) services within the scope of the practice of commercial interior design, as defined
544     in Section 58-86-102.
545          (28) "Design-build" means the procurement of design professional services and
546     construction by the use of a single contract.
547          (29) "Division" means the Division of Purchasing and General Services, created in
548     Section 63A-2-101.
549          (30) "Educational procurement unit" means:
550          (a) a school district;
551          (b) a public school, including a local school board or a charter school;
552          (c) the Utah Schools for the Deaf and the Blind;

553          (d) the Utah Education and Telehealth Network;
554          (e) an institution of higher education of the state described in Section 53B-1-102; or
555          (f) the State Board of Education.
556          (31) "Established catalogue price" means the price included in a catalogue, price list,
557     schedule, or other form that:
558          (a) is regularly maintained by a manufacturer or contractor;
559          (b) is published or otherwise available for inspection by customers; and
560          (c) states prices at which sales are currently or were last made to a significant number
561     of any category of buyers or buyers constituting the general buying public for the supplies or
562     services involved.
563          (32) (a) "Executive branch procurement unit" means a department, division, office,
564     bureau, agency, or other organization within the state executive branch.
565          (b) "Executive branch procurement unit" does not include the Colorado River
566     Authority of Utah as provided in Section 63M-14-210.
567          (33) "Facilities division" means the Division of Facilities Construction and
568     Management, created in Section 63A-5b-301.
569          (34) "Fixed price contract" means a contract that provides a price, for each
570     procurement item obtained under the contract, that is not subject to adjustment except to the
571     extent that:
572          (a) the contract provides, under circumstances specified in the contract, for an
573     adjustment in price that is not based on cost to the contractor; or
574          (b) an adjustment is required by law.
575          (35) "Fixed price contract with price adjustment" means a fixed price contract that
576     provides for an upward or downward revision of price, precisely described in the contract, that:
577          (a) is based on the consumer price index or another commercially acceptable index,
578     source, or formula; and
579          (b) is not based on a percentage of the cost to the contractor.
580          (36) "Grant" means an expenditure of public funds or other assistance, or an agreement
581     to expend public funds or other assistance, for a public purpose authorized by law, without
582     acquiring a procurement item in exchange.
583          (37) "Immaterial error":

584          (a) means an irregularity or abnormality that is:
585          (i) a matter of form that does not affect substance; or
586          (ii) an inconsequential variation from a requirement of a solicitation that has no, little,
587     or a trivial effect on the procurement process and that is not prejudicial to other vendors; and
588          (b) includes:
589          (i) a missing signature, missing acknowledgment of an addendum, or missing copy of a
590     professional license, bond, or insurance certificate;
591          (ii) a typographical error;
592          (iii) an error resulting from an inaccuracy or omission in the solicitation; and
593          (iv) any other error that the procurement official reasonably considers to be immaterial.
594          (38) "Indefinite quantity contract" means a fixed price contract that:
595          (a) is for an indefinite amount of procurement items to be supplied as ordered by a
596     procurement unit; and
597          (b) (i) does not require a minimum purchase amount; or
598          (ii) provides a maximum purchase limit.
599          (39) "Independent procurement unit" means:
600          (a) (i) a legislative procurement unit;
601          (ii) a judicial branch procurement unit;
602          (iii) an educational procurement unit;
603          (iv) a local government procurement unit;
604          (v) a conservation district;
605          (vi) a local building authority;
606          (vii) a local district;
607          (viii) a public corporation;
608          (ix) a special service district; or
609          (x) the Utah Communications Authority, established in Section 63H-7a-201;
610          (b) the building board or the facilities division, but only to the extent of the
611     procurement authority provided under Title 63A, Chapter 5b, Administration of State
612     Facilities;
613          (c) the attorney general, but only to the extent of the procurement authority provided
614     under Title 67, Chapter 5, Attorney General;

615          (d) the Department of Transportation, but only to the extent of the procurement
616     authority provided under Title 72, Transportation Code; or
617          (e) any other executive branch department, division, office, or entity that has statutory
618     procurement authority outside this chapter, but only to the extent of that statutory procurement
619     authority.
620          (40) "Invitation for bids":
621          (a) means a document used to solicit:
622          (i) bids to provide a procurement item to a procurement unit; or
623          (ii) quotes for a price of a procurement item to be provided to a procurement unit; and
624          (b) includes all documents attached to or incorporated by reference in a document
625     described in Subsection (40)(a).
626          (41) "Issuing procurement unit" means a procurement unit that:
627          (a) reviews a solicitation to verify that it is in proper form;
628          (b) causes the notice of a solicitation to be published; and
629          (c) negotiates and approves the terms and conditions of a contract.
630          (42) "Judicial procurement unit" means:
631          (a) the Utah Supreme Court;
632          (b) the Utah Court of Appeals;
633          (c) the Judicial Council;
634          (d) a state judicial district; or
635          (e) an office, committee, subcommittee, or other organization within the state judicial
636     branch.
637          (43) "Labor hour contract" is a contract under which:
638          (a) the supplies and materials are not provided by, or through, the contractor; and
639          (b) the contractor is paid a fixed rate that includes the cost of labor, overhead, and
640     profit for a specified number of labor hours or days.
641          (44) "Legislative procurement unit" means:
642          (a) the Legislature;
643          (b) the Senate;
644          (c) the House of Representatives;
645          (d) a staff office of the Legislature, the Senate, or the House of Representatives; or

646          (e) a committee, subcommittee, commission, or other organization:
647          (i) within the state legislative branch; or
648          (ii) (A) that is created by statute to advise or make recommendations to the Legislature;
649          (B) the membership of which includes legislators; and
650          (C) for which the Office of Legislative Research and General Counsel provides staff
651     support.
652          (45) "Local building authority" means the same as that term is defined in Section
653     17D-2-102.
654          (46) "Local district" means the same as that term is defined in Section 17B-1-102.
655          (47) "Local government procurement unit" means:
656          [(a) a county or municipality, and each office or agency of the county or municipality,
657     unless the county or municipality adopts its own procurement code by ordinance;]
658          [(b) a county or municipality that has adopted this entire chapter by ordinance, and
659     each office or agency of that county or municipality; or]
660          [(c) a county or municipality that has adopted a portion of this chapter by ordinance, to
661     the extent that a term in the ordinance is used in the adopted portion of this chapter, and each
662     office or agency of that county or municipality.]
663          (a) a county, municipality, or project entity, and each office of the county, municipality,
664     or project entity, unless:
665          (i) the county or municipality adopts a procurement code by ordinance; or
666          (ii) the project entity adopts a procurement code through the process described in
667     Section 11-13-316;
668          (b) (i) a county or municipality that has adopted this entire chapter by ordinance, and
669     each office or agency of that county or municipality; and
670          (ii) a project entity that has adopted this entire chapter through the process described in
671     Subsection 11-13-16; or
672          (c) a county, municipality, or project entity, and each office of the county, municipality,
673     or project entity that has adopted a portion of this chapter to the extent that:
674          (i) a term in the ordinance is used in the adopted chapter; or
675          (ii) a term in the ordinance is used in the language a project entity adopts in its
676     procurement code through the process described in Section 11-13-316.

677          (48) "Multiple award contracts" means the award of a contract for an indefinite
678     quantity of a procurement item to more than one person.
679          (49) "Multiyear contract" means a contract that extends beyond a one-year period,
680     including a contract that permits renewal of the contract, without competition, beyond the first
681     year of the contract.
682          (50) "Municipality" means a city, town, or metro township.
683          (51) "Nonadopting local government procurement unit" means:
684          (a) a county or municipality that has not adopted Part 16, Protests, Part 17,
685     Procurement Appeals Board, Part 18, Appeals to Court and Court Proceedings, and Part 19,
686     General Provisions Related to Protest or Appeal; and
687          (b) each office or agency of a county or municipality described in Subsection (51)(a).
688          (52) "Offeror" means a person who submits a proposal in response to a request for
689     proposals.
690          (53) "Preferred bidder" means a bidder that is entitled to receive a reciprocal preference
691     under the requirements of this chapter.
692          (54) "Procure" means to acquire a procurement item through a procurement.
693          (55) "Procurement" means the acquisition of a procurement item through an
694     expenditure of public funds, or an agreement to expend public funds, including an acquisition
695     through a public-private partnership.
696          (56) "Procurement item" means an item of personal property, a technology, a service,
697     or a construction project.
698          (57) "Procurement official" means:
699          (a) for a procurement unit other than an independent procurement unit, the chief
700     procurement officer;
701          (b) for a legislative procurement unit, the individual, individuals, or body designated in
702     a policy adopted by the Legislative Management Committee;
703          (c) for a judicial procurement unit, the Judicial Council or an individual or body
704     designated by the Judicial Council by rule;
705          (d) for a local government procurement unit:
706          (i) the legislative body of the local government procurement unit; or
707          (ii) an individual or body designated by the local government procurement unit;

708          (e) for a local district, the board of trustees of the local district or the board of trustees'
709     designee;
710          (f) for a special service district, the governing body of the special service district or the
711     governing body's designee;
712          (g) for a local building authority, the board of directors of the local building authority
713     or the board of directors' designee;
714          (h) for a conservation district, the board of supervisors of the conservation district or
715     the board of supervisors' designee;
716          (i) for a public corporation, the board of directors of the public corporation or the board
717     of directors' designee;
718          (j) for a school district or any school or entity within a school district, the board of the
719     school district or the board's designee;
720          (k) for a charter school, the individual or body with executive authority over the charter
721     school or the designee of the individual or body;
722          (l) for an institution of higher education described in Section 53B-2-101, the president
723     of the institution of higher education or the president's designee;
724          (m) for the State Board of Education, the State Board of Education or the State Board
725     of Education's designee;
726          (n) for the Utah Board of Higher Education, the Commissioner of Higher Education or
727     the designee of the Commissioner of Higher Education;
728          (o) for the Utah Communications Authority, established in Section 63H-7a-201, the
729     executive director of the Utah Communications Authority or the executive director's designee;
730     or
731          (p) (i) for the building board, and only to the extent of procurement activities of the
732     building board as an independent procurement unit under the procurement authority provided
733     under Title 63A, Chapter 5b, Administration of State Facilities, the director of the building
734     board or the director's designee;
735          (ii) for the facilities division, and only to the extent of procurement activities of the
736     facilities division as an independent procurement unit under the procurement authority
737     provided under Title 63A, Chapter 5b, Administration of State Facilities, the director of the
738     facilities division or the director's designee;

739          (iii) for the attorney general, and only to the extent of procurement activities of the
740     attorney general as an independent procurement unit under the procurement authority provided
741     under Title 67, Chapter 5, Attorney General, the attorney general or the attorney general's
742     designee;
743          (iv) for the Department of Transportation created in Section 72-1-201, and only to the
744     extent of procurement activities of the Department of Transportation as an independent
745     procurement unit under the procurement authority provided under Title 72, Transportation
746     Code, the executive director of the Department of Transportation or the executive director's
747     designee; or
748          (v) for any other executive branch department, division, office, or entity that has
749     statutory procurement authority outside this chapter, and only to the extent of the procurement
750     activities of the department, division, office, or entity as an independent procurement unit
751     under the procurement authority provided outside this chapter for the department, division,
752     office, or entity, the chief executive officer of the department, division, office, or entity or the
753     chief executive officer's designee.
754          (58) "Procurement unit":
755          (a) means:
756          (i) a legislative procurement unit;
757          (ii) an executive branch procurement unit;
758          (iii) a judicial procurement unit;
759          (iv) an educational procurement unit;
760          (v) the Utah Communications Authority, established in Section 63H-7a-201;
761          (vi) a local government procurement unit;
762          (vii) a local district;
763          (viii) a special service district;
764          (ix) a local building authority;
765          (x) a conservation district; and
766          (xi) a public corporation; and
767          (b) except for a project entity, to the extent that a project entity is subject to this chapter
768     as described in Section 11-13-316, does not include a political subdivision created under Title
769     11, Chapter 13, Interlocal Cooperation Act.

770          (59) "Professional service" means labor, effort, or work that requires specialized
771     knowledge, expertise, and discretion, including labor, effort, or work in the field of:
772          (a) accounting;
773          (b) administrative law judge service;
774          (c) architecture;
775          (d) construction design and management;
776          (e) engineering;
777          (f) financial services;
778          (g) information technology;
779          (h) the law;
780          (i) medicine;
781          (j) psychiatry; or
782          (k) underwriting.
783          (60) "Protest officer" means:
784          (a) for the division or an independent procurement unit:
785          (i) the procurement official;
786          (ii) the procurement official's designee who is an employee of the procurement unit; or
787          (iii) a person designated by rule made by the rulemaking authority; or
788          (b) for a procurement unit other than an independent procurement unit, the chief
789     procurement officer or the chief procurement officer's designee who is an employee of the
790     division .
791          (61) "Project entity" means the same as that term is defined in Section 11-13-103.
792          [(61)] (62) "Public corporation" means the same as that term is defined in Section
793     63E-1-102.
794          [(62)] (63) "Public entity" means the state or any other government entity within the
795     state that expends public funds.
796          [(63)] (64) "Public facility" means a building, structure, infrastructure, improvement,
797     or other facility of a public entity.
798          [(64)] (65) "Public funds" means money, regardless of its source, including from the
799     federal government, that is owned or held by a procurement unit.
800          [(65)] (66) "Public transit district" means a public transit district organized under Title

801     17B, Chapter 2a, Part 8, Public Transit District Act.
802          [(66)] (67) "Public-private partnership" means an arrangement or agreement, occurring
803     on or after January 1, 2017, between a procurement unit and one or more contractors to provide
804     for a public need through the development or operation of a project in which the contractor or
805     contractors share with the procurement unit the responsibility or risk of developing, owning,
806     maintaining, financing, or operating the project.
807          [(67)] (68) "Qualified vendor" means a vendor who:
808          (a) is responsible; and
809          (b) submits a responsive statement of qualifications under Section 63G-6a-410 that
810     meets the minimum mandatory requirements, evaluation criteria, and any applicable score
811     thresholds set forth in the request for statement of qualifications.
812          [(68)] (69) "Real property" means land and any building, fixture, improvement,
813     appurtenance, structure, or other development that is permanently affixed to land.
814          [(69)] (70) "Request for information" means a nonbinding process through which a
815     procurement unit requests information relating to a procurement item.
816          [(70)] (71) "Request for proposals" means a document used to solicit proposals to
817     provide a procurement item to a procurement unit, including all other documents that are
818     attached to that document or incorporated in that document by reference.
819          [(71)] (72) "Request for proposals process" means the procurement process described
820     in Part 7, Request for Proposals.
821          [(72)] (73) "Request for statement of qualifications" means a document used to solicit
822     information about the qualifications of a person interested in responding to a potential
823     procurement, including all other documents attached to that document or incorporated in that
824     document by reference.
825          [(73)] (74) "Requirements contract" means a contract:
826          (a) under which a contractor agrees to provide a procurement unit's entire requirements
827     for certain procurement items at prices specified in the contract during the contract period; and
828          (b) that:
829          (i) does not require a minimum purchase amount; or
830          (ii) provides a maximum purchase limit.
831          [(74)] (75) "Responsible" means being capable, in all respects, of:

832          (a) meeting all the requirements of a solicitation; and
833          (b) fully performing all the requirements of the contract resulting from the solicitation,
834     including being financially solvent with sufficient financial resources to perform the contract.
835          [(75)] (76) "Responsive" means conforming in all material respects to the requirements
836     of a solicitation.
837          [(76)] (77) "Rule" includes a policy or regulation adopted by the rulemaking authority,
838     if adopting a policy or regulation is the method the rulemaking authority uses to adopt
839     provisions that govern the applicable procurement unit.
840          [(77)] (78) "Rulemaking authority" means:
841          (a) for a legislative procurement unit, the Legislative Management Committee;
842          (b) for a judicial procurement unit, the Judicial Council;
843          (c) (i) only to the extent of the procurement authority expressly granted to the
844     procurement unit by statute:
845          (A) for the building board or the facilities division, the building board;
846          (B) for the Office of the Attorney General, the attorney general;
847          (C) for the Department of Transportation created in Section 72-1-201, the executive
848     director of the Department of Transportation; and
849          (D) for any other executive branch department, division, office, or entity that has
850     statutory procurement authority outside this chapter, the governing authority of the department,
851     division, office, or entity; and
852          (ii) for each other executive branch procurement unit, the board;
853          (d) for a local government procurement unit:
854          (i) the governing body of the local government unit; or
855          (ii) an individual or body designated by the local government procurement unit;
856          (e) for a school district or a public school, the board, except to the extent of a school
857     district's own nonadministrative rules that do not conflict with the provisions of this chapter;
858          (f) for a state institution of higher education, the Utah Board of Higher Education;
859          (g) for the State Board of Education or the Utah Schools for the Deaf and the Blind, the
860     State Board of Education;
861          (h) for a public transit district, the chief executive of the public transit district;
862          (i) for a local district other than a public transit district or for a special service district,

863     the board, except to the extent that the board of trustees of the local district or the governing
864     body of the special service district makes its own rules:
865          (i) with respect to a subject addressed by board rules; or
866          (ii) that are in addition to board rules;
867          (j) for the Utah Educational Savings Plan, created in Section 53B-8a-103, the Utah
868     Board of Higher Education;
869          (k) for the School and Institutional Trust Lands Administration, created in Section
870     53C-1-201, the School and Institutional Trust Lands Board of Trustees;
871          (l) for the School and Institutional Trust Fund Office, created in Section 53D-1-201,
872     the School and Institutional Trust Fund Board of Trustees;
873          (m) for the Utah Communications Authority, established in Section 63H-7a-201, the
874     Utah Communications Authority board, created in Section 63H-7a-203; or
875          (n) for any other procurement unit, the board.
876          [(78)] (79) "Service":
877          (a) means labor, effort, or work to produce a result that is beneficial to a procurement
878     unit;
879          (b) includes a professional service; and
880          (c) does not include labor, effort, or work provided under an employment agreement or
881     a collective bargaining agreement.
882          [(79)] (80) "Small purchase process" means the procurement process described in
883     Section 63G-6a-506.
884          [(80)] (81) "Sole source contract" means a contract resulting from a sole source
885     procurement.
886          [(81)] (82) "Sole source procurement" means a procurement without competition
887     pursuant to a determination under Subsection 63G-6a-802(1)(a) that there is only one source
888     for the procurement item.
889          [(82)] (83) "Solicitation" means an invitation for bids, request for proposals, or request
890     for statement of qualifications.
891          [(83)] (84) "Solicitation response" means:
892          (a) a bid submitted in response to an invitation for bids;
893          (b) a proposal submitted in response to a request for proposals; or

894          (c) a statement of qualifications submitted in response to a request for statement of
895     qualifications.
896          [(84)] (85) "Special service district" means the same as that term is defined in Section
897     17D-1-102.
898          [(85)] (86) "Specification" means any description of the physical or functional
899     characteristics or of the nature of a procurement item included in an invitation for bids or a
900     request for proposals, or otherwise specified or agreed to by a procurement unit, including a
901     description of:
902          (a) a requirement for inspecting or testing a procurement item; or
903          (b) preparing a procurement item for delivery.
904          [(86)] (87) "Standard procurement process" means:
905          (a) the bidding process;
906          (b) the request for proposals process;
907          (c) the approved vendor list process;
908          (d) the small purchase process; or
909          (e) the design professional procurement process.
910          [(87)] (88) "State cooperative contract" means a contract awarded by the division for
911     and in behalf of all public entities.
912          [(88)] (89) "Statement of qualifications" means a written statement submitted to a
913     procurement unit in response to a request for statement of qualifications.
914          [(89)] (90) "Subcontractor":
915          (a) means a person under contract to perform part of a contractual obligation under the
916     control of the contractor, whether the person's contract is with the contractor directly or with
917     another person who is under contract to perform part of a contractual obligation under the
918     control of the contractor; and
919          (b) includes a supplier, distributor, or other vendor that furnishes supplies or services
920     to a contractor.
921          [(90)] (91) "Technology" means the same as "information technology," as defined in
922     Section 63A-16-102.
923          [(91)] (92) "Tie bid" means that the lowest responsive bids of responsible bidders are
924     identical in price.

925          [(92)] (93) "Time and materials contract" means a contract under which the contractor
926     is paid:
927          (a) the actual cost of direct labor at specified hourly rates;
928          (b) the actual cost of materials and equipment usage; and
929          (c) an additional amount, expressly described in the contract, to cover overhead and
930     profit, that is not based on a percentage of the cost to the contractor.
931          [(93)] (94) "Transitional costs":
932          (a) means the costs of changing:
933          (i) from an existing provider of a procurement item to another provider of that
934     procurement item; or
935          (ii) from an existing type of procurement item to another type;
936          (b) includes:
937          (i) training costs;
938          (ii) conversion costs;
939          (iii) compatibility costs;
940          (iv) costs associated with system downtime;
941          (v) disruption of service costs;
942          (vi) staff time necessary to implement the change;
943          (vii) installation costs; and
944          (viii) ancillary software, hardware, equipment, or construction costs; and
945          (c) does not include:
946          (i) the costs of preparing for or engaging in a procurement process; or
947          (ii) contract negotiation or drafting costs.
948          [(94)] (95) "Vendor":
949          (a) means a person who is seeking to enter into a contract with a procurement unit to
950     provide a procurement item; and
951          (b) includes:
952          (i) a bidder;
953          (ii) an offeror;
954          (iii) an approved vendor;
955          (iv) a design professional; and

956          (v) a person who submits an unsolicited proposal under Section 63G-6a-712.
957          Section 7. Section 63G-6a-107.5 is enacted to read:
958          63G-6a-107.5. Application of chapter to project entities.
959          This chapter applies to a project entity to the extent described in Section 11-13-316.