S.B. 119

1

TRANSPORTATION OVERHEAD RATE LIMITATIONS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: John P. Holmgren
5 AN ACT RELATING TO STATE AFFAIRS IN GENERAL; ALLOWING THE DEPARTMENT
6 OF TRANSPORTATION TO MAKE CERTAIN RULES LIMITING CERTAIN RATES
7 THAT MAY BE CHARGED UNDER CONTRACTS; PROVIDING FOR AUDITS;
8 REQUIRING ACCOUNTING AND AUDITING TO COMPLY WITH CERTAIN
9 PROVISIONS; AND PROVIDING AN EFFECTIVE DATE.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 ENACTS:
12 63-49-23, Utah Code Annotated 1953
13 Be it enacted by the Legislature of the state of Utah:
14 Section 1. Section 63-49-23 is enacted to read:
15 63-49-23. Rulemaking for cost limitations on contracts -- Auditing for compliance
16 -- Federal accounting and audit standards.
17 (1) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
18 department may make rules for determining the allowability of costs included in contracts entered
19 into by the department for engineering and design services. The rules shall include limitations on
20 the rates for overhead costs, indirect costs, labor rates, incentive compensation, fixed fee amounts,
21 and expense reimbursement. The rules shall comply with the provisions of 23 U.S.C. Section 112.
22 (2) The department may require a provider of engineering or design services to submit
23 annual audits or to submit to audits to determine compliance with the rules made under Subsection
24 (1).
25 (3) All engineering and design contracts and subcontracts entered into by the department
26 shall be accounted for and audited in compliance with the Federal Acquisition Regulations System,
27 48 C.F.R. Part 31.

1 Section 2. Effective date.
2 If approved by two-thirds of all the members elected to each house, this act takes effect
3 upon approval by the governor, or the day following the constitutional time limit of Utah
4 Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto, the
5 date of veto override.




Legislative Review Note
as of 1-9-97 1:43 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

- 2 -